CENTRAL GARDEN & PET CO (CENT) Stock Fundamental Analysis
USA - NASDAQ:CENT - US1535271068 - Common Stock
34.87 USD
-1.07 (-2.98%)
34.871 USD
0 (0%)
Overall CENT gets a fundamental rating of 4 out of 10. We evaluated CENT against 12 industry peers in the Household Products industry. The financial health of CENT is average, but there are quite some concerns on its profitability. CENT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CENT had positive earnings in the past year.
In the past year CENT had a positive cash flow from operations.
In the past 5 years CENT has always been profitable.
Of the past 5 years CENT 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CENT (3.79%) is worse than 83.33% of its industry peers.
With a Return On Equity value of 8.72%, CENT is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
The Return On Invested Capital of CENT (5.82%) is worse than 83.33% of its industry peers.
CENT had an Average Return On Invested Capital over the past 3 years of 6.29%. This is significantly below the industry average of 15.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.79% | ||
| ROE | 8.72% | ||
| ROIC | 5.82% |
ROA(3y)3.8%
ROA(5y)4.28%
ROE(3y)9%
ROE(5y)10.13%
ROIC(3y)6.29%
ROIC(5y)6.91%
1.3 Margins
CENT has a Profit Margin of 4.44%. This is amonst the worse of the industry: CENT underperforms 83.33% of its industry peers.
In the last couple of years the Profit Margin of CENT has declined.
CENT's Operating Margin of 7.48% is on the low side compared to the rest of the industry. CENT is outperformed by 83.33% of its industry peers.
CENT's Operating Margin has been stable in the last couple of years.
CENT has a Gross Margin of 31.23%. This is in the lower half of the industry: CENT underperforms 75.00% of its industry peers.
In the last couple of years the Gross Margin of CENT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.48% | ||
| PM (TTM) | 4.44% | ||
| GM | 31.23% |
OM growth 3Y-4.21%
OM growth 5Y1.06%
PM growth 3Y-9.76%
PM growth 5Y-2.83%
GM growth 3Y0.69%
GM growth 5Y0.31%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CENT is destroying value.
The number of shares outstanding for CENT has been increased compared to 1 year ago.
Compared to 5 years ago, CENT has more shares outstanding
The debt/assets ratio for CENT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.58 indicates that CENT is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CENT (2.58) is comparable to the rest of the industry.
The Debt to FCF ratio of CENT is 3.82, which is a good value as it means it would take CENT, 3.82 years of fcf income to pay off all of its debts.
CENT's Debt to FCF ratio of 3.82 is on the low side compared to the rest of the industry. CENT is outperformed by 66.67% of its industry peers.
A Debt/Equity ratio of 0.75 indicates that CENT is somewhat dependend on debt financing.
CENT's Debt to Equity ratio of 0.75 is in line compared to the rest of the industry. CENT outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 3.82 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.83
WACC6.99%
2.3 Liquidity
A Current Ratio of 3.56 indicates that CENT has no problem at all paying its short term obligations.
CENT's Current ratio of 3.56 is amongst the best of the industry. CENT outperforms 91.67% of its industry peers.
CENT has a Quick Ratio of 2.28. This indicates that CENT is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of CENT (2.28) is better than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.56 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.97% over the past year.
CENT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.12% yearly.
Looking at the last year, CENT shows a decrease in Revenue. The Revenue has decreased by -4.90% in the last year.
CENT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.08% yearly.
EPS 1Y (TTM)10.97%
EPS 3Y-9.84%
EPS 5Y6.12%
EPS Q2Q%18.18%
Revenue 1Y (TTM)-4.9%
Revenue growth 3Y-1.05%
Revenue growth 5Y6.08%
Sales Q2Q%-3.56%
3.2 Future
Based on estimates for the next years, CENT will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.77% on average per year.
The Revenue is expected to grow by 1.84% on average over the next years.
EPS Next Y24.96%
EPS Next 2Y13.97%
EPS Next 3Y12%
EPS Next 5Y11.77%
Revenue Next Year-4.03%
Revenue Next 2Y-1.96%
Revenue Next 3Y-0.44%
Revenue Next 5Y1.84%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.26, which indicates a correct valuation of CENT.
75.00% of the companies in the same industry are more expensive than CENT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.38, CENT is valued rather cheaply.
A Price/Forward Earnings ratio of 12.55 indicates a correct valuation of CENT.
Based on the Price/Forward Earnings ratio, CENT is valued a bit cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, CENT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.26 | ||
| Fwd PE | 12.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CENT indicates a rather cheap valuation: CENT is cheaper than 83.33% of the companies listed in the same industry.
