Central Garden & Pet Shows 11.58 P/E, 0.66 P/S, 8.13 P/CF Undervaluation
Central Garden & Pet posts a Zacks Rank #2 (Buy) and A grade for Value with a P/E of 11.58 versus its 16.61 industry average. Its P/S of 0.66 (industry 0.69) and P/CF of 8.13 (industry 16.07) indicate undervaluation on sales and cash flow.
1. Zacks Rank and Value Grade
Central Garden & Pet holds a Zacks Rank #2 (Buy) and an A grade for Value, marking it as a top choice for value investors based on forecasted earnings revisions.
2. Price-to-Earnings Ratio Analysis
Its current P/E ratio is 11.58, well below the industry average of 16.61, and its forward P/E has ranged from 11.42 to 16.39 over the past year.
3. Price-to-Sales Comparison
The stock's P/S ratio stands at 0.66 versus the industry's 0.69, reflecting lower valuation relative to revenue and strong sales resilience.
4. Price-to-Cash Flow Insights
At a P/CF of 8.13 compared to the industry average of 16.07, Central Garden & Pet's operating cash flow valuation indicates significant undervaluation, with a median P/CF of 9.09 in the last 12 months.