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

Central Garden & Pet Co.

Adecoagro SA

Tootsie Roll Industries, Inc.

Medifast, Inc.

UTZ Brands, Inc.

Herbalife Ltd.

The Hain Celestial Group, Inc.

B&G Foods, 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 1.78% of over the last 5 years

With a growth in Operating Profit of 0.28%, the company declared Very Positive results in Jun 26

OPERATING CASH FLOW(Y) Highest at USD 388 MM
INTEREST COVERAGE RATIO(Q) Highest at 1,115.17
RAW MATERIAL COST(Y) Fallen by -4.11% (YoY)

With ROCE of 11.82%, it has a 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 9.66%, 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.

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.

9.66%

-0.04

27.37%

S&P 500

16.24%

1.25

13.03%

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

10.48

EV to EBITDA

7.82

EV to Capital Employed

1.24

EV to Sales

0.84

PEG Ratio

0.66

Dividend Yield

ROCE (Latest)

11.82%

ROE (Latest)

10.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 388 MM

INTEREST COVERAGE RATIO(Q)

Highest at 1,115.17

RAW MATERIAL COST(Y)

Fallen by -4.11% (YoY

CASH AND EQV(HY)

Highest at USD 1,681.62 MM

DEBT-EQUITY RATIO (HY)

Lowest at 22.71 %

INVENTORY TURNOVER RATIO(HY)

Highest at 3.12 times

OPERATING PROFIT(Q)

Highest at USD 159.24 MM

OPERATING PROFIT MARGIN(Q)

Highest at 18.05 %

PRE-TAX PROFIT(Q)

Highest at USD 129.74 MM

NET PROFIT(Q)

Highest at USD 97.49 MM

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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

Operating Cash Flow

Highest at USD 388 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)

Interest Coverage Ratio

Highest at 1,115.17

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at USD 159.24 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 18.05 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 129.74 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 97.49 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Cash and Eqv

Highest at USD 1,681.62 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 22.71 %

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 3.12 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 -4.11% (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