CENTRAL GARDEN & PET CO (CENT) Stock Fundamental Analysis
USA - NASDAQ:CENT - US1535271068 - Common Stock
31.42 USD
+0.14 (+0.45%)
31.42 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. CENT may be a bit undervalued, certainly considering the very reasonable score on growth
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.
Of the past 5 years CENT 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 3.79%, CENT is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
With a Return On Equity value of 8.72%, CENT is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
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 15.14%.
| 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 Profit Margin of 4.44%. This is amonst the worse of the industry: CENT underperforms 83.33% of its industry peers.
CENT's Profit Margin has declined in the last couple of years.
The Operating Margin of CENT (7.48%) is worse than 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 31.23%, CENT is doing worse than 75.00% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CENT is destroying value.
CENT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CENT has more shares outstanding
The debt/assets ratio for CENT has been reduced compared to a year ago.
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.
The Altman-Z score of CENT (2.50) is comparable to the rest of the industry.
CENT has a debt to FCF ratio of 3.82. This is a good value and a sign of high solvency as CENT would need 3.82 years to pay back of all of its debts.
CENT has a Debt to FCF ratio (3.82) which is in line with its industry peers.
CENT has a Debt/Equity ratio of 0.75. This is a neutral value indicating CENT is somewhat dependend on debt financing.
CENT has a Debt to Equity ratio (0.75) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 3.82 | ||
| Altman-Z | 2.5 |
ROIC/WACC0.85
WACC6.87%
2.3 Liquidity
CENT has a Current Ratio of 3.56. This indicates that CENT is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.56, CENT belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
A Quick Ratio of 2.28 indicates that CENT has no problem at all paying its short term obligations.
The Quick ratio of CENT (2.28) is better than 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.
CENT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.12% yearly.
CENT shows a decrease in Revenue. In the last year, the revenue decreased by -4.90%.
CENT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.08% yearly.
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
Based on estimates for the next years, CENT will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.77% on average per year.
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.
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 11.95, the valuation of CENT can be described as reasonable.
Based on the Price/Earnings ratio, CENT is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
CENT is valuated cheaply when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
CENT is valuated reasonably with a Price/Forward Earnings ratio of 11.30.
CENT's Price/Forward Earnings ratio is rather cheap when compared to the industry. CENT is cheaper than 83.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, CENT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.95 | ||
| Fwd PE | 11.3 |
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.
91.67% of the companies in the same industry are more expensive than CENT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.33 | ||
| EV/EBITDA | 7.64 |
4.3 Compensation for Growth
CENT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.48
PEG (5Y)1.95
EPS Next 2Y13.97%
EPS Next 3Y12%
5. Dividend
5.1 Amount
No dividends for CENT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
31.42
+0.14 (+0.45%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners105.36%
Inst Owner Change-0.81%
Ins Owners16.03%
Ins Owner Change-11.64%
Market Cap1.98B
Revenue(TTM)3.12B
Net Income(TTM)138.49M
Analysts78.46
Price Target42.84 (36.35%)
Short Float %8.53%
Short Ratio9.18
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)-5.41%
PT rev (3m)-3.23%
EPS NQ rev (1m)1.67%
EPS NQ rev (3m)-32.89%
EPS NY rev (1m)0%
EPS NY rev (3m)7.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.95 | ||
| Fwd PE | 11.3 | ||
| P/S | 0.63 | ||
| P/FCF | 6.33 | ||
| P/OCF | 5.6 | ||
| P/B | 1.24 | ||
| P/tB | 3.41 | ||
| EV/EBITDA | 7.64 |
EPS(TTM)2.63
EY8.37%
EPS(NY)2.78
Fwd EY8.85%
FCF(TTM)4.97
FCFY15.81%
OCF(TTM)5.61
OCFY17.86%
SpS49.63
BVpS25.26
TBVpS9.2
PEG (NY)0.48
PEG (5Y)1.95
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 | 2.5 |
F-Score6
WACC6.87%
ROIC/WACC0.85
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%
CENTRAL GARDEN & PET CO / CENT FAQ
Can you provide the ChartMill fundamental rating for CENTRAL GARDEN & PET CO?
ChartMill assigns a fundamental rating of 4 / 10 to CENT.
Can you provide the valuation status for CENTRAL GARDEN & PET CO?
ChartMill assigns a valuation rating of 8 / 10 to CENTRAL GARDEN & PET CO (CENT). This can be considered as Undervalued.
Can you provide the profitability details for CENTRAL GARDEN & PET CO?
CENTRAL GARDEN & PET CO (CENT) has a profitability rating of 2 / 10.
What is the expected EPS growth for CENTRAL GARDEN & PET CO (CENT) stock?
The Earnings per Share (EPS) of CENTRAL GARDEN & PET CO (CENT) is expected to grow by 24.88% in the next year.
How sustainable is the dividend of CENTRAL GARDEN & PET CO (CENT) stock?
The dividend rating of CENTRAL GARDEN & PET CO (CENT) is 0 / 10 and the dividend payout ratio is 0%.