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Central Garden Pet
(NASDAQ:CENT)
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Rating:58Neutral
Price Target:
$43.00
▼(-2.80% Downside)
Action:Reiterated
Date:09/07/26
The score reflects stable but unexciting financial performance (improving margins and gradual deleveraging, offset by declining revenue and weakening free cash flow) as the primary driver. Technical indicators weigh on the score due to negative short-term momentum and oversold readings. Valuation is neutral at a mid-range P/E, with no dividend yield data to add support.
Positive Factors
Improved profitability
Improved gross and net margins show stronger current earnings conversion despite a softer top line. If sustained, better profitability can support reinvestment, strengthen resilience against cost pressure, and provide more flexibility for debt reduction or strategic growth.
Negative Factors
Persistent revenue decline
Ongoing revenue contraction indicates limited volume and pricing momentum across the portfolio, which can constrain operating leverage and make margin improvement harder to sustain. Continued top-line weakness may also reduce the resources available for reinvestment and strategic expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved profitability
Improved gross and net margins show stronger current earnings conversion despite a softer top line. If sustained, better profitability can support reinvestment, strengthen resilience against cost pressure, and provide more flexibility for debt reduction or strategic growth.
Read all positive factors
Central Garden Pet Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Measures profitability after operating costs for each segment, revealing which parts of the business generate the most earnings, where margins are under pressure from costs or investments, and whether revenue growth is translating into stronger profits.
Measures profitability after operating costs for each segment, revealing which parts of the business generate the most earnings, where margins are under pressure from costs or investments, and whether revenue growth is translating into stronger profits.
Data provided by:
The Fly
The FlyCentral Garden Pet (CENT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.32B
Dividend YieldN/A
Average Volume (3M)114.82K
Price to Earnings (P/E)15.4
Beta (1Y)0.38
Revenue Growth-1.16%
EPS Growth21.79%
CountryUS
Employees6,000
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)2.70
Shares Outstanding9,650,221
10 Day Avg. Volume114,040
30 Day Avg. Volume114,822
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)1.32
Price to Sales (P/S)0.67
P/FCF Ratio7.20
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$49.50Price Target Upside11.89% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)2.97
Revenue Forecast (FY)$3.01B
Central Garden Pet Business Overview & Revenue Model
Company Description
Central Garden & Pet Company (“Central”) is a market leader in the U.S. pet and garden industries. The company operates through two reportable segments: Pet and Garden. Its Pet segment offers a broad range of products for dog and cat supplies, inc...
How the Company Makes Money
Central Garden & Pet makes money primarily by manufacturing, sourcing, marketing, and distributing branded and private-label consumer products in its two operating segments, generating revenue from product sales to retail and other wholesale custo...
Central Garden Pet Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 30, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operating and financial picture: record Q2 and first-half results, top-line growth (+9% consolidated), margin expansion, improved adjusted EBITDA, strong segment performance (Pet +5%, Garden +13% in Q2), and a robust balance sheet. Strategic simplification and the Phillips JV position the company to focus on higher-margin branded growth, though the JV will reduce reported revenue in the near term and bring a modest initial EPS headwind. Key risks include weather-dependent sell-through (May is pivotal), input cost inflation (notably urea) that may require future pricing, and a promotional retail environment with some private-label pressure. Overall, the positive operational execution, liquidity, and margin improvement outweigh the near-term headwinds and timing risks.Positive Updates
Record Quarterly and First-Half Results
Company delivered a record fiscal Q2 and record first half with net sales of $906M, up 9% year-over-year, and record Q2 diluted EPS of $1.28 (net income $79M vs $64M prior year).
Negative Updates
Joint Venture Reduces Reported Revenue and Near-Term EPS Impact
Formation of the Phillips JV will reduce reported revenue in H2 by a low-teens percentage. Management expects initial non-cash purchase accounting and JV start-up dynamics to produce a conservative H2 EPS dilution of ~$0.03–$0.05, with benefits expected over time.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly and First-Half Results
Company delivered a record fiscal Q2 and record first half with net sales of $906M, up 9% year-over-year, and record Q2 diluted EPS of $1.28 (net income $79M vs $64M prior year).
