Central Garden & Pet (CENT) shares have caught some attention recently as the stock continues to drift lower, down about 17% over the past month. Investors seem to be weighing current fundamentals against the recent share price move.
See our latest analysis for Central Garden & Pet.
The past year has been a challenging one for Central Garden & Pet, with the share price sliding over 17% this month alone. Recent weakness has added to a total one-year shareholder return of -13.3%. Momentum continues to fade, which signals that investors are rethinking growth prospects as the company navigates shifting demand and broader market uncertainty.
If you’re curious what opportunities might lie beyond this sector’s headwinds, now’s a great time to broaden your search and discover fast growing stocks with high insider ownership
With the stock trading well below recent analyst targets and fundamentals still showing pockets of growth, the question emerges: is Central Garden & Pet undervalued at these levels, or has the market already accounted for its future potential?
Central Garden & Pet’s most widely followed narrative paints a much higher fair value compared to its recent last close. With a calculated worth well above the current share price, the stage is set for a closer look at what is fueling this bullish outlook.
Central is benefiting from continued growth in pet ownership and the willingness of pet owners to purchase premium, wellness-focused, and sustainable products, supported by initiatives like launching natural, eco-friendly brands (Nylabone’s toys from reclaimed fishing nets, Adams Botanicals plant-based sprays, etc.), which are likely to drive sustained top-line growth and strengthen brand loyalty.
Read the complete narrative.
Want to know the foundation behind this promising valuation? The narrative leans on ambitious projections for the company’s future sales and profits. Think margin gains and a shrinking share count. The real surprise is how these assumptions stack up to industry traditions. Dive in to uncover the financial levers at play.
Result: Fair Value of $42.33 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, slower growth in core categories or rising supply chain costs could challenge these upbeat projections and put pressure on future profitability.
Find out about the key risks to this Central Garden & Pet narrative.
Looking from a different angle, Central Garden & Pet’s current price-to-earnings ratio stands at 13.4x, which is lower than both the industry average of 18.5x and the peer average of 18.9x. It also sits below the fair ratio, estimated at 18.2x. This spread signals potential value, yet it raises the question of whether the market is underestimating risks or overlooking opportunity.
See what the numbers say about this price — find out in our valuation breakdown.
NasdaqGS:CENT PE Ratio as at Oct 2025
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Central Garden & Pet for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.
If you want a different perspective, or would rather build your own thesis from the ground up, you can easily create your own narrative for Central Garden & Pet in just a few minutes with Do it your way.
A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Central Garden & Pet.
Take charge of your portfolio and expand your horizons beyond a single stock. Don’t let smart opportunities pass you by. There’s a world of cutting-edge investments just waiting for you.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include CENT.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
Comments are closed.