| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 4.78 | -99 |
| Graham Formula | n/a |
zooplus SE is a leading European online retailer specializing in pet products, headquartered in Munich, Germany. Founded in 1999, the company offers a vast selection of over 8,000 pet food and accessory products for dogs, cats, small animals, birds, aquariums, and horses. Its portfolio includes well-known brands such as Concept for Life, Wolf of Wilderness, Purizon, and Smilla, catering to diverse pet care needs. zooplus operates primarily in Germany but has expanded internationally, leveraging its e-commerce platform to serve pet owners across Europe. The company's business model focuses on convenience, competitive pricing, and a broad product range, positioning it as a key player in the growing online pet supplies market. With the pet care industry experiencing steady growth due to increasing pet ownership and premiumization trends, zooplus is well-placed to capitalize on this expanding sector. The company's strong digital presence and logistics capabilities further enhance its market position.
zooplus SE presents a mixed investment case. On the positive side, the company operates in the resilient and growing pet care industry, benefiting from increasing pet ownership and e-commerce adoption. Its strong brand portfolio and extensive product range provide a competitive edge. However, the company reported a net loss of €15.85 million in FY 2021, with negative diluted EPS of €2.22, raising concerns about profitability. While revenue was robust at €2.09 billion, operating cash flow of €91.4 million suggests some operational efficiency. The lack of dividends may deter income-focused investors. The negative beta (-0.359) indicates low correlation with broader market movements, which could appeal to risk-averse investors. Overall, zooplus's growth potential in the online pet retail space is promising, but profitability challenges and competitive pressures warrant caution.
zooplus SE competes in the highly fragmented online pet supplies market, where differentiation through product range, pricing, and customer experience is critical. The company's primary competitive advantage lies in its extensive product catalog and strong private-label brands, which enhance margins and customer loyalty. Its e-commerce-first approach allows for scalability across European markets without the overhead of physical stores. However, zooplus faces intense competition from both pure-play online retailers and omnichannel players. Amazon's vast logistics network and aggressive pricing pose a significant threat, while traditional pet retailers like Fressnapf are expanding their online presence. zooplus's ability to maintain competitive pricing while improving profitability will be key to sustaining its market position. The company's negative net income in FY 2021 highlights the challenges of balancing growth with profitability in a competitive landscape. Strengthening its supply chain and leveraging data analytics for personalized marketing could further enhance its competitive positioning.