CENT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CENT is cheaper than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.02 | ||
| EV/EBITDA | 8.55 |
4.3 Compensation for Growth
CENT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.53
PEG (5Y)2.17
EPS Next 2Y13.97%
EPS Next 3Y12%
5. Dividend
5.1 Amount
CENT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
34.87
-1.07 (-2.98%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners112.58%
Inst Owner Change-6.92%
Ins Owners15.76%
Ins Owner Change-11.64%
Market Cap2.19B
Analysts78.46
Price Target45.29 (29.88%)
Short Float %11.3%
Short Ratio13.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.42%
Min EPS beat(2)7.2%
Max EPS beat(2)9.64%
EPS beat(4)4
Avg EPS beat(4)546.29%
Min EPS beat(4)7.2%
Max EPS beat(4)2158.82%
EPS beat(8)7
Avg EPS beat(8)286.47%
EPS beat(12)9
Avg EPS beat(12)129.69%
EPS beat(16)13
Avg EPS beat(16)194.5%
Revenue beat(2)0
Avg Revenue beat(2)-6.04%
Min Revenue beat(2)-7.03%
Max Revenue beat(2)-5.05%
Revenue beat(4)1
Avg Revenue beat(4)-4.23%
Min Revenue beat(4)-7.06%
Max Revenue beat(4)2.2%
Revenue beat(8)3
Avg Revenue beat(8)-2.45%
Revenue beat(12)3
Avg Revenue beat(12)-2.26%
Revenue beat(16)5
Avg Revenue beat(16)-1.45%
PT rev (1m)2.3%
PT rev (3m)2.3%
EPS NQ rev (1m)-1.01%
EPS NQ rev (3m)-75.44%
EPS NY rev (1m)7.51%
EPS NY rev (3m)8.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.76%
Revenue NY rev (1m)-1.37%
Revenue NY rev (3m)-1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.26 | ||
| Fwd PE | 12.55 | ||
| P/S | 0.7 | ||
| P/FCF | 7.02 | ||
| P/OCF | 6.21 | ||
| P/B | 1.38 | ||
| P/tB | 3.79 | ||
| EV/EBITDA | 8.55 |
EPS(TTM)2.63
EY7.54%
EPS(NY)2.78
Fwd EY7.97%
FCF(TTM)4.97
FCFY14.24%
OCF(TTM)5.61
OCFY16.1%
SpS49.63
BVpS25.26
TBVpS9.2
PEG (NY)0.53
PEG (5Y)2.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.79% | ||
| ROE | 8.72% | ||
| ROCE | 7.54% | ||
| ROIC | 5.82% | ||
| ROICexc | 7.56% | ||
| ROICexgc | 13.12% | ||
| OM | 7.48% | ||
| PM (TTM) | 4.44% | ||
| GM | 31.23% | ||
| FCFM | 10.01% |
ROA(3y)3.8%
ROA(5y)4.28%
ROE(3y)9%
ROE(5y)10.13%
ROIC(3y)6.29%
ROIC(5y)6.91%
ROICexc(3y)7.48%
ROICexc(5y)8.77%
ROICexgc(3y)13.12%
ROICexgc(5y)13.98%
ROCE(3y)8.15%
ROCE(5y)8.96%
ROICexcg growth 3Y3.99%
ROICexcg growth 5Y-1.7%
ROICexc growth 3Y-6.86%
ROICexc growth 5Y-5%
OM growth 3Y-4.21%
OM growth 5Y1.06%
PM growth 3Y-9.76%
PM growth 5Y-2.83%
GM growth 3Y0.69%
GM growth 5Y0.31%
F-Score6
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 3.82 | ||
| Debt/EBITDA | 3.72 | ||
| Cap/Depr | 46.8% | ||
| Cap/Sales | 1.3% | ||
| Interest Coverage | 4.06 | ||
| Cash Conversion | 110.24% | ||
| Profit Quality | 225.47% | ||
| Current Ratio | 3.56 | ||
| Quick Ratio | 2.28 | ||
| Altman-Z | 2.58 |
F-Score6
WACC6.99%
ROIC/WACC0.83
Cap/Depr(3y)83.82%
Cap/Depr(5y)87.35%
Cap/Sales(3y)2.14%
Cap/Sales(5y)2.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.97%
EPS 3Y-9.84%
EPS 5Y6.12%
EPS Q2Q%18.18%
EPS Next Y24.96%
EPS Next 2Y13.97%
EPS Next 3Y12%
EPS Next 5Y11.77%
Revenue 1Y (TTM)-4.9%
Revenue growth 3Y-1.05%
Revenue growth 5Y6.08%
Sales Q2Q%-3.56%
Revenue Next Year-4.03%
Revenue Next 2Y-1.96%
Revenue Next 3Y-0.44%
Revenue Next 5Y1.84%
EBIT growth 1Y-4.92%
EBIT growth 3Y-5.22%
EBIT growth 5Y7.2%
EBIT Next Year61.47%
EBIT Next 3Y15.93%
EBIT Next 5YN/A
FCF growth 1Y42.95%
FCF growth 3Y27.3%
FCF growth 5Y15.2%
OCF growth 1Y27.88%
OCF growth 3Y16.34%
OCF growth 5Y14.01%