NasdaqGS:CENT

Stock Analysis Report

Executive Summary

Central Garden & Pet Company, together with its subsidiaries, produces and distributes products for the lawn and garden, and pet supplies markets in the United States.


Snowflake Analysis

Excellent balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Central Garden & Pet's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CENT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

CENT

1.1%

US Household Products

0.06%

US Market


1 Year Return

-4.1%

CENT

23.3%

US Household Products

19.4%

US Market

Return vs Industry: CENT underperformed the US Household Products industry which returned 25.4% over the past year.

Return vs Market: CENT underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

CENTIndustryMarket
7 Day-1.2%1.1%0.06%
30 Day-10.3%-0.6%1.1%
90 Day-5.1%4.4%8.9%
1 Year-4.1%-4.1%26.4%23.3%21.9%19.4%
3 Year-17.1%-17.1%46.0%33.9%48.9%39.3%
5 Year229.6%229.6%71.1%47.4%71.9%53.1%

Price Volatility Vs. Market

How volatile is Central Garden & Pet's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Central Garden & Pet undervalued compared to its fair value and its price relative to the market?

19.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CENT ($30.12) is trading above our estimate of fair value ($20.27)

Significantly Below Fair Value: CENT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CENT is good value based on its PE Ratio (19.6x) compared to the Household Products industry average (28.1x).

PE vs Market: CENT is poor value based on its PE Ratio (19.6x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: CENT is poor value based on its PEG Ratio (3.8x)


Price to Book Ratio

PB vs Industry: CENT is good value based on its PB Ratio (1.7x) compared to the US Household Products industry average (4x).


Next Steps

Future Growth

How is Central Garden & Pet forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CENT's forecast earnings growth (5.1% per year) is above the savings rate (1.7%).

Earnings vs Market: CENT's earnings (5.1% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: CENT's earnings are forecast to grow, but not significantly.

Revenue vs Market: CENT's revenue (1.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: CENT's revenue (1.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CENT's Return on Equity is forecast to be low in 3 years time (8.4%).


Next Steps

Past Performance

How has Central Garden & Pet performed over the past 5 years?

28.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CENT has high quality earnings.

Growing Profit Margin: CENT's current net profit margins (3.6%) are lower than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: CENT's earnings have grown significantly by 28.5% per year over the past 5 years.

Accelerating Growth: CENT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CENT had negative earnings growth (-12.9%) over the past year, making it difficult to compare to the Household Products industry average (-14%).


Return on Equity

High ROE: CENT's Return on Equity (8.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Central Garden & Pet's financial position?


Financial Position Analysis

Short Term Liabilities: CENT's short term assets ($1.3B) exceed its short term liabilities ($343.9M).

Long Term Liabilities: CENT's short term assets ($1.3B) exceed its long term liabilities ($818.1M).


Debt to Equity History and Analysis

Debt Level: CENT's debt to equity ratio (71.2%) is considered high.

Reducing Debt: CENT's debt to equity ratio has reduced from 95% to 71.2% over the past 5 years.

Debt Coverage: CENT's debt is well covered by operating cash flow (26%).

Interest Coverage: CENT's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet

Inventory Level: CENT has a high level of physical assets or inventory.

Debt Coverage by Assets: CENT's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

What is Central Garden & Pet's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CENT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CENT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CENT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CENT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CENT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Tim Cofer (50yo)

0.3yrs

Tenure

Mr. Timothy P. Cofer, also known as Tim, has been the Chief Executive officer of Central Garden & Pet Company since October 2019 and has been its Director since September 28, 2019. Mr. Cofer served as the  ...


