CONAGRA BRANDS INC (CAG) Stock Fundamental Analysis
USA - NYSE:CAG - US2058871029 - Common Stock
17.455 USD
+0.07 (+0.43%)
Overall CAG gets a fundamental rating of 5 out of 10. We evaluated CAG against 87 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. Finally 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.
In the past 5 years CAG always reported a positive cash flow from operatings.
1.2 Ratios
CAG's Return On Assets of 4.02% is fine compared to the rest of the industry. CAG outperforms 64.37% of its industry peers.
CAG has a better Return On Equity (9.53%) than 72.41% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.02%, CAG is in the better half of the industry, outperforming 74.71% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CAG is significantly below the industry average of 28.37%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.02% | ||
| ROE | 9.53% | ||
| ROIC | 7.02% |
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
Looking at the Profit Margin, with a value of 7.42%, CAG belongs to the top of the industry, outperforming 80.46% of the companies in the same industry.
In the last couple of years the Profit Margin of CAG has grown nicely.
With an excellent Operating Margin value of 13.76%, CAG belongs to the best of the industry, outperforming 81.61% of the companies in the same industry.
In the last couple of years the Operating Margin of CAG has declined.
CAG's Gross Margin of 25.43% is fine compared to the rest of the industry. CAG outperforms 62.07% of its industry peers.
In the last couple of years the Gross Margin of CAG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.76% | ||
| PM (TTM) | 7.42% | ||
| GM | 25.43% |
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.
CAG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CAG has an improved debt to assets ratio.
2.2 Solvency
CAG has an Altman-Z score of 1.65. This is a bad value and indicates that CAG is not financially healthy and even has some risk of bankruptcy.
CAG has a Altman-Z score (1.65) which is in line with its industry peers.
The Debt to FCF ratio of CAG is 7.26, which is on the high side as it means it would take CAG, 7.26 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CAG (7.26) is better than 70.11% of its industry peers.
CAG has a Debt/Equity ratio of 0.81. This is a neutral value indicating CAG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.81, CAG is not doing good in the industry: 65.52% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 7.26 | ||
| Altman-Z | 1.65 |
ROIC/WACC1.05
WACC6.66%
2.3 Liquidity
CAG has a Current Ratio of 1.06. This is a normal value and indicates that CAG is financially healthy and should not expect problems in meeting its short term obligations.
CAG's Current ratio of 1.06 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 1.06. 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's Quick ratio of 0.44 is on the low side compared to the rest of the industry. CAG is outperformed by 77.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
CAG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.96%.
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 -4.11% in the past year.
CAG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.99% yearly.
EPS 1Y (TTM)-14.96%
EPS 3Y-0.99%
EPS 5Y0.17%
EPS Q2Q%-26.42%
Revenue 1Y (TTM)-4.11%
Revenue growth 3Y0.22%
Revenue growth 5Y0.99%
Sales Q2Q%-5.81%
3.2 Future
The Earnings Per Share is expected to grow by 0.48% 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 0.37% yearly.
EPS Next Y-23.01%
EPS Next 2Y-9.5%
EPS Next 3Y-3.79%
EPS Next 5Y0.48%
Revenue Next Year-3.82%
Revenue Next 2Y-2.34%
Revenue Next 3Y-1.03%
Revenue Next 5Y0.37%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
A Price/Earnings ratio of 8.08 indicates a reasonable valuation of CAG.
Based on the Price/Earnings ratio, CAG is valued cheaply inside the industry as 91.95% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.51, CAG is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.27, the valuation of CAG can be described as very reasonable.
90.80% 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 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.08 | ||
| Fwd PE | 9.27 |
4.2 Price Multiples
72.41% of the companies in the same industry are more expensive than CAG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CAG is valued cheaper than 88.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.32 | ||
| EV/EBITDA | 8.08 |
4.3 Compensation for Growth
CAG has a very decent profitability rating, which may justify a higher PE ratio.
CAG's earnings are expected to decrease with -3.79% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)46.22
EPS Next 2Y-9.5%
EPS Next 3Y-3.79%
5. Dividend
5.1 Amount
CAG has a Yearly Dividend Yield of 8.03%, which is a nice return.
Compared to an average industry Dividend Yield of 5.17, 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 2.44, CAG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.03% |
5.2 History
On average, the dividend of CAG grows each year by 10.50%, which is quite nice.
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)10.5%
Div Incr Years5
Div Non Decr Years17
5.3 Sustainability
78.70% of the earnings are spent on dividend by CAG. 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.
