Recent News
July 28, 2025 — Central announced it would release fiscal Q3 2025 results after market close on August 6 and scheduled a conference call for that day. August 6, 2025 — Central reported Q3 fiscal 2025 results: net sales of $961 million (down ~4% year-over-year), gross profit $332 million with gross margin expanding to 34.6% (+280 basis points), operating income $135 million (+17%), GAAP EPS $1.52 and non‑GAAP EPS $1.56; management reaffirmed fiscal 2025 non‑GAAP EPS outlook at approximately $2.60.
Technical Analysis
ADX at 19.96 signals no established trend; price action likely stays range-bound until directional strength rises. That limited trend strength tempers the impact of improving fundamentals on immediate price moves.
Directional indicators show DI+ at 17.41 and decreasing while DI- reads 29.06 and is increasing, a configuration that signals bearish directional pressure and favors downside or sideways action against the company’s fundamental positives.
MACD sits negative at −0.77 and is decreasing, with the MACD line below the signal line (−0.50). That negative, falling MACD indicates bearish momentum that must reverse before sustained upside emerges.
MRO registers −6.75, indicating the price trades below the WMDST target and therefore contains upside mean‑reversion potential toward fair value. The reported MRO trend shows a peak-and-reversal, implying a recent top in the oscillator and a moderation of that upside potential unless momentum indicators turn positive.
RSI at 44.06 and declining places momentum below the 50 midpoint, consistent with the bearish DI and MACD setup; oversold conditions do not yet appear extreme but leave scope for a bounce if selling pressure eases.
Price sits beneath most short- and long-term averages: price close $33.23 versus the 12-day EMA $34.59, 20-day average $35.11, 50-day average $36.82 and 200-day average $36.64. The close lies slightly below the 1x standard-deviation lower Bollinger band ($33.62), which aligns with the MRO signal for technical mean reversion toward the WMDST valuation target.
Fundamental Analysis
Total revenue for the reported period registered $960,913,000 with YoY revenue growth of 42.89% and a QoQ decline of 43.36%, reflecting seasonal and timing effects across the Pet and Garden segments. Gross margin sits at 34.55% and expanded by 280 basis points year-over-year, supporting profitability improvement.
EBIT equals $141,712,000 and the EBIT margin measures 14.75%. That EBIT margin improved QoQ by 23.90% and YoY by 21.77%, yet it remains below the industry peer mean of 21.32% and the industry peer median of 22.66%, indicating margin progress that still trails typical peer levels.
Net income recorded $95,007,000 and EPS came in at $1.56 versus an estimate of $1.43, a 9.09% earnings beat. Non‑GAAP EPS of $1.56 aligns with the published beat and supports the company’s reaffirmed fiscal guide.
Cash and short-term investments total $713,049,000 and operating cash flow reached $265,475,000 with free cash flow $251,655,000. Free cash flow yield equals 10.89%, notably above the industry peer mean of 1.11%, which strengthens the WMDST view of the equity’s valuation upside based on cash generation.
Liquidity metrics show a current ratio of 355.80% and a quick ratio of 228.03%, with a cash ratio of 126.84%, underscoring ample near-term liquidity. Leverage presents concentrated repayment demand: total debt $1,436,346,000 produces a debt-to-EBITDA of 8.80 while interest coverage stands at 9.87x, reflecting manageable interest service but elevated leverage versus more conservatively levered peers.
Other operational metrics: asset turnover 0.2637 (above the industry peer mean of 0.1988), days inventory outstanding 125.57, days sales outstanding 52.30 and days payable outstanding 38.64, yielding a cash conversion cycle of 139.24 days (at the higher end of the industry peer range). Return on equity measures 5.98% with return on assets 2.61%—profitability improving but still modest on an absolute basis.
