Central Garden & Pet (CENT)
NASDAQ:CENT
Want to see CENT full AI Analyst Report?
Top Page
Central Garden Pet
(NASDAQ:CENT)
Select Model
Select Model
Rating:66Neutral
Price Target:
$41.00
▲(5.18% Upside)
Action:Reiterated
Date:05/09/26
Overall score reflects steady but not high-growth financials with a key watch item in weakening TTM free-cash-flow momentum, offset by a low P/E valuation and a positive earnings-call backdrop (record results and reaffirmed FY2026 EPS guidance). Technicals are mildly supportive with the stock trading above major moving averages.
Positive Factors
Strong liquidity and manageable leverage
The company carries large cash balances and has lowered gross/net leverage versus targets, with no draws on the credit facility. That durable liquidity and improved leverage profile supports strategic flexibility for M&A, buybacks, capex, and weathering cyclical pressures without forcing distress financing.
Negative Factors
Weak recent free-cash-flow momentum
Although FCF is positive in absolute terms, the sharp TTM decline and weaker coverage reduce financial flexibility for reinvestment and shareholder returns. Persistent FCF volatility tied to working-capital swings can constrain durable capital allocation and increase refinancing or liquidity risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong liquidity and manageable leverage
The company carries large cash balances and has lowered gross/net leverage versus targets, with no draws on the credit facility. That durable liquidity and improved leverage profile supports strategic flexibility for M&A, buybacks, capex, and weathering cyclical pressures without forcing distress financing.
Read all positive factors
Central Garden Pet Key Performance Indicators (KPIs)
Central Garden Pet (CENT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.21B
Dividend YieldN/A
Average Volume (3M)68.31K
Price to Earnings (P/E)7.2
Beta (1Y)0.39
Revenue Growth0.22%
EPS Growth46.14%
CountryUS
Employees6,000
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)2.77
Shares Outstanding9,650,221
10 Day Avg. Volume60,356
30 Day Avg. Volume68,307
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)1.32
Price to Sales (P/S)0.67
P/FCF Ratio7.20
Enterprise Value/Market Cap1.43
Enterprise Value/Revenue1.00
Enterprise Value/Gross Profit3.10
Enterprise Value/Ebitda8.70
Forecast
1Y Price Target
$45.33Price Target Upside16.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)2.95
Revenue Forecast (FY)$3.05B
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...
How the Company Makes Money
Central Garden & Pet makes money primarily by selling branded and, in some cases, private-label consumer products through two operating segments: Pet and Garden. Revenue is generated when the company ships products to retail and e-commerce custome...
Central Garden Pet Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operating and financial picture: record Q2 and first-half results, top-line growth (+9% consolidated), margin expansion, improved adjusted EBITDA, strong segment performance (Pet +5%, Garden +13% in Q2), and a robust balance sheet. Strategic simplification and the Phillips JV position the company to focus on higher-margin branded growth, though the JV will reduce reported revenue in the near term and bring a modest initial EPS headwind. Key risks include weather-dependent sell-through (May is pivotal), input cost inflation (notably urea) that may require future pricing, and a promotional retail environment with some private-label pressure. Overall, the positive operational execution, liquidity, and margin improvement outweigh the near-term headwinds and timing risks.Positive Updates
Record Quarterly and First-Half Results
Company delivered a record fiscal Q2 and record first half with net sales of $906M, up 9% year-over-year, and record Q2 diluted EPS of $1.28 (net income $79M vs $64M prior year).
Negative Updates
Joint Venture Reduces Reported Revenue and Near-Term EPS Impact
Formation of the Phillips JV will reduce reported revenue in H2 by a low-teens percentage. Management expects initial non-cash purchase accounting and JV start-up dynamics to produce a conservative H2 EPS dilution of ~$0.03–$0.05, with benefits expected over time.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly and First-Half Results
Company delivered a record fiscal Q2 and record first half with net sales of $906M, up 9% year-over-year, and record Q2 diluted EPS of $1.28 (net income $79M vs $64M prior year).
