The Edge Singapore did a valuation of pet-themed stocks recently (Issue 1122, Jan 29) and we have selected the highest-scoring pet-themed stock for our 2024 portfolio. The scoring table includes various financial indicators and metrics, the first of which is historical performance. The second metric analyses its price growth versus growth in weighted value over multiple periods. The weighted value growth comprises revenue, net profits, OCF (operating cash flow) and FCF (free cash flow) in order of increasing weights. A company that has a price growth less than its value growth is deemed undervalued and the converse applies. The third metric studies the profitability of the company, which focuses on margins, while the fourth metric is yields and relative valuation to determine its financial attractiveness. The fifth metric examines the financial safety of a company and the last metric looks at analyst sentiment on the stock. Overall, we think these metrics are a holistic reflection of a pet company’s fundamentals.
This pet insurer and medical care provider has the largest market share in Japan
Tokyo-listed Anicom Holdings is the largest pet insurance company in Japan. Besides its main business of providing non-life pet insurance in its home market, its other businesses include animal hospital support operations, clinical research on animal medical care and pet-related internet services. Anicom currently trades at JPY598 ($5.35) per share, giving it a market capitalisation of JPY49 billion.
