Stock fact sheet · data as of
Central Garden & Pet Company (CENTA): fair value, margin of safety and Wheel Score
Consumer Defensive · Packaged Foods · United States · Value
Is CENTA undervalued?
CENTA has a margin of safety of 59%: the stock closed at 36.05 on 16 Oct 2026 against a GLS average fair value of 87.97. 6 of the 8 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
There is a wide gap between Lynch (22.17) and Payback Time (222.71). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files CENTA under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for CENTA
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 54.69 | +52% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 41.59 | +15% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 62.69 | +74% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 22.17 | -38% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 142.38 | +295% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 131.66 | +265% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 222.71 | +518% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 25.84 | -28% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -0.9996 | -103% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 53.00 | +47% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Central Garden & Pet Company scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 4.8/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are moderate - ROIC 5.4%, ROE 10.3%, ROA 4.5% - with debt at 0.91 times equity and a free-cash-flow yield of 14.9%.
Central Garden & Pet Company pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Garden Products 55%, Pet Products 45% (quarter Q3 FY2026).
Institutional ownership scores 10/10, insider activity 9/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 5.4% |
|---|---|---|---|
| GLS Moat | 4.8 / 10 | ROE | 10.3% |
| Debt / equity | 0.91 | ROA | 4.5% |
| Free-cash-flow yield | 14.9% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 9 · 5 / 10 |
Wheel Score 71: Good
With a Wheel Score of 71 - the Good band - Central Garden & Pet Company clears the Sunday Scan's "70 or higher" rule. The parts: Value 25/25, Health 16/20, Moat 7/15, Premium 11/20, Stability 12/20; Moat (7/15) scores lowest.
Implied volatility is 26% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (11 of 20 points). Chain open interest is thin - 11 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 279k shares a day on a market cap of $2.3B, with a beta of 0.63 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 12 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 59% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 7 / 15 | moat 4.8/10 | |
| Premium | 11 / 20 | implied volatility 26% | |
| Stability | 12 / 20 | 279k shares/day, $2.3B cap, beta 0.63 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 23 Nov 2026 (after the close), 38 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Packaged Foods
The 12 companies below are the closest to Central Garden & Pet Company by market cap within the Packaged Foods industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| CENT Central Garden & Pet Company | 41.95 | 93.45 | +55% | 71Good | $2.3B |
| MZTI The Marzetti Company | 103.19 | 110.34 | +6% | 73Good | $2.8B |
| FRPT Freshpet, Inc. | 67.65 | 100.50 | +33% | 80Prime | $3.3B |
| NOMD Nomad Foods Limited | 11.49 | 16.68 | +31% | 84Prime | $1.6B |
| POST Post Holdings, Inc. | 77.66 | 263.98 | +71% | 82Prime | $3.4B |
| HLF Herbalife Nutrition Ltd. | 14.57 | 47.90 | +70% | 74Good | $1.5B |
| JJSF J&J Snack Foods Corp. | 78.95 | 87.19 | +9% | 68Good | $1.5B |
| FLO Flowers Foods, Inc. | 6.12 | 10.71 | +43% | 78Good | $1.3B |
| UTZ Utz Brands, Inc. | 14.31 | 8.65 | -65% | 45Weak | $1.3B |
| SENEB Seneca Foods Corporation | 184.29 | 585.73 | +69% | 39No options | $1.2B |
| SENEM Seneca Foods Corporation PFD $12.00 | 178.00 | 567.83 | +69% | 39No options | $1.2B |
| SENEA Seneca Foods Corporation | 181.78 | 582.74 | +69% | 39No options | $1.2B |
⚖ Compare CENTA with 7 of them All Consumer Defensive stocks →
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about CENTA
Is CENTA undervalued right now?
By the GLS models, yes: at 36.05 the stock is 59% below the average fair value of 87.97 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of CENTA and what does it mean?
CENTA scores 71 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for CENTA?
87.97 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Central Garden & Pet Company report earnings next?
The next earnings report is due on 23 Nov 2026 (after the close), 38 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does CENTA have listed options, and how liquid are they?
Yes. The nightly snapshot found 88 listed contracts with 11 open interest across all expiries and implied volatility of 26% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.