Stock in Focus: Patterson Companies, Inc. (PDCO)

Company Profile:

Patterson Companies, Inc. distributes and sells dental and animal health products in the United States, the United Kingdom, and Canada. It operates through Dental and Animal Health segments. The company’s Dental segment offers consumable products, such as infection control, restorative materials, hand instruments, and sterilization products; basic and advanced technology dental equipment; patient education systems; and office forms and stationery. This segment also develops and sells technology solutions, such as practice management software and e-commerce solutions. In addition, it offers a range of related services, including software and design, maintenance and repair, and equipment financing services. The company’s Animal Health segment distributes animal health products, such as pharmaceuticals, vaccines, parasiticides, diagnostics, prescription and non-prescription diets, nutritionals, consumable supplies, equipment, and software to veterinarians, producers, and retailers under the Aspen, First Companion, and Patterson Veterinary brands. This segment also offers a range of value-added services to animal health customers. The company was formerly known as Patterson Dental Company and changed its name to Patterson Companies, Inc. in June 2004. Patterson Companies, Inc. was founded in 1877 and is headquartered in St. Paul, Minnesota.

Recent News:

The company reported consolidated net sales of approximately $1.4 billion in its fiscal third quarter ended January 26, 2019, an increase of 1.6 percent compared to the same period last year. Reported net income attributable to the company for the third quarter of fiscal year 2019 was $31.2 million, or $0.33 per diluted share, compared to $109.0 million, or $1.18 per diluted share, in last year’s fiscal third quarter.

The Patterson Foundation recently announced $166,034 in grant funding to nine nonprofit organizations in the oral and animal health fields. Patterson Foundation focuses its grants on programs that provide dental care to disadvantaged communities and assistance dogs to veterans and people with disabilities.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

PDCO’s strengths can be seen in its better growth, better profitability and strong efficiency compared with its peers. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator, the MACD is trying to cross back up and the RSI stands at 58.00 with positive bias. We rate Patterson Companies, Inc. (PDCO) a STRONG BUY.