Central Garden Pet (CENT) AI Stock Analysis

• Market Cap: $2.20B
• Dividend Yield: N/A
• Average Volume (3M): 68.31K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.40
• Revenue Growth: -2.23%
• EPS Growth: 57.16%
• Country: US
• Employees: 6,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.21
• Shares Outstanding: 9,650,221
• 10 Day Avg. Volume: 60,356
• 30 Day Avg. Volume: 68,307
• PEG Ratio: 0.22
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 7.20
• Enterprise Value/Market Cap: 1.53
• Enterprise Value/Revenue: 1.09
• Enterprise Value/Gross Profit: 3.38
• Enterprise Value/Ebitda: 9.63
• 1Y Price Target: $50.50
• Price Target Upside: 29.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $42.00 ▲(7.47% Upside)

The score is driven mainly by improving margins and solid cash generation, partially offset by persistent revenue softness and only moderate balance-sheet flexibility. Technicals are supportive but overbought, while valuation is reasonable without dividend support; guidance reaffirmation and an expanded buyback program add incremental positives despite near-term sales and tariff headwinds.

Positive Factors

Gross margin expansion via productivity

A sustained ~100bp gross margin uplift from productivity and mix improvements increases earnings resilience versus revenue volatility. Structural cost and network changes (facility consolidations, fulfillment modernization) lower unit costs and support durable margin floor, improving long-term cash generation and profitability.

Solid cash generation and liquidity

Consistent operating and free cash flow provides funding for buybacks, selective M&A, and capex without heavy reliance on new leverage. Large cash balances and no revolver borrowings give flexibility to invest in growth, support product innovation, and absorb seasonal fluctuations over multiple quarters.

Disciplined capital allocation & governance

Expanded buyback capacity and addition of veteran animal-health oversight signal shareholder-friendly, strategic capital allocation and stronger governance. This supports long-term return of capital while board expertise should enhance M&A integration and product/operational execution over coming quarters.

Negative Factors

Persistent top-line softness

Ongoing revenue declines limit scale economies and make margin gains harder to sustain. Without stable organic growth, higher margins can be offset by rising SG&A as a percent of sales, constraining long-term free cash flow expansion and reducing optionality for larger strategic investments.

Garden segment profitability drag

A double-digit decline and operating loss in Garden highlight structural exposure to seasonal timing, channel transitions, and portfolio rationalization. Prolonged underperformance here can depress consolidated margins, require incremental investment or restructuring, and keep overall growth muted for several quarters.

Tariff headwinds and material leverage

A sizable tariff hit combined with meaningful debt levels reduces margin and financial flexibility. Tariffs are a recurring structural cost risk that can erode pricing power; with leverage still notable, the company has less room to absorb shocks without cutting investment or slowing buybacks over the medium term.

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 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

Profitability improved materially (higher gross, EBIT, and net margins) and TTM cash generation remains solid, but revenue continues to decline slightly and leverage is still meaningful, limiting flexibility if demand stays soft.

Income Statement

TTM (Trailing-Twelve-Months) revenue is down (-1.25%), extending a multi-year pattern of slight sales declines after the 2021 spike. Despite softer top-line trends, profitability improved materially versus 2024: gross margin rose to ~31.9% (from ~29.5%), and net margin improved to ~5.2% (from ~3.4%), with EBIT margin also higher (~8.6%). Overall, earnings quality looks better than last year, but the lack of consistent revenue growth is a key overhang.

Balance Sheet

Leverage is moderate for the profile: debt is ~0.91x equity in TTM (Trailing-Twelve-Months), broadly stable versus recent years and improved from higher leverage in 2021–2022. Returns are healthy (ROE ~10.5% TTM vs ~6.9% in 2024), signaling better profitability on the equity base. The main weakness is that debt remains meaningful relative to equity, leaving less flexibility if demand stays soft or margins retrace.

Cash Flow

Cash generation is solid in TTM (Trailing-Twelve-Months) with operating cash flow of ~$331M and free cash flow of ~$285M, and free cash flow remains close to net income (~0.88x), which supports earnings quality. However, free cash flow growth is negative in TTM (Trailing-Twelve-Months) (-2.10%), and operating cash flow covers only a modest portion of debt (~0.62x), implying deleveraging capacity is good but not exceptionally strong. The sharp 2022 cash flow shortfall highlights that cash conversion can be volatile.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	3.09B	3.13B	3.20B	3.31B	3.34B	3.30B
Gross Profit	992.25M	972.84M	943.74M	946.84M	992.30M	970.90M
EBITDA	348.51M	359.34M	290.76M	307.17M	386.76M	366.68M
Net Income	155.68M	162.84M	107.98M	125.64M	152.15M	151.75M
Balance Sheet
Total Assets	3.64B	3.63B	3.55B	3.38B	3.28B	3.12B
Cash, Cash Equivalents and Short-Term Investments	721.15M	882.49M	753.55M	488.73M	177.44M	426.42M
Total Debt	1.61B	1.44B	1.42B	1.37B	1.38B	1.36B
Total Liabilities	2.07B	2.04B	2.00B	1.93B	1.95B	1.89B
Stockholders Equity	1.58B	1.58B	1.56B	1.45B	1.33B	1.22B
Cash Flow
Free Cash Flow	284.99M	291.09M	351.76M	327.67M	-149.24M	170.51M
Operating Cash Flow	331.12M	332.51M	394.89M	381.63M	-34.03M	250.84M
Investing Cash Flow	-103.28M	-44.89M	-105.19M	-34.58M	-142.98M	-899.36M
Financing Cash Flow	-124.69M	-156.64M	-25.44M	-37.55M	-66.81M	420.48M

Central Garden Pet Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 39.08 is above the 20-day moving average (MA) of 35.57, above the 50-day MA of 33.84, and above the 200-day MA of 34.60, indicating a bullish trend. The MACD of 1.60 indicates Negative momentum. The RSI at 78.87 is Negative, neither overbought nor oversold. The STOCH value of 89.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CENT.

Central Garden Pet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRPT	66 Neutral	$3.56B	32.70	11.22%	―	16.34%	177.51%
CENT	65 Neutral	$2.20B	15.95	10.38%	―	-2.23%	57.16%
JJSF	64 Neutral	$1.61B	27.04	6.60%	3.53%	0.54%	-24.42%
HLF	63 Neutral	$1.71B	8.90	―	―	-0.78%	265.56%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SMPL	62 Neutral	$1.49B	18.69	5.17%	―	8.98%	-26.29%

Central Garden Pet Corporate Events

Central Garden & Pet boosts share repurchase authorization, governance

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-binding basis the compensation of the company’s named executive officers. The voting results, which showed solid support for all three proposals, affirm the company’s current governance structure and executive pay practices.

Also on Feb. 11, 2026, the board approved a $100 million increase to Central’s share repurchase authorization, lifting the total available for buybacks to approximately $127 million of outstanding common stock, a move that underscores management’s capital-return priorities. In a further governance development, Central appointed longtime animal health executive and former company EVP Kay M. Schwichtenberg to its board effective March 1, 2026, adding deep industry and operational expertise that may strengthen oversight as the company pursues growth and innovation.

The most recent analyst rating on (CENT) stock is a Buy with a $51.00 price target. To see the full list of analyst forecasts on Central Garden Pet stock, see the CENT Stock Forecast page.