WOOF: Veterinary Value

03/03/2016 7:00 am EST


James Oberweis

President, Oberweis Asset Management, Inc.

Our latest featured small-cap recommendation is a leading national animal healthcare company operating in the US and Canada, notes Jim Oberweis, Jr., money manager and editor of The Oberweis Report.

VCA (WOOF) provides veterinary services and diagnostic testing to support veterinary care and sells diagnostic imaging equipment and other medical technology products to the veterinary market.

The company operates 682 animal hospitals; animal hospital revenue accounted for 79% of 2015 sales.

Its animal hospitals offer a full range of general medical and surgical services for companion animals, as well as specialized treatments including oncology, ophthalmology, dermatology, and cardiology.

VCA also provides pharmaceutical products and performs a variety of pet wellness programs including health examinations, diagnostic testing, routine vaccinations, spaying, neutering, and dental care.

The company’s network of animal hospitals is supported by nearly 3,000 veterinarians and had approximately 9.8 million patient visits in 2015.

VCA also operates a network of veterinary diagnostic laboratories and provides sophisticated testing services used by veterinarians in the detection and diagnosis of diseases.

In the company’s latest reported fourth quarter, sales increased approximately 11% to $533.7 million from $479.9 million in the fourth quarter of last year.

VCA reported earnings per share of $0.50 in the latest reported fourth quarter versus $0.37 in the same quarter of last year.

Clients of Oberweis Asset Management own approximately 60,200 shares. These shares may be appropriate for risk-oriented investors.

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