Read all positive updates
Company Guidance
Central reiterated its Fiscal 2026 non‑GAAP diluted EPS guidance of $2.70 or better, supported by a strong Q2 that included net sales of $906M (+9% YoY), gross profit of $300M and a 33.1% gross margin (+30 bps), operating income of $114M (12.6% margin), net income of $79M, diluted EPS of $1.28, and adjusted EBITDA of $139M (15.4% margin), and by a first‑half showing of sales +2%, gross margin +70 bps and operating income +8%; they noted the recently announced JV will lower reported H2 revenue by a low‑teens percentage (with an initial conservative EPS headwind of $0.03–$0.05 in H2 and minimal long‑term earnings impact), CapEx is expected to be ~$50–$60M for the year (Q2 CapEx $10M, D&A $21M), cash & short‑term investments totaled $653M, total debt $1.2B, gross leverage was 2.8x (below their 3.0–3.5x target) and net leverage ~1.3x, and the guidance excludes impacts from future acquisitions, divestitures or restructurings.Central Garden Pet Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
66
Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.16B | 3.13B | 3.20B | 3.31B | 3.34B | 3.30B |
| Gross Profit | 1.02B | 972.84M | 943.74M | 946.84M | 992.30M | 970.90M |
| EBITDA | 363.49M | 359.34M | 290.76M | 307.17M | 386.76M | 366.68M |
| Net Income | 171.46M | 162.84M | 107.98M | 125.64M | 152.15M | 151.75M |
Balance Sheet | ||||||
| Total Assets | 3.75B | 3.63B | 3.55B | 3.38B | 3.28B | 3.12B |
| Cash, Cash Equivalents and Short-Term Investments | 669.41M | 882.49M | 753.55M | 488.73M | 177.44M | 426.42M |
| Total Debt | 1.42B | 1.44B | 1.42B | 1.37B | 1.38B | 1.36B |
| Total Liabilities | 2.09B | 2.04B | 2.00B | 1.93B | 1.95B | 1.89B |
| Stockholders Equity | 1.65B | 1.58B | 1.56B | 1.45B | 1.33B | 1.22B |
Cash Flow | ||||||
| Free Cash Flow | 282.42M | 291.09M | 351.76M | 327.67M | -149.24M | 170.51M |
| Operating Cash Flow | 328.34M | 332.51M | 394.89M | 381.63M | -34.03M | 250.84M |
| Investing Cash Flow | -103.00M | -44.89M | -105.19M | -34.58M | -142.98M | -899.36M |
| Financing Cash Flow | -88.30M | -156.64M | -25.44M | -37.55M | -66.81M | 420.48M |
Central Garden Pet Technical Analysis
Positive
38.98
Price Trends
37.36
Positive
36.39
Positive
34.84
Positive
Market Momentum
0.29
Negative
56.33
Neutral
77.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CENT, the sentiment is Positive. The current price of 38.98 is above the 20-day moving average (MA) of 37.70, above the 50-day MA of 37.36, and above the 200-day MA of 34.84, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 56.33 is Neutral, neither overbought nor oversold. The STOCH value of 77.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CENT.
Central Garden Pet Risk Analysis
Central Garden Pet disclosed 33 risk factors in its most recent earnings report. Central Garden Pet reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Central Garden Pet Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $2.21B | 7.15 | 10.72% | ― | 0.22% | 46.14% | |
65 Neutral | $2.52B | 14.91 | 16.98% | ― | 12.01% | 1171.89% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $1.38B | 225.07 | 6.24% | 3.53% | -2.04% | -23.39% | |
60 Neutral | $1.32B | 6.17 | -43.03% | ― | 3.69% | -16.34% | |
59 Neutral | $1.05B | -2.47 | -6.15% | ― | 0.34% | -182.07% |
* Consumer Defensive Sector Average
CENT
Central Garden Pet
38.58
3.06
8.61%
HLF
Herbalife
12.43
5.77
86.64%
JJSF
J & J Snack Foods
74.55
-33.30
-30.88%
SMPL
Simply Good Foods
11.86
-22.55
-65.53%
FRPT
Freshpet
51.58
-32.92
-38.96%
Central Garden Pet Corporate Events
Executive/Board ChangesStock BuybackShareholder Meetings
Central Garden & Pet boosts share repurchase authorization, governance
Positive
Feb 18, 2026
At the Feb. 11, 2026 annual meeting, Central Garden Pet shareholders elected nine directors to serve until the 2027 meeting, ratified Deloitte Touche as the independent auditor for the fiscal year ending Sept. 26, 2026 and approved on a non-bind...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.