Central Garden Pet (CENT) AI Stock Analysis

• Market Cap: $2.05B
• Dividend Yield: N/A
• Average Volume (3M): 83.29K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.43
• Revenue Growth: -4.60%
• EPS Growth: -26.61%
• Country: US
• Employees: 6,000
• Sector: Consumer Defensive
• Sector Strength: 57
• Industry: Packaged Foods
• EPS (TTM): 1.04
• Shares Outstanding: 9,818,541
• 10 Day Avg. Volume: 70,630
• 30 Day Avg. Volume: 83,288
• PEG Ratio: 5.80
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.51
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 2.91
• Enterprise Value/Ebitda: 2.19
• 1Y Price Target: $35.48
• Price Target Upside: -1.85% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: $40.00 ▲(10.65%Upside)

Central Garden & Pet's overall stock score is driven by strong financial performance and positive earnings call outcomes, demonstrating operational efficiency and strategic growth. Technical analysis and valuation provide a stable but unremarkable outlook, with the absence of notable corporate events.

Positive Factors

Profitability

Profitability was well ahead across all metrics for Central Garden & Pet.

Share Repurchase

The company repurchased $98 million in shares through the first half of the year and another $39 million in April, signaling management's belief that the stock is undervalued.

Negative Factors

Inflation

Central Garden & Pet expects elevated inflationary pressures in the second half, particularly in its Pet segment.

Sales Performance

Central Garden & Pet reported mixed Q2 results, with sales approximately 5% below consensus.

Central Garden Pet Business Overview & Revenue Model

Company Description

Central Garden & Pet Company (CENT) is a leading innovator, marketer, and producer of quality branded products for the lawn and garden and pet supplies markets in the United States. The company's garden segment offers products such as grass seed, vegetable seeds, flower seeds, wild bird feed, insect and weed control products, fertilizers, and decorative outdoor lifestyle products. In the pet segment, the company provides products for dogs and cats, including edible bones, premium healthy edible and non-edible chews, and pet grooming supplies, as well as products for fish, birds, and other small animals.

How the Company Makes Money

Central Garden & Pet Company generates revenue primarily through the sale of its extensive portfolio of branded products in the lawn and garden and pet supplies sectors. The company distributes its products through a variety of channels including mass retailers, home improvement stores, garden centers, and pet superstores. Significant revenue streams include lawn and garden products such as fertilizers and insecticides, and pet supplies such as pet food and accessories. Central Garden & Pet also benefits from strategic acquisitions that expand its product offerings and enhance its market presence. The company's partnerships with major retail chains and its focus on innovation and brand development are key factors contributing to its earnings.

Central Garden Pet Financial Statement Overview

Summary

Central Garden Pet demonstrates strong financial health with robust cash flow and stable profitability margins. While revenue has slightly declined, the company maintains operational efficiency and a solid equity position. Moderate leverage is managed well, but careful attention to debt levels is advisable.

Income Statement

The income statement shows a stable gross profit margin of approximately 30% over the periods. However, there is a slight decline in total revenue from $3.33 billion in 2022 to $3.16 billion TTM, indicating a revenue contraction of about 5.6%. Net profit margins are relatively stable but slightly low, around 3.9% TTM. EBITDA margin is strong at nearly 10%, suggesting operational efficiency. Despite the slight revenue drop, profitability remains stable.

Balance Sheet

Central Garden Pet's balance sheet reflects a solid equity position with a debt-to-equity ratio of approximately 0.92 TTM, indicating moderate leverage. The equity ratio stands at around 43%, showing a stable equity base. ROE decreased slightly to about 8% TTM, suggesting moderate returns on equity, though slightly less than previous years. The company maintains a healthy asset base, but the slight increase in debt could be a potential risk if not managed.

Cash Flow

The cash flow statement highlights strong free cash flow generation, with a TTM free cash flow of $333 million, up from $327 million the previous year. This reflects a stable free cash flow growth rate. Operating cash flow to net income ratio is robust at about 3.0, demonstrating excellent cash generation relative to net income. The company effectively manages capital expenditures while maintaining positive free cash flow, which bodes well for future investments and liquidity.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	3.16B	3.20B	3.31B	3.34B	3.30B	2.70B
Gross Profit	954.79M	943.74M	946.84M	992.30M	970.90M	796.56M
EBITDA	310.02M	290.76M	307.17M	340.98M	329.22M	253.34M
Net Income	123.21M	107.98M	125.64M	152.15M	151.75M	120.68M
Balance Sheet
Total Assets	3.57B	3.55B	3.38B	3.28B	3.12B	2.34B
Cash, Cash Equivalents and Short-Term Investments	516.67M	753.55M	488.73M	177.44M	426.42M	652.71M
Total Debt	1.42B	1.42B	1.37B	1.38B	1.36B	814.06M
Total Liabilities	2.03B	2.00B	1.93B	1.95B	1.89B	1.26B
Stockholders Equity	1.54B	1.56B	1.45B	1.33B	1.22B	1.08B
Cash Flow
Free Cash Flow	333.08M	351.76M	327.67M	-149.24M	170.51M	221.22M
Operating Cash Flow	373.50M	394.89M	381.63M	-34.03M	250.84M	264.27M
Investing Cash Flow	-45.10M	-105.19M	-34.58M	-142.98M	-899.36M	-48.11M
Financing Cash Flow	-111.99M	-25.44M	-37.55M	-66.81M	420.48M	-60.56M

Central Garden Pet Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.15
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 36.15 is above the 20-day moving average (MA) of 35.34, above the 50-day MA of 35.41, and below the 200-day MA of 36.43, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 55.53 is Neutral, neither overbought nor oversold. The STOCH value of 58.99 is Neutral, 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
SENEA	78 Outperform	$724.23M	17.22	6.77%	―	8.25%	-30.16%
JBSS	75 Outperform	$780.31M	14.03	16.58%	12.66%	7.40%	-14.93%
CENT	74 Outperform	$2.05B	19.27	8.07%	―	-4.60%	-26.61%
HLF	71 Outperform	$1.02B	3.64	-31.74%	―	-2.45%	100.59%
JJSF	69 Neutral	$2.28B	30.13	8.20%	2.66%	0.49%	-12.32%
Sector *	65 Neutral	$27.02B	15.16	-4.24%	3.17%	1.01%	1.94%
STKL	63 Neutral	$761.67M	―	-5.95%	―	2.44%	91.41%

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.