CENTRAL GARDEN & PET CO (CENT) Stock Fundamental Analysis
USA - NASDAQ:CENT - US1535271068 - Common Stock
31.69 USD
-0.25 (-0.78%)
31.69 USD
0 (0%)
CENT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on CENT.
1. Profitability
1.1 Basic Checks
CENT had positive earnings in the past year.
CENT had a positive operating cash flow in the past year.
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
CENT has a worse Return On Assets (3.79%) than 83.33% of its industry peers.
Looking at the Return On Equity, with a value of 8.72%, CENT is doing worse than 75.00% of the companies in the same industry.
CENT has a Return On Invested Capital of 5.82%. This is amonst the worse of the industry: CENT underperforms 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CENT is significantly below the industry average of 14.90%.
| 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 worse Profit Margin (4.44%) than 83.33% of its industry peers.
CENT's Profit Margin has declined in the last couple of years.
CENT has a worse Operating Margin (7.48%) than 83.33% of its industry peers.
CENT's Operating Margin has been stable in the last couple of years.
The Gross Margin of CENT (31.23%) is worse 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CENT is destroying value.
Compared to 1 year ago, CENT has more shares outstanding
The number of shares outstanding for CENT has been increased compared to 5 years ago.
Compared to 1 year ago, CENT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.51 indicates that CENT is not a great score, but indicates only limited risk for bankruptcy at the moment.
CENT's Altman-Z score of 2.51 is on the low side compared to the rest of the industry. CENT is outperformed by 66.67% of its industry peers.
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.
With a Debt to FCF ratio value of 3.82, CENT perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
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 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 3.82 | ||
| Altman-Z | 2.51 |
ROIC/WACC0.84
WACC6.89%
2.3 Liquidity
A Current Ratio of 3.56 indicates that CENT has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.56, CENT belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
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.
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.
CENT shows a decrease in Revenue. In the last year, the revenue decreased by -4.90%.
Measured over the past years, CENT shows a small growth in Revenue. The Revenue has been growing by 6.08% on average per year.
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 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.
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
CENT is valuated correctly with a Price/Earnings ratio of 12.05.
Based on the Price/Earnings ratio, CENT is valued a bit cheaper than 66.67% of the companies in the same industry.
CENT is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.34, 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.
CENT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 11.34 |
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.
Based on the Price/Free Cash Flow ratio, CENT is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.38 | ||
| EV/EBITDA | 7.77 |
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)1.97
EPS Next 2Y14.28%
EPS Next 3Y11.94%
5. Dividend
5.1 Amount
CENT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
31.69
-0.25 (-0.78%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners105.36%
Inst Owner Change-1.18%
Ins Owners16.03%
Ins Owner Change-11.64%
Market Cap1.99B
Revenue(TTM)3.12B
Net Income(TTM)138.49M
Analysts80
Price Target42.84 (35.18%)
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 | 12.05 | ||
| Fwd PE | 11.34 | ||
| P/S | 0.64 | ||
| P/FCF | 6.38 | ||
| P/OCF | 5.65 | ||
| P/B | 1.25 | ||
| P/tB | 3.44 | ||
| EV/EBITDA | 7.77 |
EPS(TTM)2.63
EY8.3%
EPS(NY)2.79
Fwd EY8.82%
FCF(TTM)4.97
FCFY15.67%
OCF(TTM)5.61
OCFY17.71%
SpS49.63
BVpS25.26
TBVpS9.2
PEG (NY)0.48
PEG (5Y)1.97
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 | 2.51 |
F-Score6
WACC6.89%
ROIC/WACC0.84
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 7 / 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%.