Valuation: WMDST values the stock as under‑valued. Current trailing P/E stands at 24.02 with a forward P/E of 58.23 and an enterprise multiple of 18.59; free cash flow yield and a $713.0M cash position underpin the WMDST under‑valued determination despite the higher forward P/E.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-06 |
| NEXT REPORT DATE: | 2025-11-04 |
| CASH FLOW | Begin Period Cash Flow | $ 531.3 M |
| Operating Cash Flow | $ 265.5 M | |
| Capital Expenditures | $ -13.82 M | |
| Change In Working Capital | $ 125.5 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 196.4 M | |
| End Period Cash Flow | $ 727.7 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 960.9 M | |
| Forward Revenue | $ 96.9 M | |
| COSTS | ||
| Cost Of Revenue | $ 628.9 M | |
| Depreciation | $ 21.5 M | |
| Depreciation and Amortization | $ 21.5 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 825.8 M | |
| PROFITABILITY | ||
| Gross Profit | $ 332.0 M | |
| EBITDA | $ 163.2 M | |
| EBIT | $ 141.7 M | |
| Operating Income | $ 135.1 M | |
| Interest Income | $ 5.5 M | |
| Interest Expense | $ 14.4 M | |
| Net Interest Income | $ -8.84 M | |
| Income Before Tax | $ 127.4 M | |
| Tax Provision | $ 31.9 M | |
| Tax Rate | 25.1 % | |
| Net Income | $ 95.0 M | |
| Net Income From Continuing Operations | $ 95.4 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.43 | |
| EPS Actual | $ 1.56 | |
| EPS Difference | $ 0.13 | |
| EPS Surprise | 9.091 % | |
| Forward EPS | $ 0.61 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.7 B | |
| Intangible Assets | $ 1.0 B | |
| Net Tangible Assets | $ 578.4 M | |
| Total Current Assets | $ 2.0 B | |
| Cash and Short-Term Investments | $ 713.0 M | |
| Cash | $ 713.0 M | |
| Net Receivables | $ 522.7 M | |
| Inventory | $ 718.3 M | |
| Long-Term Investments | $ 60.8 M | |
| LIABILITIES | ||
| Accounts Payable | $ 210.9 M | |
| Short-Term Debt | $ 81.0 K | |
| Total Current Liabilities | $ 562.2 M | |
| Net Debt | $ 478.2 M | |
| Total Debt | $ 1.4 B | |
| Total Liabilities | $ 2.1 B | |
| EQUITY | ||
| Total Equity | $ 1.6 B | |
| Retained Earnings | $ 1.0 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 25.29 | |
| Shares Outstanding | 62.810 M | |
| Revenue Per-Share | $ 15.30 | |
| VALUATION | Market Capitalization | $ 2.3 B |
| Enterprise Value | $ 3.0 B | |
| Enterprise Multiple | 18.589 | |
| Enterprise Multiple QoQ | -30.667 % | |
| Enterprise Multiple YoY | 25.793 % | |
| Enterprise Multiple IPRWA | high: 74.013 median: 72.282 mean: 68.692 CENT: 18.589 low: -24.065 |
|
| EV/R | 3.157 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.303 | |
| Asset To Liability | 1.77 | |
| Debt To Capital | 0.475 | |
| Debt To Assets | 0.393 | |
| Debt To Assets QoQ | 0.041 % | |
| Debt To Assets YoY | 1.641 % | |
| Debt To Assets IPRWA | high: 0.518 CENT: 0.393 mean: 0.332 median: 0.283 low: 0.251 |
|
| Debt To Equity | 0.904 | |
| Debt To Equity QoQ | -2.159 % | |
| Debt To Equity YoY | 502327.778 % | |
| Debt To Equity IPRWA | high: 12.476 mean: 2.904 CENT: 0.904 median: 0.692 low: -1.548 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.455 | |
| Price To Book QoQ | -2.739 % | |
| Price To Book YoY | -13.784 % | |
| Price To Book IPRWA | high: 100.047 mean: 22.723 median: 7.192 CENT: 1.455 low: -4.02 |
|
| Price To Earnings (P/E) | 24.019 | |
| Price To Earnings QoQ | -30.186 % | |
| Price To Earnings YoY | -20.528 % | |
| Price To Earnings IPRWA | high: 107.828 median: 107.828 mean: 100.978 CENT: 24.019 low: -14.797 |
|
| PE/G Ratio | 0.48 | |
| Price To Sales (P/S) | 2.404 | |
| Price To Sales QoQ | -13.075 % | |
| Price To Sales YoY | -10.909 % | |
| Price To Sales IPRWA | high: 17.639 median: 17.639 mean: 15.903 CENT: 2.404 low: 1.198 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 58.234 | |
| Forward PE/G | 1.165 | |
| Forward P/S | 23.848 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 2.803 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.264 | |
| Asset Turnover Ratio QoQ | 13.363 % | |
| Asset Turnover Ratio YoY | -5.395 % | |
| Asset Turnover Ratio IPRWA | high: 0.359 CENT: 0.264 mean: 0.199 low: 0.168 median: 0.168 |
|
| Receivables Turnover | 1.745 | |
| Receivables Turnover Ratio QoQ | 2.381 % | |
| Receivables Turnover Ratio YoY | -4.943 % | |
