CONAGRA BRANDS INC (CAG)
US2058871029 - Common Stock
We assign a fundamental rating of 5 out of 10 to CAG. CAG was compared to 90 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 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.
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
With a Return On Assets value of 2.33%, CAG perfoms like the industry average, outperforming 47.19% of the companies in the same industry.
CAG has a Return On Equity (5.68%) which is in line with its industry peers.
The Return On Invested Capital of CAG (7.77%) is better than 78.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CAG is in line with the industry average of 8.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 5.68% | ||
| ROIC | 7.77% |
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 better Profit Margin (4.14%) than 61.80% of its industry peers.
In the last couple of years the Profit Margin of CAG has declined.
CAG has a better Operating Margin (15.54%) than 86.52% of its industry peers.
CAG's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 27.37%, CAG is doing good in the industry, outperforming 66.29% of the companies in the same industry.
CAG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.54% | ||
| PM (TTM) | 4.14% | ||
| GM | 27.37% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CAG is still creating some value.
Compared to 1 year ago, CAG has more shares outstanding
Compared to 5 years ago, CAG has less shares outstanding
Compared to 1 year ago, CAG has an improved debt to assets ratio.
2.2 Solvency
CAG has an Altman-Z score of 1.89. 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.
CAG's Altman-Z score of 1.89 is in line compared to the rest of the industry. CAG outperforms 46.07% of its industry peers.
CAG has a debt to FCF ratio of 5.99. This is a neutral value as CAG would need 5.99 years to pay back of all of its debts.
The Debt to FCF ratio of CAG (5.99) is better than 62.92% of its industry peers.
A Debt/Equity ratio of 1.01 is on the high side and indicates that CAG has dependencies on debt financing.
CAG's Debt to Equity ratio of 1.01 is on the low side compared to the rest of the industry. CAG is outperformed by 74.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 5.99 | ||
| Altman-Z | 1.89 |
ROIC/WACC1.11
WACC6.99%
2.3 Liquidity
CAG has a Current Ratio of 0.94. 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 Current ratio of 0.94. This is in the lower half of the industry: CAG underperforms 74.16% of its industry peers.
A Quick Ratio of 0.33 indicates that CAG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.33, CAG is doing worse than 88.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
The earnings per share for CAG have decreased strongly by -10.88% in the last year.
CAG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.84% yearly.
CAG shows a decrease in Revenue. In the last year, the revenue decreased by -2.73%.
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)-10.88%
EPS 3Y0.38%
EPS 5Y5.84%
EPS Q2Q%-19.7%
Revenue 1Y (TTM)-2.73%
Revenue growth 3Y2.52%
Revenue growth 5Y4.79%
Sales Q2Q%-3.76%
3.2 Future
The Earnings Per Share is expected to grow by 8.64% on average over the next years. This is quite good.
Based on estimates for the next years, CAG will show a small growth in Revenue. The Revenue will grow by 2.98% on average per year.
EPS Next Y-2.17%
EPS Next 2Y0.82%
EPS Next 3Y1.91%
EPS Next 5Y8.64%
Revenue Next Year-1.43%
Revenue Next 2Y-0.01%
Revenue Next 3Y0.28%
Revenue Next 5Y2.98%
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 accelerating.
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
Based on the Price/Earnings ratio of 10.70, the valuation of CAG can be described as reasonable.
CAG's Price/Earnings ratio is rather cheap when compared to the industry. CAG is cheaper than 88.76% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. CAG is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.01, the valuation of CAG can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CAG indicates a rather cheap valuation: CAG is cheaper than 91.01% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.82. CAG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.7 | ||
| Fwd PE | 10.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAG is valued a bit cheaper than the industry average as 73.03% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAG indicates a rather cheap valuation: CAG is cheaper than 83.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.86 | ||
| EV/EBITDA | 8.99 |
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)1.83
EPS Next 2Y0.82%
EPS Next 3Y1.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.10%, CAG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.80, CAG pays a better dividend. On top of this CAG pays more dividend than 91.01% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, CAG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.1% |
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 Years4
Div Non Decr Years16
5.3 Sustainability
CAG pays out 135.38% 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.
DP135.38%
EPS Next 2Y0.82%
EPS Next 3Y1.91%
CONAGRA BRANDS INC
NYSE:CAG (11/21/2024, 5:05:00 PM)
After market: 27.17 0 (0%)27.17
+0.05 (+0.18%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.97B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.1% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.7 | ||
| Fwd PE | 10.01 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 5.68% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.54% | ||
| PM (TTM) | 4.14% | ||
| GM | 27.37% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-10.88%
EPS 3Y0.38%
EPS 5Y
EPS Q2Q%
EPS Next Y-2.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.73%
Revenue growth 3Y2.52%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y