CONAGRA BRANDS INC (CAG) Stock Fundamental Analysis
NYSE:CAG - New York Stock Exchange, Inc. - US2058871029 - Common Stock - Currency: USD
CAG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 91 industry peers in the Food Products industry. While CAG belongs to the best of the industry regarding profitability, there are concerns on its financial health. CAG is valued quite cheap, but it does not seem to be growing. CAG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CAG had positive earnings in the past year.
In the past year CAG had a positive cash flow from operations.
In the past 5 years CAG has always been profitable.
CAG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.34%, CAG is in line with its industry, outperforming 46.15% of the companies in the same industry.
CAG has a Return On Equity (5.60%) which is comparable to the rest of the industry.
CAG's Return On Invested Capital of 8.32% is amongst the best of the industry. CAG outperforms 80.22% of its industry peers.
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 8.95%.
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
Looking at the Profit Margin, with a value of 4.13%, CAG is in the better half of the industry, outperforming 64.84% of the companies in the same industry.
CAG's Profit Margin has declined in the last couple of years.
The Operating Margin of CAG (15.58%) is better than 85.71% of its industry peers.
In the last couple of years the Operating Margin of CAG has remained more or less at the same level.
With a decent Gross Margin value of 27.39%, CAG is doing good in the industry, outperforming 65.93% of the companies in the same industry.
In the last couple of years the Gross Margin of CAG has remained more or less at the same level.
| 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.
CAG has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CAG has been reduced compared to 5 years ago.
CAG has a better debt/assets ratio than last year.
2.2 Solvency
CAG has an Altman-Z score of 1.84. This is not the best score and indicates that CAG is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.84, CAG perfoms like the industry average, outperforming 48.35% of the companies in the same industry.
The Debt to FCF ratio of CAG is 5.54, which is a neutral value as it means it would take CAG, 5.54 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.54, CAG is doing good in the industry, outperforming 64.84% of the companies in the same industry.
CAG has a Debt/Equity ratio of 0.84. This is a neutral value indicating CAG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.84, CAG is not doing good in the industry: 65.93% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.54 | ||
| Altman-Z | 1.84 |
ROIC/WACC1.2
WACC6.92%
2.3 Liquidity
A Current Ratio of 0.70 indicates that CAG may have some problems paying its short term obligations.
CAG has a Current ratio of 0.70. This is amonst the worse of the industry: CAG underperforms 82.42% of its industry peers.
A Quick Ratio of 0.22 indicates that CAG may have some problems paying its short term obligations.
CAG has a Quick ratio of 0.22. This is amonst the worse of the industry: CAG underperforms 89.01% 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%.
The Earnings Per Share has been growing slightly by 5.84% on average over the past years.
Looking at the last year, CAG shows a decrease in Revenue. The Revenue has decreased by -2.00% in the last year.
The Revenue has been growing slightly by 4.79% on average over the past years.
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
The Earnings Per Share is expected to grow by 1.90% on average over the next years.
CAG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.71% yearly.
EPS Next Y-7.93%
EPS Next 2Y-1.92%
EPS Next 3Y0.17%
EPS Next 5Y1.9%
Revenue Next Year-1.66%
Revenue Next 2Y-0.13%
Revenue Next 3Y0.05%
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 10.76, which indicates a very decent valuation of CAG.
Compared to the rest of the industry, the Price/Earnings ratio of CAG indicates a rather cheap valuation: CAG is cheaper than 84.62% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CAG to the average of the S&P500 Index (29.35), we can say CAG is valued rather cheaply.
A Price/Forward Earnings ratio of 10.60 indicates a reasonable valuation of CAG.
94.51% 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 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.76 | ||
| Fwd PE | 10.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CAG indicates a somewhat cheap valuation: CAG is cheaper than 73.63% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CAG is valued cheaply inside the industry as 86.81% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.51 | ||
| EV/EBITDA | 8.69 |
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)1.84
EPS Next 2Y-1.92%
EPS Next 3Y0.17%
5. Dividend
5.1 Amount
CAG has a Yearly Dividend Yield of 5.48%, which is a nice return.
CAG's Dividend Yield is rather good when compared to the industry average which is at 3.92. CAG pays more dividend than 91.21% of the companies in the same industry.
CAG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.48% |
5.2 History
The dividend of CAG is nicely growing with an annual growth rate of 11.19%!
CAG has been paying a dividend for at least 10 years, so it has 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)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.
The dividend of CAG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP135.95%
EPS Next 2Y-1.92%
EPS Next 3Y0.17%
27.23
+1.25 (+4.81%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners89.44%
Inst Owner Change-0.03%
Ins Owners0.51%
Ins Owner Change0.02%
Market Cap13.00B
Analysts66.36
Price Target29.88 (9.73%)
Short Float %3.41%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.48% |
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)-0.21%
PT rev (3m)-6.62%
EPS NQ rev (1m)-7.49%
EPS NQ rev (3m)-25.26%
EPS NY rev (1m)-0.87%
EPS NY rev (3m)-5.75%
Revenue NQ rev (1m)-2.29%
Revenue NQ rev (3m)-3.66%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.76 | ||
| Fwd PE | 10.6 | ||
| P/S | 1.09 | ||
| P/FCF | 8.51 | ||
| P/OCF | 6.78 | ||
| P/B | 1.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.69 |
EPS(TTM)2.53
EY9.29%
EPS(NY)2.57
Fwd EY9.43%
FCF(TTM)3.2
FCFY11.75%
OCF(TTM)4.02
OCFY14.75%
SpS24.99
BVpS18.44
TBVpS-9.81
PEG (NY)N/A
PEG (5Y)1.84
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 | 1.84 |
F-Score7
WACC6.92%
ROIC/WACC1.2
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-7.93%
EPS Next 2Y-1.92%
EPS Next 3Y0.17%
EPS Next 5Y1.9%
Revenue 1Y (TTM)-2%
Revenue growth 3Y2.52%
Revenue growth 5Y4.79%
Sales Q2Q%-0.41%
Revenue Next Year-1.66%
Revenue Next 2Y-0.13%
Revenue Next 3Y0.05%
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%