Leadership Team

NamePositionTenureCompensationOwnership
Nicholas Lahanas
Chief Financial Officer2.8yrsUS$1.42m0.23% $3.7m
William Lynch
Senior Vice President of Operations3.3yrsUS$653.97k0.074% $1.2m
George Yuhas
General Counsel & Corporate Secretary8.9yrsUS$609.55k0.038% $609.4k
Brooks Pennington
Director of Special Projects & Director22.1yrsUS$381.64k0.38% $6.1m
John Hanson
President of Consumer Pet Products0.5yrsUS$348.51k0.077% $1.2m
Timothy Cofer
CEO & Director0.3yrsno datano data
Howard Machek
Senior VP & Chief Accounting Officer0yrsUS$643.95k0.050% $811.5k
Chris Walter
Chief Information Officer8.3yrsno datano data
James Heim
President of Business Development for Pet11.1yrsUS$566.13kno data
Marilyn Leahy
Senior Vice President of Human Resources0yrsno datano data

3.3yrs

Average Tenure

57yo

Average Age

Experienced Management: CENT's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brooks Pennington
Director of Special Projects & Director22.1yrsUS$381.64k0.38% $6.1m
Timothy Cofer
CEO & Director0.3yrsno datano data
Michael Edwards
Independent Director2.2yrsUS$197.71k0.0088% $142.7k
Christopher Metz
Independent Director1yrsUS$135.21k0.0026% $41.5k
William Brown
Chairman of the Board0.4yrsUS$817.03k9.91% $160.2m
John Balousek
Lead Independent Director0yrsUS$217.46k0.043% $692.4k
Mary Springer
Independent Director7.1yrsUS$187.21k0.0035% $57.2k
Thomas Colligan
Independent Director5yrsUS$176.21k0.019% $314.3k
John Ranelli
Independent Director9.8yrsUS$342.46k0.017% $269.7k
Michael Griffith
Independent Director0.7yrsUS$76.81k0.0021% $34.4k

2.2yrs

Average Tenure

63.5yo

Average Age

Experienced Board: CENT's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.6%.


Top Shareholders

Company Information

Central Garden & Pet Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Central Garden & Pet Company
  • Ticker: CENT
  • Exchange: NasdaqGS
  • Founded: 1955
  • Industry: Household Products
  • Sector: Household
  • Market Cap: US$1.616b
  • Shares outstanding: 55.43m
  • Website: https://www.central.com

Number of Employees


Location

  • Central Garden & Pet Company
  • 1340 Treat Boulevard
  • Suite 600
  • Walnut Creek
  • California
  • 94597
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CENTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 1992
GP7DB (Deutsche Boerse AG)YesCommon StockDEEURJul 1992
CENT.ANasdaqGS (Nasdaq Global Select)Class A Common StockUSUSDFeb 2007
GP7ADB (Deutsche Boerse AG)Class A Common StockDEEURFeb 2007

Biography

Central Garden & Pet Company, together with its subsidiaries, produces and distributes products for the lawn and garden, and pet supplies markets in the United States. It operates through two segments, Pet and Garden. The Pet segment supplies products for dogs and cats, including edible bones, edible and non-edible chews, rawhides, dog and cat food and treats, toys, pet carriers, grooming supplies, and other accessories; and products for birds, small animals, and specialty pets, such as cages and habitats, toys, chews, and related accessories. It also provides animal and household health and insect control products; live fishes; and products for fish, reptiles, and other aquarium-based pets comprising aquariums, furniture and lighting fixtures, pumps, filters, water conditioners, food and supplements, and information and knowledge resources; and products for horses and livestock. This segment sells its products to independent pet distributors, retail chains, grocery stores, mass merchants, and bookstores under the Adams, Aqueon, Avoderm, C&S Products, Cadet, Farnam, Four Paws, Kaytee, K&H Pet Products, Nylabone, Pinnacle, TFH, Zilla, Altosid, Comfort Zone, Coralife, Interpet, Pet Select, and Zodiac brands. The Garden segment provides grass seed; wild bird feed, bird feeders, bird houses, and other birding accessories; weed, grass, and other herbicides, as well as insecticide and pesticide products; fertilizers; and decorative outdoor lifestyle products that include pottery as well as live plants and outdoor cushions and pillows. This segment sells its products to retail chains, independent garden distributors, grocery stores, nurseries, and garden supply retailers under the AMDRO, Arden Companies, Ironite, Pennington, Sevin, Lilly Miller, Over-N-Out, Smart Seed, and The Rebels brands. The company also engages in the distribution of third party products. Central Garden & Pet Company was founded in 1955 and is based in Walnut Creek, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 23:53
End of Day Share Price2020/02/18 00:00
Earnings2019/12/28
Annual Earnings2019/09/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.