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. CENTA scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. A decent growth rate in combination with a cheap valuation! Better keep an eye on CENTA.
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.
Of the past 5 years CENTA 4 years had a positive operating cash flow.
1.2 Ratios
CENTA has a Return On Assets of 3.79%. This is in the lower half of the industry: CENTA underperforms 75.00% of its industry peers.
The Return On Equity of CENTA (8.72%) is worse than 75.00% of its industry peers.
The Return On Invested Capital of CENTA (5.59%) is worse than 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CENTA is significantly below the industry average of 15.41%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.79% | ||
| ROE | 8.72% | ||
| ROIC | 5.59% |
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 4.44%, CENTA is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of CENTA has declined.
The Operating Margin of CENTA (7.18%) is worse than 75.00% of its industry peers.
In the last couple of years the Operating Margin of CENTA has remained more or less at the same level.
CENTA has a worse Gross Margin (31.08%) than 66.67% of its industry peers.
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 | 7.18% | ||
| PM (TTM) | 4.44% | ||
| GM | 31.08% |
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.
Compared to 1 year ago, CENTA has more shares outstanding
Compared to 5 years ago, CENTA has more shares outstanding
CENTA has a better debt/assets ratio than last year.
2.2 Solvency
CENTA has an Altman-Z score of 2.48. 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.
CENTA has a Altman-Z score of 2.48. This is in the lower half of the industry: CENTA underperforms 75.00% of its industry peers.
The Debt to FCF ratio of CENTA is 3.82, which is a good value as it means it would take CENTA, 3.82 years of fcf income to pay off all of its debts.
CENTA's Debt to FCF ratio of 3.82 is in line compared to the rest of the industry. CENTA outperforms 41.67% of its industry peers.
CENTA has a Debt/Equity ratio of 0.75. This is a neutral value indicating CENTA is somewhat dependend on debt financing.
CENTA has a Debt to Equity ratio of 0.75. This is comparable to the rest of the industry: CENTA outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 3.82 | ||
| Altman-Z | 2.48 |
ROIC/WACC0.81
WACC6.94%
2.3 Liquidity
CENTA has a Current Ratio of 3.56. This indicates that CENTA is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.56, CENTA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 2.28 indicates that CENTA has no problem at all paying its short term obligations.
The Quick ratio of CENTA (2.28) is better than 100.00% 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.
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 -4.90% in the past year.
Measured over the past years, CENTA 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
CENTA 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-2.69%
Revenue Next 2Y-0.79%
Revenue Next 3Y0.6%
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.
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
With a Price/Earnings ratio of 11.58, the valuation of CENTA can be described as very reasonable.
CENTA's Price/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/Earnings ratio of CENTA to the average of the S&P500 Index (26.41), we can say CENTA is valued rather cheaply.
The Price/Forward Earnings ratio is 11.49, which indicates a very decent valuation of CENTA.
CENTA's Price/Forward Earnings ratio is rather cheap when compared to the industry. CENTA is cheaper than 91.67% of the companies in the same industry.
CENTA is valuated cheaply when we compare the Price/Forward Earnings ratio to 33.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.58 | ||
| Fwd PE | 11.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CENTA is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
CENTA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CENTA is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.18 | ||
| EV/EBITDA | 7.8 |
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)0.71
PEG (5Y)1.89
EPS Next 2Y11.26%
EPS Next 3Y9.4%
5. Dividend
5.1 Amount
CENTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.45
-0.25 (-0.83%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners112.58%
Inst Owner Change-0.13%
Ins Owners15.76%
Ins Owner ChangeN/A
Market Cap1.93B
Analysts78.46
Price Target40.06 (31.56%)
Short Float %8.26%
Short Ratio1.66
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)2.36%
PT rev (3m)3.5%
EPS NQ rev (1m)-1.37%
EPS NQ rev (3m)-29.82%
EPS NY rev (1m)0%
EPS NY rev (3m)3.33%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-2.03%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-2.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.58 | ||
| Fwd PE | 11.49 | ||
| P/S | 0.62 | ||
| P/FCF | 6.18 | ||
| P/OCF | 5.47 | ||
| P/B | 1.22 | ||
| P/tB | 3.34 | ||
| EV/EBITDA | 7.8 |
EPS(TTM)2.63
EY8.64%
EPS(NY)2.65
Fwd EY8.7%
FCF(TTM)4.92
FCFY16.17%
OCF(TTM)5.56
OCFY18.28%
SpS49.21
BVpS25.05
TBVpS9.12
PEG (NY)0.71
PEG (5Y)1.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.79% | ||
| ROE | 8.72% | ||
| ROCE | 7.24% | ||
| ROIC | 5.59% | ||
| ROICexc | 7.26% | ||
| ROICexgc | 12.6% | ||
| OM | 7.18% | ||
| PM (TTM) | 4.44% | ||
| GM | 31.08% | ||
| 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 | 3.83 | ||
| Cap/Depr | 46.8% | ||
| Cap/Sales | 1.3% | ||
| Interest Coverage | 3.9 | ||
| Cash Conversion | 113.52% | ||
| Profit Quality | 225.47% | ||
| Current Ratio | 3.56 | ||
| Quick Ratio | 2.28 | ||
| Altman-Z | 2.48 |
F-Score6
WACC6.94%
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)10.97%
EPS 3Y-9.84%
EPS 5Y6.12%
EPS Q2Q%18.18%
EPS Next Y16.23%
EPS Next 2Y11.26%
EPS Next 3Y9.4%
EPS Next 5Y10.52%
Revenue 1Y (TTM)-4.9%
Revenue growth 3Y-1.05%
Revenue growth 5Y6.08%
Sales Q2Q%-3.56%
Revenue Next Year-2.69%
Revenue Next 2Y-0.79%
Revenue Next 3Y0.6%
Revenue Next 5Y2.91%
EBIT growth 1Y-8.69%
EBIT growth 3Y-5.22%
EBIT growth 5Y7.2%
EBIT Next Year61.47%
EBIT Next 3Y15.93%
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%