CONAGRA BRANDS INC (CAG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CAG - US2058871029 - Common Stock
17.3 USD
-0.01 (-0.06%)
17.35 USD
+0.05 (+0.29%)
CAG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 87 industry peers in the Food Products industry. While CAG is still in line with the averages on profitability rating, there are concerns on its financial health. CAG is valued correctly, but it does not seem to be growing. CAG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CAG was profitable.
In the past year CAG had a positive cash flow from operations.
CAG had positive earnings in each of the past 5 years.
CAG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CAG (-0.50%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of -1.21%, CAG is in line with its industry, outperforming 41.38% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.95%, CAG is in the better half of the industry, outperforming 74.71% of the companies in the same industry.
CAG had an Average Return On Invested Capital over the past 3 years of 7.92%. This is significantly below the industry average of 28.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.5% | ||
| ROE | -1.21% | ||
| ROIC | 6.95% |
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 12.87%, CAG belongs to the top 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.
CAG's Gross Margin of 24.56% is in line compared 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 | 12.87% | ||
| PM (TTM) | N/A | ||
| GM | 24.56% |
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.
Compared to 5 years ago, CAG has less shares outstanding
CAG has a better debt/assets ratio than last year.
2.2 Solvency
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.
With a decent Debt to FCF ratio value of 8.70, CAG is doing good in the industry, outperforming 64.37% of the companies in the same industry.
A Debt/Equity ratio of 0.85 indicates that CAG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.85, CAG is not doing good in the industry: 62.07% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 8.7 | ||
| Altman-Z | N/A |
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.
With a Current ratio value of 0.89, CAG is not doing good in the industry: 77.01% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 0.28, CAG is not doing good in the industry: 91.95% of the companies in the same industry are doing better.
| 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.
CAG shows a decrease in Revenue. In the last year, the revenue decreased by -5.82%.
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 small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.09% yearly.
CAG is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.08% yearly.
EPS Next Y-23.4%
EPS Next 2Y-10.19%
EPS Next 3Y-4.79%
EPS Next 5Y0.09%
Revenue Next Year-3.8%
Revenue Next 2Y-2.34%
Revenue Next 3Y-1.17%
Revenue Next 5Y-0.08%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.06, the valuation of CAG can be described as very reasonable.
Based on the Price/Earnings ratio, CAG is valued cheaper than 89.66% of the companies in the same industry.
When comparing the Price/Earnings ratio of CAG to the average of the S&P500 Index (26.60), we can say CAG is valued rather cheaply.
The Price/Forward Earnings ratio is 9.33, which indicates a very decent valuation of CAG.
Based on the Price/Forward Earnings ratio, CAG is valued cheaper than 93.10% 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 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 9.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAG is valued a bit cheaper than 66.67% of the companies in the same industry.
87.36% of the companies in the same industry are more expensive than CAG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.44 | ||
| EV/EBITDA | 8.44 |
4.3 Compensation for Growth
A cheap valuation may be justified as CAG's earnings are expected to decrease with -4.79% in the coming years.
PEG (NY)N/A
PEG (5Y)51.81
EPS Next 2Y-10.19%
EPS Next 3Y-4.79%
5. Dividend
5.1 Amount
CAG has a Yearly Dividend Yield of 8.09%, which is a nice return.
Compared to an average industry Dividend Yield of 2.41, CAG pays a better dividend. On top of this CAG pays more dividend than 95.40% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, CAG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.09% |
5.2 History
On average, the dividend of CAG grows each year by 10.50%, which is quite nice.
CAG has paid a dividend for at least 10 years, which is a reliable track record.
CAG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
CAG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-682.55%
EPS Next 2Y-10.19%
EPS Next 3Y-4.79%
17.3
-0.01 (-0.06%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners90.39%
Inst Owner Change0%
Ins Owners0.64%
Ins Owner Change3.83%
Market Cap8.28B
Revenue(TTM)11.23B
Net Income(TTM)-98.00M
Analysts55.38
Price Target20.66 (19.42%)
Short Float %6.02%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.09% |
Yearly Dividend1.4
Dividend Growth(5Y)10.5%
DP-682.55%
Div Incr Years5
Div Non Decr Years17
Ex-Date
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)-2.62%
PT rev (3m)-3.74%
EPS NQ rev (1m)-5.24%
EPS NQ rev (3m)-8.2%
EPS NY rev (1m)-0.5%
EPS NY rev (3m)-1.84%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 9.33 | ||
| P/S | 0.74 | ||
| P/FCF | 9.44 | ||
| P/OCF | 6.52 | ||
| P/B | 1.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.44 |
EPS(TTM)1.91
EY11.04%
EPS(NY)1.86
Fwd EY10.72%
FCF(TTM)1.83
FCFY10.59%
OCF(TTM)2.65
OCFY15.33%
SpS23.49
BVpS16.91
TBVpS-8.03
PEG (NY)N/A
PEG (5Y)51.81
Graham Number26.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.5% | ||
| ROE | -1.21% | ||
| ROCE | 9.08% | ||
| ROIC | 6.95% | ||
| ROICexc | 6.97% | ||
| ROICexgc | 26.16% | ||
| OM | 12.87% | ||
| PM (TTM) | N/A | ||
| GM | 24.56% | ||
| 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 | 69.26% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.28 | ||
| Altman-Z | N/A |
F-Score5
WACC6.92%
ROIC/WACC1
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)-24.51%
EPS 3Y-0.99%
EPS 5Y0.17%
EPS Q2Q%-35.71%
EPS Next Y-23.4%
EPS Next 2Y-10.19%
EPS Next 3Y-4.79%
EPS Next 5Y0.09%
Revenue 1Y (TTM)-5.82%
Revenue growth 3Y0.22%
Revenue growth 5Y0.99%
Sales Q2Q%-6.76%
Revenue Next Year-3.8%
Revenue Next 2Y-2.34%
Revenue Next 3Y-1.17%
Revenue Next 5Y-0.08%
EBIT growth 1Y-22.18%
EBIT growth 3Y-1.31%
EBIT growth 5Y-2.04%
EBIT Next Year4.1%
EBIT Next 3Y3.29%
EBIT Next 5Y5.32%
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 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 9.06 and the Price/Book (PB) ratio is 1.02.
Can you provide the financial health for CAG stock?
The financial health rating of CONAGRA BRANDS INC (CAG) is 3 / 10.