NasdaqGS:CENT

Stock Analysis Report

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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. More Details


Snowflake Analysis

Excellent balance sheet with proven track record.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CENT's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-2.0%

CENT

-0.4%

US Household Products

2.8%

US Market


1 Year Return

53.0%

CENT

16.9%

US Household Products

20.9%

US Market

Return vs Industry: CENT exceeded the US Household Products industry which returned 16.9% over the past year.

Return vs Market: CENT exceeded the US Market which returned 20.7% over the past year.


Shareholder returns

CENTIndustryMarket
7 Day-2.0%-0.4%2.8%
30 Day2.1%2.0%11.1%
90 Day-3.0%0.1%6.5%
1 Year53.0%53.0%19.7%16.9%23.6%20.9%
3 Year1.9%1.9%57.8%45.5%47.3%37.6%
5 Year173.0%173.0%91.5%67.0%94.3%72.9%

Long-Term 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?

18.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CENT ($40.37) is trading above our estimate of fair value ($3.19)

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 (18.1x) compared to the US Household Products industry average (23.9x).

PE vs Market: CENT is good value based on its PE Ratio (18.1x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: CENT's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CENT is good value based on its PB Ratio (2.1x) compared to the US Household Products industry average (5.4x).


Next Steps

Future Growth

How is Central Garden & Pet forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-2.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CENT's earnings are forecast to decline over the next 3 years (-2.3% per year).

Earnings vs Market: CENT's earnings are forecast to decline over the next 3 years (-2.3% per year).

High Growth Earnings: CENT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CENT's revenue (0.9% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: CENT's revenue (0.9% 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%).


Next Steps

Past Performance

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

19.9%

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 higher than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: CENT's earnings have grown by 19.9% per year over the past 5 years.

Accelerating Growth: CENT's earnings growth over the past year (29.9%) exceeds its 5-year average (19.9% per year).

Earnings vs Industry: CENT earnings growth over the past year (29.9%) underperformed the Household Products industry 41.6%.


Return on Equity

High ROE: CENT's Return on Equity (11.3%) is considered low.


Next Steps

Financial Health

How is Central Garden & Pet's financial position?


Financial Position Analysis

Short Term Liabilities: CENT's short term assets ($1.5B) exceed its short term liabilities ($440.3M).

Long Term Liabilities: CENT's short term assets ($1.5B) exceed its long term liabilities ($821.4M).


Debt to Equity History and Analysis

Debt Level: CENT's debt to equity ratio (64.4%) is considered high.

Reducing Debt: CENT's debt to equity ratio has reduced from 78.6% to 64.4% over the past 5 years.

Debt Coverage: CENT's debt is well covered by operating cash flow (38.1%).

Interest Coverage: CENT's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet


Next Steps

Dividend

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


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.


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?

6.6yrs

Average management tenure


CEO

Tim Cofer (51 yo)

1.08yrs

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 Officer3.5yrsUS$1.42m0.24%
$ 4.9m
George Yuhas
General Counsel & Corporate Secretary9.67yrsUS$609.55k0.047%
$ 985.4k
Brooks Pennington
Director of Special Projects & Director22.83yrsUS$381.64k0.42%
$ 8.7m
John Hanson
President of Consumer Pet Products1.25yrsUS$348.51k0.078%
$ 1.6m
Timothy Cofer
CEO & Director1.08yrsno datano data
Howard Machek
Senior VP & Chief Accounting Officerno dataUS$643.95k0.038%
$ 789.6k
Chris Walter
Senior VP & Chief Information Officer9yrsno datano data
James Heim
President of Business Development for Pet11.83yrsUS$566.13kno data
Marilyn Leahy
Senior Vice President of Human Resourcesno datano datano data
Kay Schwichtenberg
Executive Vice President of Animal & Public Health6.58yrsUS$509.45k0.049%
$ 1.0m
Glen Axelrod
Senior Vice President of Dog & Cat Brandsno datano datano data
William Pennington
Senior VP & COO of Pennington Seedno datano datano data

6.6yrs

Average Tenure

61.5yo

Average Age

Experienced Management: CENT's management team is seasoned and experienced (6.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brooks Pennington
Director of Special Projects & Director22.83yrsUS$381.64k0.42%
$ 8.7m
Timothy Cofer
CEO & Director1.08yrsno datano data
Michael Edwards
Independent Director2.92yrsUS$197.71k0.0089%
$ 186.2k
Christopher Metz
Independent Director1.67yrsUS$135.21k0.0026%
$ 54.0k
William Brown
Chairman of the Board1.17yrsUS$817.03k9.68%
$ 201.7m
Mary Springer
Lead Independent Directorno dataUS$187.21k0.0041%
$ 85.9k
Thomas Colligan
Independent Director5.67yrsUS$176.21k0.0028%
$ 58.8k
John Ranelli
Independent Director10.58yrsUS$342.46k0.019%
$ 399.6k
Michael Griffith
Independent Director1.42yrsUS$76.81k0.0022%
$ 44.8k
Brendan Dougher
Director0.17yrno data0.00037%
$ 7.7k

1.7yrs

Average Tenure

63yo

Average Age

Experienced Board: CENT's board of directors are not considered experienced ( 1.7 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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$2.085b
  • Shares outstanding: 54.84m
  • 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 Analysis2020/11/29 00:27
End of Day Share Price2020/11/27 00:00
Earnings2020/09/26
Annual Earnings2020/09/26


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.