CONAGRA BRANDS INC (CAG) Stock Fundamental Analysis
USA - NYSE:CAG - US2058871029 - Common Stock
18.875 USD
-0.07 (-0.34%)
Taking everything into account, CAG scores 5 out of 10 in our fundamental rating. CAG was compared to 89 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. Finally 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
Looking at the Return On Assets, with a value of 5.50%, CAG is in the better half of the industry, outperforming 74.16% of the companies in the same industry.
CAG has a better Return On Equity (12.90%) than 75.28% of its industry peers.
CAG has a Return On Invested Capital of 7.56%. This is in the better half of the industry: CAG outperforms 73.03% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CAG is significantly below the industry average of 28.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 12.9% | ||
| ROIC | 7.56% |
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 has a Profit Margin of 9.92%. This is amongst the best in the industry. CAG outperforms 85.39% of its industry peers.
CAG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 14.49%, CAG belongs to the top of the industry, outperforming 82.02% of the companies in the same industry.
In the last couple of years the Operating Margin of CAG has declined.
With a decent Gross Margin value of 25.95%, CAG is doing good in the industry, outperforming 60.67% of the companies in the same industry.
CAG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.49% | ||
| PM (TTM) | 9.92% | ||
| GM | 25.96% |
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
CAG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CAG remains at a similar level compared to 1 year ago.
CAG has less shares outstanding than it did 5 years ago.
CAG has a better debt/assets ratio than last year.
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.
Looking at the Altman-Z score, with a value of 1.65, CAG is in line with its industry, outperforming 41.57% of the companies in the same industry.
The Debt to FCF ratio of CAG is 6.19, which is on the high side as it means it would take CAG, 6.19 years of fcf income to pay off all of its debts.
CAG's Debt to FCF ratio of 6.19 is fine compared to the rest of the industry. CAG outperforms 74.16% of its industry peers.
CAG has a Debt/Equity ratio of 0.79. This is a neutral value indicating CAG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.79, CAG is doing worse than 60.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 6.19 | ||
| Altman-Z | 1.65 |
ROIC/WACC1.17
WACC6.48%
2.3 Liquidity
CAG has a Current Ratio of 0.71. 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 0.71. This is amonst the worse of the industry: CAG underperforms 83.15% of its industry peers.
CAG has a Quick Ratio of 0.71. This is a bad value and indicates that CAG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CAG (0.24) is worse than 92.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
CAG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.86%.
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.
The Revenue has decreased by -3.64% in the past year.
Measured over the past years, CAG shows a small growth in Revenue. The Revenue has been growing by 0.99% on average per year.
EPS 1Y (TTM)-13.86%
EPS 3Y-0.99%
EPS 5Y0.17%
EPS Q2Q%-8.2%
Revenue 1Y (TTM)-3.64%
Revenue growth 3Y0.22%
Revenue growth 5Y0.99%
Sales Q2Q%-4.27%
3.2 Future
CAG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.72% yearly.
Based on estimates for the next years, CAG will show a small growth in Revenue. The Revenue will grow by 0.35% on average per year.
EPS Next Y-21.94%
EPS Next 2Y-8.22%
EPS Next 3Y-2.69%
EPS Next 5Y0.72%
Revenue Next Year-3.32%
Revenue Next 2Y-2.04%
Revenue Next 3Y-0.83%
Revenue Next 5Y0.35%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 8.21.
CAG's Price/Earnings ratio is rather cheap when compared to the industry. CAG is cheaper than 89.89% of the companies in the same industry.
CAG is valuated cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.51, the valuation of CAG can be described as reasonable.
CAG's Price/Forward Earnings ratio is rather cheap when compared to the industry. CAG is cheaper than 86.52% 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 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.21 | ||
| Fwd PE | 10.51 |
4.2 Price Multiples
CAG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CAG is cheaper than 71.91% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAG indicates a rather cheap valuation: CAG is cheaper than 89.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.93 | ||
| EV/EBITDA | 7.85 |
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 -2.69% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)46.94
EPS Next 2Y-8.22%
EPS Next 3Y-2.69%
5. Dividend
5.1 Amount
CAG has a Yearly Dividend Yield of 7.20%, which is a nice return.
Compared to an average industry Dividend Yield of 5.03, CAG pays a better dividend. On top of this CAG pays more dividend than 94.38% of the companies listed in the same industry.
