During the second quarter, Jerome Dodson (Trades, Portfolio) purchased a 440,000-share stake in Patterson Companies Inc. The trade had a 3.08% impact on Dodson’s portfolio.
Patterson Companies Inc. (PDCO) is a specialty distributor of dental and veterinary supplies across North America and the U.K. For the dental supply segment of its business, the company estimates that it has approximately 33% of the market share when direct distribution by manufacturers is included, within a $7.5 billion dollar industry. For its veterinary supply segment, Patterson Companies owns approximately 23% of a $14 billion market. The animal health market is a mix of the production animal market, which primarily consists of beef and dairy cattle, poultry and swine, and other food-producing animals, and the companion animal market, which primarily consists of dogs, cats and horses. As of April 30, the company has approximately 7,000 full-time employees.
Patterson Companies has a market cap of $4.92 billion, a P/E ratio of 25.69, an enterprise value of $5.84 billion, and a P/B ratio of 3.40.
Discontinued operations
In August 2015, Patterson Companies announced that it had sold Patterson Medical Holdings Inc., a wholly owned subsidiary responsible for rehabilitation supply business known as Patterson Medical, to Madison Dearborn Partners for $717 million in cash.
According to GuruFocus, Patterson Companies has a 6/10 financial strength rating with a 0.13 cash to debt ratio, ranking it below 84% of the companies in the global medical distribution industry.
Patterson Companies has one good sign according to GuruFocus, which may have influenced Jerome Dodson (Trades, Portfolio) to purchase. The company has reported solid, predictable earnings growth per share over the previous 10 years, with an average rate of 11.3% annually.
Disclosure: Author does not own any shares of this company.
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