CONAGRA BRANDS INC (CAG) Stock Fundamental Analysis
USA - NYSE:CAG - US2058871029 - Common Stock
17.14 USD
+0.44 (+2.63%)
17.14 USD
0 (0%)
Taking everything into account, CAG scores 5 out of 10 in our fundamental rating. CAG was compared to 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 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.
CAG had a positive operating cash flow in the past year.
In the past 5 years CAG has always been profitable.
In the past 5 years CAG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.02%, CAG is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
CAG's Return On Equity of 9.53% is fine compared to the rest of the industry. CAG outperforms 71.26% of its industry peers.
CAG has a better Return On Invested Capital (7.02%) than 73.56% of its industry peers.
CAG had an Average Return On Invested Capital over the past 3 years of 7.92%. This is significantly below the industry average of 28.25%.
| 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
CAG's Profit Margin of 7.42% is amongst the best of the industry. CAG outperforms 81.61% of its industry peers.
CAG's Profit Margin has improved in the last couple of years.
CAG has a better Operating Margin (13.76%) than 80.46% of its industry peers.
In the last couple of years the Operating Margin of CAG has declined.
Looking at the Gross Margin, with a value of 25.43%, CAG is in the better half of the industry, outperforming 60.92% of the companies in the same industry.
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
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 about the same amount of shares outstanding.
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
Based on the Altman-Z score of 1.65, we must say that CAG is in the distress zone and has some risk of bankruptcy.
CAG's Altman-Z score of 1.65 is in line compared to the rest of the industry. CAG outperforms 42.53% of its industry peers.
CAG has a debt to FCF ratio of 7.26. This is a slightly negative value and a sign of low solvency as CAG would need 7.26 years to pay back of all of its debts.
The Debt to FCF ratio of CAG (7.26) is better than 66.67% 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.
The Debt to Equity ratio of CAG (0.81) is worse than 64.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 7.26 | ||
| Altman-Z | 1.65 |
ROIC/WACC1.1
WACC6.4%
2.3 Liquidity
A Current Ratio of 1.06 indicates that CAG should not have too much problems paying its short term obligations.
CAG has a Current ratio of 1.06. This is in the lower half of the industry: CAG underperforms 78.16% of its industry peers.
A Quick Ratio of 0.44 indicates that CAG may have some problems paying its short term obligations.
The Quick ratio of CAG (0.44) is worse than 78.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The earnings per share for CAG have decreased strongly by -14.96% in the last year.
Measured over the past 5 years, CAG shows a small growth in Earnings Per Share. The EPS has been growing by 0.17% on average per year.
Looking at the last year, CAG shows a decrease in Revenue. The Revenue has decreased by -4.11% in the last 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
CAG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.48% yearly.
Based on estimates for the next years, CAG will show a small growth in Revenue. The Revenue will grow by 0.37% on average per year.
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 7.94 indicates a rather cheap valuation of CAG.
CAG's Price/Earnings ratio is rather cheap when compared to the industry. CAG is cheaper than 90.80% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.83. CAG is valued rather cheaply when compared to this.
CAG is valuated reasonably with a Price/Forward Earnings ratio of 9.10.
Based on the Price/Forward Earnings ratio, CAG is valued cheaper than 90.80% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CAG to the average of the S&P500 Index (32.68), we can say CAG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.94 | ||
| Fwd PE | 9.1 |
4.2 Price Multiples
70.11% of the companies in the same industry are more expensive than CAG, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAG indicates a rather cheap valuation: CAG is cheaper than 88.51% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.19 | ||
| EV/EBITDA | 8.02 |
4.3 Compensation for Growth
The decent profitability rating of CAG may justify a higher PE ratio.
A cheap valuation may be justified as CAG's earnings are expected to decrease with -3.79% in the coming years.
PEG (NY)N/A
PEG (5Y)45.39
EPS Next 2Y-9.5%
EPS Next 3Y-3.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.38%, CAG is a good candidate for dividend investing.
CAG's Dividend Yield is rather good when compared to the industry average which is at 5.18. CAG pays more dividend than 95.40% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, CAG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.38% |
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 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
CAG pays out 78.70% 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.
DP78.7%
EPS Next 2Y-9.5%
EPS Next 3Y-3.79%
17.14
+0.44 (+2.63%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners93.39%
Inst Owner Change-4.8%
Ins Owners0.64%
Ins Owner Change4.68%
Market Cap8.20B
Revenue(TTM)11.45B
Net Income(TTM)850.10M
Analysts55.38
Price Target21.39 (24.8%)
Short Float %5.2%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.38% |
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)-5.81%
EPS NQ rev (3m)-6.55%
EPS NY rev (1m)-1.34%
EPS NY rev (3m)-20%
Revenue NQ rev (1m)-0.75%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.94 | ||
| Fwd PE | 9.1 | ||
| P/S | 0.72 | ||
| P/FCF | 7.19 | ||
| P/OCF | 5.31 | ||
| P/B | 0.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.02 |
EPS(TTM)2.16
EY12.6%
EPS(NY)1.88
Fwd EY10.99%
FCF(TTM)2.38
FCFY13.91%
OCF(TTM)3.23
OCFY18.83%
SpS23.94
BVpS18.64
TBVpS-8.35
PEG (NY)N/A
PEG (5Y)45.39
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
WACC6.4%
ROIC/WACC1.1
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%.