| Receivables Turnover Ratio IPRWA | high: 3.39 median: 3.39 mean: 3.14 CENT: 1.745 low: 1.745 |
|
| Inventory Turnover | 0.815 | |
| Inventory Turnover Ratio QoQ | 19.308 % | |
| Inventory Turnover Ratio YoY | 1.98 % | |
| Inventory Turnover Ratio IPRWA | high: 1.838 median: 1.422 mean: 1.375 CENT: 0.815 low: 0.806 |
|
| Days Sales Outstanding (DSO) | 52.305 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 139.24 | |
| Cash Conversion Cycle Days QoQ | -17.055 % | |
| Cash Conversion Cycle Days YoY | -2.665 % | |
| Cash Conversion Cycle Days IPRWA | CENT: 139.24 high: 139.24 mean: -22.488 median: -42.682 low: -51.568 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.668 | |
| CapEx To Revenue | -0.014 | |
| CapEx To Depreciation | -0.643 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.8 B | |
| Net Invested Capital | $ 2.8 B | |
| Invested Capital | $ 2.8 B | |
| Net Tangible Assets | $ 578.4 M | |
| Net Working Capital | $ 1.4 B | |
| LIQUIDITY | ||
| Cash Ratio | 1.268 | |
| Current Ratio | 3.558 | |
| Current Ratio QoQ | 7.653 % | |
| Current Ratio YoY | -2.873 % | |
| Current Ratio IPRWA | CENT: 3.558 high: 1.849 mean: 0.8 low: 0.704 median: 0.704 |
|
| Quick Ratio | 2.28 | |
| Quick Ratio QoQ | 18.407 % | |
| Quick Ratio YoY | 5.657 % | |
| Quick Ratio IPRWA | CENT: 2.28 high: 1.33 mean: 0.552 low: 0.495 median: 0.495 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 8.801 | |
| Cost Of Debt | 0.752 % | |
| Interest Coverage Ratio | 9.869 | |
| Interest Coverage Ratio QoQ | 44.318 % | |
| Interest Coverage Ratio YoY | 20.387 % | |
| Interest Coverage Ratio IPRWA | high: 22.325 median: 22.325 mean: 19.415 CENT: 9.869 low: -10.856 |
|
| Operating Cash Flow Ratio | 0.402 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 38.639 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.763 % | |
| Revenue Growth | 15.281 % | |
| Revenue Growth QoQ | -43.36 % | |
| Revenue Growth YoY | 42.893 % | |
| Revenue Growth IPRWA | high: 23.563 % CENT: 15.281 % median: 5.628 % mean: 4.26 % low: -13.988 % |
|
| Earnings Growth | 50.0 % | |
| Earnings Growth QoQ | -87.349 % | |
| Earnings Growth YoY | 50.002 % | |
| Earnings Growth IPRWA | high: 97.931 % CENT: 50.0 % mean: -0.054 % median: -3.896 % low: -15.544 % |
|
| MARGINS | ||
| Gross Margin | 34.552 % | |
| Gross Margin QoQ | 5.464 % | |
| Gross Margin YoY | 8.579 % | |
| Gross Margin IPRWA | high: 60.059 % median: 49.107 % mean: 48.71 % CENT: 34.552 % low: 24.094 % |
|
| EBIT Margin | 14.748 % | |
| EBIT Margin QoQ | 23.902 % | |
| EBIT Margin YoY | 21.774 % | |
| EBIT Margin IPRWA | high: 22.658 % median: 22.658 % mean: 21.321 % CENT: 14.748 % low: -7.521 % |
|
| Return On Sales (ROS) | 14.062 % | |
| Return On Sales QoQ | 18.138 % | |
| Return On Sales YoY | 16.109 % | |
| Return On Sales IPRWA | high: 21.135 % median: 20.844 % mean: 20.042 % CENT: 14.062 % low: 9.147 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 251.7 M | |
| Free Cash Flow Yield | 10.892 % | |
| Free Cash Flow Yield QoQ | -536.553 % | |
| Free Cash Flow Yield YoY | 7.48 % | |
| Free Cash Flow Yield IPRWA | CENT: 10.892 % high: 1.433 % mean: 1.107 % median: 1.083 % low: 0.898 % |
|
| Free Cash Growth | -537.486 % | |
| Free Cash Growth QoQ | 2213.459 % | |
| Free Cash Growth YoY | -40.579 % | |
| Free Cash Growth IPRWA | high: 365.854 % mean: 69.06 % median: 40.162 % low: -107.5 % CENT: -537.486 % |
|
| Free Cash To Net Income | 2.649 | |
| Cash Flow Margin | 23.507 % | |
| Cash Flow To Earnings | 2.378 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 2.608 % | |
| Return On Assets QoQ | 46.847 % | |
| Return On Assets YoY | 16.898 % | |
| Return On Assets IPRWA | high: 5.997 % mean: 3.149 % median: 2.913 % CENT: 2.608 % low: 0.404 % |
|
| Return On Capital Employed (ROCE) | 4.579 % | |
| Return On Equity (ROE) | 0.06 | |
| Return On Equity QoQ | 44.913 % | |
| Return On Equity YoY | 19.568 % | |
| Return On Equity IPRWA | high: 1.058 mean: 0.255 median: 0.071 CENT: 0.06 low: 0.017 |
|
| DuPont ROE | 6.071 % | |
| Return On Invested Capital (ROIC) | 3.82 % | |
| Return On Invested Capital QoQ | 37.509 % | |
| Return On Invested Capital YoY | -123.747 % | |
| Return On Invested Capital IPRWA | high: 12.603 % mean: 5.215 % median: 4.427 % CENT: 3.82 % low: 1.276 % |
|