China-based pet products manufacturer Dogness Corporation (DOGZ) has attracted significant investor attention due to its potential to benefit from the growing demand for pet-tech items that improve health and quality of life. But given the company’s poor profitability and inability to generate robust cash flow, is it worth betting on the stock now? Let's discuss.Headquartered in Dongguan, China, Dogness (International) Corporation (DOGZ) designs, manufactures and sells fashionable dog and cat products. The company assures industry-leading quality through its completely integrated vertical supply chain and world-class research and development capabilities.
By strategically allocating resources to manufacture and promote relatively high intelligent pet products within the integrated smart pet ecosystem, DOGZ’s stock has witnessed strong price performance over the past months. The stock has gained 36.7% over the past month and 106.6% year-to-date.
However, the company's negative profit margins and higher-than-industry-average valuation could make investors nervous and cause its share price to retreat in the near term.