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. CENT scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. CENT has a valuation in line with the averages, but it does not seem to be growing.
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 Return On Assets of 3.39%. This is in the lower half of the industry: CENT underperforms 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 7.99%, CENT is doing worse than 83.33% of the companies in the same industry.
CENT has a Return On Invested Capital of 5.50%. 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 15.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 7.99% | ||
| ROIC | 5.5% |
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
With a Profit Margin value of 3.90%, CENT is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of CENT has declined.
CENT's Operating Margin of 6.84% 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 worse Gross Margin (30.53%) 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 | 6.84% | ||
| PM (TTM) | 3.9% | ||
| GM | 30.53% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CENT is destroying value.
CENT has more shares outstanding than it did 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 2.63. 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.
CENT has a Altman-Z score of 2.63. This is in the lower half of the industry: CENT underperforms 66.67% of its industry peers.
The Debt to FCF ratio of CENT is 3.58, which is a good value as it means it would take CENT, 3.58 years of fcf income to pay off all of its debts.
CENT's Debt to FCF ratio of 3.58 is on the low side compared to the rest of the industry. CENT is outperformed by 66.67% of its industry peers.
CENT has a Debt/Equity ratio of 0.77. This is a neutral value indicating CENT is somewhat dependend on debt financing.
CENT has a Debt to Equity ratio (0.77) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.58 | ||
| Altman-Z | 2.63 |
ROIC/WACC0.75
WACC7.37%
2.3 Liquidity
CENT has a Current Ratio of 3.31. This indicates that CENT is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.31, CENT belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
CENT has a Quick Ratio of 1.93. This is a normal value and indicates that CENT is financially healthy and should not expect problems in meeting its short term obligations.
CENT has a better Quick ratio (1.93) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.31 | ||
| Quick Ratio | 1.93 |
3. Growth
3.1 Past
The earnings per share for CENT have decreased strongly by -14.64% in the last 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 -4.60% in the last year.
The Revenue has been growing slightly by 6.08% on average over the past years.
EPS 1Y (TTM)-14.64%
EPS 3Y-9.84%
EPS 5Y6.12%
EPS Q2Q%5.05%
Revenue 1Y (TTM)-4.6%
Revenue growth 3Y-1.05%
Revenue growth 5Y6.08%
Sales Q2Q%-7.39%
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 10.52% yearly.
CENT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.91% yearly.
EPS Next Y16.23%
EPS Next 2Y11.26%
EPS Next 3Y9.4%
EPS Next 5Y10.52%
Revenue Next Year-2.82%
Revenue Next 2Y-0.55%
Revenue Next 3Y0.56%
Revenue Next 5Y2.91%
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 16.76, which indicates a correct valuation of CENT.
Compared to the rest of the industry, the Price/Earnings ratio of CENT is on the same level as its industry peers.
CENT is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
CENT is valuated correctly with a Price/Forward Earnings ratio of 15.12.
Based on the Price/Forward Earnings ratio, CENT is valued a bit cheaper than 66.67% of the companies in the same industry.
CENT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.76 | ||
| Fwd PE | 15.12 |
4.2 Price Multiples
CENT's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 7.62 | ||
| EV/EBITDA | 10.57 |
4.3 Compensation for Growth
CENT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.03
PEG (5Y)2.74
EPS Next 2Y11.26%
EPS Next 3Y9.4%
5. Dividend
5.1 Amount
CENT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
40.05
+3.6 (+9.88%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners112.87%
Inst Owner Change0%
Ins Owners15.76%
Ins Owner Change-0.34%
Market Cap2.54B
Analysts78.46
Price Target44.27 (10.54%)
Short Float %14.26%
Short Ratio11.18
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)1084.23%
Min EPS beat(2)9.64%
Max EPS beat(2)2158.82%
EPS beat(4)4
Avg EPS beat(4)546.27%
Min EPS beat(4)7.1%
Max EPS beat(4)2158.82%
EPS beat(8)7
Avg EPS beat(8)287.56%
EPS beat(12)9
Avg EPS beat(12)129.7%
EPS beat(16)13
Avg EPS beat(16)196.03%
Revenue beat(2)1
Avg Revenue beat(2)-2.42%
Min Revenue beat(2)-7.03%
Max Revenue beat(2)2.2%
Revenue beat(4)1
Avg Revenue beat(4)-3.6%
Min Revenue beat(4)-7.06%
Max Revenue beat(4)2.2%
Revenue beat(8)3
Avg Revenue beat(8)-2.09%
Revenue beat(12)3
Avg Revenue beat(12)-1.86%
Revenue beat(16)6
Avg Revenue beat(16)-0.5%
PT rev (1m)0%
PT rev (3m)-1.36%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)-2.25%
EPS NY rev (1m)0.85%
EPS NY rev (3m)3.77%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-1.95%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-2.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.76 | ||
| Fwd PE | 15.12 | ||
| P/S | 0.8 | ||
| P/FCF | 7.62 | ||
| P/OCF | 6.8 | ||
| P/B | 1.65 | ||
| P/tB | 4.84 | ||
| EV/EBITDA | 10.57 |
EPS(TTM)2.39
EY5.97%
EPS(NY)2.65
Fwd EY6.61%
FCF(TTM)5.25
FCFY13.12%
OCF(TTM)5.89
OCFY14.71%
SpS49.77
BVpS24.31
TBVpS8.28
PEG (NY)1.03
PEG (5Y)2.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 7.99% | ||
| ROCE | 7.12% | ||
| ROIC | 5.5% | ||
| ROICexc | 6.63% | ||
| ROICexgc | 11.12% | ||
| OM | 6.84% | ||
| PM (TTM) | 3.9% | ||
| GM | 30.53% | ||
| FCFM | 10.55% |
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 Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.58 | ||
| Debt/EBITDA | 3.92 | ||
| Cap/Depr | 45.91% | ||
| Cap/Sales | 1.28% | ||
| Interest Coverage | 3.74 | ||
| Cash Conversion | 122.87% | ||
| Profit Quality | 270.34% | ||
| Current Ratio | 3.31 | ||
| Quick Ratio | 1.93 | ||
| Altman-Z | 2.63 |
F-Score6
WACC7.37%
ROIC/WACC0.75
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)-14.64%
EPS 3Y-9.84%
EPS 5Y6.12%
EPS Q2Q%5.05%
EPS Next Y16.23%
EPS Next 2Y11.26%
EPS Next 3Y9.4%
EPS Next 5Y10.52%
Revenue 1Y (TTM)-4.6%
Revenue growth 3Y-1.05%
Revenue growth 5Y6.08%
Sales Q2Q%-7.39%
Revenue Next Year-2.82%
Revenue Next 2Y-0.55%
Revenue Next 3Y0.56%
Revenue Next 5Y2.91%
EBIT growth 1Y-15.34%
EBIT growth 3Y-5.22%
EBIT growth 5Y7.2%
EBIT Next Year54.95%
EBIT Next 3Y15.82%
EBIT Next 5YN/A
FCF growth 1Y369.36%
FCF growth 3Y27.3%
FCF growth 5Y15.2%
OCF growth 1Y164.93%
OCF growth 3Y16.34%
OCF growth 5Y14.01%