CAG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.2% |
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
58.07% of the earnings are spent on dividend by CAG. This is a bit on the high side, but may be sustainable.
CAG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP58.07%
EPS Next 2Y-8.22%
EPS Next 3Y-2.69%
NYSE:CAG (9/17/2025, 3:16:10 PM)
18.875
-0.07 (-0.34%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners88.63%
Inst Owner Change4.11%
Ins Owners0.64%
Ins Owner Change4.62%
Market Cap9.04B
Analysts55.38
Price Target21.52 (14.01%)
Short Float %5.25%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.2% |
Yearly Dividend1.4
Dividend Growth(5Y)10.5%
DP58.07%
Div Incr Years5
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.39%
Min EPS beat(2)-4.48%
Max EPS beat(2)-4.3%
EPS beat(4)1
Avg EPS beat(4)-4.47%
Min EPS beat(4)-11.84%
Max EPS beat(4)2.74%
EPS beat(8)5
Avg EPS beat(8)0.6%
EPS beat(12)9
Avg EPS beat(12)4.57%
EPS beat(16)11
Avg EPS beat(16)3.23%
Revenue beat(2)0
Avg Revenue beat(2)-2.97%
Min Revenue beat(2)-3.1%
Max Revenue beat(2)-2.84%
Revenue beat(4)1
Avg Revenue beat(4)-2.05%
Min Revenue beat(4)-3.1%
Max Revenue beat(4)0.44%
Revenue beat(8)1
Avg Revenue beat(8)-1.89%
Revenue beat(12)2
Avg Revenue beat(12)-1.4%
Revenue beat(16)5
Avg Revenue beat(16)-0.81%
PT rev (1m)-1.02%
PT rev (3m)-19.25%
EPS NQ rev (1m)-1.65%
EPS NQ rev (3m)-33.3%
EPS NY rev (1m)-18.89%
EPS NY rev (3m)-25.56%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)-3.36%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-4.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.21 | ||
| Fwd PE | 10.51 | ||
| P/S | 0.78 | ||
| P/FCF | 6.93 | ||
| P/OCF | 5.34 | ||
| P/B | 1.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.85 |
EPS(TTM)2.3
EY12.19%
EPS(NY)1.8
Fwd EY9.51%
FCF(TTM)2.72
FCFY14.42%
OCF(TTM)3.53
OCFY18.73%
SpS24.24
BVpS18.65
TBVpS-8.33
PEG (NY)N/A
PEG (5Y)46.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 12.9% | ||
| ROCE | 10.13% | ||
| ROIC | 7.56% | ||
| ROICexc | 7.59% | ||
| ROICexgc | 29.75% | ||
| OM | 14.49% | ||
| PM (TTM) | 9.92% | ||
| GM | 25.96% | ||
| FCFM | 11.23% |
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%
ROICexcg growth 3Y-5.95%
ROICexcg 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-Score6
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 6.19 | ||
| Debt/EBITDA | 3.4 | ||
| Cap/Depr | 99.77% | ||
| Cap/Sales | 3.35% | ||
| Interest Coverage | 3.94 | ||
| Cash Conversion | 81.69% | ||
| Profit Quality | 113.15% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | 1.65 |
F-Score6
WACC6.48%
ROIC/WACC1.17
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)-13.86%
EPS 3Y-0.99%
EPS 5Y0.17%
EPS Q2Q%-8.2%
EPS Next Y-21.94%
EPS Next 2Y-8.22%
EPS Next 3Y-2.69%
EPS Next 5Y0.72%
Revenue 1Y (TTM)-3.64%
Revenue growth 3Y0.22%
Revenue growth 5Y0.99%
Sales Q2Q%-4.27%
Revenue Next Year-3.32%
Revenue Next 2Y-2.04%
Revenue Next 3Y-0.83%
Revenue Next 5Y0.35%
EBIT growth 1Y-14.45%
EBIT growth 3Y-1.31%
EBIT growth 5Y-2.04%
EBIT Next Year5.52%
EBIT Next 3Y5.86%
EBIT Next 5Y9.08%
FCF growth 1Y-19.85%
FCF growth 3Y22.29%
FCF growth 5Y-2.41%
OCF growth 1Y-15.97%
OCF growth 3Y12.88%
OCF growth 5Y-1.68%