Stock in Focus: Central Garden (CENT)

Company Profile:

Central Garden & Pet Company, together with its subsidiaries, produces and distributes products for the lawn and garden, and pet supplies markets in the United States. The Company’s innovative and trusted products are dedicated to help lawns grow greener, gardens bloom bigger, pets live healthier and communities grow stronger. Central is home to a leading portfolio of more than 65 high-quality brands including Pennington, Nylabone, Kaytee, Amdro and Aqueon, strong manufacturing and distribution capabilities and a passionate, entrepreneurial growth culture. Central Garden & Pet Company was founded in 1955 and is based in Walnut Creek, California.

Recent News:

For Fiscal 2021 Second Quarter, the company reported total net sales increased 33% to $935 million compared to $703 million a year ago.Operating income increased 58% to $105 million from $66 million a year ago. The Company’s net income increased 71% to $73 million from $43 million a year ago.

On April 16, 2021, the company announced it has priced a private placement of $400 million aggregate principal amount of 4.125% senior notes due 2031 (the “Notes”).

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

CENT’s strengths can be seen in its better growth, better profitability and better efficiency compared with its peers. Its revenue has increased in recent several years. Technical indicators signal the bullish signs, as there is a bullish crossover in MACD and Stochastic oscillator. The RSI stands at 54.19 with positive bias. We rate Central Garden (CENT) a STRONG BUY.