Last Updated: 19 Sep 2024
Executive Summary
Central Garden & Pet Company (CENT), a leading distributor of lawn and garden and pet supply products, has a market capitalization of $2.29 billion. The company's strong financial performance, with an EBITDA of $341.12 million and EPS of $2.17, has resulted in a trailing PE of 17.66. Analysts have a positive outlook on CENT, with 2 Strong Buy and 4 Buy ratings. The stock's current price of $38.33 is below its 52-week high of $47.48 but above its 200-day moving average of $40.00.
Company Overview
Central Garden & Pet Company operates in the wholesale-miscellaneous nondurable goods industry. The company's products include lawn and garden supplies, pet food and supplies, and home and garden décor. CENT has a strong market position with a wide distribution network and a portfolio of well-known brands. The company's revenue for the trailing twelve months was $3.28 billion, with a gross profit margin of 30.2%.
Fundamental Analysis
CENT's financial performance has been solid in recent years. The company's revenue has grown at a CAGR of 5.5% over the past five years, while its EPS has grown at a CAGR of 10.2%. The company's profit margins have also been stable, with a gross profit margin of 30.2% and an operating margin of 12.8%. CENT has a strong balance sheet with $236.4 million in cash and equivalents and $1.2 billion in total debt. The company's debt-to-equity ratio is 0.55, which is within a manageable range.
Technical Analysis
CENT's stock price has been trending sideways in recent months. The stock is currently trading below its 52-week high of $47.48 but above its 200-day moving average of $40.00. The stock's relative strength index (RSI) is 50.00, which indicates that the stock is neither overbought nor oversold.
Short Term Outlook
In the short term, CENT's stock price is likely to continue to trade sideways. The stock is currently facing resistance at its 52-week high of $47.48. However, the stock is also supported by its 200-day moving average of $40.00.
Long Term Outlook
In the long term, CENT's stock price is likely to rise. The company's strong financial performance and positive analyst outlook suggest that the stock is undervalued. The stock's current price of $38.33 is below its analyst target price of $47.40.
Analyst Recommendations
Analysts have a positive outlook on CENT. The consensus analyst rating is Buy, with 2 Strong Buy and 4 Buy ratings. The average analyst target price is $47.40, which represents a potential upside of 23.7%.
