CENTRAL GARDEN & PET CO (CENT) Stock Fundamental Analysis
NASDAQ:CENT - Nasdaq - US1535271068 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to CENT. CENT was compared to 12 industry peers in the Household Products industry. While CENT seems to be doing ok healthwise, there are quite some concerns on its profitability. CENT has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
CENT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CENT's Return On Assets of 3.44% is on the low side compared to the rest of the industry. CENT is outperformed by 75.00% of its industry peers.
The Return On Equity of CENT (8.00%) is worse than 75.00% of its industry peers.
CENT has a Return On Invested Capital of 5.71%. This is amonst the worse of the industry: CENT underperforms 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 15.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 8% | ||
| ROIC | 5.71% |
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 3.77%. 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.
The Operating Margin of CENT (6.87%) is worse than 83.33% of its industry peers.
CENT's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 30.15%, CENT is doing worse than 75.00% of the companies in the same industry.
CENT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.87% | ||
| PM (TTM) | 3.77% | ||
| GM | 30.15% |
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.
CENT has more shares outstanding than it did 1 year ago.
CENT has more shares outstanding than it did 5 years ago.
CENT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.67 indicates that CENT is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CENT (2.67) is comparable to the rest of the industry.
The Debt to FCF ratio of CENT is 3.34, which is a good value as it means it would take CENT, 3.34 years of fcf income to pay off all of its debts.
CENT's Debt to FCF ratio of 3.34 is in line compared to the rest of the industry. CENT outperforms 41.67% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that CENT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.78, CENT perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 2.67 |
ROIC/WACC0.78
WACC7.31%
2.3 Liquidity
A Current Ratio of 3.47 indicates that CENT has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.47, CENT belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
CENT has a Quick Ratio of 1.97. This is a normal value and indicates that CENT is financially healthy and should not expect problems in meeting its short term obligations.
CENT's Quick ratio of 1.97 is amongst the best of the industry. CENT outperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.47 | ||
| Quick Ratio | 1.97 |
3. Growth
3.1 Past
CENT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.65%.
Measured over the past 5 years, CENT shows a small growth in Earnings Per Share. The EPS has been growing by 6.12% on average per year.
The Revenue has decreased by -2.85% in the past 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)-13.65%
EPS 3Y-9.84%
EPS 5Y6.12%
EPS Q2Q%2000%
Revenue 1Y (TTM)-2.85%
Revenue growth 3Y-1.05%
Revenue growth 5Y6.08%
Sales Q2Q%3.45%
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 10.96% yearly.
The Revenue is expected to grow by 3.34% on average over the next years.
EPS Next Y12.96%
EPS Next 2Y9.64%
EPS Next 3Y10.36%
EPS Next 5Y10.96%
Revenue Next Year-0.51%
Revenue Next 2Y0.83%
Revenue Next 3Y1.35%
Revenue Next 5Y3.34%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.90, which indicates a correct valuation of CENT.
66.67% of the companies in the same industry are more expensive than CENT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CENT to the average of the S&P500 Index (29.63), we can say CENT is valued slightly cheaper.
A Price/Forward Earnings ratio of 14.46 indicates a correct valuation of CENT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CENT indicates a somewhat cheap valuation: CENT is cheaper than 66.67% of the companies listed in the same industry.
CENT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.9 | ||
| Fwd PE | 14.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CENT is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CENT indicates a rather cheap valuation: CENT is cheaper than 91.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.83 | ||
| EV/EBITDA | 9.64 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.23
PEG (5Y)2.6
EPS Next 2Y9.64%
EPS Next 3Y10.36%
5. Dividend
5.1 Amount
CENT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
37.21
+0.06 (+0.16%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners118.76%
Inst Owner Change1.63%
Ins Owners13.85%
Ins Owner Change1.31%
Market Cap2.44B
Analysts80
Price Target45.7 (22.82%)
Short Float %20.41%
Short Ratio16.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)1084.16%
Min EPS beat(2)9.5%
Max EPS beat(2)2158.82%
EPS beat(4)4
Avg EPS beat(4)549.31%
Min EPS beat(4)7.1%
Max EPS beat(4)2158.82%
EPS beat(8)6
Avg EPS beat(8)285.53%
EPS beat(12)9
Avg EPS beat(12)129.23%
EPS beat(16)13
Avg EPS beat(16)197.92%
Revenue beat(2)1
Avg Revenue beat(2)-2.43%
Min Revenue beat(2)-7.06%
Max Revenue beat(2)2.2%
Revenue beat(4)1
Avg Revenue beat(4)-1.98%
Min Revenue beat(4)-7.06%
Max Revenue beat(4)2.2%
Revenue beat(8)3
Avg Revenue beat(8)-1.32%
Revenue beat(12)4
Avg Revenue beat(12)-1.27%
Revenue beat(16)7
Avg Revenue beat(16)0.53%
PT rev (1m)5%
PT rev (3m)3.78%
EPS NQ rev (1m)-8.94%
EPS NQ rev (3m)-2.55%
EPS NY rev (1m)4.41%
EPS NY rev (3m)-2.73%
Revenue NQ rev (1m)-2.12%
Revenue NQ rev (3m)-4.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.9 | ||
| Fwd PE | 14.46 | ||
| P/S | 0.76 | ||
| P/FCF | 6.83 | ||
| P/OCF | 6.15 | ||
| P/B | 1.6 | ||
| P/tB | 4.85 | ||
| EV/EBITDA | 9.64 |
EPS(TTM)2.34
EY6.29%
EPS(NY)2.57
Fwd EY6.91%
FCF(TTM)5.45
FCFY14.65%
OCF(TTM)6.05
OCFY16.25%
SpS49.23
BVpS23.21
TBVpS7.67
PEG (NY)1.23
PEG (5Y)2.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 8% | ||
| ROCE | 7.4% | ||
| ROIC | 5.71% | ||
| ROICexc | 7.2% | ||
| ROICexgc | 12.59% | ||
| OM | 6.87% | ||
| PM (TTM) | 3.77% | ||
| GM | 30.15% | ||
| FCFM | 11.07% |
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-Score7
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 3.34 | ||
| Debt/EBITDA | 3.82 | ||
| Cap/Depr | 43.36% | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 3.84 | ||
| Cash Conversion | 127.05% | ||
| Profit Quality | 293.46% | ||
| Current Ratio | 3.47 | ||
| Quick Ratio | 1.97 | ||
| Altman-Z | 2.67 |
F-Score7
WACC7.31%
ROIC/WACC0.78
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)-13.65%
EPS 3Y-9.84%
EPS 5Y6.12%
EPS Q2Q%2000%
EPS Next Y12.96%
EPS Next 2Y9.64%
EPS Next 3Y10.36%
EPS Next 5Y10.96%
Revenue 1Y (TTM)-2.85%
Revenue growth 3Y-1.05%
Revenue growth 5Y6.08%
Sales Q2Q%3.45%
Revenue Next Year-0.51%
Revenue Next 2Y0.83%
Revenue Next 3Y1.35%
Revenue Next 5Y3.34%
EBIT growth 1Y-5.54%
EBIT growth 3Y-5.22%
EBIT growth 5Y7.2%
EBIT Next Year50.29%
EBIT Next 3Y14.53%
EBIT Next 5YN/A
FCF growth 1Y414.12%
FCF growth 3Y27.3%
FCF growth 5Y15.2%
OCF growth 1Y8221.56%
OCF growth 3Y16.34%
OCF growth 5Y14.01%