CENTRAL GARDEN AND PET CO-A (CENTA) Stock Fundamental Analysis
NASDAQ:CENTA - Nasdaq - US1535272058 - Common Stock - Currency: USD
CENTA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 12 industry peers in the Household Products industry. The financial health of CENTA is average, but there are quite some concerns on its profitability. CENTA has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
CENTA had positive earnings in the past year.
CENTA had a positive operating cash flow in the past year.
Each year in the past 5 years CENTA has been profitable.
Of the past 5 years CENTA 4 years had a positive operating cash flow.
1.2 Ratios
CENTA has a worse Return On Assets (3.39%) than 66.67% of its industry peers.
With a Return On Equity value of 7.99%, CENTA is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
The Return On Invested Capital of CENTA (5.50%) is worse than 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CENTA 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
CENTA's Profit Margin of 3.90% is on the low side compared to the rest of the industry. CENTA is outperformed by 66.67% of its industry peers.
CENTA's Profit Margin has declined in the last couple of years.
CENTA has a worse Operating Margin (6.84%) than 75.00% of its industry peers.
In the last couple of years the Operating Margin of CENTA has remained more or less at the same level.
The Gross Margin of CENTA (30.53%) is worse than 66.67% of its industry peers.
In the last couple of years the Gross Margin of CENTA has remained more or less at the same level.
| 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
CENTA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CENTA has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CENTA has been increased compared to 5 years ago.
The debt/assets ratio for CENTA has been reduced compared to a year ago.
2.2 Solvency
CENTA has an Altman-Z score of 2.55. This is not the best score and indicates that CENTA is in the grey zone with still only limited risk for bankruptcy at the moment.
CENTA has a worse Altman-Z score (2.55) than 75.00% of its industry peers.
CENTA has a debt to FCF ratio of 3.58. This is a good value and a sign of high solvency as CENTA would need 3.58 years to pay back of all of its debts.
CENTA has a Debt to FCF ratio (3.58) which is in line with its industry peers.
A Debt/Equity ratio of 0.77 indicates that CENTA is somewhat dependend on debt financing.
CENTA's Debt to Equity ratio of 0.77 is in line compared to the rest of the industry. CENTA outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.58 | ||
| Altman-Z | 2.55 |
ROIC/WACC0.76
WACC7.23%
2.3 Liquidity
CENTA has a Current Ratio of 3.31. This indicates that CENTA is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of CENTA (3.31) is better than 100.00% of its industry peers.
A Quick Ratio of 1.93 indicates that CENTA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.93, CENTA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.31 | ||
| Quick Ratio | 1.93 |
3. Growth
3.1 Past
The earnings per share for CENTA have decreased strongly by -14.64% in the last year.
Measured over the past 5 years, CENTA shows a small growth in Earnings Per Share. The EPS has been growing by 6.12% on average per year.
CENTA shows a decrease in Revenue. In the last year, the revenue decreased by -4.60%.
CENTA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.08% yearly.
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
Based on estimates for the next years, CENTA will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.52% on average per year.
Based on estimates for the next years, CENTA will show a small growth in Revenue. The Revenue will grow by 2.91% on average per year.
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.
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
With a Price/Earnings ratio of 15.19, CENTA is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of CENTA indicates a somewhat cheap valuation: CENTA is cheaper than 75.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. CENTA is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.70 indicates a correct valuation of CENTA.
Based on the Price/Forward Earnings ratio, CENTA is valued a bit cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, CENTA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.19 | ||
| Fwd PE | 13.7 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than CENTA, based on the Enterprise Value to EBITDA ratio.
100.00% of the companies in the same industry are more expensive than CENTA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.91 | ||
| EV/EBITDA | 9.68 |
4.3 Compensation for Growth
CENTA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.94
PEG (5Y)2.48
EPS Next 2Y11.26%
EPS Next 3Y9.4%
5. Dividend
5.1 Amount
CENTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:CENTA (7/14/2025, 3:47:04 PM)
36.298
+0.55 (+1.53%)
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 ChangeN/A
Market Cap2.30B
Analysts78.46
Price Target39.13 (7.8%)
Short Float %8.56%
Short Ratio1.92
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)-0.29%
PT rev (3m)-2.33%
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 | 15.19 | ||
| Fwd PE | 13.7 | ||
| P/S | 0.73 | ||
| P/FCF | 6.91 | ||
| P/OCF | 6.16 | ||
| P/B | 1.49 | ||
| P/tB | 4.38 | ||
| EV/EBITDA | 9.68 |
EPS(TTM)2.39
EY6.58%
EPS(NY)2.65
Fwd EY7.3%
FCF(TTM)5.25
FCFY14.47%
OCF(TTM)5.89
OCFY16.23%
SpS49.77
BVpS24.31
TBVpS8.28
PEG (NY)0.94
PEG (5Y)2.48
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 | 2.55 |
F-Score6
WACC7.23%
ROIC/WACC0.76
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%