Central Garden & Pet Company (CENTA) AI Stock Analysis
CENTA AI stock analysis summary
AI ResearchCentral Garden & Pet Company (CENTA) provides branded and private-label products across the lawn, garden, and pet supplies industries in the United States. In FY2025, the company delivered $3.13B in revenue and expanded gross margin to 31.1%, generating $291.1M in free cash flow. For the trailing twelve months ended June 30, 2026, operating margin reached 14.3% with diluted EPS of $2.70.
- Market cap
- $2.27B
- Revenue (TTM)
- $3.08B
- P/E
- 13.4x fwd 10.5x
- 1Y return
- 33.9% S&P 500 16.8%
- Avg. target
- $46.25 27.7% vs last close
Bull case
- Free cash flow generation remained robust at $291.1M in FY2025, supported by gross margin expansion to 31.1%.
- Operating margin reached 14.3% over the trailing twelve months, well above the peer median of 9.8%.
- CENTA trades at a discount to its US-listed Consumer Defensive peers on forward P/E (10.5x vs. 14.3x) and EV/EBITDA (7.3x vs. 11.7x).
Bear case
- Annual revenue has contracted in three consecutive fiscal years, dropping from $3.34B in FY2022 to $3.13B in FY2025.
- Quarterly performance softened for the period ended June 30, 2026, with revenue declining 8.2% and earnings falling 4.6% year-over-year.
- The company's share count expanded by 12.8% over the past 5 years, diluting existing equity.
What Central Garden & Pet does
Central Garden & Pet Company operates across two primary business segments: Pet and Garden. The Pet segment offers products for dogs, cats, small animals, reptiles, and aquatic pets, including treats, toys, grooming supplies, habitats, bedding, and health solutions under brands such as Aqueon, Kaytee, and Nylabone, alongside aquariums, filtration equipment, and fish food. The Garden segment manufactures and distributes lawn and garden care products such as grass seed, fertilizers, and herbicides under brand names including AMDRO and Sevin. It also supplies decorative outdoor products, live plants, and birding accessories across retail stores, specialty outlets, and e-commerce platforms.
Growth and profitability
Central Garden & Pet increased revenue from $3.30B in FY2021 to $3.34B in FY2022, before experiencing declines to $3.31B in FY2023, $3.20B in FY2024, and $3.13B in FY2025, representing a 5-year revenue CAGR of 3.0%. Despite annual top-line contraction, gross margin expanded from 29.4% in FY2021 to 31.1% in FY2025, and operating margin rose to 8.5% as net income grew to $162.8M ($2.72 EPS). Over the trailing twelve months, revenue totaled $3.08B with an operating margin of 14.3%. In the latest quarter ended June 30, 2026, quarterly revenue fell 8.2% year-over-year while quarterly earnings declined 4.6%.
Balance sheet and cash flow
As of June 30, 2026, Central Garden & Pet held $996.7M in cash and short-term investments against total debt of $1.41B, resulting in net debt of $411.9M. Shareholders' equity was $1.75B within total assets of $3.79B, with a current ratio of 3.79 and a debt-to-equity ratio of 0.81. During FY2025, the company produced $332.5M in operating cash flow and directed $41.4M to capital expenditures, resulting in $291.1M of free cash flow, while spending $155.1M on share buybacks.
Valuation and performance
Central Garden & Pet carries a market capitalization of $2.27B and an enterprise value of $2.61B. CENTA trades at a trailing P/E of 13.4x and a forward P/E of 10.5x, compared to medians of 18.6x and 14.3x for its US-listed Consumer Defensive peers. Its EV/EBITDA multiple of 7.3x sits below the peer median of 11.7x, while its price-to-sales ratio of 0.7x matches the peer median of 0.7x. Over the past year, the stock returned 33.9%, beating the S&P 500 return of 16.8%, but its 5-year return of 0.6% trails the S&P 500 return of 83.0%.
What analysts expect
Consensus ratings include 3 Strong Buy, 1 Buy, 0 Hold, 1 Sell, and 0 Strong Sell recommendations. The mean price target is $46.25, representing 27.7% upside relative to the last close of $36.21. For the current fiscal year ending September 30, 2026, analysts estimate revenue of $3.01B and EPS of $2.97, reflecting 8.9% earnings growth. For the next fiscal year, projections indicate $3.00B in revenue and $3.06 in EPS. The company beat EPS estimates in each of the last 4 quarters, and its next earnings date is November 23, 2026.
Key risks and what to watch
- Consensus estimates project revenue to fall 0.4% in the next fiscal year to $3.00B, highlighting top-line growth challenges.
- Total debt of $1.41B results in net debt of $411.9M despite a cash balance of $996.7M.
- Long-term equity appreciation has lagged broad markets, with a 5-year return of 0.6% compared to 83.0% for the S&P 500.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this CENTA AI stock analysis
This page is an AI-written research summary of Central Garden & Pet Company (CENTA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: CENTA income statement, CENTA balance sheet, CENTA key metrics, CENTA analyst forecast, CENTA chart. See the CENTA stock overview for the latest quote and news.
CENTA AI stock analysis FAQ
What products does Central Garden & Pet Company sell?
The company sells pet supplies such as dog treats, toys, aquariums, and habitats under brands like Kaytee and Nylabone, as well as lawn and garden products including grass seed, fertilizers, and herbicides under brands like AMDRO and Sevin.
Does Central Garden & Pet Company pay a dividend?
Central Garden & Pet Company does not currently pay a dividend.
What is the valuation of CENTA compared to peer companies?
CENTA trades at a forward P/E of 10.5x and an EV/EBITDA of 7.3x, both lower than the US-listed Consumer Defensive peer medians of 14.3x and 11.7x.
When does Central Garden & Pet report earnings next?
The company's next scheduled earnings date is November 23, 2026.