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CENT

Central Garden & Pet NasdaqGS:CENT Stock Report

Last Price

US$43.85

Market Cap

US$2.3b

7D

5.6%

1Y

-21.7%

Updated

26 Jun, 2022

Data

Company Financials +
CENT fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance2/6
Financial Health3/6
Dividends0/6

CENT Stock Overview

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

Central Garden & Pet Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Central Garden & Pet
Historical stock prices
Current Share PriceUS$43.85
52 Week HighUS$57.32
52 Week LowUS$40.03
Beta0.54
1 Month Change-4.40%
3 Month Change-1.39%
1 Year Change-21.67%
3 Year Change62.71%
5 Year Change37.94%
Change since IPO1,494.54%

Recent News & Updates

Shareholder Returns

CENTUS Household ProductsUS Market
7D5.6%9.5%6.6%
1Y-21.7%4.3%-18.4%

Return vs Industry: CENT underperformed the US Household Products industry which returned 4.3% over the past year.

Return vs Market: CENT underperformed the US Market which returned -18.4% over the past year.

Price Volatility

Is CENT's price volatile compared to industry and market?
CENT volatility
CENT Average Weekly Movement4.4%
Household Products Industry Average Movement5.1%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

Stable Share Price: CENT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CENT's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19556,500Tim Coferhttps://www.central.com

Central Garden & Pet Company produces and distributes various 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 provides dog and cat supplies, such as dog treats and chews, toys, pet beds and grooming products, waste management and training pads, and pet containment; supplies for aquatics, small animals, reptiles, and pet birds, including toys, cages and habitats, bedding, and food and supplements; animal and household health and insect control products; live fish and products for fish, reptiles, and other aquarium-based pets, such as aquariums, furniture and lighting fixtures, pumps, filters, water conditioners, food, and supplements; and products for horses and livestock, as well as outdoor cushions and pillows.

Central Garden & Pet Fundamentals Summary

How do Central Garden & Pet's earnings and revenue compare to its market cap?
CENT fundamental statistics
Market CapUS$2.28b
Earnings (TTM)US$151.90m
Revenue (TTM)US$3.39b

15.9x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CENT income statement (TTM)
RevenueUS$3.39b
Cost of RevenueUS$2.37b
Gross ProfitUS$1.02b
Other ExpensesUS$866.17m
EarningsUS$151.90m

Last Reported Earnings

Mar 26, 2022

Next Earnings Date

Aug 03, 2022

Earnings per share (EPS)2.76
Gross Margin30.01%
Net Profit Margin4.48%
Debt/Equity Ratio91.6%

How did CENT perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is CENT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CENT?

Other financial metrics that can be useful for relative valuation.

CENT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.1x
Enterprise Value/EBITDA10.7x
PEG Ratio7.4x

Price to Earnings Ratio vs Peers

How does CENT's PE Ratio compare to its peers?

CENT PE Ratio vs Peers
The above table shows the PE ratio for CENT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average27.6x
ENR Energizer Holdings
12xn/aUS$2.0b
WDFC WD-40
41.7x12.0%US$2.8b
REYN Reynolds Consumer Products
19x10.3%US$5.7b
CLX Clorox
37.8x17.2%US$17.3b
CENT Central Garden & Pet
15.9x2.2%US$2.3b

Price-To-Earnings vs Peers: CENT is good value based on its Price-To-Earnings Ratio (15.9x) compared to the peer average (27.6x).


Price to Earnings Ratio vs Industry

How does CENT's PE Ratio compare vs other companies in the Global Household Products Industry?

Price-To-Earnings vs Industry: CENT is good value based on its Price-To-Earnings Ratio (15.9x) compared to the US Household Products industry average (21.6x)


Price to Earnings Ratio vs Fair Ratio

What is CENT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CENT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.9x
Fair PE Ratio17.4x

Price-To-Earnings vs Fair Ratio: CENT is good value based on its Price-To-Earnings Ratio (15.9x) compared to the estimated Fair Price-To-Earnings Ratio (17.4x).


Share Price vs Fair Value

What is the Fair Price of CENT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CENT ($43.85) is trading below our estimate of fair value ($77.93)

Significantly Below Fair Value: CENT is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: CENT is poor value based on its PEG Ratio (7.4x)


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Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


2.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CENT's forecast earnings growth (2.2% per year) is above the savings rate (1.9%).

Earnings vs Market: CENT's earnings (2.2% per year) are forecast to grow slower than the US market (13.9% per year).

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

Revenue vs Market: CENT's revenue (1.3% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: CENT's revenue (1.3% 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 (11.1%).


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Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


14.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CENT has high quality earnings.

Growing Profit Margin: CENT's current net profit margins (4.5%) are lower than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: CENT's earnings have grown by 14.4% 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 (-5.4%) over the past year, making it difficult to compare to the Household Products industry average (-7.7%).


Return on Equity

High ROE: CENT's Return on Equity (11.8%) is considered low.


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Financial Health

How is Central Garden & Pet's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CENT's short term assets ($1.6B) exceed its short term liabilities ($570.7M).

Long Term Liabilities: CENT's short term assets ($1.6B) exceed its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: CENT's net debt to equity ratio (87.4%) is considered high.

Reducing Debt: CENT's debt to equity ratio has increased from 83.1% to 91.6% over the past 5 years.

Debt Coverage: CENT's debt is not well covered by operating cash flow (8.3%).

Interest Coverage: CENT's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CENT has not reported any payouts.


Discover strong dividend paying companies

Management

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

2.7yrs

Average management tenure


CEO

Tim Cofer (52 yo)

2.67yrs

Tenure

US$3,514,006

Compensation

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. He served as the Preside...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD3.51M) is below average for companies of similar size in the US market ($USD5.47M).

Compensation vs Earnings: Insufficient data to compare Tim's compensation with company performance.


Leadership Team

Experienced Management: CENT's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: CENT's board of directors are considered experienced (3 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Central Garden & Pet Company's 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
  • Implied Market Cap: US$2.279b
  • Shares outstanding: 55.08m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/26
Annual Earnings2021/09/25


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.