The PEG on Pets at Home (LON:PETS) is really low at 0.22. The forecast EPS growth for the period ending MAR 2015 is 556%. Bring on the results announcement! And the growth won't stop there. Guess what? I'm a holder.
I like the company.
Being integrated with a vet means you go there at least once a year - and there are synergy effects there.
Selling things (pets) that poo and smell mean you wont get sainsbury selling them
Selling big things like 18kg bags of dog food also helps create a moat as your local sainsbury wont sell that.
They have a reasonably good online site and delivery service
(disclosure - we have 2 chocolate labs)
However the per at J Sainsbury (LON:SBRY) is 12.4 - 25% below 16.8, and yields 3.93 vs 2.2.
I would not expect such a divergence in the long term.
Whether sbry is cheap, or pets is expensive (or vice versa) I am not sure.
I think the company is listed under the wrong industry - 'Speciality Retailers', 'Food and Drug retailing' seems a better fit, and this probably the effect of making pets look better in some scores.
