CENTRAL GARDEN & PET CO (CENT)
US1535271068 - Common Stock
Taking everything into account, CENT scores 4 out of 10 in our fundamental rating. CENT was compared to 12 industry peers in the Household Products industry. The financial health of CENT is average, but there are quite some concerns on its profitability. CENT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CENT was profitable.
CENT had a positive operating cash flow in the past year.
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's Return On Assets of 3.93% is on the low side compared to the rest of the industry. CENT is outperformed by 75.00% of its industry peers.
The Return On Equity of CENT (9.26%) is worse than 91.67% of its industry peers.
CENT's Return On Invested Capital of 6.18% is on the low side compared to the rest of the industry. CENT is outperformed by 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CENT is significantly below the industry average of 13.88%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.93% | ||
| ROE | 9.26% | ||
| ROIC | 6.18% |
ROA(3y)4.41%
ROA(5y)4.59%
ROE(3y)10.83%
ROE(5y)10.6%
ROIC(3y)6.99%
ROIC(5y)7.17%
1.3 Margins
With a Profit Margin value of 4.05%, 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 7.06% 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.
Looking at the Gross Margin, with a value of 29.06%, 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 | 7.06% | ||
| PM (TTM) | 4.05% | ||
| GM | 29.06% |
OM growth 3Y-1.3%
OM growth 5Y-1.33%
PM growth 3Y-5.37%
PM growth 5Y-7.42%
GM growth 3Y-0.74%
GM growth 5Y-1.06%
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 less shares outstanding than it did 1 year ago.
The number of shares outstanding for CENT has been reduced compared to 5 years ago.
Compared to 1 year ago, CENT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.81 indicates that CENT is not a great score, but indicates only limited risk for bankruptcy at the moment.
CENT's Altman-Z score of 2.81 is in line compared to the rest of the industry. CENT outperforms 41.67% of its industry peers.
CENT has a debt to FCF ratio of 3.62. This is a good value and a sign of high solvency as CENT would need 3.62 years to pay back of all of its debts.
CENT has a Debt to FCF ratio of 3.62. This is in the lower half of the industry: CENT underperforms 66.67% of its industry peers.
CENT has a Debt/Equity ratio of 0.82. This is a neutral value indicating CENT is somewhat dependend on debt financing.
CENT's Debt to Equity ratio of 0.82 is in line compared to the rest of the industry. CENT outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 3.62 | ||
| Altman-Z | 2.81 |
ROIC/WACC0.81
WACC7.63%
2.3 Liquidity
CENT has a Current Ratio of 3.47. This indicates that CENT is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.47, CENT belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
CENT has a Quick Ratio of 1.55. 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 Quick ratio of 1.55. This is in the better half of the industry: CENT outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.47 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
CENT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.16%, which is quite good.
The Earnings Per Share has been growing slightly by 5.54% on average over the past years.
The Revenue has been growing slightly by 0.36% in the past year.
CENT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.36% yearly.
EPS 1Y (TTM)10.16%
EPS 3Y3.82%
EPS 5Y5.54%
EPS growth Q2Q106.25%
Revenue 1Y (TTM)0.36%
Revenue growth 3Y7.09%
Revenue growth 5Y8.36%
Revenue growth Q2Q1.09%
3.2 Future
Based on estimates for the next years, CENT will show a small growth in Earnings Per Share. The EPS will grow by 3.36% on average per year.
CENT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.25% yearly.
EPS Next Y-10.45%
EPS Next 2Y-0.58%
EPS Next 3Y3.36%
EPS Next 5YN/A
Revenue Next Year-1.7%
Revenue Next 2Y0.33%
Revenue Next 3Y1.25%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 15.24, the valuation of CENT can be described as correct.
CENT's Price/Earnings ratio is a bit cheaper when compared to the industry. CENT is cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of CENT to the average of the S&P500 Index (24.84), we can say CENT is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.45 indicates a correct valuation of CENT.
Based on the Price/Forward Earnings ratio, CENT is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
CENT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 16.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CENT indicates a somewhat cheap valuation: CENT is cheaper than 66.67% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CENT is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.45 | ||
| EV/EBITDA | 11.11 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.75
EPS Next 2Y-0.58%
EPS Next 3Y3.36%
5. Dividend
5.1 Amount
No dividends for CENT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CENTRAL GARDEN & PET CO
NASDAQ:CENT (4/26/2024, 7:00:00 PM)
After market: 41.29 0 (0%)41.29
+0.59 (+1.45%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.78B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 16.45 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.93% | ||
| ROE | 9.26% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.06% | ||
| PM (TTM) | 4.05% | ||
| GM | 29.06% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.47 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)10.16%
EPS 3Y3.82%
EPS 5Y
EPS growth Q2Q
EPS Next Y-10.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.36%
Revenue growth 3Y7.09%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y