CENTRAL GARDEN & PET CO (CENT) Stock Fundamental Analysis
NASDAQ:CENT - Nasdaq - US1535271068 - Common Stock - Currency: USD
We assign a fundamental rating of 3 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 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
CENT had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 3.39%, CENT is doing worse than 75.00% of the companies in the same industry.
CENT's Return On Equity of 7.99% is on the low side compared to the rest of the industry. CENT is outperformed by 83.33% of its industry peers.
CENT's Return On Invested Capital of 5.50% 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 15.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 7.99% | ||
| ROIC | 5.5% |
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
The Profit Margin of CENT (3.90%) is worse than 75.00% of its industry peers.
In the last couple of years the Profit Margin of CENT has declined.
The Operating Margin of CENT (6.84%) is worse than 83.33% of its industry peers.
CENT's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 30.53%, CENT is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
CENT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.84% | ||
| PM (TTM) | 3.9% | ||
| GM | 30.53% |
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
CENT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
An Altman-Z score of 2.63 indicates that CENT is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CENT (2.63) is worse than 66.67% of its industry peers.
CENT has a debt to FCF ratio of 3.58. This is a good value and a sign of high solvency as CENT would need 3.58 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.58, CENT is doing worse than 66.67% of the companies in the same industry.
CENT has a Debt/Equity ratio of 0.77. This is a neutral value indicating CENT is somewhat dependend on debt financing.
CENT has a Debt to Equity ratio (0.77) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.58 | ||
| Altman-Z | 2.63 |
ROIC/WACC0.75
WACC7.37%
2.3 Liquidity
CENT has a Current Ratio of 3.31. This indicates that CENT is financially healthy and has no problem in meeting its short term obligations.
CENT's Current ratio of 3.31 is amongst the best of the industry. CENT outperforms 91.67% of its industry peers.
CENT has a Quick Ratio of 1.93. This is a normal value and indicates that CENT is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of CENT (1.93) is better than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.31 | ||
| Quick Ratio | 1.93 |
3. Growth
3.1 Past
CENT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.64%.
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 -4.60% in the past year.
The Revenue has been growing slightly by 6.08% on average over the past years.
EPS 1Y (TTM)-14.64%
EPS 3Y-9.84%
EPS 5Y6.12%
EPS Q2Q%5.05%
Revenue 1Y (TTM)-4.6%
Revenue growth 3Y-1.05%
Revenue growth 5Y6.08%
Sales Q2Q%-7.39%
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 10.52% yearly.
The Revenue is expected to grow by 2.91% on average over the next years.
EPS Next Y16.23%
EPS Next 2Y11.26%
EPS Next 3Y9.4%
EPS Next 5Y10.52%
Revenue Next Year-2.82%
Revenue Next 2Y-0.55%
Revenue Next 3Y0.56%
Revenue Next 5Y2.91%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 16.76, CENT is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of CENT is on the same level as its industry peers.
When comparing the Price/Earnings ratio of CENT to the average of the S&P500 Index (27.41), we can say CENT is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.12, which indicates a correct valuation of CENT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CENT indicates a somewhat cheap valuation: CENT is cheaper than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.19. CENT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.76 | ||
| Fwd PE | 15.12 |
4.2 Price Multiples
CENT's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, CENT is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.62 | ||
| EV/EBITDA | 10.57 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.03
PEG (5Y)2.74
EPS Next 2Y11.26%
EPS Next 3Y9.4%
5. Dividend
5.1 Amount
No dividends for CENT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
40.05
+3.6 (+9.88%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners112.87%
Inst Owner Change0%
Ins Owners15.76%
Ins Owner Change-0.34%
Market Cap2.54B
Analysts78.46
Price Target44.27 (10.54%)
Short Float %14.26%
Short Ratio11.18
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)1084.23%
Min EPS beat(2)9.64%
Max EPS beat(2)2158.82%
EPS beat(4)4
Avg EPS beat(4)546.27%
Min EPS beat(4)7.1%
Max EPS beat(4)2158.82%
EPS beat(8)7
Avg EPS beat(8)287.56%
EPS beat(12)9
Avg EPS beat(12)129.7%
EPS beat(16)13
Avg EPS beat(16)196.03%
Revenue beat(2)1
Avg Revenue beat(2)-2.42%
Min Revenue beat(2)-7.03%
Max Revenue beat(2)2.2%
Revenue beat(4)1
Avg Revenue beat(4)-3.6%
Min Revenue beat(4)-7.06%
Max Revenue beat(4)2.2%
Revenue beat(8)3
Avg Revenue beat(8)-2.09%
Revenue beat(12)3
Avg Revenue beat(12)-1.86%
Revenue beat(16)6
Avg Revenue beat(16)-0.5%
PT rev (1m)0%
PT rev (3m)-1.36%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)-2.25%
EPS NY rev (1m)0.85%
EPS NY rev (3m)3.77%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-1.95%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-2.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.76 | ||
| Fwd PE | 15.12 | ||
| P/S | 0.8 | ||
| P/FCF | 7.62 | ||
| P/OCF | 6.8 | ||
| P/B | 1.65 | ||
| P/tB | 4.84 | ||
| EV/EBITDA | 10.57 |
EPS(TTM)2.39
EY5.97%
EPS(NY)2.65
Fwd EY6.61%
FCF(TTM)5.25
FCFY13.12%
OCF(TTM)5.89
OCFY14.71%
SpS49.77
BVpS24.31
TBVpS8.28
PEG (NY)1.03
PEG (5Y)2.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 7.99% | ||
| ROCE | 7.12% | ||
| ROIC | 5.5% | ||
| ROICexc | 6.63% | ||
| ROICexgc | 11.12% | ||
| OM | 6.84% | ||
| PM (TTM) | 3.9% | ||
| GM | 30.53% | ||
| FCFM | 10.55% |
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 Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.58 | ||
| Debt/EBITDA | 3.92 | ||
| Cap/Depr | 45.91% | ||
| Cap/Sales | 1.28% | ||
| Interest Coverage | 3.74 | ||
| Cash Conversion | 122.87% | ||
| Profit Quality | 270.34% | ||
| Current Ratio | 3.31 | ||
| Quick Ratio | 1.93 | ||
| Altman-Z | 2.63 |
F-Score6
WACC7.37%
ROIC/WACC0.75
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)-14.64%
EPS 3Y-9.84%
EPS 5Y6.12%
EPS Q2Q%5.05%
EPS Next Y16.23%
EPS Next 2Y11.26%
EPS Next 3Y9.4%
EPS Next 5Y10.52%
Revenue 1Y (TTM)-4.6%
Revenue growth 3Y-1.05%
Revenue growth 5Y6.08%
Sales Q2Q%-7.39%
Revenue Next Year-2.82%
Revenue Next 2Y-0.55%
Revenue Next 3Y0.56%
Revenue Next 5Y2.91%
EBIT growth 1Y-15.34%
EBIT growth 3Y-5.22%
EBIT growth 5Y7.2%
EBIT Next Year54.95%
EBIT Next 3Y15.82%
EBIT Next 5YN/A
FCF growth 1Y369.36%
FCF growth 3Y27.3%
FCF growth 5Y15.2%
OCF growth 1Y164.93%
OCF growth 3Y16.34%
OCF growth 5Y14.01%