DP78.7%
EPS Next 2Y-9.5%
EPS Next 3Y-3.79%
NYSE:CAG (11/19/2025, 10:23:07 AM)
17.455
+0.07 (+0.43%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners93.39%
Inst Owner Change-2.66%
Ins Owners0.64%
Ins Owner Change17.47%
Market Cap8.35B
Revenue(TTM)11.45B
Net Income(TTM)850.10M
Analysts55.38
Price Target21.39 (22.54%)
Short Float %6.49%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.03% |
Yearly Dividend1.4
Dividend Growth(5Y)10.5%
DP78.7%
Div Incr Years5
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.65%
Min EPS beat(2)-4.48%
Max EPS beat(2)15.78%
EPS beat(4)2
Avg EPS beat(4)2.44%
Min EPS beat(4)-4.48%
Max EPS beat(4)15.78%
EPS beat(8)5
Avg EPS beat(8)1.42%
EPS beat(12)9
Avg EPS beat(12)5.22%
EPS beat(16)11
Avg EPS beat(16)4.09%
Revenue beat(2)0
Avg Revenue beat(2)-1.58%
Min Revenue beat(2)-2.84%
Max Revenue beat(2)-0.32%
Revenue beat(4)1
Avg Revenue beat(4)-1.45%
Min Revenue beat(4)-3.1%
Max Revenue beat(4)0.44%
Revenue beat(8)1
Avg Revenue beat(8)-1.61%
Revenue beat(12)1
Avg Revenue beat(12)-1.5%
Revenue beat(16)4
Avg Revenue beat(16)-1.05%
PT rev (1m)-0.31%
PT rev (3m)-1.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.55%
EPS NY rev (1m)-1.34%
EPS NY rev (3m)-20%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.08 | ||
| Fwd PE | 9.27 | ||
| P/S | 0.73 | ||
| P/FCF | 7.32 | ||
| P/OCF | 5.41 | ||
| P/B | 0.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.08 |
EPS(TTM)2.16
EY12.37%
EPS(NY)1.88
Fwd EY10.79%
FCF(TTM)2.38
FCFY13.66%
OCF(TTM)3.23
OCFY18.49%
SpS23.94
BVpS18.64
TBVpS-8.35
PEG (NY)N/A
PEG (5Y)46.22
Graham Number30.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.02% | ||
| ROE | 9.53% | ||
| ROCE | 8.98% | ||
| ROIC | 7.02% | ||
| ROICexc | 7.31% | ||
| ROICexgc | 31.04% | ||
| OM | 13.76% | ||
| PM (TTM) | 7.42% | ||
| GM | 25.43% | ||
| FCFM | 9.96% |
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-Score7
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 7.26 | ||
| Debt/EBITDA | 3.7 | ||
| Cap/Depr | 104.32% | ||
| Cap/Sales | 3.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.71% | ||
| Profit Quality | 134.2% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 1.65 |
F-Score7
WACC6.66%
ROIC/WACC1.05
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)-14.96%
EPS 3Y-0.99%
EPS 5Y0.17%
EPS Q2Q%-26.42%
EPS Next Y-23.01%
EPS Next 2Y-9.5%
EPS Next 3Y-3.79%
EPS Next 5Y0.48%
Revenue 1Y (TTM)-4.11%
Revenue growth 3Y0.22%
Revenue growth 5Y0.99%
Sales Q2Q%-5.81%
Revenue Next Year-3.82%
Revenue Next 2Y-2.34%
Revenue Next 3Y-1.03%
Revenue Next 5Y0.37%
EBIT growth 1Y-15.14%
EBIT growth 3Y-1.31%
EBIT growth 5Y-2.04%
EBIT Next Year4.99%
EBIT Next 3Y4.34%
EBIT Next 5Y6.04%
FCF growth 1Y43.53%
FCF growth 3Y22.29%
FCF growth 5Y-2.41%
OCF growth 1Y31.37%
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 5 / 10 to CAG.
Can you provide the valuation status for CONAGRA BRANDS INC?
ChartMill assigns a valuation rating of 7 / 10 to CONAGRA BRANDS INC (CAG). This can be considered as Undervalued.
What is the profitability of CAG stock?
CONAGRA BRANDS INC (CAG) has a profitability rating of 6 / 10.
Can you provide the financial health for CAG stock?
The financial health rating of CONAGRA BRANDS INC (CAG) is 3 / 10.
How sustainable is the dividend of CONAGRA BRANDS INC (CAG) stock?
The dividend rating of CONAGRA BRANDS INC (CAG) is 8 / 10 and the dividend payout ratio is 78.7%.