CENTRAL GARDEN AND PET CO-A (CENTA) Stock Fundamental Analysis
NASDAQ:CENTA - Nasdaq - US1535272058 - Common Stock - Currency: USD
CENTA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 12 industry peers in the Household Products industry. CENTA scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. CENTA has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years CENTA has been profitable.
CENTA had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 3.39%, CENTA is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Return On Equity of CENTA (7.99%) is worse than 75.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.50%, CENTA is doing worse than 75.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CENTA is significantly below the industry average of 15.79%.
| 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
Looking at the Profit Margin, with a value of 3.90%, CENTA is doing worse than 66.67% of the companies in the same industry.
CENTA's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 6.84%, CENTA is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
CENTA's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 30.53%, CENTA is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
CENTA'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
CENTA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CENTA has been increased compared to 1 year ago.
CENTA has more shares outstanding than it did 5 years ago.
CENTA has a better debt/assets ratio than last year.
2.2 Solvency
CENTA has an Altman-Z score of 2.50. 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.
Looking at the Altman-Z score, with a value of 2.50, CENTA is doing worse than 75.00% of the companies in the same industry.
CENTA has a debt to FCF ratio of 3.58. This is a good value and a sign of high solvency as CENTA would need 3.58 years to pay back of all of its debts.
CENTA's Debt to FCF ratio of 3.58 is in line compared to the rest of the industry. CENTA outperforms 41.67% of its industry peers.
A Debt/Equity ratio of 0.77 indicates that CENTA is somewhat dependend on debt financing.
CENTA 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 | 2.5 |
ROIC/WACC0.77
WACC7.17%
2.3 Liquidity
A Current Ratio of 3.31 indicates that CENTA has no problem at all paying its short term obligations.
CENTA has a Current ratio of 3.31. This is amongst the best in the industry. CENTA outperforms 100.00% of its industry peers.
CENTA has a Quick Ratio of 1.93. This is a normal value and indicates that CENTA is financially healthy and should not expect problems in meeting its short term obligations.
CENTA has a better Quick ratio (1.93) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.31 | ||
| Quick Ratio | 1.93 |
3. Growth
3.1 Past
The earnings per share for CENTA have decreased strongly by -14.64% in the last year.
CENTA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.12% yearly.
The Revenue has decreased by -4.60% in the past year.
CENTA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.08% yearly.
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
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 Y15.25%
EPS Next 2Y11.19%
EPS Next 3Y9.31%
EPS Next 5Y10.33%
Revenue Next Year-2.69%
Revenue Next 2Y-0.49%
Revenue Next 3Y0.63%
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
A Price/Earnings ratio of 13.18 indicates a correct valuation of CENTA.
Compared to the rest of the industry, the Price/Earnings ratio of CENTA indicates a somewhat cheap valuation: CENTA is cheaper than 75.00% of the companies listed in the same industry.
CENTA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.82.
Based on the Price/Forward Earnings ratio of 11.91, the valuation of CENTA can be described as reasonable.
CENTA's Price/Forward Earnings ratio is rather cheap when compared to the industry. CENTA is cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CENTA to the average of the S&P500 Index (21.76), we can say CENTA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.18 | ||
| Fwd PE | 11.91 |
4.2 Price Multiples
CENTA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CENTA is cheaper than 75.00% of the companies in the same industry.
100.00% of the companies in the same industry are more expensive than CENTA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.2 | ||
| EV/EBITDA | 9.09 |
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)0.86
PEG (5Y)2.15
EPS Next 2Y11.19%
EPS Next 3Y9.31%
5. Dividend
5.1 Amount
No dividends for CENTA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
31.51
-0.37 (-1.16%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners122.78%
Inst Owner Change0.11%
Ins Owners14.46%
Ins Owner ChangeN/A
Market Cap2.00B
Analysts78.46
Price Target38.7 (22.82%)
Short Float %7.58%
Short Ratio1.86
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)-3.41%
PT rev (3m)-0.23%
EPS NQ rev (1m)-3.28%
EPS NQ rev (3m)-3.28%
EPS NY rev (1m)2.46%
EPS NY rev (3m)2.03%
Revenue NQ rev (1m)-1.75%
Revenue NQ rev (3m)-1.75%
Revenue NY rev (1m)-2.28%
Revenue NY rev (3m)-2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.18 | ||
| Fwd PE | 11.91 | ||
| P/S | 0.65 | ||
| P/FCF | 6.2 | ||
| P/OCF | 5.53 | ||
| P/B | 1.34 | ||
| P/tB | 3.93 | ||
| EV/EBITDA | 9.09 |
EPS(TTM)2.39
EY7.58%
EPS(NY)2.65
Fwd EY8.4%
FCF(TTM)5.08
FCFY16.14%
OCF(TTM)5.7
OCFY18.09%
SpS48.17
BVpS23.53
TBVpS8.02
PEG (NY)0.86
PEG (5Y)2.15
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 | 2.5 |
F-Score6
WACC7.17%
ROIC/WACC0.77
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 Y15.25%
EPS Next 2Y11.19%
EPS Next 3Y9.31%
EPS Next 5Y10.33%
Revenue 1Y (TTM)-4.6%
Revenue growth 3Y-1.05%
Revenue growth 5Y6.08%
Sales Q2Q%-7.39%
Revenue Next Year-2.69%
Revenue Next 2Y-0.49%
Revenue Next 3Y0.63%
Revenue Next 5Y3.18%
EBIT growth 1Y-15.34%
EBIT growth 3Y-5.22%
EBIT growth 5Y7.2%
EBIT Next Year54.16%
EBIT Next 3Y14.64%
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%