Central Garden & Pet Company

Central Garden & Pet Company

CENTยทNASDAQ

$37.78

-2.3%
Consumer DefensivePackaged Foods

Central Garden & Pet Company produces and distributes various products for the lawn and garden, and pet supplies markets in the United States. It operates through two segments, Pet and Garden. The Pet segment provides dog and cat supplies, such as dog treats and chews, toys, pet beds and grooming products, waste management and training pads, and pet containment; supplies for aquatics, small animals, reptiles, and pet birds, including toys, cages and habitats, bedding, and food and supplements; animal and household health and insect control products; live fish and products for fish, reptiles, and other aquarium-based pets, such as aquariums, furniture and lighting fixtures, pumps, filters, water conditioners, food, and supplements; and products for horses and livestock, as well as outdoor cushions and pillows. This segment sells its products under the Aqueon, Cadet, Comfort Zone, Farnam, Four Paws, Kaytee, K&H Pet Products, Nylabone, and Zilla brands. The Garden segment offers lawn and garden supplies products that include grass seed; wild bird feed, bird feeders, bird houses, and other birding accessories; fertilizers; decorative outdoor lifestyle products; live plants; and weed and grass, as well as other herbicides, insecticide, and pesticide products. This segment sells its lawn and garden supplies products under the AMDRO, Ferry-Morse, Pennington, and Sevin brands, as well as under Bell Nursery, Lilly Miller, and Over-N-Out other brand names. Central Garden & Pet Company was founded in 1955 and is based in Walnut Creek, California.

At a Glance

Live Snapshot
Market Cap$2.36B
EPS2.5800
P/E Ratio14.64
Earnings Date08/05/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is mid-range (P/E 14.6).

Valuation inputs: P/E 14.6, earnings yield +6.8%, momentum -2.3%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is acceptable (ROE +10.3%, ROIC +6.4%).

Profitability stack: net margin +5.2%, ROE +10.3%, ROIC +6.4%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +56.3%, momentum -2.3%, net margin +5.2%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Central Garden & Pet Company Market vs Earnings Trajectory

CENT ยท NASDAQ

Loading price and EPS data...

Central Garden & Pet Company

Central Garden & Pet Company Fair Value Envelope

CENT ยท NASDAQ

Our analysis suggests that CENT has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $37.78, this represents a potential HIDDEN relative to our calculated worth for Central Garden & Pet Company.

Intrinsic Value
Current Price: $37.78
3Y+13.0%
5Y+16.0%
10Y+184.0%
3Y-6.0%
5Y+16.0%
10Y+71.0%
3Y+7.0%
5Y+35.0%
10Y+266.0%
3Y-1077.0%
5Y+26.0%
10Y+120.0%
3Y-295.0%
5Y+32.0%
10Y+135.0%
3Y+10.0%
5Y+55.0%
10Y+199.0%
Central Garden & Pet Company

Central Garden & Pet Company Profit Bridge

CENT ยท NASDAQ
Revenue3.13B
Cost of Goods Sold (2.16B)
Gross Profit972.84M
Operating Expenses (707.79M)
Operating Income265.05M
Interest Expense (57.70M)
Other Income/Expense-48.30M
Pretax Income216.75M
Income Tax (52.79M)
Net Income162.84M
Net Income
162.84M

Profitability Analysis

Gross Margin

31.1%

Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.

Operating Margin

8.5%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

5.2%

Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.

Effective Tax Rate

24.4%

Moderate tax rate typical for most corporations. Represents standard tax burden on profits.

Profitability Insight

Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.

31.09%
Gross Profit Margin
5%
3Y+5.0%
5Y+5.0%
10Y+3.0%
8.47%
Operating Profit Margin
46%
3Y+9.0%
5Y+60.0%
10Y+20.0%
5.20%
Net Profit Margin
54%
3Y+14.0%
5Y+16.0%
10Y+114.0%
10.29%
Return on Equity
48%
3Y-10.0%
5Y-8.0%
10Y+28.0%
4.49%
Return on Assets
48%
3Y-3.0%
5Y-13.0%
10Y+22.0%
6.38%
Return on Invested Capital
39%
3Y-8.0%
5Y+10.0%
10Y-24.0%
CENT

Central Garden & Pet Company Cash Conversion Engine

CENT ยท NASDAQ
Net Income163.96M
Depreciation & Amortization84.89M
Stock-Based Compensation21.06M
Change in Working Capital-10.88M
Others75.57M
Capital Expenditures-41.42M
Free Cash Flow291.09M

Cash Flow Quality Analysis

FCF Conversion Rate

177.5%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

12.5%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

-17.2%

Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.

Working Capital Impact

-$10.88M

Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.

Cash Flow Quality Insight

Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.

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Central Garden & Pet Company Funding & Solvency Profile

CENT ยท NASDAQ
Cash & Cash Equivalents653.24M
Net Receivables603.15M
Inventory782.33M
Other Current Assets49.00M
Total Current Assets2 B
Property, Plant & Equipment553.13M
Goodwill & Intangible Assets989.64M
Long-Term Investments0.00
Other Non-Current Assets0.00
Total Non-Current Assets553 M
Total Assets
3.63B

Financial Health Analysis

Current Ratio

3.45x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

1.20x

Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.

Working Capital

1 B

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

58% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

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Central Garden & Pet Company Street Expectations Map

CENT ยท NASDAQ

Wall Street analysts project that CENT stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 54.00, with estimates ranging from a low of 54.00 to a high of 54.00.

Lowest Target
54.00
42.93%
Consensus Target
54.00
42.93%
Highest Target
54.00
42.93%

The consensus 1-year price target stands at 54.00, with estimates ranging from a low of 54.00 to a high of 54.00.

Analyst Consensus Analysis

Upside Potential

+42.9%

Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.

Analyst Agreement

0.0% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.

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Central Garden & Pet Company Insider Positioning

CENT ยท NASDAQ

During the last 12 months, insiders have sold $3.99M worth of CENT shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

11.9K

408.78K

Net Activity

-409K

-$409K

6-9 Months

Bought

0

0.00

Sold

10.0K

309.06K

Net Activity

-309K

-$309K

9-12 Months

Bought

0

0.00

Sold

100.0K

3.27M

Net Activity

-3.3M

-$3.27M

Top Buyers

No buying activity

Top Sellers

1
BWE

Brown William E

Director, 10 Percent Owner, Officer: Chairman

100.0K sharesโ€ข2 transactions

$3.27M

2
MCT

Metz Christopher T

Director

10.0K sharesโ€ข1 transactions

$309K

3
HJE

Hanson John Edward

Officer: President, Pet Consumer Prod

5.0K sharesโ€ข1 transactions

$174K

4
RJ

Ranelli John

Director

3.7K sharesโ€ข1 transactions

$127K

5
DB

Dougher Brendan

Director

3.3K sharesโ€ข1 transactions

$108K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $3.99M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Insider Participation

High Selling

5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

No Dividend Yield Data

CENT has not reported any dividend yield values in the available annual periods.

ย 

cent Dividend History

CENT
10Y CAGR +0%
Latest $0
Annual $0
Stable dividend payments
Last Period: +0%