Read all positive updates
Company Guidance
Central reiterated its Fiscal 2026 non‑GAAP diluted EPS guidance of $2.70 or better, supported by a strong Q2 that included net sales of $906M (+9% YoY), gross profit of $300M and a 33.1% gross margin (+30 bps), operating income of $114M (12.6% margin), net income of $79M, diluted EPS of $1.28, and adjusted EBITDA of $139M (15.4% margin), and by a first‑half showing of sales +2%, gross margin +70 bps and operating income +8%; they noted the recently announced JV will lower reported H2 revenue by a low‑teens percentage (with an initial conservative EPS headwind of $0.03–$0.05 in H2 and minimal long‑term earnings impact), CapEx is expected to be ~$50–$60M for the year (Q2 CapEx $10M, D&A $21M), cash & short‑term investments totaled $653M, total debt $1.2B, gross leverage was 2.8x (below their 3.0–3.5x target) and net leverage ~1.3x, and the guidance excludes impacts from future acquisitions, divestitures or restructurings.Central Garden Pet Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
63
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.08B | 3.13B | 3.20B | 3.31B | 3.34B | 3.30B |
| Gross Profit | 1.00B | 972.84M | 943.74M | 946.84M | 992.30M | 970.90M |
| EBITDA | 391.89M | 359.34M | 290.76M | 307.17M | 386.76M | 366.68M |
| Net Income | 166.31M | 162.84M | 107.98M | 125.64M | 152.15M | 151.75M |
Balance Sheet | ||||||
| Total Assets | 3.79B | 3.63B | 3.55B | 3.38B | 3.28B | 3.12B |
| Cash, Cash Equivalents and Short-Term Investments | 996.71M | 882.49M | 753.55M | 488.73M | 177.44M | 426.42M |
| Total Debt | 1.41B | 1.44B | 1.42B | 1.37B | 1.38B | 1.36B |
| Total Liabilities | 2.04B | 2.04B | 2.00B | 1.93B | 1.95B | 1.89B |
| Stockholders Equity | 1.75B | 1.58B | 1.56B | 1.45B | 1.33B | 1.22B |
Cash Flow | ||||||
| Free Cash Flow | 345.63M | 291.09M | 351.76M | 327.67M | -149.24M | 170.51M |
| Operating Cash Flow | 390.32M | 332.51M | 394.89M | 381.63M | -34.03M | 250.84M |
| Investing Cash Flow | -71.81M | -44.89M | -105.19M | -34.58M | -142.98M | -899.36M |
| Financing Cash Flow | -32.70M | -156.64M | -25.44M | -37.55M | -66.81M | 420.48M |
Central Garden Pet Technical Analysis
Neutral
44.24
Price Trends
43.67
Negative
41.50
Positive
38.25
Positive
Market Momentum
-0.43
Positive
36.30
Neutral
6.12
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CENT, the sentiment is Neutral. The current price of 44.24 is above the 20-day moving average (MA) of 43.61, above the 50-day MA of 43.67, and above the 200-day MA of 38.25, indicating a neutral trend. The MACD of -0.43 indicates Positive momentum. The RSI at 36.30 is Neutral, neither overbought nor oversold. The STOCH value of 6.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CENT.
Central Garden Pet Risk Analysis
Central Garden Pet disclosed 33 risk factors in its most recent earnings report. Central Garden Pet reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Central Garden Pet Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $3.38B | 16.88 | 16.65% | ― | 12.77% | 500.65% | |
68 Neutral | $1.57B | 32.17 | 5.40% | 3.80% | -4.69% | -39.51% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | $2.32B | 15.45 | 10.15% | ― | -1.16% | 21.79% | |
57 Neutral | $1.01B | -5.28 | -12.33% | 3.00% | -4.48% | -250.67% | |
55 Neutral | $1.30B | 7.74 | -32.15% | 1.80% | 5.52% | -50.47% |
* Consumer Defensive Sector Average
CENT
Central Garden Pet
41.71
4.22
11.26%
HLF
Herbalife
12.38
2.90
30.59%
JJSF
J & J Snack Foods
84.11
-18.78
-18.25%
SMPL
Simply Good Foods
11.45
-16.70
-59.33%
FRPT
Freshpet
70.24
13.21
23.16%
Central Garden Pet Corporate Events
Business Operations and StrategyM&A Transactions
Central Garden & Pet to Acquire Majority of TRIXIE
Positive
Jul 27, 2026
On July 27, 2026, Central Garden Pet announced a definitive agreement to acquire approximately 80% of TRIXIE Heimtierbedarf, Europe’s leading pet supplies and pet snacks company, for up to €400 million, including about €340 mill...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.