CENTRAL GARDEN AND PET CO-A (CENTA) Stock Fundamental Analysis
USA - NASDAQ:CENTA - US1535272058 - Common Stock
27.78 USD
+0.25 (+0.91%)
27.78 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to CENTA. CENTA was compared to 12 industry peers in the Household Products industry. While CENTA 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 CENTA.
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.
CENTA had positive earnings in each of the past 5 years.
Of the past 5 years CENTA 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.79%, CENTA is doing worse than 75.00% of the companies in the same industry.
The Return On Equity of CENTA (8.72%) is worse than 66.67% of its industry peers.
CENTA's Return On Invested Capital of 5.82% is on the low side compared to the rest of the industry. CENTA is outperformed by 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CENTA is significantly below the industry average of 14.82%.
| 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
With a Profit Margin value of 4.44%, CENTA is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
CENTA's Profit Margin has declined in the last couple of years.
CENTA has a Operating Margin of 7.48%. This is in the lower half of the industry: CENTA underperforms 75.00% of its industry peers.
CENTA's Operating Margin has been stable in the last couple of years.
CENTA has a worse Gross Margin (31.23%) than 66.67% of its industry peers.
CENTA'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
CENTA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CENTA has been increased compared to 1 year ago.
The number of shares outstanding for CENTA has been increased compared to 5 years ago.
Compared to 1 year ago, CENTA has an improved debt to assets ratio.
2.2 Solvency
CENTA has an Altman-Z score of 2.43. 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.
The Altman-Z score of CENTA (2.43) is worse than 75.00% of its industry peers.
The Debt to FCF ratio of CENTA is 3.82, which is a good value as it means it would take CENTA, 3.82 years of fcf income to pay off all of its debts.
CENTA has a Debt to FCF ratio of 3.82. This is comparable to the rest of the industry: CENTA outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 0.75 indicates that CENTA is somewhat dependend on debt financing.
CENTA 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 | 2.43 |
ROIC/WACC0.86
WACC6.73%
2.3 Liquidity
CENTA has a Current Ratio of 3.56. This indicates that CENTA is financially healthy and has no problem in meeting its short term obligations.
CENTA has a better Current ratio (3.56) than 100.00% of its industry peers.
CENTA has a Quick Ratio of 2.28. This indicates that CENTA is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.28, CENTA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.56 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
CENTA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.97%, which is quite good.
The Earnings Per Share has been growing slightly by 6.12% on average over the past years.
CENTA shows a decrease in Revenue. In the last year, the revenue decreased by -4.90%.
Measured over the past years, CENTA 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
CENTA 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 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
Based on the Price/Earnings ratio of 10.56, the valuation of CENTA can be described as reasonable.
Based on the Price/Earnings ratio, CENTA is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CENTA to the average of the S&P500 Index (25.07), we can say CENTA is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.94, the valuation of CENTA can be described as very reasonable.
91.67% of the companies in the same industry are more expensive than CENTA, based on the Price/Forward Earnings ratio.
CENTA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.56 | ||
| Fwd PE | 9.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CENTA is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CENTA is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.59 | ||
| EV/EBITDA | 6.9 |
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)0.42
PEG (5Y)1.73
EPS Next 2Y14.28%
EPS Next 3Y11.94%
5. Dividend
5.1 Amount
CENTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
27.78
+0.25 (+0.91%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners105.36%
Inst Owner Change3.62%
Ins Owners16.03%
Ins Owner ChangeN/A
Market Cap1.75B
Revenue(TTM)3.12B
Net Income(TTM)138.49M
Analysts80
Price Target38.71 (39.34%)
Short Float %13.54%
Short Ratio3.13
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)-5.36%
PT rev (3m)-3.37%
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 | 10.56 | ||
| Fwd PE | 9.94 | ||
| P/S | 0.56 | ||
| P/FCF | 5.59 | ||
| P/OCF | 4.95 | ||
| P/B | 1.1 | ||
| P/tB | 3.02 | ||
| EV/EBITDA | 6.9 |
EPS(TTM)2.63
EY9.47%
EPS(NY)2.79
Fwd EY10.06%
FCF(TTM)4.97
FCFY17.88%
OCF(TTM)5.61
OCFY20.2%
SpS49.63
BVpS25.26
TBVpS9.2
PEG (NY)0.42
PEG (5Y)1.73
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 | 2.43 |
F-Score6
WACC6.73%
ROIC/WACC0.86
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 AND PET CO-A / CENTA FAQ
Can you provide the ChartMill fundamental rating for CENTRAL GARDEN AND PET CO-A?
ChartMill assigns a fundamental rating of 4 / 10 to CENTA.
What is the valuation status for CENTA stock?
ChartMill assigns a valuation rating of 8 / 10 to CENTRAL GARDEN AND PET CO-A (CENTA). This can be considered as Undervalued.
Can you provide the profitability details for CENTRAL GARDEN AND PET CO-A?
CENTRAL GARDEN AND PET CO-A (CENTA) has a profitability rating of 2 / 10.
What are the PE and PB ratios of CENTRAL GARDEN AND PET CO-A (CENTA) stock?
The Price/Earnings (PE) ratio for CENTRAL GARDEN AND PET CO-A (CENTA) is 10.56 and the Price/Book (PB) ratio is 1.1.
What is the expected EPS growth for CENTRAL GARDEN AND PET CO-A (CENTA) stock?
The Earnings per Share (EPS) of CENTRAL GARDEN AND PET CO-A (CENTA) is expected to grow by 25.04% in the next year.