SWOT Analysis Of Petsmart, Inc.

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PetSmart Inc. Financial Research
Introduction
PetSmart, Inc. is a company that provides both products and services for pets. The first spark of interest for investing in this company’s stock begins with the gradual and steady profit over the the past few years. Consider the following data, at the end of the fiscal year of 2014 the recorded revenues were $6,916.6 million, which was an increase of 2.3% over the fiscal year 2013 (PetSmart, Inc. SWOT Analysis, 2015, pp. 3). In addition to revenues of the fiscal year of 2014, the operating profit of PetSmart was around $693.3 million, and compared to fiscal year 2013, this was an increase of 6.5%; the net profit for 2014 was at $419.5 million, which was an increase of 7.7% over 2013 (PetSmart, …show more content…

as a good opportunity is considering its partnerships. Partnerships means networking and connections for growth. For example, they have 844 veterinary hospitals due to its partnership with Medical Management International and others that are in Canada (PetSmart, Inc. SWOT Analysis, 2015, pp. 19). Since PetSmart Inc. is a one stop shop that essentially has everything a pet owner needs in one spot it makes them more attractive than larger retailers. In addition, any services they provide they try to focus and provide the best and lead in all pet specialties. For example, their professional grooming services, is one of the services that gives the groomers an additional amount of grooming skills and are taught to use safe and gentle …show more content…

At that time before tax increased to 9.3% sales, the earnings per share were at $4.02 (PetSmart, Inc. SWOT Analysis, 2015, pp. 25). Let’s consider numbers that lead to the physical growth of the actual company. For example, they generated $615 million in operation cash flow, and used $147 million to spend on capital expenditures. This led to adding 55 net new stores and 3 new PetsHotels (pp. 25). What this means is that PetSmart Inc. has a strong amount of cash generation. They were able to return $54 million in quarterly dividends to the shareholders and they repurchased $464 million in common stock. The Board of Directors approved $535 million share repurchase program and it increased PetSmart’s Inc. quarterly dividend by 18% to 19.5 cents per quarter (pp. 25). This is good news to shareholders and to a financial manager’s client. It reinforces that any return excess free cash flow will go the

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