CENTRAL GARDEN & PET CO (CENT) Stock Fundamental Analysis
USA - NASDAQ:CENT - US1535271068 - Common Stock
31.42 USD
+0.14 (+0.45%)
31.42 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. While CENT seems to be doing ok healthwise, there are quite some concerns on its profitability. CENT may be a bit undervalued, certainly considering the very reasonable score on growth
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.
Each year in the past 5 years CENT has been profitable.
CENT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CENT has a worse Return On Assets (3.79%) than 83.33% of its industry peers.
CENT has a Return On Equity of 8.72%. This is amonst the worse of the industry: CENT underperforms 83.33% of its industry peers.
With a Return On Invested Capital value of 5.82%, CENT is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for CENT is significantly below the industry average of 15.15%.
| 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
The Profit Margin of CENT (4.44%) is worse than 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.
In the last couple of years the Operating Margin of CENT has remained more or less at the same level.
CENT has a worse Gross Margin (31.23%) than 75.00% of its industry peers.
CENT's Gross Margin has been stable in the last couple of years.
| 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
CENT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CENT has more shares outstanding
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 2.50 indicates that CENT is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.50, CENT is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
CENT has a debt to FCF ratio of 3.82. This is a good value and a sign of high solvency as CENT would need 3.82 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.82, CENT is in line with its industry, outperforming 41.67% of the companies in the same industry.
A Debt/Equity ratio of 0.75 indicates that CENT is somewhat dependend on debt financing.
CENT has a Debt to Equity ratio (0.75) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 3.82 | ||
| Altman-Z | 2.5 |
ROIC/WACC0.85
WACC6.87%
2.3 Liquidity
CENT has a Current Ratio of 3.56. This indicates that CENT is financially healthy and has no problem in meeting its short term obligations.
CENT has a better Current ratio (3.56) than 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.
CENT's Quick ratio of 2.28 is amongst the best of the industry. CENT outperforms 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.
The Revenue has been growing slightly by 6.08% on average over the past years.
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
CENT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.77% yearly.
CENT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.84% yearly.
EPS Next Y25.04%
EPS Next 2Y14.28%
EPS Next 3Y11.94%
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
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
CENT is valuated reasonably with a Price/Earnings ratio of 11.95.
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 26.06, CENT is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.24, the valuation of CENT can be described as very reasonable.
CENT's Price/Forward Earnings ratio is rather cheap when compared to the industry. CENT is cheaper than 83.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.73, CENT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.95 | ||
| Fwd PE | 11.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CENT is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
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 | 6.33 | ||
| EV/EBITDA | 7.67 |
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)0.48
PEG (5Y)1.95
EPS Next 2Y14.28%
EPS Next 3Y11.94%
5. Dividend
5.1 Amount
No dividends for CENT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
31.42
+0.14 (+0.45%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners105.36%
Inst Owner Change-0.81%
Ins Owners16.03%
Ins Owner Change-11.64%
Market Cap1.98B
Revenue(TTM)3.12B
Net Income(TTM)138.49M
Analysts80
Price Target42.84 (36.35%)
Short Float %8.53%
Short Ratio9.18
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)-5.41%
PT rev (3m)-3.23%
EPS NQ rev (1m)1.67%
EPS NQ rev (3m)-32.89%
EPS NY rev (1m)0.13%
EPS NY rev (3m)7.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.95 | ||
| Fwd PE | 11.24 | ||
| P/S | 0.63 | ||
| P/FCF | 6.33 | ||
| P/OCF | 5.6 | ||
| P/B | 1.24 | ||
| P/tB | 3.41 | ||
| EV/EBITDA | 7.67 |
EPS(TTM)2.63
EY8.37%
EPS(NY)2.79
Fwd EY8.89%
FCF(TTM)4.97
FCFY15.81%
OCF(TTM)5.61
OCFY17.86%
SpS49.63
BVpS25.26
TBVpS9.2
PEG (NY)0.48
PEG (5Y)1.95
Graham Number38.66
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%
ROICexgc growth 3Y3.99%
ROICexgc 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 | 2.5 |
F-Score6
WACC6.87%
ROIC/WACC0.85
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 Y25.04%
EPS Next 2Y14.28%
EPS Next 3Y11.94%
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 Year62.46%
EBIT Next 3Y16.47%
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%
CENTRAL GARDEN & PET CO / CENT FAQ
Can you provide the ChartMill fundamental rating for CENTRAL GARDEN & PET CO?
ChartMill assigns a fundamental rating of 4 / 10 to CENT.
Can you provide the valuation status for CENTRAL GARDEN & PET CO?
ChartMill assigns a valuation rating of 8 / 10 to CENTRAL GARDEN & PET CO (CENT). This can be considered as Undervalued.
Can you provide the profitability details for CENTRAL GARDEN & PET CO?
CENTRAL GARDEN & PET CO (CENT) has a profitability rating of 2 / 10.
What is the expected EPS growth for CENTRAL GARDEN & PET CO (CENT) stock?
The Earnings per Share (EPS) of CENTRAL GARDEN & PET CO (CENT) is expected to grow by 25.04% in the next year.
How sustainable is the dividend of CENTRAL GARDEN & PET CO (CENT) stock?
The dividend rating of CENTRAL GARDEN & PET CO (CENT) is 0 / 10 and the dividend payout ratio is 0%.