CENTRAL GARDEN & PET CO (CENT) Stock Fundamental Analysis
USA - NASDAQ:CENT - US1535271068 - Common Stock
30.93 USD
-0.26 (-0.83%)
30.93 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to CENT. 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on CENT.
1. Profitability
1.1 Basic Checks
CENT had positive earnings in the past year.
In the past year CENT had a positive cash flow from operations.
In the past 5 years CENT has always been profitable.
CENT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.79%, CENT is doing worse than 83.33% of the companies in the same industry.
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.
Looking at the Return On Invested Capital, with a value of 5.82%, CENT is doing worse than 83.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CENT is significantly below the industry average of 15.56%.
| 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
CENT has a worse Profit Margin (4.44%) than 83.33% of its industry peers.
In the last couple of years the Profit Margin of CENT has declined.
CENT has a worse Operating Margin (7.48%) than 83.33% of its industry peers.
In the last couple of years the Operating Margin of CENT has remained more or less at the same level.
The Gross Margin of CENT (31.23%) is worse than 75.00% of its industry peers.
CENT'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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CENT is destroying value.
Compared to 1 year ago, CENT has more shares outstanding
The number of shares outstanding for CENT has been increased compared to 5 years ago.
CENT has a better debt/assets ratio than last year.
2.2 Solvency
CENT has an Altman-Z score of 2.50. This is not the best score and indicates that CENT is in the grey zone with still only limited risk for bankruptcy at the moment.
CENT has a worse Altman-Z score (2.50) 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.
Looking at the Debt to FCF ratio, with a value of 3.82, CENT is doing worse than 66.67% of the companies in the same industry.
A Debt/Equity ratio of 0.75 indicates that CENT is somewhat dependend on debt financing.
CENT has a Debt to Equity ratio of 0.75. This is comparable to the rest of the industry: CENT outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 3.82 | ||
| Altman-Z | 2.5 |
ROIC/WACC0.84
WACC6.89%
2.3 Liquidity
A Current Ratio of 3.56 indicates that CENT has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.56, CENT belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
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's Quick ratio of 2.28 is amongst the best of the industry. CENT outperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.56 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.97% over the past year.
Measured over the past 5 years, CENT shows a small growth in Earnings Per Share. The EPS has been growing by 6.12% on average per year.
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.
CENT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.84% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 11.76, the valuation of CENT can be described as very reasonable.
Based on the Price/Earnings ratio, CENT is valued a bit cheaper than 75.00% of the companies in the same industry.
CENT is valuated cheaply when we compare the Price/Earnings ratio to 27.76, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.13 indicates a reasonable valuation of CENT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CENT indicates a rather cheap valuation: CENT is cheaper than 83.33% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CENT to the average of the S&P500 Index (23.21), we can say CENT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 11.13 |
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 | 6.23 | ||
| EV/EBITDA | 7.62 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.47
PEG (5Y)1.92
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 |
30.93
-0.26 (-0.83%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners105.36%
Inst Owner Change0%
Ins Owners16.03%
Ins Owner Change-11.64%
Market Cap1.94B
Analysts78.46
Price Target45.29 (46.43%)
Short Float %10.1%
Short Ratio10.81
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)-31.58%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)7.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 11.13 | ||
| P/S | 0.62 | ||
| P/FCF | 6.23 | ||
| P/OCF | 5.51 | ||
| P/B | 1.22 | ||
| P/tB | 3.36 | ||
| EV/EBITDA | 7.62 |
EPS(TTM)2.63
EY8.5%
EPS(NY)2.78
Fwd EY8.99%
FCF(TTM)4.97
FCFY16.06%
OCF(TTM)5.61
OCFY18.15%
SpS49.63
BVpS25.26
TBVpS9.2
PEG (NY)0.47
PEG (5Y)1.92
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%
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 Turnover0.85
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 | 2.5 |
F-Score6
WACC6.89%
ROIC/WACC0.84
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%