Central Garden Pet (CENT) AI Stock Analysis

Compare

197 Followers

Top Page

Central Garden Pet

(NASDAQ:CENT)

Select Model

Outperform 73 (OpenAI - 4o)

Rating:73Outperform

Price Target:

$37.00

▲(19.97% Upside)

Central Garden Pet's overall stock score reflects its strong financial performance and strategic initiatives, supported by a solid credit facility. While technical indicators suggest moderate strength, the valuation remains appealing. The earnings call and corporate events contribute positively, though challenges like net sales decline and tariff impacts warrant attention.

Central Garden Pet (CENT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.88B

Dividend YieldN/A

Average Volume (3M)68.31K

Price to Earnings (P/E)12.8

Beta (1Y)0.42

Revenue Growth-2.23%

EPS Growth57.16%

CountryUS

Employees6,000

SectorN/A

Sector StrengthN/A

IndustryPackaged Foods

Share Statistics

EPS (TTM)-0.09

Shares Outstanding9,650,221

10 Day Avg. Volume60,356

30 Day Avg. Volume68,307

Financial Highlights & Ratios

PEG Ratio-0.74

Price to Book (P/B)1.55

Price to Sales (P/S)0.75

P/FCF Ratio6.85

Enterprise Value/Market Cap1.39

Enterprise Value/Revenue0.83

Enterprise Value/Gross Profit2.62

Enterprise Value/Ebitda7.39

Forecast

1Y Price Target

$30.00

Price Target Upside-2.72% Downside

Rating ConsensusHold

Number of Analyst Covering1

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

Central Garden Pet Business Overview & Revenue Model

Company DescriptionCentral 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 MoneyCentral 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 Earnings Call Summary

Earnings Call Date:Nov 24, 2025

(Q4-2025)

% Change Since: |

Next Earnings Date:Feb 11, 2026

Earnings Call Sentiment Neutral

The earnings call presented a mixed outlook. While the company achieved record financial performance and demonstrated operational efficiency, challenges such as declining net sales, tariff impacts, and increased corporate expenses were evident. The strategic focus on high-margin products and a positive outlook for the Garden segment provide reasons for cautious optimism.

Q4-2025 Updates

Positive Updates

Record Financial Performance

Central Garden & Pet Company achieved record EBITDA and earnings per share for fiscal year 2025, demonstrating robust financial health and successful execution of strategic initiatives.

Gross Margin Expansion

The company reported a 210 basis points increase in non-GAAP gross margin to 32.1%, supported by productivity initiatives across both segments.

Operational Efficiency

Completion of a multiyear supply chain network design project and the consolidation of facilities contributed to enhanced customer alignment and cost efficiency.

Strategic Focus on High-Margin Products

Shifted focus to high-margin consumable products, with consumables now representing 84% of Pet segment sales, contributing to a stronger portfolio.

Positive Garden Segment Performance

The Garden segment saw a 7% increase in net sales in Q4, driven by strong product placements and favorable weather conditions.

Negative Updates

Net Sales Decline

Net sales for fiscal year 2025 decreased by 2%, primarily due to strategic decisions to reduce exposure to lower-margin businesses and challenges in the UK market.

Tariff Challenges

The company faced gross tariff exposure of approximately $20 million, impacting the Pet segment significantly.

Durables Segment Decline

The Pet segment experienced a 22% decrease in net sales in Q4 due to lower durable sales and closure of UK operations.

Corporate Expense Increase

Corporate expenses increased by $11 million in Q4, driven by timing variations, investments for future growth, and miscellaneous true-ups.

Company Guidance

During the earnings call for Central Garden & Pet Company's fourth quarter and fiscal year 2025, several key metrics and strategic initiatives were highlighted. The company reported a record bottom-line performance, with net sales reaching $3.1 billion, despite a 2% decrease attributed to strategic reductions in lower-margin businesses and the transition of certain product lines to a direct-to-retail model. Gross profit increased by 4.5% to $1 billion, and gross margin expanded by 210 basis points to 32.1%, driven by productivity initiatives. The Garden segment showed a 7% increase in net sales to $250 million, while the Pet segment experienced a 22% decrease to $428 million. Non-GAAP operating income rose to $265 million, with an operating margin of 8.5%, up from 7% the previous year. The company ended the year with a strong balance sheet, including cash and cash equivalents of $882 million and a net leverage of approximately 0.8. Looking ahead, Central Garden & Pet expects non-GAAP earnings per share for fiscal 2026 to be $2.70 or better, supported by margin expansion and operational performance. The company plans to invest $50 million to $60 million in capital expenditures, primarily for maintenance and productivity initiatives, and is focused on driving growth through innovation, e-commerce, and digital technology.

Central Garden Pet Financial Statement Overview

Summary

Income Statement

Positive

Balance Sheet

Positive

Cash Flow

Positive

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Central Garden Pet Technical Analysis

Technical Analysis Sentiment

Negative

Last Price30.84

Price Trends

50DMA

32.20

Positive

100DMA

33.36

Negative

200DMA

34.82

Negative

Market Momentum

MACD

0.03

Positive

RSI

48.95

Neutral

STOCH

25.90

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CENT, the sentiment is Negative. The current price of 30.84 is below the 20-day moving average (MA) of 33.26, below the 50-day MA of 32.20, and below the 200-day MA of 34.82, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 48.95 is Neutral, neither overbought nor oversold. The STOCH value of 25.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CENT.

Central Garden Pet Peers Comparison

Overall Rating

UnderperformOutperform

Sector (―)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	―	―	―	―	―	―
CENT	73 Outperform	$1.88B	12.80	10.38%	―	-2.23%	57.16%
HLF	71 Outperform	$1.38B	4.26	―	―	-0.78%	265.56%
JJSF	69 Neutral	$1.74B	26.78	6.82%	3.53%	0.54%	-24.42%
FRPT	66 Neutral	$3.13B	28.10	11.22%	―	16.34%	177.51%
SMPL	63 Neutral	$1.90B	19.63	5.86%	―	8.98%	-26.29%

* Sector Average

Performance Comparison

CENT

Central Garden Pet

32.69

-6.07

-15.66%

HLF

Herbalife

13.33

6.61

98.36%

JJSF

J & J Snack Foods

89.86

-61.00

-40.43%

SMPL

Simply Good Foods

19.98

-18.74

-48.40%

FRPT

Freshpet

64.17

-85.32

-57.07%

Central Garden Pet Corporate Events

Private Placements and FinancingBusiness Operations and Strategy

Central Garden Pet Secures $600M Credit Facility

Positive

Nov 12, 2025

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.

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.Date of analysis: Dec 09, 2025