This firm has accumulated 1.39
B in total debt with debt to equity ratio (D/E) of 1.02, which is about average as compared to similar companies. The company has a current ratio of 3.1, suggesting that it is liquid and has the ability to pay its financial obligations in time and when they become due. Debt can assist Central Garden until it has trouble settling it off, either with new capital or with free cash flow. So, Central Garden's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Central Garden Pet sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Central to invest in growth at high rates of return. When we think about Central Garden's use of debt, we should always consider it together with cash and equity.
The firm shows a Beta (market volatility) of 0.8374, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Central's beta means in this case. As returns on the market increase, Central Garden returns are expected to increase less than the market. However, during the bear market, the loss on holding Central Garden will be expected to be smaller as well. Even though it is essential to pay attention to
Central Garden Pet historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing any stock's
future performance is to check both, its past performance charts as well as the business as a whole, including all available
technical indicators. Central Garden Pet exposes twenty-eight different technical indicators, which can help you to evaluate its performance.
Central Garden Pet has an expected return of -0.0885%. Please be advised to confirm Central Garden Pet
downside variance,
daily balance of power, and the
relationship between the
maximum drawdown and
skewness to decide if
Central Garden Pet performance from the past will be repeated at some point in the near future.
We determine the current worth of Central Garden Pet using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Central Garden Pet based exclusively on its
fundamental and basic
technical indicators. By analyzing Central Garden's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Central Garden's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Central Garden. We calculate exposure to Central Garden's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Central Garden's related companies.
Central Garden Pet Investment Alerts
Central investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Central Garden Pet performance across your portfolios.Please check all
investment alerts for Central
Central Garden Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Central value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Central Garden competition to find
correlations between indicators driving the intrinsic value of Central.
Central Garden Gross Profit
Central Garden Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Central Garden previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Central Garden Gross Profit growth over the last 10 years. Please check Central Garden's
gross profit and other
fundamental indicators for more details.
Detailed Perspective On Central Garden
Central Garden Pet reported the revenue of 3.37
B. Net Income was 151.14
M with profit before overhead, payroll, taxes, and interest of 970.9
M.
Margins Breakdown
Central profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Central Garden itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Central Garden profit margins.
| Operating Margin | 6.52 |
| EBITDA Margin | 8.39 |
| Gross Margin | 33.6 |
| Profit Margin | 3.18 |
Central Garden Long Term Debt to Equity is increasing over the last 5 years. The previous year's value of Central Garden Long Term Debt to Equity was 0.80. Further, Central Garden Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 5 years.
Central Garden current price slip can leaving investors with little time to react
Current kurtosis is at 3.38. Central Garden Pet exhibits very low volatility with skewness of -0.96 and kurtosis of 3.38. However, we advise investors to further study Central Garden Pet technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Central Garden's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Central Garden's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Final Takeaway
Whereas other companies in the packaged foods industry are either recovering or due for a correction, Central Garden may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 23rd of November 2022, we believe Central Garden is currently
undervalued. It follows the market closely and projects
below average chance of financial distress in the next two years. Our present 90 days buy-hold-sell recommendation on the company is
Strong Hold.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Central Garden Pet. Please refer to our
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