# Central Garden & Pet Company A (CENTA.US)

Canonical: https://gigainvestors.com/s/CENTA

Analysis as of: 2026-10-15T06:33:00.971Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $36.05 per share; close as of 2026-10-15.

Estimated value: low $40.87 per share, central $44.44 per share, high $49.20 per share. Buy at or below the central value $44.44 per share. Valuation as of 2026-10-15T06:33:00.971Z; scenarios are not confidence intervals.

Expected annual return: 12.9% at the stated quote. About 12.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.11×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.07×

- FY2017: 0.08×

- FY2018: 0.08×

- FY2019: 0.06×

- FY2020: 0.07×

- FY2021: 0.08×

- FY2022: 0.08×

- FY2023: 0.06×

- FY2024: 0.06×

- FY2025: 0.08×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 12.8%

- ROIC, second-lowest year: 9.1%

- Typical minus recent gross margin: 0.1 pp

- Typical gross margin (annual median): 29.6%

- Recent gross margin (lower of latest and 3-year median): 29.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.6%

- ROIC including acquisitions, ten-year median: 7.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 13.6%

- FY2017: 13.7%

- FY2018: 18.5%

- FY2019: 13.0%

- FY2020: 16.5%

- FY2021: 11.3%

- FY2022: 10.0%

- FY2023: 9.1%

- FY2024: 8.5%

- FY2025: 12.6%

### economics: pass

- Owner earnings / net income, 5-yr: 1.14×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $796M

- Net income, five-year total: $700M

- Return on incremental invested capital: 63.6%

- Working capital / revenue, annual change: 0.4 pp

- Working capital / revenue, change between three-year averages: 1.9 pp

- Working capital / revenue, final three-year average: 27.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 0.81×

- FY2023: 1.27×

- FY2024: 1.44×

- FY2025: 1.27×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 13.7% vs 9.1%

- Per-share earnings: 0.70 to 1.88 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.3%

- Ordinary dilution, 5-year annual growth: -1.4%

- Market cap gain: -$525M

- Cumulative retained earnings: $776M

- Diluted shares, 10-year annual growth: 0.3%

- Diluted shares, 5-year annual growth: -1.4%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 13.2%

- Per-share value change: $1.18

- Per-share value, starting three-year median: $0.70

- Per-share value, ending three-year median: $1.88

- Buybacks concentrated in cheaper years (correlation): 0.18

- Average buyback yield: 2.4%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: $814M

- Cumulative net income, 10 years: $1.2B

- ROIC, first three-year median: 13.7%

- ROIC, last three-year median: 9.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.70

- FY2017: $1.22

- FY2018: $1.85

- FY2019: $1.29

- FY2020: $1.76

- FY2021: $2.20

- FY2022: $2.24

- FY2023: $1.88

- FY2024: $1.62

- FY2025: $2.55

### accounting: pass

- Sloan accruals: -4.7%

- Receivables to sales index (DSRI): 1.02×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 6.3%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.04×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.63×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -8.8%

- FY2017: -2.7%

- FY2018: 0.5%

- FY2019: -5.5%

- FY2020: -6.1%

- FY2021: -3.2%

- FY2022: 5.7%

- FY2023: -7.6%

- FY2024: -8.1%

- FY2025: -4.7%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 25% since Dec 2021 · "CENT Q2 Deep Dive: Margin Gains Offset by Revenue Headwinds and Strategic Portfolio Shifts" (finance.yahoo.com, Aug 2025) · sales -2.2%

Story as of 2026-10-16T09:58:29.337Z; price observation 2026-10-15.

Price needs cash profits to shrink 3.3% a year for ten years

- 2025-06-11: CENT Q1 Earnings Call: Margin Expansion and Cost Discipline Offset Revenue Decline ([finance.yahoo.com](https://finance.yahoo.com/news/cent-q1-earnings-call-margin-103318681.html))

- 2026-02-05: CENT Q1 Earnings Beat on Margins, Revenues Miss on Shipment Timing ([finance.yahoo.com](https://finance.yahoo.com/news/cent-q1-earnings-beat-margins-150400087.html))

- 2026-05-07: CENT Q2 Earnings Beat Estimates on Strong Pet and Garden Sales ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/cent-q2-earnings-beat-estimates-124700708.html))

### Sales · FY2024–2025

sales -2.2%; source https://www.sec.gov/Archives/edgar/data/887733/000088773325000041/cent-20250927.htm; observed 2025-11-26.

