Central Garden Pet Stock Buy Hold or Sell Recommendation

CENTA Stock  USD 36.92  0.02  0.05%   
Assuming the 90 days horizon and your highly speculative risk level, our recommendation regarding Central Garden Pet is 'Strong Buy'. Macroaxis provides Central Garden buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding CENTA positions. The advice algorithm takes into account all of Central Garden's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Central Garden's buy or sell advice are summarized below:
Real Value
38.06
Target Price
40
Hype Value
36.9
Market Value
36.92
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Central Garden Pet given historical horizon and risk tolerance towards Central Garden. When Macroaxis issues a 'buy' or 'sell' recommendation for Central Garden Pet, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Central Garden Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as Central and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Central Garden Pet. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate.

Execute Central Garden Buy or Sell Advice

The Central recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Central Garden Pet. Macroaxis does not own or have any residual interests in Central Garden Pet or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Central Garden's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Central GardenBuy Central Garden
Strong Buy

Market Performance

InsignificantDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

Very SmallDetails

Economic Sensitivity

Actively responds to the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

Strong SellDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Central Garden Pet has a Risk Adjusted Performance of 0.0394, Jensen Alpha of (0.12), Total Risk Alpha of (0.31), Sortino Ratio of (0.02) and Treynor Ratio of 0.0554
Central Garden advice module can be used to check and cross-verify current investment recommendation provided by analysts analyzing the company's potential to grow using all of fundamental, technical, data market data available at the time. To make sure Central Garden is not overpriced, please confirm all Central Garden Pet fundamentals, including its ebitda, current ratio, and the relationship between the price to sales and cash per share . Given that Central Garden Pet has a price to earning of 15.98 X, we suggest you to validate Central Garden Pet market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Central Garden Trading Alerts and Improvement Suggestions

Central Garden Pet is unlikely to experience financial distress in the next 2 years
Over 88.0% of the company shares are held by institutions such as insurance companies
Latest headline from finance.yahoo.com: Household Products Stocks Q4 Results Benchmarking Colgate-Palmolive

Central Garden Returns Distribution Density

The distribution of Central Garden's historical returns is an attempt to chart the uncertainty of Central Garden's future price movements. The chart of the probability distribution of Central Garden daily returns describes the distribution of returns around its average expected value. We use Central Garden Pet price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Central Garden returns is essential to provide solid investment advice for Central Garden.
Mean Return
0.10
Value At Risk
-2.31
Potential Upside
3.18
Standard Deviation
1.78
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Central Garden historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Central Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Central Garden is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Central Garden Pet backward and forwards among themselves. Central Garden's institutional investor refers to the entity that pools money to purchase Central Garden's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Geode Capital Management, Llc2023-12-31
574.3 K
Jpmorgan Chase & Co2023-12-31
572.5 K
Btim Corp2023-12-31
537 K
Charles Schwab Investment Management Inc2023-12-31
522.5 K
Manufacturers Life Insurance Co2023-12-31
497.7 K
Morgan Stanley - Brokerage Accounts2023-12-31
485.2 K
Renaissance Technologies Corp2023-12-31
462.7 K
Northern Trust Corp2023-12-31
448.4 K
Principal Financial Group Inc2023-12-31
437.4 K
Blackrock Inc2023-12-31
M
Vanguard Group Inc2023-12-31
4.3 M
Note, although Central Garden's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Central Garden Cash Flow Accounts

201920202021202220232024 (projected)
Change To Inventory27.4M(132.2M)(256.4M)87.0M78.3M82.2M
Change In Cash155.7M(226.9M)(247.3M)310.7M357.3M375.2M
Free Cash Flow221.2M170.5M(149.2M)327.7M376.8M395.7M
Depreciation55.4M74.7M80.9M87.7M100.9M105.9M
Other Non Cash Items46.3M58.9M50.8M64.6M74.3M78.0M
Capital Expenditures43.1M80.3M115.2M54.0M62.1M38.6M
Net Income121.5M152.8M152.7M126.1M145.0M152.3M
End Period Cash Flow666.4M439.5M192.2M502.9M578.3M607.2M
Dividends Paid318.2M197.0M143K606K806K0.0
Investments(4.4M)(500K)(27.8M)(34.6M)(31.1M)(29.6M)
Net Borrowings(46.2M)(1.1M)469.6M(1.1M)(1.3M)(1.2M)
Change To Netincome21.3M20.6M65.1M102.6M118.0M123.9M

Central Garden Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Central Garden or Household Products sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Central Garden's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Central stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.12
β
Beta against NYSE Composite1.70
σ
Overall volatility
1.81
Ir
Information ratio -0.02

Central Garden Volatility Alert

Central Garden Pet has relatively low volatility with skewness of 0.8 and kurtosis of 1.78. 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 financial instruments as prices fall.

