DCF Tool

CENT

Central Garden & Pet Co. – Dog and Cat Food Manufacturing
Central Garden & Pet understands that home is central to life and has proudly nurtured happy and healthy homes for over 40 years. With 2020 net sales of $2.7 billion, Central is on a mission to lead the future of the pet and garden industries. The Company's innovative and trusted products are dedicated to help lawns grow greener, gardens bloom bigger, pets live healthier and communities grow stronger. Central is home to a leading portfolio of more than 65 high-quality brands including Pennington®, Nylabone®, Kaytee®, Amdro® and Aqueon®, strong manufacturing and distribution capabilities and a passionate, entrepreneurial growth culture. Central Garden & Pet is based in Walnut Creek, California and has over 6,300 employees across North America and Europe.
Analysis Results
Intrinsic Value $586.63
Latest Price $36.04
Relative Value 94% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 19.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 19.2%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 0.288 0.264
2023 0.343 0.289
2024 0.409 0.316
2025 0.487 0.345
2026 0.581 0.377
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 8.46 billion. This corresponds to a present value of 5.05 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1.59 billion. Adding in the terminal value gives a total present value of 6.64 billion.

There are presently 11.3 million outstanding shares, so the intrinsic value per share is 586.63.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,087,314,000
Current Cash 852,844,000
Current Liabilities 1,044,638,000
Current Debt 2,162,000
Non-Cash Working Capital (NCWC) 1,191,994,000
Change in NCWC 759,588,000
EBIT 508,992,000
Tax Provision 84,070,000
Depreciation and Amortization 149,454,000
Capital Expenditure -160,666,000
Unlevered Free Cash Flow 1,147,539,457
Current Assets 1,525,283,000
Current Cash 652,712,000
Current Liabilities 440,262,000
Current Debt 97,000
Non-Cash Working Capital (NCWC) 432,406,000
Change in NCWC -98,626,000
EBIT 197,977,000
Tax Provision 32,218,000
Depreciation and Amortization 55,359,000
Capital Expenditure -43,055,000
Unlevered Free Cash Flow 70,166,083
Current Assets 1,307,193,000
Current Cash 497,749,000
Current Liabilities 278,525,000
Current Debt 113,000
Non-Cash Working Capital (NCWC) 531,032,000
Change in NCWC 8,682,000
EBIT 152,068,000
Tax Provision 26,604,000
Depreciation and Amortization 50,828,000
Capital Expenditure -31,577,000
Unlevered Free Cash Flow 146,075,774
Current Assets 1,217,298,000
Current Cash 482,106,000
Current Liabilities 212,964,000
Current Debt 122,000
Non-Cash Working Capital (NCWC) 522,350,000
Change in NCWC 91,523,000
EBIT 164,536,000
Tax Provision 3,305,000
Depreciation and Amortization 47,199,000
Capital Expenditure -37,845,000
Unlevered Free Cash Flow 261,145,458
Current Assets 683,056,000
Current Cash 32,397,000
Current Liabilities 220,207,000
Current Debt 375,000
Non-Cash Working Capital (NCWC) 430,827,000
Change in NCWC 10,759,000
EBIT 156,112,000
Tax Provision 46,699,000
Depreciation and Amortization 42,719,000
Capital Expenditure -44,659,000
Unlevered Free Cash Flow 107,268,009
Current Assets 714,806,000
Current Cash 92,982,000
Current Liabilities 202,219,000
Current Debt 463,000
Non-Cash Working Capital (NCWC) 420,068,000
Change in NCWC -9,555,000
EBIT 131,186,000
Tax Provision 24,053,000
Depreciation and Amortization 40,001,000
Capital Expenditure -27,622,000
Unlevered Free Cash Flow 88,698,290
Current Assets 653,820,000
Current Cash 47,584,000
Current Liabilities 176,904,000
Current Debt 291,000
Non-Cash Working Capital (NCWC) 429,623,000
Change in NCWC 19,544,000
EBIT 98,707,000
Tax Provision 18,535,000
Depreciation and Amortization 33,703,000
Capital Expenditure -22,030,000
Unlevered Free Cash Flow 94,433,519
Current Assets 671,552,000
Current Cash 88,666,000
Current Liabilities 173,098,000
Current Debt 291,000
Non-Cash Working Capital (NCWC) 410,079,000
Change in NCWC -47,412,000
EBIT 56,213,000
Tax Provision 4,045,000
Depreciation and Amortization 35,781,000
Capital Expenditure -17,173,000
Unlevered Free Cash Flow 11,010,501
Current Assets 672,654,000
Current Cash 32,976,000
Current Liabilities 182,329,000
Current Debt 142,000
Non-Cash Working Capital (NCWC) 457,491,000
Change in NCWC 83,041,000
EBIT 48,764,000
Tax Provision -2,592,000
Depreciation and Amortization 32,968,000
Capital Expenditure -25,172,000
Unlevered Free Cash Flow 139,601,000
Current Assets 651,783,000
Current Cash 71,180,000
Current Liabilities 206,484,000
Current Debt 331,000
Non-Cash Working Capital (NCWC) 374,450,000
Change in NCWC -6,633,000
EBIT 75,121,000
Tax Provision 12,816,000
Depreciation and Amortization 30,425,000
Capital Expenditure -39,592,000
Unlevered Free Cash Flow 31,757,922

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.