CENTRAL GARDEN & PET CO (CENT) Stock Fundamental Analysis
USA - NASDAQ:CENT - US1535271068 - Common Stock
32.01 USD
+0.35 (+1.11%)
32.01 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. CENT scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. A decent growth rate in combination with a cheap valuation! Better keep an eye on CENT.
1. Profitability
1.1 Basic Checks
In the past year CENT was profitable.
CENT had a positive operating cash flow in the past year.
CENT had positive earnings in each of the past 5 years.
Of the past 5 years CENT 4 years had a positive operating cash flow.
1.2 Ratios
CENT's Return On Assets of 3.79% is on the low side compared to the rest of the industry. CENT is outperformed by 83.33% of its industry peers.
CENT's Return On Equity of 8.72% is on the low side compared to the rest of the industry. CENT is outperformed by 83.33% of its industry peers.
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.
The Average Return On Invested Capital over the past 3 years for CENT is significantly below the industry average of 15.54%.
| 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.
CENT's Profit Margin has declined in the last couple of years.
CENT has a Operating Margin of 7.48%. This is amonst the worse of the industry: CENT underperforms 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 31.23%, CENT is doing worse than 75.00% of the companies in the same industry.
In the last couple of years the Gross Margin of CENT has remained more or less at the same level.
| 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
Compared to 5 years ago, CENT has more shares outstanding
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 has a worse Altman-Z score (2.51) than 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.
The Debt to FCF ratio of CENT (3.82) is worse than 66.67% of its industry peers.
CENT has a Debt/Equity ratio of 0.75. This is a neutral value indicating CENT is somewhat dependend on debt financing.
CENT has a Debt to Equity ratio (0.75) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 3.82 | ||
| Altman-Z | 2.51 |
ROIC/WACC0.85
WACC6.83%
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 has a better Quick ratio (2.28) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.56 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
CENT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.97%, which is quite good.
CENT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.12% yearly.
The Revenue has decreased by -4.90% in the past year.
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
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.
The Revenue is expected to grow by 1.84% on average over the next years.
EPS Next Y24.88%
EPS Next 2Y13.97%
EPS Next 3Y12%
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 12.17.
CENT's Price/Earnings ratio is rather cheap when compared to the industry. CENT is cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of CENT to the average of the S&P500 Index (26.91), we can say CENT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.52, the valuation of CENT can be described as reasonable.
83.33% of the companies in the same industry are more expensive than CENT, based on the Price/Forward Earnings ratio.
CENT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 11.52 |
4.2 Price Multiples
83.33% of the companies in the same industry are more expensive than CENT, based on the Enterprise Value to EBITDA ratio.
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 | 6.45 | ||
| EV/EBITDA | 7.71 |
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)0.49
PEG (5Y)1.99
EPS Next 2Y13.97%
EPS Next 3Y12%
5. Dividend
5.1 Amount
CENT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
32.01
+0.35 (+1.11%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners105.36%
Inst Owner Change-0.82%
Ins Owners16.03%
Ins Owner Change-11.64%
Market Cap2.01B
Revenue(TTM)3.12B
Net Income(TTM)138.49M
Analysts78.46
Price Target45.29 (41.49%)
Short Float %9.26%
Short Ratio9.97
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)0%
PT rev (3m)2.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-36.99%
EPS NY rev (1m)0%
EPS NY rev (3m)7.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 11.52 | ||
| P/S | 0.64 | ||
| P/FCF | 6.45 | ||
| P/OCF | 5.7 | ||
| P/B | 1.27 | ||
| P/tB | 3.48 | ||
| EV/EBITDA | 7.71 |
EPS(TTM)2.63
EY8.22%
EPS(NY)2.78
Fwd EY8.68%
FCF(TTM)4.97
FCFY15.52%
OCF(TTM)5.61
OCFY17.53%
SpS49.63
BVpS25.26
TBVpS9.2
PEG (NY)0.49
PEG (5Y)1.99
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
WACC6.83%
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 Y24.88%
EPS Next 2Y13.97%
EPS Next 3Y12%
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 24.88% 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%.