Pet Medications Online

Petmed Express Dividend Stock Analysis

Company Overview

PetMed Express ( PETS ) does business as 1-800-PetMeds, an online/mail order pet pharmacy. The Company markets prescription and non-prescription pet medications, and other health products for dogs, cats, and horses direct to the consumer. The Company markets its products through national television, online, and direct mail/print advertising campaigns.

Revenue growth over the past 5 years has been relatively strong, considering the size (market cap of 230 million) of the company and the state of the economy. Still, sales fell by 2.8% in 2011, and as of Q1 2012, they are about 1.1% below Q1 2011.

Though the past few years have been rough, if you look at the 10 year period of 2002-2011, sales have grown by an astounding average of 24.3% a year.

EPS has grown by an average of 41.2% a year for the past decade, which is very impressive. This is the result mostly of increased sales and earnings – over this time period outstanding shares have risen by about 3.5% a year.

Analysts expect PETS to earn only $0.76 in 2012, a decrease of about 17%. Then, in 2013, earnings are expected to increase slightly to $0.87.

Free cash flow per diluted share has also seen a steady rise, from $0 in 2002 to a solid $1.30 in 2011. Although I don't usually like to see companies with any years of negative free cash flow, (which PETS had in 2003), the strong growth and relatively small size of this young company allow me to cut it some slack.

Margins have been showing quite an uptrend. Gross margin has dipped some, from the low 40's in the early aughts to about 36% now. However, more than balancing the drop in gross margin has been a steady rise in both operating and net, with operating growing from 2% to 17% and net from 2% to 10%. All margins dipped in 2011, and this may be something to keep an eye on – declining margins could signal a faltering company .

PETS has only paid a dividend since 2010, so it's to immature for most serious dividend investors. But that doesn't mean it's not a worthwhile investment – a journey of one thousand miles begins with 1 step – or so I've heard.

After the first year of the dividend, they increased it a whopping 60%, from $0.30 to $0.48. The last quarterly raise was in back in August of 2010, when the dividend was increased from $0.10 a quarter to $0.125, for a yearly payout of $0.50.

How to Buy Prescription Only Pets Medicine Online

Many of us now make many of our purchases online. Simple price checking and comparisons mean we can benefit from great savings without traipsing around the shops. Though many pet owners now buy non-prescription products such as standard flea control and supplements from online pet med outlets rather than from the local vet, the same is not true for prescription medicines.

However buying prescription pet medications is straightforward and can save you a great deal of money. On receipt of the email or faxed version of the prescription your order should be dispatched. Take care to follow the instructions on each site carefully as they do differ somewhat.

That is all there is to it. Rather than sticking with your vet and their uncompetitive prices, shop around and take advantage of online pet medicine retailers, even for your pets prescription medication.

For information and sources for a wide range of pets medicines , both prescription and non-prescription, including heartworm medicine and flea control visit the Online Pet Meds site.

Pills for pets, the A to Z guide to drugs and medications for your animal companion

The Merck/Merial Manual of Pet Health

Kiplinger's Personal Finance

Plunkett's Retail Industry Almanac 2008

Consumer Reports January-December 2003