Central Garden Fundamentals Vs Peers

Comparing Central Garden's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Central Garden's direct or indirect competition across all of the common fundamentals between Central Garden and the related equities. This way, we can detect undervalued stocks with similar characteristics as Central Garden or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Central Garden's fundamental indicators could also be used in its relative valuation, which is a method of valuing Central Garden by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Central Garden to competition
FundamentalsCentral GardenPeer Average
Return On Equity0.0976-0.31
Return On Asset0.0451-0.14
Profit Margin0.04 %(1.27) %
Operating Margin0.01 %(5.51) %
Current Valuation3.73 B16.62 B
Shares Outstanding54.54 M571.82 M
Shares Owned By Insiders3.80 %10.09 %
Shares Owned By Institutions88.09 %39.21 %
Number Of Shares Shorted999.51 K4.71 M
Price To Earning15.98 X28.72 X
Price To Book1.79 X9.51 X
Price To Sales0.81 X11.42 X
Revenue3.31 B9.43 B
Gross Profit992.3 M27.38 B
EBITDA307.17 M3.9 B
Net Income126.1 M570.98 M
Cash And Equivalents195.79 M2.7 B
Cash Per Share3.60 X5.01 X
Total Debt1.37 B5.32 B
Debt To Equity1.02 %48.70 %
Current Ratio3.16 X2.16 X
Book Value Per Share22.68 X1.93 K
Cash Flow From Operations381.63 M971.22 M
Short Ratio3.26 X4.00 X
Earnings Per Share2.01 X3.12 X
Price To Earnings To Growth2.54 X4.89 X
Target Price35.5
Number Of Employees6.3 K18.84 K
Beta0.66-0.15
Market Capitalization2.69 B19.03 B
Total Asset3.38 B29.47 B
Retained Earnings859.37 M9.33 B
Working Capital1.25 B1.48 B
Note: Disposition of 13170 shares by Nicholas Lahanas of Central Garden at 42.48 subject to Rule 16b-3 [view details]

Central Garden Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Central . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Central Garden Buy or Sell Advice

When is the right time to buy or sell Central Garden Pet? Buying financial instruments such as Central Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Short and Long Term Debt Total1.4B1.4B1.6B1.7B
Total Assets3.3B3.4B3.9B4.1B

Use Investing Ideas to Build Portfolios

In addition to having Central Garden in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Computers Thematic Idea Now

Computers
Computers Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Computers theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Computers Theme or any other thematic opportunities.
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When determining whether Central Garden Pet offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Central Garden's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Central Garden Pet Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Central Garden Pet Stock:
Check out Central Garden Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Complementary Tools for Central Stock analysis

When running Central Garden's price analysis, check to measure Central Garden's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Central Garden is operating at the current time. Most of Central Garden's value examination focuses on studying past and present price action to predict the probability of Central Garden's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Central Garden's price. Additionally, you may evaluate how the addition of Central Garden to your portfolios can decrease your overall portfolio volatility.
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Is Central Garden's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Central Garden. If investors know Central will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Central Garden listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.122
Earnings Share
2.01
Revenue Per Share
63.351
Quarterly Revenue Growth
0.011
Return On Assets
0.0451
The market value of Central Garden Pet is measured differently than its book value, which is the value of Central that is recorded on the company's balance sheet. Investors also form their own opinion of Central Garden's value that differs from its market value or its book value, called intrinsic value, which is Central Garden's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Central Garden's market value can be influenced by many factors that don't directly affect Central Garden's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Central Garden's value and its price as these two are different measures arrived at by different means. Investors typically determine if Central Garden is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Central Garden's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.