Wholesale-Miscellaneous Nondurable Goods
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 equine and livestock, as well as outdoor cushions. 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; vegetable; flower and herb packet 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, IMAGE, 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.
Discounted Cash Flow Valuation of Central Garden & Pet Co
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
The average Net Margin over the past 5 years is +4.48%.
The trend of Net Margin over the past 5 years is -0.19%.
The average ROA over the past 5 years is +7.93%.
The trend of ROA over the past 5 years is -0.38%.
The average ROE over the past 5 years is +10.99%.
The trend of ROE over the past 5 years is -0.4%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
The Debt/FCF trailing twelve month is 3.63.
The trend of Debt/FCF over the past 5 years is -1.69.
Graham’s Stability measure stands at 0.89.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
The Revenue CAGR over the past 5 years is +8.36%.
The trend of Revenue growth rate over the past 5 years is -0.31%.
The Earnings CAGR over the past 5 years is +0.33%.
The trend of Earnings growth rate over the past 5 years is -22.81%.
The Equity CAGR over the past 5 years is +8.8%.
The trend of Equity growth rate over the past 5 years is -0.44%.
The FCF CAGR over the past 5 years is +33.85%.
The trend of FCF growth rate over the past 5 years is +3.55%.