Central Garden Pet (CENT) AI Stock Analysis

• Market Cap: $2.08B
• Dividend Yield: N/A
• Average Volume (3M): 308.81K
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.45
• Revenue Growth: -2.85%
• EPS Growth: -27.70%
• Country: US
• Employees: 6,450
• Sector: Consumer Defensive
• Sector Strength: 94
• Industry: Packaged Foods
• EPS (TTM): 1.81
• Shares Outstanding: 10,718,231
• 10 Day Avg. Volume: 157,136
• 30 Day Avg. Volume: 308,811
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.68
• Price to Cash Flow (P/CF): -8.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $38.00
• Price Target Upside: 7.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Central Garden Pet's overall stock score reflects a solid financial foundation, bolstered by strong cash flow and effective cost management. However, technical indicators suggest a cautious market sentiment, and valuation appears moderate with no dividend yield to enhance investor appeal. The positive earnings call provides confidence in strategic initiatives and future guidance, but challenges such as potential tariffs and consumer pressure may impact performance. Overall, the company demonstrates resilience with a need to address growth and market perception challenges.

Positive Factors

Financial Performance

Central Garden & Pet reported robust Q1 results, with sales 4% above consensus and profitability well ahead across all metrics.

Stock Buyback

The company aggressively repurchased $54m worth of stock in Q1, with $131m remaining available under the current authorization.

Strategic Opportunities

Management remains open to attractive M&A opportunities and is looking for high-growth consumables companies that can enhance margins and build scale.

Negative Factors

Earnings Report

Central Garden & Pet reported Q4 results that missed across the board with sales, adjusted EBITDA, and EPS all coming in substantially below expectations.

Product Line Challenges

Declines in pet durables are expected to continue, with the company rationalizing unprofitable SKUs.

Weather Impact

Weather will remain a key driver of margin with nearly 70% of annual Garden sales done in Q2/Q3, which could impact volumes and fixed-cost absorption.

Central Garden Pet Business Overview & Revenue Model

Company Description

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. This segment sells its products under the Aqueon, Cadet, Comfort Zone, Farnam, Four Paws, Kaytee, K&H Pet Products, Nylabone, and Zilla brands. The Garden segment offers lawn and garden supplies products that include grass seed; wild bird feed, bird feeders, bird houses, and other birding accessories; fertilizers; decorative outdoor lifestyle products; live plants; and weed and grass, as well as other herbicides, insecticide, and pesticide products. This segment sells its lawn and garden supplies products under the AMDRO, Ferry-Morse, Pennington, and Sevin brands, as well as under Bell Nursery, Lilly Miller, and Over-N-Out other brand names. Central Garden & Pet Company was founded in 1955 and is based in Walnut Creek, California.

How the Company Makes Money

Central Garden & Pet generates revenue through the sale of its diverse range of branded and private label products across its Pet and Garden segments. The company sells its products to a variety of retail customers, including mass merchandisers, pet superstores, home improvement centers, independent garden centers, and specialized pet stores. Key revenue streams include the sale of pet foods, supplies, and health products, as well as lawn and garden consumables. Additionally, Central Garden & Pet benefits from strategic acquisitions and partnerships that expand its product offerings and market reach, thus contributing to its earnings growth.

Central Garden Pet Financial Statement Overview

Summary

Central Garden Pet demonstrates solid financial management with stable revenue and profitability metrics. While the income statement reflects effective cost management, there is a slight decline in profitability that may require strategic adjustments. The balance sheet is strong, with manageable leverage and stable equity positioning. Cash flow generation is a key strength, offering financial flexibility. The company shows resilience but must address growth challenges to enhance its financial standing further.

Income Statement

The company exhibits stable revenue generation with a slight decline in the TTM compared to the previous year. The Gross Profit Margin is healthy at approximately 29.5%, indicating efficient cost management. However, there is a noticeable decline in Net Profit Margin from 3.8% to 3.77% in the TTM, suggesting increased expenses or reduced operational efficiency. Revenue growth shows a slight downward trend compared to the previous year, which may indicate a challenge in sustaining growth momentum.

