CONAGRA BRANDS INC (CAG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CAG - US2058871029 - Common Stock
17.825 USD
+0.09 (+0.48%)
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.
- 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
- CAG has a Return On Assets of -0.50%. This is comparable to the rest of the industry: CAG outperforms 40.23% of its industry peers.
- CAG has a Return On Equity (-1.21%) which is in line with its industry peers.
- CAG has a better Return On Invested Capital (6.94%) than 74.71% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital 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.
- The Operating Margin of CAG (12.86%) is better than 83.91% of its industry peers.
- 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 58.62% 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. 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 about the same amout of shares outstanding than it did 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 1.67, we must say that CAG is in the distress zone and has some risk of bankruptcy.
- CAG's Altman-Z score of 1.67 is in line compared to the rest of the industry. CAG outperforms 41.38% of its industry peers.
- 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.
- 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.
- A Debt/Equity ratio of 0.85 indicates that CAG is somewhat dependend on debt financing.
- CAG's Debt to Equity ratio of 0.85 is on the low side compared to the rest of the industry. CAG is outperformed by 63.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 8.7 | ||
| Altman-Z | 1.67 |
ROIC/WACC1
WACC6.93%
2.3 Liquidity
- A Current Ratio of 0.89 indicates that CAG may have some problems paying its short term obligations.
- CAG's Current ratio of 0.89 is on the low side compared to the rest of the industry. CAG is outperformed by 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.
- With a Quick ratio value of 0.28, CAG is not doing good in the industry: 90.80% 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
- The earnings per share for CAG have decreased strongly by -24.51% in the last year.
- The Earnings Per Share has been growing slightly by 0.17% on average over the past years.
- 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
- Based on estimates for the next years, CAG will show a decrease in Earnings Per Share. The EPS will decrease by -1.00% on average per year.
- 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-24.3%
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
- 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.
- 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
- CAG is valuated reasonably with a Price/Earnings ratio of 9.33.
- Based on the Price/Earnings ratio, CAG is valued cheaper than 88.51% of the companies in the same industry.
- CAG is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- CAG is valuated reasonably with a Price/Forward Earnings ratio of 9.74.
- CAG's Price/Forward Earnings ratio is rather cheap when compared to the industry. CAG is cheaper than 91.95% 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 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.33 | ||
| Fwd PE | 9.74 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CAG is valued a bit cheaper than the industry average as 65.52% 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 87.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.73 | ||
| EV/EBITDA | 8.65 |
4.3 Compensation for Growth
- A cheap valuation may be justified as CAG's earnings are expected to decrease with -5.20% in the coming years.
PEG (NY)N/A
PEG (5Y)53.38
EPS Next 2Y-10.81%
EPS Next 3Y-5.2%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 8.01%, CAG is a good candidate for dividend investing.
- 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 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)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 9.33 and the Price/Book (PB) ratio is 1.05.
Can you provide the financial health for CAG stock?
The financial health rating of CONAGRA BRANDS INC (CAG) is 3 / 10.