- FY2016: $1.8B 

- FY2017: $2.1B 

- FY2018: $2.2B 

- FY2019: $2.4B 

- FY2020: $2.7B 

- FY2021: $3.3B 

- FY2022: $3.3B 

- FY2023: $3.3B 

- FY2024: $3.2B 

- FY2025: $3.1B 

### Gross margin · FY2025

gross margin 31.1%; source https://www.sec.gov/Archives/edgar/data/887733/000088773325000041/cent-20250927.htm; observed 2025-11-26.

- FY2016: 30.2% 

- FY2017: 30.8% 

- FY2018: 30.5% 

- FY2019: 29.5% 

- FY2020: 29.0% 

- FY2021: 29.4% 

- FY2022: 29.7% 

- FY2023: 28.6% 

- FY2024: 29.5% 

- FY2025: 31.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in packaged foods; annual sales are USD 3.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/887733/000088773325000041/cent-20250927.htm (filed 2025-11-26); FY2025: revenue 3129064000; grossProfit 972841000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); CENTA.US: Central Garden & Pet Company produces and distributes various products for the lawn and garden, and pet supplies markets in the United States. It operates through two segments: Pet and Garden. The Pet segment provides dog and cat supplies, such as dog treats and chews, toys, pet beds and containment, grooming items, waste management, and training pads; supplies for aquatics, small animals, reptiles, and pet birds, including toys, enclosures, habitats, bedding, and food and supplements; products for equine and livestock; animal and household health and insect control products; aquariums and terrariums, including fixtures and stands, water conditioners and supplements, water pumps and filters, and lighting systems and accessories; and live fish and small animals, as well as outdoor cushions. This segment sells its products under the Aqueon, Cadet, Comfort Zone, Farnam, Four Paws, K&H Pet Products, Kaytee, Nylabone, and Zilla brands. Its Garden segment offers lawn and garden supplies products that include grass seed; vegetable; flower and herb packet seed; wild bird feed, bird feeders, bird houses, and other birding accessories; fertilizers; decorative products; live plants; and weed and grass, as well as other herbicides, insecticide, and pesticide products. This segment sells its lawn and garden supplies products under the Amdro, Ferry-Morse, Pennington, and Sevin brands. The company sells its products to independent distributors, big-box retailers, national and regional retail chains, eCommerce and online retailers, grocery stores, nurseries, and mass merchants. Central Garden & Pet Company was founded in 1955 and is headquartered in Walnut Creek, California.

### Why customers stay

Margins ranged from 28.6% to 31.1% during 2023–25; it earns 12.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-26); FY2023: grossProfit / revenue = 28.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-26); FY2024: grossProfit / revenue = 29.5%.

- Source: https://www.sec.gov/Archives/edgar/data/887733/000088773325000041/cent-20250927.htm (filed 2025-11-26); FY2025: grossProfit / revenue = 31.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-26); 10-year return on capital observations [[2016,0.1357196836694266],[2017,0.13663297278591885],[2018,0.1849453323417853],[2019,0.12989607025353941],[2020,0.16503700050935427],[2021,0.11308076477726622],[2022,0.10018589962010947],[2023,0.09131688785466603],[2024,0.0851410562139829],[2025,0.12638580829676163]]; median 0.12814093927515052. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 30% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/887733/000088773325000041/cent-20250927.htm (filed 2025-11-26); Gross margin observations: [[2021,0.2938843424492173],[2022,0.2972229577294353],[2023,0.2860478120941378]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 7 of 10 years; bought back USD 155.1 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-26); FY2016: growth capex 0; upkeep 27622000; owner earnings 56893000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-26); FY2017: growth capex 1940000; upkeep 42719000; owner earnings 78828000. Growth capex / owner earnings = 0.024610544476581925.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-26); FY2018: growth capex 0; upkeep 37845000; owner earnings 132948000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-26); FY2019: growth capex 0; upkeep 31577000; owner earnings 112037000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-26); FY2020: growth capex 0; upkeep 43055000; owner earnings 132980000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-26); FY2021: growth capex 5606000; upkeep 74727000; owner earnings 151746000. Growth capex / owner earnings = 0.03694331316805715.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-26); FY2022: growth capex 4602361.660091221; upkeep 110602638.33990878; owner earnings 122497361.66009122. Growth capex / owner earnings = 0.037571108452620974.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-26); FY2023: growth capex 0; upkeep 53966000; owner earnings 159377000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-26); FY2024: growth capex 0; upkeep 43135000; owner earnings 155655000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/887733/000088773325000041/cent-20250927.htm (filed 2025-11-26); FY2025: growth capex 0; upkeep 41418000; owner earnings 206319000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-26); Dividend observations: [[2016,811440000],[2017,551676000],[2018,318230000],[2019,196983000],[2020,143000],[2021,606000],[2022,806000],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/887733/000088773325000041/cent-20250927.htm (filed 2025-11-26); FY2025: cash repurchases 155066000 USD.

