CENTRAL GARDEN AND PET CO-A (CENTA) Stock Fundamental Analysis
NASDAQ:CENTA - Nasdaq - US1535272058 - Common Stock - Currency: USD
Overall CENTA gets a fundamental rating of 4 out of 10. We evaluated CENTA against 12 industry peers in the Household Products industry. While CENTA seems to be doing ok healthwise, there are quite some concerns on its profitability. CENTA has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
CENTA had positive earnings in the past year.
In the past year CENTA had a positive cash flow from operations.
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 worse Return On Assets (3.44%) than 66.67% of its industry peers.
With a Return On Equity value of 8.00%, CENTA is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 5.71%, CENTA is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
CENTA had an Average Return On Invested Capital over the past 3 years of 6.29%. This is significantly below the industry average of 15.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 8% | ||
| ROIC | 5.71% |
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
With a Profit Margin value of 3.77%, CENTA is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
CENTA's Profit Margin has declined in the last couple of years.
CENTA has a Operating Margin of 6.87%. This is in the lower half of the industry: CENTA underperforms 75.00% of its industry peers.
CENTA's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 30.15%, CENTA is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
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 | 6.87% | ||
| PM (TTM) | 3.77% | ||
| GM | 30.15% |
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 CENTA is destroying value.
CENTA has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CENTA has been increased compared to 5 years ago.
CENTA has a better debt/assets ratio than last year.
2.2 Solvency
CENTA has an Altman-Z score of 2.53. This is not the best score and indicates that CENTA is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of CENTA (2.53) is worse than 75.00% of its industry peers.
CENTA has a debt to FCF ratio of 3.34. This is a good value and a sign of high solvency as CENTA would need 3.34 years to pay back of all of its debts.
CENTA's Debt to FCF ratio of 3.34 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 0.78. This is a neutral value indicating CENTA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.78, CENTA perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.81
WACC7.01%
2.3 Liquidity
A Current Ratio of 3.47 indicates that CENTA has no problem at all paying its short term obligations.
CENTA has a better Current ratio (3.47) than 100.00% of its industry peers.
A Quick Ratio of 1.97 indicates that CENTA should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.97, CENTA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.47 | ||
| Quick Ratio | 1.97 |
3. Growth
3.1 Past
CENTA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.65%.
Measured over the past 5 years, CENTA shows a small growth in Earnings Per Share. The EPS has been growing by 6.12% on average per year.
CENTA shows a decrease in Revenue. In the last year, the revenue decreased by -2.85%.
CENTA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.08% yearly.
EPS 1Y (TTM)-13.65%
EPS 3Y-9.84%
EPS 5Y6.12%
EPS Q2Q%2000%
Revenue 1Y (TTM)-2.85%
Revenue growth 3Y-1.05%
Revenue growth 5Y6.08%
Sales Q2Q%3.45%
3.2 Future
CENTA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.33% yearly.
The Revenue is expected to grow by 3.18% on average over the next years.
EPS Next Y12.49%
EPS Next 2Y9.84%
EPS Next 3Y9.92%
EPS Next 5Y10.33%
Revenue Next Year-0.45%
Revenue Next 2Y0.84%
Revenue Next 3Y1.21%
Revenue Next 5Y3.18%
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 12.94, the valuation of CENTA can be described as correct.
Based on the Price/Earnings ratio, CENTA is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.22, CENTA is valued rather cheaply.
