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Central Garden & Pet (CENT) has drawn attention after a recent move in its share price, prompting investors to reassess how its pet and garden brands, US$3,129.064m in revenue, and US$162.843m in net income align with their portfolios.
See our latest analysis for Central Garden & Pet.
At the latest share price of US$32.30, Central Garden & Pet’s recent 1-day and year-to-date share price gains contrast with a 1-year total shareholder return decline of 12.7%. This suggests momentum has been relatively muted and investor sentiment cautious.
If this kind of mixed performance has you comparing ideas, it could be a good time to look at fast growing stocks with high insider ownership as potential next candidates for your watchlist.
With Central Garden & Pet trading at US$32.30 against an analyst price target of US$46.00 and an estimated intrinsic value gap of around 70%, is this a genuine mispricing, or is the market already weighing its future growth?
At $32.30 versus a widely followed fair value view of $46.00, Central Garden & Pet is framed as materially discounted, with that gap tied closely to its operations.
Persistent operational streamlining, via the Cost and Simplicity program, footprint rationalization, SKU rationalization, and consolidation of distribution centers into DTC-enabled hubs, continues to unlock operating leverage, supporting steady margin expansion and improving bottom-line earnings despite transitory headwinds.
Read the complete narrative.
Curious what kind of revenue path, margin profile, and future earnings multiple are baked into that $46.00 fair value? The core assumptions might surprise you, especially how modest growth inputs still translate into that outcome.
Result: Fair Value of $46.00 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, there are still watchpoints, including pressure from tariffs and supply chains, as well as prolonged softness in key U.S. pet and garden categories, that could challenge this story.
Find out about the key risks to this Central Garden & Pet narrative.
If you see the numbers differently or simply prefer to test your own assumptions, you can shape a full story yourself in just a few minutes by starting with Do it your way.
A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Central Garden & Pet.
If Central Garden & Pet has caught your eye, do not stop here, the same tools can help you quickly line up fresh ideas that fit your own checklist.
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.
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