We assign a fundamental rating of 5 out of 10 to CENT. CENT was compared to 12 industry peers in the Household Products industry. Both the profitability and the financial health of CENT get a neutral evaluation. Nothing too spectacular is happening here. CENT has a decent growth rate and is not valued too expensively.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year CENT was profitable.
In the past year CENT had a positive cash flow from operations.
CENT had positive earnings in each of the past 5 years.
CENT had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

CENT's Return On Assets of 4.49% is on the low side compared to the rest of the industry. CENT is outperformed by 83.33% of its industry peers.
Looking at the Return On Equity, with a value of 10.29%, CENT is doing worse than 75.00% of the companies in the same industry.
With a Return On Invested Capital value of 6.54%, CENT is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
CENT had an Average Return On Invested Capital over the past 3 years of 6.05%. This is significantly below the industry average of 14.84%.
The 3 year average ROIC (6.05%) for CENT is below the current ROIC(6.54%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	4.49%
ROE	10.29%
ROIC	6.54%

ROA(3y)3.75%

ROA(5y)4.15%

ROE(3y)8.63%

ROE(5y)9.94%

ROIC(3y)6.05%

ROIC(5y)6.55%

1.3 Margins

Looking at the Profit Margin, with a value of 5.20%, CENT is doing worse than 83.33% of the companies in the same industry.
In the last couple of years the Profit Margin of CENT has grown nicely.
CENT has a worse Operating Margin (8.47%) than 83.33% of its industry peers.
CENT's Operating Margin has improved in the last couple of years.
CENT has a Gross Margin of 32.05%. 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 grown nicely.

		Industry Rank	Sector Rank
OM	8.47%
PM (TTM)	5.2%
GM	32.05%

OM growth 3Y2.97%

OM growth 5Y2.97%

PM growth 3Y4.51%

PM growth 5Y3.05%

GM growth 3Y2.55%

GM growth 5Y1.64%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

CENT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CENT has been reduced compared to 1 year ago.
Compared to 5 years ago, CENT has more shares outstanding
CENT has a better debt/assets ratio than last year.

2.2 Solvency

CENT has an Altman-Z score of 2.56. This is not the best score and indicates that CENT is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of CENT (2.56) is worse than 66.67% of its industry peers.
CENT has a debt to FCF ratio of 4.09. This is a neutral value as CENT would need 4.09 years to pay back of all of its debts.
CENT has a Debt to FCF ratio (4.09) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.75 indicates that CENT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.75, CENT is in line with its industry, outperforming 41.67% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.75
Debt/FCF	4.09
Altman-Z	2.56

ROIC/WACC0.94

WACC6.95%

2.3 Liquidity

A Current Ratio of 3.67 indicates that CENT has no problem at all paying its short term obligations.
CENT has a Current ratio of 3.67. This is amongst the best in the industry. CENT outperforms 91.67% of its industry peers.
A Quick Ratio of 2.33 indicates that CENT has no problem at all paying its short term obligations.
CENT has a better Quick ratio (2.33) than 91.67% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.67
Quick Ratio	2.33

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 27.10% over the past year.
The Earnings Per Share has been growing slightly by 3.68% on average over the past years.
The Revenue has decreased by -2.23% in the past year.
CENT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.03% yearly.

EPS 1Y (TTM)27.1%

EPS 3Y-0.72%

EPS 5Y3.68%

EPS Q2Q%50%

Revenue 1Y (TTM)-2.23%

Revenue growth 3Y-2.14%

Revenue growth 5Y3.03%

Sales Q2Q%1.3%

3.2 Future

CENT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.34% yearly.
Based on estimates for the next years, CENT will show a small growth in Revenue. The Revenue will grow by 3.33% on average per year.

EPS Next Y4.25%

EPS Next 2Y5.5%

EPS Next 3Y5.49%

EPS Next 5Y8.34%

Revenue Next Year0.5%

Revenue Next 2Y1.27%

Revenue Next 3Y2.18%

Revenue Next 5Y3.33%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

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4. Valuation

4.1 Price/Earnings Ratio

CENT is valuated reasonably with a Price/Earnings ratio of 11.80.
Based on the Price/Earnings ratio, CENT is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CENT to the average of the S&P500 Index (28.60), we can say CENT is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.32, the valuation of CENT can be described as very reasonable.
Based on the Price/Forward Earnings ratio, CENT is valued cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.83. CENT is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	11.8
Fwd PE	11.32

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CENT is valued cheaper than 91.67% of the companies 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	6.87
EV/EBITDA	6.6

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CENT does not grow enough to justify the current Price/Earnings ratio.