Central Garden & Pet Company cash flow to debt ratio of 23.09% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Central Garden & Pet Company's free cash flow has decreased -17.25% from $351.76M last year to $291.09M, signaling decreasing performance

Central Garden & Pet Company's debt to equity ratio is 0.86, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy

Central Garden & Pet Company's debt has decreased relative to shareholder equity from 0.91 last year to 0.86 today, signaling strengthened financials

Central Garden & Pet Company has a net debt to EBITDA ratio of 1.55x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Central Garden & Pet Company's interest coverage ratio of 4.53 indicates that earnings with good margin can cover interest payments on company debt

Central Garden & Pet Company's profit margin has increased (60.69%) in the last year from 3.37% to 5.42%, signaling increasing performance

Central Garden & Pet Company's short-term assets of $1.98G exceed its short-term liabilities of $538.76M

Central Garden & Pet Company's return on assets of 4.58% is lower than the 5.00% threshold, indicating inefficient asset utilization

Central Garden & Pet Company's return on equity of 10.72%, is lower than 15.00%, indicating bad performance

Central Garden & Pet Company's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Central Garden & Pet Company had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings

Central Garden & Pet Company has positive free cash flow, indicating the company generates cash after capital expenditures

Central Garden & Pet Company has a free cash flow yield of 10.98%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Central Garden & Pet Company's yearly earnings has increased 50.80% since last year from $107.98M to $162.84M, signaling increasing performance

Central Garden & Pet Company's yearly revenue has decreased -2.23% since last year from $3.20G to $3.13G, signaling decreasing performance

ROIC 6.15% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Central Garden & Pet Company's 3-year revenue CAGR of -2.14% is negative, indicating declining revenue over the past 3 years

Central Garden & Pet Company had revenue growth in only 2.00 out of 5 years, indicating inconsistent revenue performance

Central Garden & Pet Company had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity

Central Garden & Pet Company is undervalued relative to its fair value price of 60.44 based on Discounted Cash Flow model

Central Garden & Pet Company has an earnings yield of 6.59%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Central Garden & Pet Company is overvalued relative to its fair value price of 31.42 based on EBITDA multiple model

Central Garden & Pet Company has an EV/EBITDA ratio of 8.93x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Central Garden & Pet Company is undervalued relative to its fair value price of 45.67 based on Earnings Fair Value model

Central Garden & Pet Company has a PEG-ratio under 1 which is considered undervalued

Central Garden & Pet Company has a price-to-book ratio of 1.57x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Central Garden & Pet Company has a price-to-sales ratio of 0.82x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue