CONAGRA BRANDS INC (CAG) Stock Fundamental Analysis
NYSE:CAG - New York Stock Exchange, Inc. - US2058871029 - Common Stock - Currency: USD
Taking everything into account, CAG scores 5 out of 10 in our fundamental rating. CAG was compared to 91 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 is cheap, but on the other hand it scores bad on growth. CAG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CAG had positive earnings in the past year.
CAG had a positive operating cash flow in the past year.
Each year in the past 5 years CAG has been profitable.
CAG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CAG (2.34%) is comparable to the rest of the industry.
With a Return On Equity value of 5.60%, CAG perfoms like the industry average, outperforming 45.88% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.32%, CAG is in the better half of the industry, outperforming 77.65% of the companies in the same industry.
CAG had an Average Return On Invested Capital over the past 3 years of 7.89%. This is in line with the industry average of 9.02%.
The 3 year average ROIC (7.89%) for CAG is below the current ROIC(8.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.34% | ||
| ROE | 5.6% | ||
| ROIC | 8.32% |
ROA(3y)2.91%
ROA(5y)3.67%
ROE(3y)7.35%
ROE(5y)9.58%
ROIC(3y)7.89%
ROIC(5y)7.89%
1.3 Margins
CAG has a Profit Margin (4.13%) which is in line with its industry peers.
In the last couple of years the Profit Margin of CAG has declined.
CAG has a Operating Margin of 15.58%. This is amongst the best in the industry. CAG outperforms 83.53% of its industry peers.
In the last couple of years the Operating Margin of CAG has remained more or less at the same level.
CAG has a Gross Margin of 27.39%. This is in the better half of the industry: CAG outperforms 63.53% of its industry peers.
CAG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.58% | ||
| PM (TTM) | 4.13% | ||
| GM | 27.39% |
OM growth 3Y-3.57%
OM growth 5Y1.45%
PM growth 3Y-37.17%
PM growth 5Y-16.52%
GM growth 3Y-1.09%
GM growth 5Y-0.05%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CAG is creating some value.
The number of shares outstanding for CAG has been increased 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
An Altman-Z score of 1.81 indicates that CAG is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CAG (1.81) is comparable to the rest of the industry.
CAG has a debt to FCF ratio of 5.54. This is a neutral value as CAG would need 5.54 years to pay back of all of its debts.
CAG's Debt to FCF ratio of 5.54 is fine compared to the rest of the industry. CAG outperforms 62.35% of its industry peers.
A Debt/Equity ratio of 0.84 indicates that CAG is somewhat dependend on debt financing.
CAG's Debt to Equity ratio of 0.84 is on the low side compared to the rest of the industry. CAG is outperformed by 71.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.54 | ||
| Altman-Z | 1.81 |
ROIC/WACC1.19
WACC6.98%
2.3 Liquidity
A Current Ratio of 0.70 indicates that CAG may have some problems paying its short term obligations.
The Current ratio of CAG (0.70) is worse than 87.06% of its industry peers.
CAG has a Quick Ratio of 0.70. 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 (0.22) than 95.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
CAG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.00%.
Measured over the past 5 years, CAG shows a small growth in Earnings Per Share. The EPS has been growing by 5.84% on average per year.
The Revenue has decreased by -2.00% in the past year.
Measured over the past years, CAG shows a small growth in Revenue. The Revenue has been growing by 4.79% on average per year.
EPS 1Y (TTM)-8%
EPS 3Y0.38%
EPS 5Y5.84%
EPS Q2Q%-1.41%
Revenue 1Y (TTM)-2%
Revenue growth 3Y2.52%
Revenue growth 5Y4.79%
Sales Q2Q%-0.41%
3.2 Future
Based on estimates for the next years, CAG will show a small growth in Earnings Per Share. The EPS will grow by 1.90% on average per year.
Based on estimates for the next years, CAG will show a small growth in Revenue. The Revenue will grow by 0.71% on average per year.
EPS Next Y-6.79%
EPS Next 2Y-1.28%
EPS Next 3Y0.56%
EPS Next 5Y1.9%
Revenue Next Year-1.62%
Revenue Next 2Y-0.11%
Revenue Next 3Y0.07%
Revenue Next 5Y0.71%
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
The Price/Earnings ratio is 10.19, which indicates a very decent valuation of CAG.
87.06% of the companies in the same industry are more expensive than CAG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.63, CAG is valued rather cheaply.
The Price/Forward Earnings ratio is 9.91, which indicates a very decent valuation of CAG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CAG indicates a rather cheap valuation: CAG is cheaper than 91.76% of the companies listed in the same industry.
CAG is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.19 | ||
| Fwd PE | 9.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAG is valued a bit cheaper than the industry average as 74.12% of the companies are valued more expensively.
CAG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CAG is cheaper than 84.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.06 | ||
| EV/EBITDA | 8.45 |
4.3 Compensation for Growth
CAG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.74
EPS Next 2Y-1.28%
EPS Next 3Y0.56%
5. Dividend
5.1 Amount
CAG has a Yearly Dividend Yield of 5.60%, which is a nice return.
Compared to an average industry Dividend Yield of 3.94, CAG pays a better dividend. On top of this CAG pays more dividend than 91.76% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, CAG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.6% |
5.2 History
The dividend of CAG is nicely growing with an annual growth rate of 11.19%!
