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Central Garden Pet
(NASDAQ:CENT)
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Rating:66Neutral
Price Target:
$48.00
▲(9.71% Upside)
Action:Reiterated
Date:08/06/26
Overall score reflects stable financial health with improved margins and moderate leverage, supported by a constructive technical trend (price above major moving averages, positive MACD). The biggest uplift comes from the latest earnings call’s strong results and reaffirmed EPS guidance, while the main constraints are negative TTM revenue and weakening free-cash-flow momentum, plus near-term JV-related reported revenue/EPS headwinds.
Positive Factors
Margin Expansion
Sustained gross- and operating-margin expansion indicates stronger cost control and pricing execution across segments. Higher margins improve earnings quality and capacity to fund investment, deleveraging or buybacks, and provide a buffer against input-cost inflation over the medium term.
Negative Factors
Top-line softness and weaker free cash flow
Declining trailing revenue and a marked drop in free cash flow reduce the company’s internal financing capacity and increase reliance on external funding or slower deleveraging. Persistent top-line weakness also raises the bar for sustaining margin gains and limits reinvestment flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion
Sustained gross- and operating-margin expansion indicates stronger cost control and pricing execution across segments. Higher margins improve earnings quality and capacity to fund investment, deleveraging or buybacks, and provide a buffer against input-cost inflation over the medium term.
Read all positive factors
Central Garden Pet Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Measures profitability after operating costs for each segment, revealing which parts of the business generate the most earnings, where margins are under pressure from costs or investments, and whether revenue growth is translating into stronger profits.
Measures profitability after operating costs for each segment, revealing which parts of the business generate the most earnings, where margins are under pressure from costs or investments, and whether revenue growth is translating into stronger profits.
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The Fly
The FlyCentral Garden Pet (CENT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.43B
Dividend YieldN/A
Average Volume (3M)68.31K
Price to Earnings (P/E)15.5
Beta (1Y)0.36
Revenue Growth0.22%
EPS Growth46.14%
CountryUS
Employees6,000
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)2.70
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$49.00Price Target Upside12.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)2.97
Revenue Forecast (FY)$3.00B
Central Garden Pet Business Overview & Revenue Model
Company Description
Central Garden & Pet Company (“Central”) is a market leader in the U.S. pet and garden industries. The company operates through two reportable segments: Pet and Garden. Its Pet segment offers a broad range of products for dog and cat supplies, inc...
How the Company Makes Money
Central Garden & Pet makes money primarily by manufacturing, sourcing, marketing, and distributing branded and private-label consumer products in its two operating segments, generating revenue from product sales to retail and other wholesale custo...
Central Garden Pet Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 30, 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
64
Positive
Balance Sheet
63
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.08B | 3.13B | 3.20B | 3.31B | 3.34B | 3.30B |
| Gross Profit | 1.00B | 972.84M | 943.74M | 946.84M | 992.30M | 970.90M |
| EBITDA | 358.20M | 359.34M | 290.76M | 307.17M | 386.76M | 366.68M |
| Net Income | 166.31M | 162.84M | 107.98M | 125.64M | 152.15M | 151.75M |
Balance Sheet | ||||||
| Total Assets | 3.79B | 3.63B | 3.55B | 3.38B | 3.28B | 3.12B |
| Cash, Cash Equivalents and Short-Term Investments | 996.71M | 882.49M | 753.55M | 488.73M | 177.44M | 426.42M |
| Total Debt | 1.41B | 1.44B | 1.42B | 1.37B | 1.38B | 1.36B |
| Total Liabilities | 2.04B | 2.04B | 2.00B | 1.93B | 1.95B | 1.89B |
| Stockholders Equity | 1.75B | 1.58B | 1.56B | 1.45B | 1.33B | 1.22B |
Cash Flow | ||||||
| Free Cash Flow | 204.51M | 291.09M | 351.76M | 327.67M | -149.24M | 170.51M |
| Operating Cash Flow | 270.46M | 332.51M | 394.89M | 381.63M | -34.03M | 250.84M |
| Investing Cash Flow | -150.13M | -44.89M | -105.19M | -34.58M | -142.98M | -899.36M |
| Financing Cash Flow | -64.08M | -156.64M | -25.44M | -37.55M | -66.81M | 420.48M |
Central Garden Pet Technical Analysis
Positive
43.75
Price Trends
42.53
Positive
39.94
Positive
36.89
Positive
Market Momentum
0.33
Positive
55.61
Neutral
56.23
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 43.75 is above the 20-day moving average (MA) of 43.49, above the 50-day MA of 42.53, and above the 200-day MA of 36.89, indicating a bullish trend. The MACD of 0.33 indicates Positive momentum. The RSI at 55.61 is Neutral, neither overbought nor oversold. The STOCH value of 56.23 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.93B | 14.52 | 16.98% | ― | 12.01% | 1171.89% | |
68 Neutral | $1.43B | 25.55 | 6.24% | 4.19% | -2.04% | -23.39% | |
66 Neutral | $2.43B | 15.54 | 10.72% | ― | 0.22% | 46.14% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $1.29B | 5.33 | -43.03% | ― | 3.69% | -16.34% | |
57 Neutral | $900.53M | -4.69 | -12.33% | ― | -4.48% | -250.67% |
* Consumer Defensive Sector Average
CENT
Central Garden Pet
44.06
4.65
11.80%
HLF
Herbalife
12.60
3.35
36.22%
JJSF
J & J Snack Foods
84.66
-22.71
-21.15%
SMPL
Simply Good Foods
11.18
-18.61
-62.47%
FRPT
Freshpet
71.47
7.78
12.22%
Central Garden Pet Corporate Events
Business Operations and StrategyM&A Transactions
Central Garden & Pet to Acquire Majority of TRIXIE
Positive
Jul 27, 2026
On July 27, 2026, Central Garden Pet announced a definitive agreement to acquire approximately 80% of TRIXIE Heimtierbedarf, Europe’s leading pet supplies and pet snacks company, for up to €400 million, including about €340 mill...
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.