CONAGRA BRANDS INC (CAG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CAG - US2058871029 - Common Stock
18.025 USD
+0.34 (+1.95%)
We assign a fundamental rating of 4 out of 10 to CAG. CAG was compared to 87 industry peers in the Food Products industry. CAG has a medium profitability rating, but doesn't score so well on its financial health evaluation. CAG has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally CAG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year CAG was profitable.
- CAG had a positive operating cash flow in the past year.
- Each year in the past 5 years CAG has been profitable.
- In the past 5 years CAG always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of CAG (-0.50%) is comparable to the rest of the industry.
- The Return On Equity of CAG (-1.21%) is comparable to the rest of the industry.
- CAG has a Return On Invested Capital of 6.94%. This is in the better half of the industry: CAG outperforms 74.71% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CAG is significantly below the industry average of 27.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.5% | ||
| ROE | -1.21% | ||
| ROIC | 6.94% |
ROA(3y)3.42%
ROA(5y)4.02%
ROE(3y)8.28%
ROE(5y)10.03%
ROIC(3y)7.92%
ROIC(5y)7.78%
1.3 Margins
- CAG's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 12.86%, CAG belongs to the best of the industry, outperforming 83.91% of the companies in the same industry.
- CAG's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 24.57%, CAG perfoms like the industry average, outperforming 58.62% of the companies in the same industry.
- CAG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.86% | ||
| PM (TTM) | N/A | ||
| GM | 24.57% |
OM growth 3Y-1.53%
OM growth 5Y-3%
PM growth 3Y8.84%
PM growth 5Y5.48%
GM growth 3Y1.42%
GM growth 5Y-1.64%
2. Health
2.1 Basic Checks
- CAG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, CAG has about the same amount of shares outstanding.
- The number of shares outstanding for CAG has been reduced compared to 5 years ago.
- The debt/assets ratio for CAG has been reduced compared to a year ago.
2.2 Solvency
- CAG has an Altman-Z score of 1.66. This is a bad value and indicates that CAG is not financially healthy and even has some risk of bankruptcy.
- CAG has a Altman-Z score (1.66) which is in line with its industry peers.
- CAG has a debt to FCF ratio of 8.70. This is a slightly negative value and a sign of low solvency as CAG would need 8.70 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 8.70, CAG is in the better half of the industry, outperforming 62.07% of the companies in the same industry.
- CAG has a Debt/Equity ratio of 0.85. This is a neutral value indicating CAG is somewhat dependend on debt financing.
- The Debt to Equity ratio of CAG (0.85) is worse than 63.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 8.7 | ||
| Altman-Z | 1.66 |
ROIC/WACC1
WACC6.92%
2.3 Liquidity
- A Current Ratio of 0.89 indicates that CAG may have some problems paying its short term obligations.
- The Current ratio of CAG (0.89) is worse than 78.16% of its industry peers.
- CAG has a Quick Ratio of 0.89. This is a bad value and indicates that CAG is not financially healthy enough and could expect problems in meeting its short term obligations.
- CAG has a worse Quick ratio (0.28) than 90.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
- CAG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.51%.
- Measured over the past 5 years, CAG shows a small growth in Earnings Per Share. The EPS has been growing by 0.17% on average per year.
- The Revenue has decreased by -5.82% in the past year.
- The Revenue has been growing slightly by 0.99% on average over the past years.
EPS 1Y (TTM)-24.51%
EPS 3Y-0.99%
EPS 5Y0.17%
EPS Q2Q%-35.71%
Revenue 1Y (TTM)-5.82%
Revenue growth 3Y0.22%
Revenue growth 5Y0.99%
Sales Q2Q%-6.76%
3.2 Future
- CAG is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.00% yearly.
- The Revenue is expected to decrease by -0.05% on average over the next years.
EPS Next Y-24.3%
EPS Next 2Y-10.81%
EPS Next 3Y-5.2%
EPS Next 5Y-1%
Revenue Next Year-3.88%
Revenue Next 2Y-2.4%
Revenue Next 3Y-1.21%
Revenue Next 5Y-0.05%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 9.44, the valuation of CAG can be described as very reasonable.
- CAG's Price/Earnings ratio is rather cheap when compared to the industry. CAG is cheaper than 88.51% of the companies in the same industry.
- When comparing the Price/Earnings ratio of CAG to the average of the S&P500 Index (28.60), we can say CAG is valued rather cheaply.
- A Price/Forward Earnings ratio of 9.85 indicates a reasonable valuation of CAG.
- Based on the Price/Forward Earnings ratio, CAG is valued cheaper than 94.25% of the companies in the same industry.
- CAG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.44 | ||
| Fwd PE | 9.85 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CAG is valued a bit cheaper than 65.52% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAG indicates a rather cheap valuation: CAG is cheaper than 88.51% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.84 | ||
| EV/EBITDA | 8.55 |
4.3 Compensation for Growth
- CAG's earnings are expected to decrease with -5.20% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)53.98
EPS Next 2Y-10.81%
EPS Next 3Y-5.2%
5. Dividend
5.1 Amount
- CAG has a Yearly Dividend Yield of 8.01%, which is a nice return.
- CAG's Dividend Yield is rather good when compared to the industry average which is at 2.29. CAG pays more dividend than 95.40% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, CAG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.01% |
5.2 History
- On average, the dividend of CAG grows each year by 10.50%, which is quite nice.
- CAG has been paying a dividend for at least 10 years, so it has a reliable track record.
- CAG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.5%
Div Incr Years5
Div Non Decr Years17
5.3 Sustainability
- The earnings of CAG are negative and hence is the payout ratio. CAG will probably not be able to sustain this dividend level.
DP-682.55%
EPS Next 2Y-10.81%
EPS Next 3Y-5.2%
CONAGRA BRANDS INC / CAG FAQ
Can you provide the ChartMill fundamental rating for CONAGRA BRANDS INC?
ChartMill assigns a fundamental rating of 4 / 10 to CAG.
What is the valuation status of CONAGRA BRANDS INC (CAG) stock?
ChartMill assigns a valuation rating of 6 / 10 to CONAGRA BRANDS INC (CAG). This can be considered as Fairly Valued.
What is the profitability of CAG stock?
CONAGRA BRANDS INC (CAG) has a profitability rating of 5 / 10.
What is the valuation of CONAGRA BRANDS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CONAGRA BRANDS INC (CAG) is 9.44 and the Price/Book (PB) ratio is 1.07.
Can you provide the financial health for CAG stock?
The financial health rating of CONAGRA BRANDS INC (CAG) is 3 / 10.