Central Garden & Pet Co. (CENT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

UTZ Brands, Inc.

Tootsie Roll Industries, Inc.

Central Garden & Pet Co.

B&G Foods, Inc.

Medifast, Inc.

Herbalife Ltd.

The Hain Celestial Group, Inc.

BellRing Brands, Inc.

Adecoagro SA

Beyond Meat, Inc.

Dogness (International) Corp.

Why is Central Garden & Pet Co. ?

Poor long term growth as Operating profit has grown by an annual rate 1.78% of over the last 5 years

Flat results in Dec 25

NET PROFIT(HY) At USD 2.97 MM has Grown at -64.44%
OPERATING CASH FLOW(Y) Lowest at USD 328.8 MM
NET SALES(Q) Lowest at USD 617.37 MM

With ROCE of 11.82%, it has a very expensive valuation with a 1.24 Enterprise value to Capital Employed

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 8.99%, its profits have risen by 7.4% ; the PEG ratio of the company is 0.7

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 6.49% over the previous quarter.

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Central Garden & Pet Co. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Central Garden & Pet Co. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Central Garden & Pet Co.

8.99%

-0.24

31.42%

S&P 500

13.5%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.95%

EBIT Growth (5y)

1.78%

EBIT to Interest (avg)

4.25

Debt to EBITDA (avg)

2.82

Net Debt to Equity (avg)

0.47

Sales to Capital Employed (avg)

1.16

Tax Ratio

23.82%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

10.09%

ROE (avg)

10.82%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.32

EV to EBIT

10.47

EV to EBITDA

7.82

EV to Capital Employed

1.24

EV to Sales

0.83

PEG Ratio

0.66

Dividend Yield

ROCE (Latest)

11.82%

ROE (Latest)

10.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

ROCE(HY)

Highest at 10.06%

RAW MATERIAL COST(Y)

Fallen by -4.15% (YoY

CASH AND EQV(HY)

Highest at USD 1,635.67 MM

DEBT-EQUITY RATIO (HY)

Lowest at 43.72 %

-7What is not working for the Company

NET PROFIT(HY)

At USD 2.97 MM has Grown at -64.44%

OPERATING CASH FLOW(Y)

Lowest at USD 328.8 MM

NET SALES(Q)

Lowest at USD 617.37 MM

Here's what is working for Central Garden & Pet Co.

Cash and Eqv

Highest at USD 1,635.67 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 43.72 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -4.15% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Central Garden & Pet Co.

Net Profit

At USD 2.97 MM has Grown at -64.44%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 328.8 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Sales

Lowest at USD 617.37 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Non Operating Income

Highest at USD 0.77 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income