Central Garden Pet (CENT) AI Stock Analysis

• Market Cap: $1.83B
• Dividend Yield: N/A
• Average Volume (3M): 68.31K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.40
• Revenue Growth: -2.23%
• EPS Growth: 57.00%
• Country: US
• Employees: 6,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -0.09
• Shares Outstanding: 9,650,221
• 10 Day Avg. Volume: 60,356
• 30 Day Avg. Volume: 68,307
• PEG Ratio: -0.74
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 6.85
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $30.00
• Price Target Upside: -2.72% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $37.00 ▲(19.97% Upside)

Central Garden Pet's strong financial performance and strategic focus on high-margin products are significant strengths. The technical analysis suggests short-term bullish momentum, while the valuation is reasonable. The earnings call provided a mixed outlook, with record performance but some challenges. Overall, the stock demonstrates solid potential with areas for cautious optimism.

Positive Factors

Gross Margin Expansion

The expansion in gross margin reflects improved cost efficiency and productivity, enhancing long-term profitability and competitive positioning.

Strategic Focus on High-Margin Products

Focusing on high-margin products strengthens the company's portfolio, driving sustainable profit growth and market differentiation.

Financial Flexibility

The new credit facility enhances liquidity and operational capacity, supporting strategic investments and growth initiatives.

Negative Factors

Net Sales Decline

A decline in net sales indicates potential challenges in market demand and competitive pressures, impacting revenue growth.

Tariff Challenges

Tariff exposure can increase costs and reduce margins, posing long-term risks to profitability and market competitiveness.

Decline in Pet Segment Sales

A significant decline in the Pet segment sales suggests challenges in product demand or market competition, affecting overall revenue.

Central Garden Pet Business Overview & Revenue Model

Company Description

Central Garden & Pet Company (CENT) is a leading provider of pet and garden products in the United States. The company operates through two main segments: the Pet segment, which includes products such as pet food, treats, and supplies for both companion animals and aquatics, and the Garden segment, which offers a wide range of products, including lawn and garden care items, fertilizers, and pest control solutions. With a diverse portfolio of brands and a strong distribution network, Central Garden & Pet aims to enhance the lives of pets and the beauty of gardens.

How the Company Makes Money

Central Garden & Pet generates revenue primarily through the sale of its pet and garden products across various retail channels, including mass merchants, specialty pet stores, and home improvement retailers. The company employs a multi-faceted revenue model that encompasses direct sales to retailers, e-commerce sales, and distribution agreements. Key revenue streams include the sale of branded products, private label offerings, and specialty items that cater to specific pet and gardening needs. Additionally, partnerships with major retailers and online platforms significantly enhance its market reach and sales potential. Seasonal demand for gardening products also plays a crucial role in revenue fluctuations, while ongoing innovation and introduction of new products help drive sales growth.

Central Garden Pet Financial Statement Overview

Summary

Central Garden Pet exhibits strong financial health with impressive revenue and profit growth, improved margins, and a stable balance sheet. The company effectively manages its debt levels, though the high leverage requires careful monitoring. Cash flow performance is generally solid, but recent declines in free cash flow growth suggest areas for improvement.

Income Statement

Central Garden Pet's income statement shows a strong performance with a notable improvement in gross profit margin to 31.87% in TTM, up from 29.49% in the previous year. The net profit margin also increased to 5.20% from 3.37%, indicating enhanced profitability. Revenue growth rate for TTM is robust at 27.8%, recovering from a decline in the previous year. EBIT and EBITDA margins have improved, reflecting efficient cost management. Overall, the income statement demonstrates solid growth and profitability, though past fluctuations in revenue growth suggest potential volatility.

Balance Sheet

The balance sheet indicates a stable financial position with a debt-to-equity ratio of 0.91 in TTM, showing a slight improvement from previous years, suggesting effective debt management. Return on equity (ROE) has increased to 10.45%, indicating better utilization of equity to generate profits. The equity ratio remains stable, reflecting a balanced capital structure. However, the company has maintained a relatively high level of debt, which could pose risks if not managed carefully.

Cash Flow

Cash flow analysis reveals a mixed performance. The operating cash flow to net income ratio is 0.65 in TTM, indicating moderate cash generation relative to net income. Free cash flow to net income ratio is strong at 0.88, suggesting efficient cash conversion. However, free cash flow growth has declined by 6.78% in TTM, highlighting potential challenges in cash flow management. While the company maintains healthy cash flow ratios, the recent decline in free cash flow growth warrants attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.13B	3.20B	3.31B	3.34B	3.30B	2.70B
Gross Profit	997.34M	943.74M	946.84M	992.30M	970.90M	796.56M
EBITDA	325.02M	290.76M	307.17M	340.98M	329.22M	253.34M
Net Income	162.84M	107.98M	125.64M	152.15M	151.75M	120.68M
Balance Sheet
Total Assets	3.56B	3.55B	3.38B	3.28B	3.12B	2.34B
Cash, Cash Equivalents and Short-Term Investments	882.49M	753.55M	488.73M	177.44M	426.42M	652.71M
Total Debt	1.44B	1.42B	1.37B	1.38B	1.36B	814.06M
Total Liabilities	1.98B	2.00B	1.93B	1.95B	1.89B	1.26B
Stockholders Equity	1.58B	1.56B	1.45B	1.33B	1.22B	1.08B
Cash Flow
Free Cash Flow	291.09M	351.76M	327.67M	-149.24M	170.51M	221.22M
Operating Cash Flow	332.51M	394.89M	381.63M	-34.03M	250.84M	264.27M
Investing Cash Flow	-44.89M	-105.19M	-34.58M	-142.98M	-899.36M	-48.11M
Financing Cash Flow	-156.64M	-25.44M	-37.55M	-66.81M	420.48M	-60.56M

Central Garden Pet Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 30.84
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CENT, the sentiment is Neutral. The current price of 30.84 is below the 20-day moving average (MA) of 32.39, below the 50-day MA of 31.65, and below the 200-day MA of 35.03, indicating a neutral trend. The MACD of 0.59 indicates Negative momentum. The RSI at 58.69 is Neutral, neither overbought nor oversold. The STOCH value of 57.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CENT.

Central Garden Pet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CENT	73 Outperform	$1.83B	14.32	10.38%	―	-2.23%	57.00%
HLF	69 Neutral	$1.26B	3.90	―	―	-0.78%	265.56%
JJSF	69 Neutral	$1.76B	27.11	6.82%	3.45%	0.54%	-24.42%
FRPT	67 Neutral	$3.03B	27.17	11.22%	―	16.34%	177.51%
SMPL	63 Neutral	$1.89B	18.60	5.86%	―	8.98%	-26.29%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KLG	57 Neutral	―	―	―	―	-4.30%	-70.31%

Central Garden Pet Corporate Events

Central Garden Pet Secures $600M Credit Facility

On November 7, 2025, Central Garden & Pet Company entered into a Fourth Amended and Restated Credit Agreement, establishing a $600 million senior secured asset-based revolving credit facility with the potential to increase by $400 million. This agreement, which matures in 2030, provides the company with financial flexibility for general corporate purposes and includes various borrowing options and interest rate structures. The facility is secured by the company’s assets and includes covenants and financial requirements, reflecting a strategic move to enhance liquidity and operational capacity.