CONAGRA BRANDS INC (CAG) Fundamental Analysis & Valuation
NYSE:CAG • US2058871029
Current stock price
15.72 USD
+0.2 (+1.29%)
At close:
15.7098 USD
-0.01 (-0.06%)
After Hours:
This CAG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. CAG Profitability Analysis
1.1 Basic Checks
- CAG had positive earnings in the past year.
- CAG had a positive operating cash flow in the past year.
- In the past 5 years CAG has always been profitable.
- Each year in the past 5 years CAG had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of CAG (-0.50%) is comparable to the rest of the industry.
- CAG has a Return On Equity of -1.21%. This is comparable to the rest of the industry: CAG outperforms 40.23% of its industry peers.
- CAG's Return On Invested Capital of 6.94% is fine compared to the rest of the industry. CAG outperforms 73.56% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CAG is in line with the industry average of 7.23%.
| 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
- In the last couple of years the Profit Margin of CAG has grown nicely.
- Looking at the Operating Margin, with a value of 12.86%, CAG belongs to the top of the industry, outperforming 87.36% of the companies in the same industry.
- CAG's Operating Margin has declined in the last couple of years.
- CAG has a Gross Margin of 24.57%. This is comparable to the rest of the industry: CAG outperforms 59.77% of its industry peers.
- 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. CAG Health Analysis
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.
- The number of shares outstanding for CAG remains at a similar level compared to 1 year ago.
- 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
- Based on the Altman-Z score of 1.61, we must say that CAG is in the distress zone and has some risk of bankruptcy.
- CAG has a Altman-Z score (1.61) which is comparable to the rest of the industry.
- The Debt to FCF ratio of CAG is 8.70, which is on the high side as it means it would take CAG, 8.70 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 8.70, CAG is doing good in the industry, outperforming 60.92% of the companies in the same industry.
- A Debt/Equity ratio of 0.85 indicates that CAG is somewhat dependend on debt financing.
- CAG has a Debt to Equity ratio of 0.85. This is in the lower half of the industry: CAG underperforms 64.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 8.7 | ||
| Altman-Z | 1.61 |
ROIC/WACC0.95
WACC7.32%
2.3 Liquidity
- CAG has a Current 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.
- Looking at the Current ratio, with a value of 0.89, CAG is doing worse than 77.01% of the companies in the same industry.
- A Quick Ratio of 0.28 indicates that CAG may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.28, CAG is doing worse than 88.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.28 |
3. CAG Growth Analysis
3.1 Past
- CAG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.83%.
- CAG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.17% yearly.
- The Revenue has decreased by -3.64% in the past year.
- The Revenue has been growing slightly by 0.99% on average over the past years.
EPS 1Y (TTM)-23.83%
EPS 3Y-0.99%
EPS 5Y0.17%
EPS Q2Q%-23.53%
Revenue 1Y (TTM)-3.64%
Revenue growth 3Y0.22%
Revenue growth 5Y0.99%
Sales Q2Q%-1.87%
3.2 Future
- The Earnings Per Share is expected to decrease by -1.00% on average over the next years.
- Based on estimates for the next years, CAG will show a decrease in Revenue. The Revenue will decrease by -0.05% on average per year.
EPS Next Y-24.31%
EPS Next 2Y-10.95%
EPS Next 3Y-5.24%
EPS Next 5Y-1%
Revenue Next Year-3.49%
Revenue Next 2Y-2.34%
Revenue Next 3Y-1.2%
Revenue Next 5Y-0.05%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. CAG Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 8.78, the valuation of CAG can be described as 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.
- The average S&P500 Price/Earnings ratio is at 25.60. CAG is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 8.62 indicates a reasonable valuation of CAG.
- 94.25% of the companies in the same industry are more expensive than CAG, based on the Price/Forward Earnings ratio.
- CAG is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.84, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.78 | ||
| Fwd PE | 8.62 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CAG is valued a bit cheaper than the industry average as 68.97% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, CAG is valued cheaply inside the industry as 86.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.58 | ||
| EV/EBITDA | 8.03 |
4.3 Compensation for Growth
- A cheap valuation may be justified as CAG's earnings are expected to decrease with -5.24% in the coming years.
PEG (NY)N/A
PEG (5Y)50.23
EPS Next 2Y-10.95%
EPS Next 3Y-5.24%
5. CAG Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 8.96%, CAG is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.44, CAG pays a better dividend. On top of this CAG pays more dividend than 95.40% of the companies listed in the same industry.
- CAG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.96% |
5.2 History
- The dividend of CAG is nicely growing with an annual growth rate of 10.50%!
