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

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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.

Adecoagro SA

The Hain Celestial Group, Inc.

BellRing Brands, Inc.

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 5.94% of over the last 5 years

Flat results in Jun 25

DEBTORS TURNOVER RATIO(HY) Lowest at 6.06 times

With ROCE of 10.00%, it has a very expensive valuation with a 1.22 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 -17.79%, its profits have risen by 2.7% ; the PEG ratio of the company is 2.2

Below par performance in long term as well as near term

Along with generating -17.79% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Central Garden & Pet Co. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Central Garden & Pet Co.

-5.4%

-0.60

34.68%

S&P 500

13.95%

0.81

19.85%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.04%

EBIT Growth (5y)

5.94%

EBIT to Interest (avg)

4.25

Debt to EBITDA (avg)

2.82

Net Debt to Equity (avg)

0.47

Sales to Capital Employed (avg)

1.17

Tax Ratio

23.82%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

93.51%

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

1.33

EV to EBIT

12.24

EV to EBITDA

8.82

EV to Capital Employed

1.22

EV to Sales

0.88

PEG Ratio

2.16

Dividend Yield

ROCE (Latest)

10.00%

ROE (Latest)

9.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Mildly Bearish

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

17What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 352.88 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -9.5% (YoY

CASH AND EQV(HY)

Highest at USD 1,259.08 MM

DEBT-EQUITY RATIO (HY)

Lowest at 44.62 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.9 times

OPERATING PROFIT(Q)

Highest at USD 156.61 MM

OPERATING PROFIT MARGIN(Q)

Highest at 16.3 %

PRE-TAX PROFIT(Q)

Highest at USD 127.35 MM

NET PROFIT(Q)

Highest at USD 95.01 MM

EPS(Q)

Highest at USD 1.52

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.06 times

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

Operating Cash Flow

Highest at USD 352.88 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Operating Profit

Highest at USD 156.61 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 16.3 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 127.35 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 95.01 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 1.52

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 1,259.08 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 44.62 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 2.9 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -9.5% (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.

Debtors Turnover Ratio

Lowest at 6.06 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio