CONAGRA BRANDS INC (CAG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CAG - US2058871029 - Common Stock
17.05 USD
+0.1 (+0.59%)
17.0699 USD
+0.02 (+0.12%)
CAG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 87 industry peers in the Food Products industry. There are concerns on the financial health of CAG while its profitability can be described as average. 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.
In the past year CAG had a positive cash flow from operations.
CAG had positive earnings in each of the past 5 years.
CAG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CAG has a Return On Assets of 4.02%. This is in the better half of the industry: CAG outperforms 63.22% of its industry peers.
CAG has a better Return On Equity (9.53%) than 72.41% of its industry peers.
CAG has a better Return On Invested Capital (7.02%) than 75.86% 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 28.38%.
| 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.
CAG has a Operating Margin of 13.76%. This is amongst the best in the industry. CAG outperforms 81.61% of its industry peers.
In the last couple of years the Operating Margin of CAG has declined.
CAG has a Gross Margin of 25.43%. This is in the better half of the industry: CAG outperforms 60.92% of its industry peers.
CAG's Gross Margin has declined in the last couple of years.
| 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
CAG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CAG has about the same amount of shares outstanding.
CAG has less shares outstanding than it did 5 years ago.
CAG has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.64, we must say that CAG is in the distress zone and has some risk of bankruptcy.
CAG has a Altman-Z score of 1.64. This is comparable 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.
With a decent Debt to FCF ratio value of 7.26, CAG is doing good in the industry, outperforming 70.11% of the companies in the same industry.
A Debt/Equity ratio of 0.81 indicates that 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: 64.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 7.26 | ||
| Altman-Z | 1.64 |
ROIC/WACC0.99
WACC7.06%
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 worse Current ratio (1.06) than 77.01% 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 has a worse Quick ratio (0.44) than 77.01% 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.
The Revenue has been growing slightly by 0.99% on average over the past years.
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
Based on estimates for the next years, CAG will show a small growth in Earnings Per Share. The EPS will grow by 0.09% on average per year.
The Revenue is expected to decrease by -0.08% on average over the next years.
EPS Next Y-23.01%
EPS Next 2Y-9.5%
EPS Next 3Y-4.12%
EPS Next 5Y0.09%
Revenue Next Year-3.82%
Revenue Next 2Y-2.34%
Revenue Next 3Y-1.16%
Revenue Next 5Y-0.08%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 cheaply with a Price/Earnings ratio of 7.89.
CAG's Price/Earnings ratio is rather cheap when compared to the industry. CAG is cheaper than 91.95% of the companies in the same industry.
CAG is valuated cheaply when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.05, the valuation of CAG can be described as very reasonable.
CAG's Price/Forward Earnings ratio is rather cheap when compared to the industry. CAG is cheaper than 95.40% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.10. CAG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.89 | ||
| Fwd PE | 9.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAG is valued a bit cheaper than the industry average as 70.11% 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 89.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.15 | ||
| EV/EBITDA | 7.98 |
4.3 Compensation for Growth
The decent profitability rating of CAG may justify a higher PE ratio.
CAG's earnings are expected to decrease with -4.12% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)45.15
EPS Next 2Y-9.5%
EPS Next 3Y-4.12%
5. Dividend
5.1 Amount
CAG has a Yearly Dividend Yield of 7.86%, which is a nice return.
CAG's Dividend Yield is rather good when compared to the industry average which is at 5.07. CAG pays more dividend than 95.40% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, CAG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.86% |
5.2 History
The dividend of CAG is nicely growing with an annual growth rate of 10.50%!
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
CAG pays out 78.70% 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.
DP78.7%
EPS Next 2Y-9.5%
EPS Next 3Y-4.12%
17.05
+0.1 (+0.59%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners93.39%
Inst Owner Change-2.73%
Ins Owners0.64%
Ins Owner Change3.97%
Market Cap8.16B
Revenue(TTM)11.45B
Net Income(TTM)850.10M
Analysts55.38
Price Target21.21 (24.4%)
Short Float %6.11%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.86% |
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)-1.15%
PT rev (3m)-2.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.89 | ||
| Fwd PE | 9.05 | ||
| P/S | 0.71 | ||
| P/FCF | 7.15 | ||
| P/OCF | 5.28 | ||
| P/B | 0.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.98 |
EPS(TTM)2.16
EY12.67%
EPS(NY)1.88
Fwd EY11.05%
FCF(TTM)2.38
FCFY13.99%
OCF(TTM)3.23
OCFY18.93%
SpS23.94
BVpS18.64
TBVpS-8.35
PEG (NY)N/A
PEG (5Y)45.15
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 | 1.64 |
F-Score7
WACC7.06%
ROIC/WACC0.99
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-4.12%
EPS Next 5Y0.09%
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-1.16%
Revenue Next 5Y-0.08%
EBIT growth 1Y-15.14%
EBIT growth 3Y-1.31%
EBIT growth 5Y-2.04%
EBIT Next Year4.99%
EBIT Next 3Y3.96%
EBIT Next 5Y5.32%
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 4 / 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%.