- 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
- CAG has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-682.55%
EPS Next 2Y-10.95%
EPS Next 3Y-5.24%
CAG Fundamentals: All Metrics, Ratios and Statistics
15.72
+0.2 (+1.29%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)04-01 2026-04-01/bmo
Earnings (Next)07-08 2026-07-08/amc
Inst Owners87%
Inst Owner Change-2.56%
Ins Owners0.64%
Ins Owner Change0.05%
Market Cap7.52B
Revenue(TTM)11.61B
Net Income(TTM)-98.00M
Analysts54.4
Price Target19.65 (25%)
Short Float %8.31%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.96% |
Yearly Dividend1.4
Dividend Growth(5Y)10.5%
DP-682.55%
Div Incr Years5
Div Non Decr Years17
Ex-Date04-30 2026-04-30 (0.35)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.92%
Min EPS beat(2)2.06%
Max EPS beat(2)15.78%
EPS beat(4)2
Avg EPS beat(4)2.26%
Min EPS beat(4)-4.48%
Max EPS beat(4)15.78%
EPS beat(8)5
Avg EPS beat(8)1.24%
EPS beat(12)9
Avg EPS beat(12)3.66%
EPS beat(16)12
Avg EPS beat(16)4.63%
Revenue beat(2)0
Avg Revenue beat(2)-0.72%
Min Revenue beat(2)-1.13%
Max Revenue beat(2)-0.32%
Revenue beat(4)0
Avg Revenue beat(4)-1.85%
Min Revenue beat(4)-3.1%
Max Revenue beat(4)-0.32%
Revenue beat(8)1
Avg Revenue beat(8)-1.52%
Revenue beat(12)1
Avg Revenue beat(12)-1.59%
Revenue beat(16)3
Avg Revenue beat(16)-1.15%
PT rev (1m)-1.63%
PT rev (3m)-4.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.85%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-1.2%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.78 | ||
| Fwd PE | 8.62 | ||
| P/S | 0.67 | ||
| P/FCF | 8.58 | ||
| P/OCF | 5.93 | ||
| P/B | 0.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.03 |
EPS(TTM)1.79
EY11.39%
EPS(NY)1.82
Fwd EY11.6%
FCF(TTM)1.83
FCFY11.65%
OCF(TTM)2.65
OCFY16.87%
SpS23.48
BVpS16.91
TBVpS-8.03
PEG (NY)N/A
PEG (5Y)50.23
Graham Number26.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.5% | ||
| ROE | -1.21% | ||
| ROCE | 9.08% | ||
| ROIC | 6.94% | ||
| ROICexc | 6.96% | ||
| ROICexgc | 26.13% | ||
| OM | 12.86% | ||
| PM (TTM) | N/A | ||
| GM | 24.57% | ||
| FCFM | 7.8% |
ROA(3y)3.42%
ROA(5y)4.02%
ROE(3y)8.28%
ROE(5y)10.03%
ROIC(3y)7.92%
ROIC(5y)7.78%
ROICexc(3y)7.95%
ROICexc(5y)7.81%
ROICexgc(3y)32.64%
ROICexgc(5y)34.56%
ROCE(3y)10.57%
ROCE(5y)10.3%
ROICexgc growth 3Y-5.95%
ROICexgc growth 5Y-11.19%
ROICexc growth 3Y1.74%
ROICexc growth 5Y-0.82%
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%
F-Score5
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 8.7 | ||
| Debt/EBITDA | 3.74 | ||
| Cap/Depr | 101.71% | ||
| Cap/Sales | 3.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.31% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.28 | ||
| Altman-Z | 1.61 |
F-Score5
WACC7.32%
ROIC/WACC0.95
Cap/Depr(3y)98.17%
Cap/Depr(5y)109.76%
Cap/Sales(3y)3.17%
Cap/Sales(5y)3.62%
Profit Quality(3y)224.76%
Profit Quality(5y)165.72%
High Growth Momentum
Growth
EPS 1Y (TTM)-23.83%
EPS 3Y-0.99%
EPS 5Y0.17%
EPS Q2Q%-23.53%
EPS Next Y-24.31%
EPS Next 2Y-10.95%
EPS Next 3Y-5.24%
EPS Next 5Y-1%
Revenue 1Y (TTM)-3.64%
Revenue growth 3Y0.22%
Revenue growth 5Y0.99%
Sales Q2Q%-1.87%
Revenue Next Year-3.49%
Revenue Next 2Y-2.34%
Revenue Next 3Y-1.2%
Revenue Next 5Y-0.05%
EBIT growth 1Y-22.26%
EBIT growth 3Y-1.31%
EBIT growth 5Y-2.04%
EBIT Next Year4.75%
EBIT Next 3Y3.39%
EBIT Next 5Y4.56%
FCF growth 1Y-24.69%
FCF growth 3Y22.29%
FCF growth 5Y-2.41%
OCF growth 1Y-18.21%
OCF growth 3Y12.88%
OCF growth 5Y-1.68%
CONAGRA BRANDS INC / CAG Fundamental Analysis 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.
How profitable is CONAGRA BRANDS INC (CAG) stock?
CONAGRA BRANDS INC (CAG) has a profitability rating of 5 / 10.
What is the expected EPS growth for CONAGRA BRANDS INC (CAG) stock?
The Earnings per Share (EPS) of CONAGRA BRANDS INC (CAG) is expected to decline by -24.31% in the next year.
Can you provide the dividend sustainability for CAG stock?
The dividend rating of CONAGRA BRANDS INC (CAG) is 7 / 10 and the dividend payout ratio is -682.55%.