CAG has paid a dividend for at least 10 years, which is a reliable track record.
CAG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.19%
Div Incr Years5
Div Non Decr Years17
5.3 Sustainability
CAG pays out 135.95% of its income as dividend. This is not a sustainable payout ratio.
CAG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP135.95%
EPS Next 2Y-1.28%
EPS Next 3Y0.56%
25.79
+0.95 (+3.82%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners89.32%
Inst Owner Change-0.25%
Ins Owners0.51%
Ins Owner Change0.02%
Market Cap12.31B
Analysts66.36
Price Target29.94 (16.09%)
Short Float %3.25%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.6% |
Yearly Dividend1.38
Dividend Growth(5Y)11.19%
DP135.95%
Div Incr Years5
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.55%
Min EPS beat(2)-11.84%
Max EPS beat(2)2.74%
EPS beat(4)3
Avg EPS beat(4)0.21%
Min EPS beat(4)-11.84%
Max EPS beat(4)5.47%
EPS beat(8)7
Avg EPS beat(8)4.36%
EPS beat(12)10
Avg EPS beat(12)5.41%
EPS beat(16)13
Avg EPS beat(16)3.98%
Revenue beat(2)1
Avg Revenue beat(2)-1.14%
Min Revenue beat(2)-2.72%
Max Revenue beat(2)0.44%
Revenue beat(4)1
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)0.44%
Revenue beat(8)1
Avg Revenue beat(8)-1.46%
Revenue beat(12)3
Avg Revenue beat(12)-0.92%
Revenue beat(16)6
Avg Revenue beat(16)-0.38%
PT rev (1m)-2.15%
PT rev (3m)-6.42%
EPS NQ rev (1m)-19.2%
EPS NQ rev (3m)-16.42%
EPS NY rev (1m)-4.57%
EPS NY rev (3m)-4.72%
Revenue NQ rev (1m)-1.41%
Revenue NQ rev (3m)-2.9%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.19 | ||
| Fwd PE | 9.91 | ||
| P/S | 1.03 | ||
| P/FCF | 8.06 | ||
| P/OCF | 6.42 | ||
| P/B | 1.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.45 |
EPS(TTM)2.53
EY9.81%
EPS(NY)2.6
Fwd EY10.09%
FCF(TTM)3.2
FCFY12.4%
OCF(TTM)4.02
OCFY15.57%
SpS24.99
BVpS18.44
TBVpS-9.81
PEG (NY)N/A
PEG (5Y)1.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.34% | ||
| ROE | 5.6% | ||
| ROCE | 11.29% | ||
| ROIC | 8.32% | ||
| ROICexc | 8.34% | ||
| ROICexgc | 35.51% | ||
| OM | 15.58% | ||
| PM (TTM) | 4.13% | ||
| GM | 27.39% | ||
| FCFM | 12.8% |
ROA(3y)2.91%
ROA(5y)3.67%
ROE(3y)7.35%
ROE(5y)9.58%
ROIC(3y)7.89%
ROIC(5y)7.89%
ROICexc(3y)7.92%
ROICexc(5y)7.96%
ROICexgc(3y)35.02%
ROICexgc(5y)39.72%
ROCE(3y)10.33%
ROCE(5y)10.27%
ROICexcg growth 3Y-9.41%
ROICexcg growth 5Y-0.75%
ROICexc growth 3Y0.69%
ROICexc growth 5Y7.83%
OM growth 3Y-3.57%
OM growth 5Y1.45%
PM growth 3Y-37.17%
PM growth 5Y-16.52%
GM growth 3Y-1.09%
GM growth 5Y-0.05%
F-Score7
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.54 | ||
| Debt/EBITDA | 3.29 | ||
| Cap/Depr | 96.99% | ||
| Cap/Sales | 3.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.79% | ||
| Profit Quality | 309.99% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.22 | ||
| Altman-Z | 1.81 |
F-Score7
WACC6.98%
ROIC/WACC1.19
Cap/Depr(3y)106.15%
Cap/Depr(5y)108.81%
Cap/Sales(3y)3.4%
Cap/Sales(5y)3.61%
Profit Quality(3y)213.8%
Profit Quality(5y)178.16%
High Growth Momentum
Growth
EPS 1Y (TTM)-8%
EPS 3Y0.38%
EPS 5Y5.84%
EPS Q2Q%-1.41%
EPS Next Y-6.79%
EPS Next 2Y-1.28%
EPS Next 3Y0.56%
EPS Next 5Y1.9%
Revenue 1Y (TTM)-2%
Revenue growth 3Y2.52%
Revenue growth 5Y4.79%
Sales Q2Q%-0.41%
Revenue Next Year-1.62%
Revenue Next 2Y-0.11%
Revenue Next 3Y0.07%
Revenue Next 5Y0.71%
EBIT growth 1Y-4.85%
EBIT growth 3Y-1.14%
EBIT growth 5Y6.31%
EBIT Next Year16.73%
EBIT Next 3Y6.99%
EBIT Next 5Y6.05%
FCF growth 1Y86.74%
FCF growth 3Y19.15%
FCF growth 5Y16.06%
OCF growth 1Y58%
OCF growth 3Y11.13%
OCF growth 5Y12.35%