Pet Valu Holding (TSE: PET): A 40% historical EPS compounder (20% forward base case) available at less than 17 times forward earnings
Current Price: ~$28 | 20-month Target Price: $46 (CAD), Dividends ~$1, TSR: 68% | TSE: PET Join the mailing list for future blogs: Click here Model: Available to download here ( https://docs.google.com/spreadsheets/d/11TebprI-6lYI4yfuTR7p-f1FGQ7Hw7Z1/edit?usp=drive_link&ouid=100501050702536154043&rtpof=true&sd=true ) Company & Industry Overview Pet Valu Holdings was founded in 1976, and acquired by Roark Capital in 2009. Pet Valu Holdings is a franchise pet retail omnichannel operation (unique model), where approximately 72% of all stores are franchise-owned. Pet value is usually the co-leaser or sub-leaser for the units that house these stores. Online sales are shared between stores. Pet Valu most importantly acts as a wholesale arm to these stores, which in turn pay ~6% of sales back to Pet Valu. The Canadian pet industry is a recession-resilient above GDP growth market . This means in a downward economic cycle Pet Valu kept (volume and price each) positive (unl