Petco Health and Wellness Compa — Earnings Quality Grade F
WOOF · Consumer Cyclical
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 3 days, change +0 days YoY
AR growth 13.3% exceeds revenue growth -2.5%
Revenue -2.5%, CFFO 76.8%. Cash follows revenue
Expense Quality
Inventory -9.7% vs COGS -3.6%. Normal
CapEx growth -0.7% vs revenue -2.5%. Normal
SG&A/Gross Profit = 94.8%, exceeds 70%
Gross margin 38.7%, change +0.7pp. Stable
Cash Flow Quality
CFFO far exceeds NI (ratio 34.6x). Non-cash charges depressing profits
FCF $0.2B, FCF/NI = 20.62
Accruals ratio = -5.9%. Low accruals
Cash $0.3B covers only 9% of debt $2.9B
Balance Sheet Health
Goodwill+Intangibles $2.0B = 172% of equity. Over 50%
Debt/EBITDA = 8.9x (>4x). Interest coverage = 0.9x (<2x). Financial stress
Other assets 8.4% vs revenue -2.5%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 0% YoY. Normal
Manipulation Score
M-Score = -2.62 (< -2.22). Unlikely manipulator
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25