### Are managers owners

Insiders own 3.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); CENTA.US SharesStats.PercentInsiders = 3.5549999999999997 percentage points; cache date 2026-10-15.

### What could break it

US import tariffs could raise product costs.

- Source: https://www.sec.gov/Archives/edgar/data/887733/000088773325000041/cent-20250927.htm (filed 2025-11-26); of these risks.

If any of the events described below were to occur, our business, prospects, financial condition and/or results of operations could be materially adversely affected. When we say below that something could or will have a material adverse effect on us, we mean that it could or will have one or more of these effects. In any such case, the price of our common stock could decline, and you could lose all or part of your investment in our company.

Risks Affecting our Business

Economic uncertainty and other adverse macro-economic conditions, including interest rate fluctuations and tariffs, may harm our business.

Our revenues and margins are dependent on various economic factors, including interest rates, the potential of an economic recession, trade tariffs, energy costs, consumer attitudes toward discretionary spending, currency fluctuations, rates of inflation and other macro-economic factors which may impact consumer spending. While the rate of inflation moderated during fiscal 2025, and a recession has not materialized, interest rates remain high and the imposition of tariffs on imports by the U.S. administration has resulted in higher input costs. If we are unable to pass through higher input costs by raising the price of our products or altering our sourcing, we may experience organic sales declines and gross margin and operating income declines.

Tariffs or a global trade war could increase the cost of our products, which could adversely impact the competitiveness of our products and our financial results.

During 2025, the U.S. Administration has imposed significant tariffs on goods imported, ranging from a 10% baseline to much higher rates on a variety of imports. In fiscal 2025, less than 15% of our cost of goods sold was from products or materials sourced from outside the United States, primarily from China, Brazil and Mexico. To the extent the United States imposes new or additional tariffs on these or other countries where we or our suppliers source products, or if new or additional tariffs or trade restrictions are implemented by the United States or other countries in connection with a global trade war, the cost of our products manufactured in other countries and imported into the United States could increase significantly, which in turn could adversely affect the demand for these products and have a material adverse effect on our business and results of operations.

High energy prices could adversely affect our operating results.

In fiscal 2025, energy prices remained elevated, resulting in increased costs for fuel and raw materials for many of our products. Energy prices may continue to rise or remain elevated during fiscal 2026. Continued high energy prices could adversely affect consumer spending and demand for our products and increase our operating costs, both of which would reduce our sales and operating income.


### What the price says

The price assumes cash profits shrink 3.3% yearly over ten years; actual growth was 16.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-26); Ten-year compound average after fade. Initial solved rate -0.059330539997675624. Price 36.05; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.7033965913211653 → FY2025 3.2330799968659405. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $23.34 per share