The Price/Forward Earnings ratio is 11.72, which indicates a very decent valuation of CENTA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CENTA indicates a rather cheap valuation: CENTA is cheaper than 83.33% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.86. CENTA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.94 | ||
| Fwd PE | 11.72 |
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 83.33% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CENTA is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.56 | ||
| EV/EBITDA | 8.1 |
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)1.04
PEG (5Y)2.11
EPS Next 2Y9.84%
EPS Next 3Y9.92%
5. Dividend
5.1 Amount
No dividends for CENTA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.27
+0.48 (+1.61%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners122.78%
Inst Owner Change-0.11%
Ins Owners14.46%
Ins Owner ChangeN/A
Market Cap1.98B
Analysts80
Price Target39.52 (30.56%)
Short Float %7.65%
Short Ratio1.9
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)1084.16%
Min EPS beat(2)9.5%
Max EPS beat(2)2158.82%
EPS beat(4)4
Avg EPS beat(4)549.31%
Min EPS beat(4)7.1%
Max EPS beat(4)2158.82%
EPS beat(8)6
Avg EPS beat(8)285.53%
EPS beat(12)9
Avg EPS beat(12)129.23%
EPS beat(16)13
Avg EPS beat(16)197.92%
Revenue beat(2)1
Avg Revenue beat(2)-2.43%
Min Revenue beat(2)-7.06%
Max Revenue beat(2)2.2%
Revenue beat(4)1
Avg Revenue beat(4)-1.98%
Min Revenue beat(4)-7.06%
Max Revenue beat(4)2.2%
Revenue beat(8)3
Avg Revenue beat(8)-1.32%
Revenue beat(12)4
Avg Revenue beat(12)-1.27%
Revenue beat(16)7
Avg Revenue beat(16)0.53%
PT rev (1m)-1.29%
PT rev (3m)7.51%
EPS NQ rev (1m)0.72%
EPS NQ rev (3m)-8.28%
EPS NY rev (1m)0.43%
EPS NY rev (3m)3.96%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-2.49%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.94 | ||
| Fwd PE | 11.72 | ||
| P/S | 0.62 | ||
| P/FCF | 5.56 | ||
| P/OCF | 5.01 | ||
| P/B | 1.31 | ||
| P/tB | 3.95 | ||
| EV/EBITDA | 8.1 |
EPS(TTM)2.34
EY7.73%
EPS(NY)2.58
Fwd EY8.53%
FCF(TTM)5.45
FCFY17.99%
OCF(TTM)6.04
OCFY19.96%
SpS49.19
BVpS23.19
TBVpS7.66
PEG (NY)1.04
PEG (5Y)2.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 8% | ||
| ROCE | 7.4% | ||
| ROIC | 5.71% | ||
| ROICexc | 7.2% | ||
| ROICexgc | 12.59% | ||
| OM | 6.87% | ||
| PM (TTM) | 3.77% | ||
| GM | 30.15% | ||
| FCFM | 11.07% |
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-Score7
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 3.34 | ||
| Debt/EBITDA | 3.82 | ||
| Cap/Depr | 43.36% | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 3.84 | ||
| Cash Conversion | 127.05% | ||
| Profit Quality | 293.46% | ||
| Current Ratio | 3.47 | ||
| Quick Ratio | 1.97 | ||
| Altman-Z | 2.53 |
F-Score7
WACC7.01%
ROIC/WACC0.81
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)-13.65%
EPS 3Y-9.84%
EPS 5Y6.12%
EPS Q2Q%2000%
EPS Next Y12.49%
EPS Next 2Y9.84%
EPS Next 3Y9.92%
EPS Next 5Y10.33%
Revenue 1Y (TTM)-2.85%
Revenue growth 3Y-1.05%
Revenue growth 5Y6.08%
Sales Q2Q%3.45%
Revenue Next Year-0.45%
Revenue Next 2Y0.84%
Revenue Next 3Y1.21%
Revenue Next 5Y3.18%
EBIT growth 1Y-5.54%
EBIT growth 3Y-5.22%
EBIT growth 5Y7.2%
EBIT Next Year54.16%
EBIT Next 3Y14.64%
EBIT Next 5YN/A
FCF growth 1Y414.12%
FCF growth 3Y27.3%
FCF growth 5Y15.2%
OCF growth 1Y8221.56%
OCF growth 3Y16.34%
OCF growth 5Y14.01%