Central Garden & Pet Company
Central Garden & Pet Company Fundamental Analysis
Central Garden & Pet Company (CENT) shows weak financial fundamentals with a PE ratio of 15.65, profit margin of 5.04%, and ROE of 9.90%. The company generates $3.1B in annual revenue with weak year-over-year growth of -2.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CENT's fundamental strength across five key dimensions:
Efficiency Score
WeakCENT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCENT trades at attractive valuation levels.
Growth Score
ModerateCENT shows steady but slowing expansion.
Financial Health Score
ModerateCENT shows balanced financial health with some risks.
Profitability Score
WeakCENT struggles to sustain strong margins.
Key Financial Metrics
Is CENT Expensive or Cheap?
P/E Ratio
CENT trades at 15.65 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CENT's PEG of -3.67 indicates potential undervaluation.
Price to Book
The market values Central Garden & Pet Company at 1.55 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.55 times EBITDA. This is generally considered low.
How Well Does CENT Make Money?
Net Profit Margin
For every $100 in sales, Central Garden & Pet Company keeps $5.04 as profit after all expenses.
Operating Margin
Core operations generate 7.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.90 in profit for every $100 of shareholder equity.
ROA
Central Garden & Pet Company generates $4.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Central Garden & Pet Company produces operating cash flow of $335.97M, showing steady but balanced cash generation.
Free Cash Flow
Central Garden & Pet Company produces free cash flow of $289.16M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.64 in free cash annually.
FCF Yield
CENT converts 11.56% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.65
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.67
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.80
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.42
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How CENT Stacks Against Its Sector Peers
| Metric | CENT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.65 | 23.01 | Better (Cheaper) |
| ROE | 9.90% | 1228.00% | Weak |
| Net Margin | 5.04% | -4010.00% (disorted) | Weak |
| Debt/Equity | 1.02 | 0.78 | Weak (High Leverage) |
| Current Ratio | 3.42 | 2.35 | Strong Liquidity |
| ROA | 4.27% | -157546.00% (disorted) | Weak |
CENT outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Central Garden & Pet Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-0.63%
Industry Style: Defensive, Dividend, Low Volatility
DecliningEPS CAGR
15.51%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
7.70%
Industry Style: Defensive, Dividend, Low Volatility
Growing