- 2016-11: $27.37 per share

- 2016-12: $30.90 per share

- 2017-01: $30.78 per share

- 2017-02: $31.95 per share

- 2017-03: $34.72 per share

- 2017-04: $35.23 per share

- 2017-05: $28.91 per share

- 2017-06: $30.02 per share

- 2017-07: $30.76 per share

- 2017-08: $34.09 per share

- 2017-09: $37.19 per share

- 2017-10: $36.91 per share

- 2017-11: $38.57 per share

- 2017-12: $37.71 per share

- 2018-01: $37.72 per share

- 2018-02: $36.24 per share

- 2018-03: $39.61 per share

- 2018-04: $35.50 per share

- 2018-05: $38.01 per share

- 2018-06: $40.47 per share

- 2018-07: $40.12 per share

- 2018-08: $36.33 per share

- 2018-09: $33.14 per share

- 2018-10: $29.65 per share

- 2018-11: $31.10 per share

- 2018-12: $31.25 per share

- 2019-01: $35.62 per share

- 2019-02: $27.85 per share

- 2019-03: $23.25 per share

- 2019-04: $24.48 per share

- 2019-05: $25.57 per share

- 2019-06: $24.64 per share

- 2019-07: $27.55 per share

- 2019-08: $24.06 per share

- 2019-09: $27.73 per share

- 2019-10: $28.28 per share

- 2019-11: $25.01 per share

- 2019-12: $29.36 per share

- 2020-01: $29.96 per share

- 2020-02: $25.31 per share

- 2020-03: $25.57 per share

- 2020-04: $30.41 per share

- 2020-05: $34.26 per share

- 2020-06: $33.79 per share

- 2020-07: $34.65 per share

- 2020-08: $37.16 per share

- 2020-09: $36.14 per share

- 2020-10: $35.39 per share

- 2020-11: $36.89 per share

- 2020-12: $36.33 per share

- 2021-01: $39.00 per share

- 2021-02: $41.51 per share

- 2021-03: $51.89 per share

- 2021-04: $49.27 per share

- 2021-05: $50.45 per share

- 2021-06: $48.30 per share

- 2021-07: $43.31 per share

- 2021-08: $41.67 per share

- 2021-09: $43.00 per share

- 2021-10: $46.20 per share

- 2021-11: $43.35 per share

- 2021-12: $47.85 per share

- 2022-01: $43.33 per share

- 2022-02: $44.04 per share

- 2022-03: $40.78 per share

- 2022-04: $41.38 per share

- 2022-05: $42.33 per share

- 2022-06: $40.01 per share

- 2022-07: $40.80 per share

- 2022-08: $37.76 per share

- 2022-09: $34.16 per share

- 2022-10: $39.14 per share

- 2022-11: $39.07 per share

- 2022-12: $35.80 per share

- 2023-01: $39.63 per share

- 2023-02: $38.43 per share

- 2023-03: $39.07 per share

- 2023-04: $35.33 per share

- 2023-05: $34.35 per share

- 2023-06: $36.46 per share

- 2023-07: $38.22 per share

- 2023-08: $40.80 per share

- 2023-09: $40.09 per share

- 2023-10: $39.69 per share

- 2023-11: $36.28 per share

- 2023-12: $44.04 per share

- 2024-01: $41.28 per share

- 2024-02: $37.69 per share

- 2024-03: $36.92 per share

- 2024-04: $35.43 per share

- 2024-05: $37.35 per share

- 2024-06: $33.03 per share

- 2024-07: $34.36 per share

- 2024-08: $34.20 per share

- 2024-09: $31.40 per share

- 2024-10: $29.14 per share

- 2024-11: $33.79 per share

- 2024-12: $33.05 per share

- 2025-01: $31.19 per share

- 2025-02: $31.48 per share

- 2025-03: $32.73 per share

- 2025-04: $29.57 per share

- 2025-05: $31.97 per share

- 2025-06: $31.29 per share

- 2025-07: $35.52 per share

- 2025-08: $33.03 per share

- 2025-09: $29.53 per share

- 2025-10: $27.81 per share

- 2025-11: $30.94 per share

- 2025-12: $29.19 per share

- 2026-01: $30.67 per share

- 2026-02: $34.54 per share

- 2026-03: $32.42 per share

- 2026-04: $33.56 per share

- 2026-05: $34.13 per share

- 2026-06: $38.77 per share

- 2026-07: $37.91 per share

- 2026-08: $37.21 per share

- 2026-09: $33.52 per share

- 2026-10: $35.00 per share

## Annual estimated value (USD per share)

- FY2016: low $6.23 per share, central $6.97 per share, high $7.95 per share

- FY2017: low $9.17 per share, central $10.43 per share, high $12.11 per share

- FY2018: low $18.70 per share, central $21.44 per share, high $23.91 per share

- FY2019: low $22.18 per share, central $27.19 per share, high $30.75 per share

- FY2020: low $33.09 per share, central $42.32 per share, high $48.12 per share

- FY2021: low $34.74 per share, central $45.90 per share, high $52.93 per share

- FY2022: low $29.41 per share, central $36.62 per share, high $42.48 per share

- FY2023: low $34.61 per share, central $42.26 per share, high $48.29 per share

- FY2024: low $35.51 per share, central $38.98 per share, high $43.60 per share

- FY2025: low $38.65 per share, central $42.21 per share, high $46.95 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:33:00.971Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/887733/000088773325000041/cent-20250927.htm); period 2025-09-27, filed 2025-11-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.