Central Garden & Pet Stock Analysis, Valuation (NASDAQ:CENT)

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$38.88 $0.17 (0.44%) CENT stock closing price Apr 25, 2018 (Closing)
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Central Garden & Pet
Updated on : Apr 25, 2018
previous close
CENT 38.9 (0%)
S&P 500 2639.4 (0%)
Closing Price On: Apr 25, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Consumer Discretionary-Misc
Sector :
Consumer Discretionary
5 Quarter Revenue
Revenue Growth
2018-Q1
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
4.2%
Operating Profit
Operating Margin:
7.6%
Sector Average:
10.4%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
691.3M
Debt/Equity Ratio:
 1.04
Compared to the industry
Cash Flow
Operating cash flow:
-$24.2M
Net Income:
$26.3M
PROS      CONS
ROIC
ROE
PS Valuation
Long Term Growth
High Debt Burden
Cash Flow
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
CENT PS :
0.9
Industry PS :
1.6
Sector:   Consumer Discretionary.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
11.8%
Return on Equity:
15.8%
Free Cash Flow Margin:
-7.3%
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CENT Stock Analysis

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View the Central Garden & Pet stock analysis video on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for CENT stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Central Garden & Pet Co Stock Rating 2.7/5

Amigobulls CENT stock analysis uses latest quarter 2018 Q1 financial data like Central Garden & Pet revenue growth, profit margins and cash flows. Central Garden & Pet valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Central Garden & Pet stock rating is our opinion about the business fundamentals of the company.

Should you buy CENT stock?

  • When compared with the Consumer Discretionary-Misc industry average PS ratio of 1.6, the price-to-sales ratio of 0.9 for CENT stock is attractive.
  • Central Garden & Pet has an attractive ROIC (Return on Invested Capital) of 11.8%
  • Central Garden & Pet has a good Return On Equity (ROE) of 15.8%.

Should you sell CENT stock?

  • Revenue growth of 4.2% has been weak over the last 5 years.
  • Central Garden & Pet is debt laden and has a high debt/equity ratio of  1.04.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -7.3%.

Comments on this video and Central Garden & Pet stock

Investors can use Amigobulls Central Garden & Pet stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Company's fundamentals remain one of the key driver of CENT stock and helps investors in making good buy and sell decision.

While doing a study of the company financials, Central Garden & Pet revenue growth and profit or net income are two main metrics which help in identifying whether CENT stock is overvalued or undervalued. One can also combine technical analysis and fundamental analysis to get a holistic picture about CENT stock.