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

Fundamentals

Excellent balance sheet and fair value.


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


Market Performance


7 Day Return

-0.2%

CENT

-2.6%

US Household Products

0.5%

US Market


1 Year Return

-12.7%

CENT

29.0%

US Household Products

6.8%

US Market

Return vs Industry: CENT underperformed the US Household Products industry which returned 29% over the past year.

Return vs Market: CENT underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

CENTIndustryMarket
7 Day-0.2%-2.6%0.5%
30 Day3.8%-3.4%-0.8%
90 Day1.5%1.1%-0.9%
1 Year-12.7%-12.7%32.4%29.0%9.2%6.8%
3 Year16.3%16.3%49.4%36.9%45.6%36.2%
5 Year294.6%294.6%63.7%40.8%63.2%45.4%

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?

15.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CENT ($28.57) is trading above our estimate of fair value ($24.06)

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 (15.9x) compared to the Household Products industry average (26.7x).

PE vs Market: CENT is good value based on its PE Ratio (15.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: CENT is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: CENT is good value based on its PB Ratio (1.6x) compared to the US Household Products industry average (3.4x).


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?

7.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CENT's forecast earnings growth (7.6% per year) is above the savings rate (2.7%).

Earnings vs Market: CENT's earnings (7.6% 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 (2.5% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CENT's revenue (2.5% 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 (9.4%).


Next Steps

Past Performance

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

39.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CENT has become profitable over the past 5 years, growing earnings by 39.3% per year.

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 (-13.9%) over the past year, making it difficult to compare to the Household Products industry average (-13.8%).


Return on Equity

High ROE: CENT's Return on Equity (9.8%) is considered low.


Return on Assets

ROA vs Industry: CENT's Return on Assets is below or equal to the Household Products industry average last year.


Return on Capital Employed

ROCE Improving: CENT's Return on Capital Employed has declined over the past 3 years.


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) exceeds its short term liabilities ($278.8M)

Long Term Liabilities: CENT's short term assets (1.3B) exceeds its long term liabilities (751.8M)


Debt to Equity History and Analysis

Debt Level: CENT's debt to equity ratio (67%) is considered high

Reducing Debt: CENT's debt to equity ratio has reduced from 91.4% to 67% over the past 5 years.

Debt Coverage: CENT's debt is well covered by operating cash flow (27.3%).

Interest Coverage: CENT's interest payments on its debt are well covered by EBIT (4.8x 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 1.947330x 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%industryaverage2.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Central Garden & Pet's salary, the management and board of directors tenure and is there insider trading?

6.7yrs

Average management tenure


CEO

Tim Cofer (50yo)

0yrs

Tenure

0

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


Management Age and Tenure

6.7yrs

Average Tenure

61.5yo

Average Age

Experienced Management: CENT's management team is seasoned and experienced (6.7 years average tenure).


Board Age and Tenure

1.8yrs

Average Tenure

63.5yo

Average Age

Experienced Board: CENT's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$99,82506 Dec 18
Michael Edwards
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,930
Max PriceUS$34.07

Ownership Breakdown


Management Team

  • Sonny Pennington (65yo)

    Director of Special Projects & Director

    • Tenure: 21.8yrs
    • Compensation: US$402.19k
  • Jim Heim (65yo)

    President of Business Development for Pet

    • Tenure: 10.8yrs
    • Compensation: US$566.13k
  • Kay Schwichtenberg (67yo)

    Executive Vice President of Animal & Public Health

    • Tenure: 5.5yrs
    • Compensation: US$509.45k
  • Steve Zenker

    Vice President of Finance - Investor Relations

    • Tenure: 0yrs
  • Howard Machek (56yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 0yrs
    • Compensation: US$643.95k
  • Niko Lahanas (50yo)

    Chief Financial Officer

    • Tenure: 2.4yrs
    • Compensation: US$534.25k
  • Tim Cofer (50yo)

    CEO & Director

    • Tenure: 0yrs
  • George Yuhas (67yo)

    General Counsel & Corporate Secretary

    • Tenure: 8.6yrs
    • Compensation: US$597.77k
  • Chris Walter

    Chief Information Officer

    • Tenure: 7.9yrs
  • Bill Lynch (58yo)

    Senior Vice President of Operations

    • Tenure: 3yrs
    • Compensation: US$653.32k

Board Members

  • Mike Edwards (58yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$177.97k
  • Chris Metz (54yo)

    Independent Director

    • Tenure: 0.7yrs
  • Bill Brown (78yo)

    Chairman

    • Tenure: 0.08yrs
    • Compensation: US$514.58k
  • Sonny Pennington (65yo)

    Director of Special Projects & Director

    • Tenure: 21.8yrs
    • Compensation: US$402.19k
  • Jack Balousek (73yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$221.47k
  • Mary Springer (55yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$176.47k
  • Thomas Colligan (75yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$183.47k
  • John Ranelli (73yo)

    Director

    • Tenure: 9.5yrs
    • Compensation: US$303.47k
  • Mike Griffith (62yo)

    Independent Director

    • Tenure: 0.3yrs
  • Tim Cofer (50yo)

    CEO & Director

    • Tenure: 0yrs

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$1.577b
  • Shares outstanding: 57.76m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:33
End of Day Share Price2019/10/18 00:00
Earnings2019/06/29
Annual Earnings2018/09/29


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.