Central Garden EBITDA vs. Profit Margin

CENTA Stock  USD 34.77  0.49  1.43%   
Considering Central Garden's profitability and operating efficiency indicators, Central Garden Pet may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Central Garden's ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
290.8 M
Current Value
305.3 M
Quarterly Volatility
114 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of December 4, 2024, Price To Sales Ratio is expected to decline to 0.05. In addition to that, Days Sales Outstanding is expected to decline to 32.39. At present, Central Garden's Income Before Tax is projected to increase significantly based on the last few years of reporting. The current year's Net Income is expected to grow to about 114.8 M, whereas Accumulated Other Comprehensive Income is forecasted to decline to (2.8 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.180.2949
Way Down
Slightly volatile
Net Profit Margin0.0120.0337
Way Down
Pretty Stable
Operating Profit Margin0.03650.0579
Way Down
Slightly volatile
Pretax Profit Margin0.01970.0441
Way Down
Very volatile
Return On Assets0.02780.0309
Moderately Down
Slightly volatile
Return On Equity0.110.0694
Way Up
Pretty Stable
For Central Garden profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Central Garden to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Central Garden Pet utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Central Garden's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Central Garden Pet over time as well as its relative position and ranking within its peers.
  
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Is Household Products space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Central Garden. If investors know Central will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Central Garden listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.05)
Earnings Share
1.62
Revenue Per Share
62.57
Quarterly Revenue Growth
(0.03)
Return On Assets
0.0446
The market value of Central Garden Pet is measured differently than its book value, which is the value of Central that is recorded on the company's balance sheet. Investors also form their own opinion of Central Garden's value that differs from its market value or its book value, called intrinsic value, which is Central Garden's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Central Garden's market value can be influenced by many factors that don't directly affect Central Garden's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Central Garden's value and its price as these two are different measures arrived at by different means. Investors typically determine if Central Garden is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Central Garden's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Central Garden Pet Profit Margin vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Central Garden's current stock value. Our valuation model uses many indicators to compare Central Garden value to that of its competitors to determine the firm's financial worth.
Central Garden Pet is rated third in ebitda category among its peers. It is rated below average in profit margin category among its peers . The ratio of EBITDA to Profit Margin for Central Garden Pet is about  6,578,257,919 . At present, Central Garden's EBITDA is projected to increase significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Central Garden's earnings, one of the primary drivers of an investment's value.

Central Profit Margin vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Central Garden

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
290.76 M
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Central Garden

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.04 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Central Profit Margin Comparison

Central Garden is currently under evaluation in profit margin category among its peers.

Central Garden Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Central Garden, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Central Garden will eventually generate negative long term returns. The profitability progress is the general direction of Central Garden's change in net profit over the period of time. It can combine multiple indicators of Central Garden, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-2.6 M-2.8 M
Operating Income185.4 M101.1 M
Income Before Tax141.1 M148.1 M
Total Other Income Expense Net-44.3 M-42.1 M
Net Income109.3 M114.8 M
Income Tax Expense33.1 M17.8 M
Net Income Applicable To Common Shares175 M183.7 M
Net Income From Continuing Ops145 M97.3 M
Non Operating Income Net Other-2.6 M-2.7 M
Interest Income6.6 M5.8 M
Net Interest Income-44.7 M-46.9 M
Change To Netincome118 M123.9 M
Net Income Per Share 1.64  0.83 
Income Quality 3.61  1.43 
Net Income Per E B T 0.77  0.61 

Central Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Central Garden. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Central Garden position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Central Garden's important profitability drivers and their relationship over time.

Use Central Garden in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Central Garden position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Central Garden will appreciate offsetting losses from the drop in the long position's value.

Central Garden Pair Trading

Central Garden Pet Pair Trading Analysis

The ability to find closely correlated positions to Central Garden could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Central Garden when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Central Garden - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Central Garden Pet to buy it.
The correlation of Central Garden is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Central Garden moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Central Garden Pet moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Central Garden can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Central Garden position

In addition to having Central Garden in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Manufacturing
Manufacturing Theme
Companies that provide goods across residential, commercial and industrial construction such as machinery, tools, or lumber production. The Manufacturing theme has 20 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Manufacturing Theme or any other thematic opportunities.
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When determining whether Central Garden Pet offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Central Garden's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Central Garden Pet Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Central Garden Pet Stock:
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You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
To fully project Central Garden's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Central Garden Pet at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Central Garden's income statement, its balance sheet, and the statement of cash flows.
Potential Central Garden investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Central Garden investors may work on each financial statement separately, they are all related. The changes in Central Garden's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Central Garden's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.