CENTRAL GARDEN AND PET CO-A (CENTA)
US1535272058 - Common Stock
We assign a fundamental rating of 4 out of 10 to CENTA. CENTA was compared to 12 industry peers in the Household Products industry. CENTA scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. CENTA is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CENTA was profitable.
CENTA had a positive operating cash flow in the past year.
In the past 5 years CENTA has always been profitable.
Of the past 5 years CENTA 4 years had a positive operating cash flow.
1.2 Ratios
CENTA has a Return On Assets of 3.04%. This is in the lower half of the industry: CENTA underperforms 75.00% of its industry peers.
The Return On Equity of CENTA (6.94%) is worse than 75.00% of its industry peers.
The Return On Invested Capital of CENTA (5.13%) 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 15.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.04% | ||
| ROE | 6.94% | ||
| ROIC | 5.13% |
ROA(3y)3.8%
ROA(5y)4.28%
ROE(3y)9%
ROE(5y)10.13%
ROIC(3y)6.01%
ROIC(5y)6.74%
1.3 Margins
CENTA has a Profit Margin of 3.37%. This is in the lower half of the industry: CENTA underperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of CENTA has declined.
CENTA has a Operating Margin of 6.30%. This is in the lower half of the industry: CENTA underperforms 75.00% of its industry peers.
CENTA's Operating Margin has declined in the last couple of years.
CENTA has a worse Gross Margin (29.83%) 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 | 6.3% | ||
| PM (TTM) | 3.37% | ||
| GM | 29.83% |
OM growth 3Y-9.37%
OM growth 5Y-2.24%
PM growth 3Y-9.76%
PM growth 5Y-2.83%
GM growth 3Y0.11%
GM growth 5Y-0.04%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CENTA is destroying value.
CENTA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CENTA has more shares outstanding
The debt/assets ratio for CENTA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.59 indicates that CENTA is not a great score, but indicates only limited risk for bankruptcy at the moment.
CENTA has a worse Altman-Z score (2.59) than 83.33% of its industry peers.
The Debt to FCF ratio of CENTA is 3.38, which is a good value as it means it would take CENTA, 3.38 years of fcf income to pay off all of its debts.
CENTA's Debt to FCF ratio of 3.38 is in line compared to the rest of the industry. CENTA outperforms 50.00% of its industry peers.
CENTA has a Debt/Equity ratio of 0.76. This is a neutral value indicating CENTA is somewhat dependend on debt financing.
CENTA has a Debt to Equity ratio (0.76) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 3.38 | ||
| Altman-Z | 2.59 |
ROIC/WACC0.7
WACC7.29%
2.3 Liquidity
A Current Ratio of 3.66 indicates that CENTA has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.66, CENTA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 2.19 indicates that CENTA has no problem at all paying its short term obligations.
The Quick ratio of CENTA (2.19) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.66 | ||
| Quick Ratio | 2.19 |
3. Growth
3.1 Past
CENTA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.75%.
The Earnings Per Share has been growing slightly by 6.12% on average over the past years.
Looking at the last year, CENTA shows a decrease in Revenue. The Revenue has decreased by -3.31% in the last year.
CENTA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.08% yearly.
EPS 1Y (TTM)-15.75%
EPS 3Y-9.84%
EPS 5Y6.12%
EPS Q2Q%-460%
Revenue 1Y (TTM)-3.31%
Revenue growth 3Y-1.05%
Revenue growth 5Y6.08%
Sales Q2Q%-10.75%
3.2 Future
The Earnings Per Share is expected to grow by 10.96% on average over the next years. This is quite good.
CENTA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.34% yearly.
EPS Next Y8.2%
EPS Next 2Y8.26%
EPS Next 3Y9.13%
EPS Next 5Y10.96%
Revenue Next Year-0.51%
Revenue Next 2Y0.83%
Revenue Next 3Y1.35%
Revenue Next 5Y3.34%
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 15.56, the valuation of CENTA can be described as correct.
83.33% of the companies in the same industry are more expensive than CENTA, based on the Price/Earnings ratio.
CENTA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
CENTA is valuated correctly with a Price/Forward Earnings ratio of 14.38.
91.67% of the companies in the same industry are more expensive than CENTA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.80, CENTA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.56 | ||
| Fwd PE | 14.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CENTA indicates a rather cheap valuation: CENTA is cheaper than 91.67% of the companies listed in the same industry.
CENTA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CENTA is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.21 | ||
| EV/EBITDA | 8.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CENTA does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)1.9
PEG (5Y)2.54
EPS Next 2Y8.26%
EPS Next 3Y9.13%
5. Dividend
5.1 Amount
No dividends for CENTA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CENTRAL GARDEN AND PET CO-A
NASDAQ:CENTA (12/27/2024, 4:30:00 PM)
After market: 33.3 0 (0%)33.3
-0.06 (-0.18%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners118.76%
Inst Owner Change-1.49%
Ins Owners13.85%
Ins Owner ChangeN/A
Market Cap2.18B
Analysts83.08
Price Target36.99 (11.08%)
Short Float %7.45%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)8.3%
Min EPS beat(2)7.1%
Max EPS beat(2)9.5%
EPS beat(4)4
Avg EPS beat(4)36.01%
Min EPS beat(4)7.1%
Max EPS beat(4)105.6%
EPS beat(8)6
Avg EPS beat(8)16.78%
EPS beat(12)9
Avg EPS beat(12)71.71%
EPS beat(16)13
Avg EPS beat(16)306.17%
Revenue beat(2)0
Avg Revenue beat(2)-4.78%
Min Revenue beat(2)-7.06%
Max Revenue beat(2)-2.51%
Revenue beat(4)1
Avg Revenue beat(4)-2.45%
Min Revenue beat(4)-7.06%
Max Revenue beat(4)0.35%
Revenue beat(8)2
Avg Revenue beat(8)-1.7%
Revenue beat(12)4
Avg Revenue beat(12)-1.06%
Revenue beat(16)7
Avg Revenue beat(16)0.68%
PT rev (1m)-2.46%
PT rev (3m)-11.49%
EPS NQ rev (1m)-116%
EPS NQ rev (3m)-116%
EPS NY rev (1m)-6.83%
EPS NY rev (3m)-7.16%
Revenue NQ rev (1m)-3.58%
Revenue NQ rev (3m)-3.58%
Revenue NY rev (1m)-2.32%
Revenue NY rev (3m)-2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.56 | ||
| Fwd PE | 14.38 | ||
| P/S | 0.68 | ||
| P/FCF | 6.21 | ||
| P/OCF | 5.53 | ||
| P/B | 1.4 | ||
| P/tB | 4.11 | ||
| EV/EBITDA | 8.97 |
EPS(TTM)2.14
EY6.43%
EPS(NY)2.32
Fwd EY6.95%
FCF(TTM)5.36
FCFY16.11%
OCF(TTM)6.02
OCFY18.08%
SpS48.79
BVpS23.72
TBVpS8.1
PEG (NY)1.9
PEG (5Y)2.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.04% | ||
| ROE | 6.94% | ||
| ROCE | 6.64% | ||
| ROIC | 5.13% | ||
| ROICexc | 6.82% | ||
| ROICexgc | 12.36% | ||
| OM | 6.3% | ||
| PM (TTM) | 3.37% | ||
| GM | 29.83% | ||
| FCFM | 10.99% |
ROA(3y)3.8%
ROA(5y)4.28%
ROE(3y)9%
ROE(5y)10.13%
ROIC(3y)6.01%
ROIC(5y)6.74%
ROICexc(3y)7.1%
ROICexc(5y)8.54%
ROICexgc(3y)12.44%
ROICexgc(5y)13.57%
ROCE(3y)7.78%
ROCE(5y)8.74%
ROICexcg growth 3Y-1.61%
ROICexcg growth 5Y-4.92%
ROICexc growth 3Y-11.88%
ROICexc growth 5Y-8.1%
OM growth 3Y-9.37%
OM growth 5Y-2.24%
PM growth 3Y-9.76%
PM growth 5Y-2.83%
GM growth 3Y0.11%
GM growth 5Y-0.04%
F-Score6
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 3.38 | ||
| Debt/EBITDA | 4.07 | ||
| Cap/Depr | 47.5% | ||
| Cap/Sales | 1.35% | ||
| Interest Coverage | 3.51 | ||
| Cash Conversion | 134.96% | ||
| Profit Quality | 325.75% | ||
| Current Ratio | 3.66 | ||
| Quick Ratio | 2.19 | ||
| Altman-Z | 2.59 |
F-Score6
WACC7.29%
ROIC/WACC0.7
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)-15.75%
EPS 3Y-9.84%
EPS 5Y6.12%
EPS Q2Q%-460%
EPS Next Y8.2%
EPS Next 2Y8.26%
EPS Next 3Y9.13%
EPS Next 5Y10.96%
Revenue 1Y (TTM)-3.31%
Revenue growth 3Y-1.05%
Revenue growth 5Y6.08%
Sales Q2Q%-10.75%
Revenue Next Year-0.51%
Revenue Next 2Y0.83%
Revenue Next 3Y1.35%
Revenue Next 5Y3.34%
EBIT growth 1Y-10.85%
EBIT growth 3Y-10.33%
EBIT growth 5Y3.7%
EBIT Next Year60.49%
EBIT Next 3Y8.92%
EBIT Next 5YN/A
FCF growth 1Y7.37%
FCF growth 3Y27.3%
FCF growth 5Y15.2%
OCF growth 1Y3.48%
OCF growth 3Y16.34%
OCF growth 5Y14.01%