Balance Sheet

The company's Debt-to-Equity ratio stands at a moderate level, suggesting manageable leverage, although it increased slightly over the year. Return on Equity (ROE) is relatively low at 8.0%, pointing to modest returns on shareholders' equity. The Equity Ratio is stable at around 43.8%, reflecting a balanced capital structure. The balance sheet is stable but shows room for improvement in profitability and leverage management.

Cash Flow

Operating Cash Flow remains robust and has shown consistency over the periods. The Free Cash Flow has improved significantly, highlighting effective capital expenditure control. The Operating Cash Flow to Net Income ratio is favorable, indicating strong cash-generating ability relative to net income. The Free Cash Flow to Net Income ratio also demonstrates strong liquidity management, providing a cushion for future investments or debt repayment.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
3.22B	3.20B	3.31B	3.34B	3.30B	2.70B
	Gross Profit
952.49M	943.74M	946.84M	992.30M	970.90M	796.56M
	EBIT
204.97M	185.39M	210.65M	260.04M	254.50M	142.40M
	EBITDA
311.72M	290.76M	307.17M	340.98M	329.22M	253.34M
	Net Income Common Stockholders
121.56M	107.98M	125.64M	152.15M	151.75M	120.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
27.04M	753.55M	488.73M	177.44M	426.42M	652.71M
	Total Assets
1.20B	3.50B	3.38B	3.28B	3.12B	2.34B
	Total Debt
415.13M	1.42B	1.37B	1.38B	1.36B	814.06M
	Net Debt
388.09M	666.90M	885.69M	1.20B	930.20M	161.35M
	Total Liabilities
655.67M	1.94B	1.93B	1.95B	1.89B	1.26B
	Stockholders Equity
540.03M	1.56B	1.45B	1.33B	1.22B	1.08B
Cash Flow		Free Cash Flow
356.74M	351.76M	327.67M	-149.24M	170.51M	221.22M
	Operating Cash Flow
395.84M	394.89M	381.63M	-34.03M	250.84M	264.27M
	Investing Cash Flow
-44.13M	-105.19M	-34.58M	-142.98M	-899.36M	-48.11M
	Financing Cash Flow
-73.10M	-25.44M	-37.55M	-66.81M	420.48M	-60.56M

Central Garden Pet Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CENT, the sentiment is Negative. The current price of 35.34 is below the 20-day moving average (MA) of 35.60, below the 50-day MA of 36.13, and below the 200-day MA of 37.31, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 48.17 is Neutral, neither overbought nor oversold. The STOCH value of 29.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CENT.

Central Garden Pet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JBSS	72 Outperform	$798.95M	16.49	15.40%	1.24%	12.09%	-27.64%
SENEA	71 Outperform	$602.10M	16.26	6.35%	―	4.01%	22.46%
CENT	70 Outperform	$2.08B	19.48	8.18%	―	-2.85%	-27.70%
JJSF	70 Outperform	$2.66B	31.50	9.08%	2.25%	2.14%	5.38%
Sector *	63 Neutral	$9.37B	14.87	4.61%	187.28%	3.96%	6.52%
STKL	58 Neutral	$479.52M	―	-6.77%	―	-5.50%	89.98%
HLF	47 Neutral	$694.21M	2.62	-31.74%	―	-1.37%	75.47%

Central Garden Pet Corporate Events

Central Garden Pet Completes 2025 Shareholders Meeting

On February 12, 2025, Central Garden Pet held its 2025 Annual Meeting of Shareholders where shareholders voted on key proposals. The election of ten directors to serve until the 2026 Annual Meeting was completed, with all nominees successfully elected. Additionally, shareholders ratified Deloitte & Touche LLP as the company’s independent registered public accounting firm for the fiscal year ending on September 27, 2025. The Board withdrew a proposal concerning an amendment to the company’s Certificate of Incorporation prior to the meeting. Shareholder voting rights were exercised according to share class entitlements, and the proposals reflect ongoing governance and fiscal oversight commitments.