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Wag! Group Co. (NASDAQ:PET) Earnings Report Highlights
Mar 24, 2025 2:06 PM - Alex Lavoie
Image credit: Google Images
- Earnings per Share (EPS) matched the estimated -$0.08, with revenue aligning with the forecast at $15.8 million.
- PET's price-to-sales ratio of 0.13 suggests the stock might be undervalued, indicating potential for growth.
- Challenges in generating cash flow and a high debt-to-equity ratio of 8.41 highlight areas for improvement.
Wag! Group Co. (NASDAQ:PET) is a prominent platform catering to the service, product, and wellness needs of modern U.S. pet households. On March 24, 2025, PET reported its earnings before the market opened, revealing an earnings per share (EPS) of -$0.08, which matched the estimated EPS. The company's revenue also aligned perfectly with the estimated $15.8 million.
During the Q4 2024 earnings conference call, key figures such as CEO Garrett Smallwood and CFO Alec Davidian discussed the company's performance. Despite a negative price-to-earnings (P/E) ratio of -0.59, PET's price-to-sales ratio of 0.13 suggests the stock is undervalued compared to its sales. This indicates potential for growth if the company can improve its financial health.
PET's enterprise value to sales ratio is 0.28, further pointing to a potentially undervalued position. However, the enterprise value to operating cash flow ratio of -3.02 highlights challenges in generating cash flow from operations. This is a critical area for the company to address to improve its financial standing.
The company's earnings yield is negative at -1.69%, emphasizing current financial difficulties. Additionally, PET's debt-to-equity ratio is high at 8.41, indicating a significant reliance on debt financing. This could pose risks if the company cannot manage its debt effectively.
Lastly, PET's current ratio of 0.62 suggests potential liquidity issues, as it may struggle to cover short-term liabilities with current assets. CEO Garrett Smallwood has expressed confidence in the company's strategic plan, focusing on strengthening the balance sheet and reducing debt to enhance shareholder value.
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