CONAGRA BRANDS INC (CAG) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:CAG • US2058871029
18.51 USD
+0.68 (+3.81%)
At close: Jan 30, 2026
18.4802 USD
-0.03 (-0.16%)
After Hours: 1/30/2026, 8:04:00 PM
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 correctly, but it does not seem to be growing. CAG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year CAG was profitable.
- CAG had a positive operating cash flow in the past year.
- 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 (-0.50%) which is in line with its industry peers.
- CAG has a Return On Equity (-1.21%) which is comparable to the rest of the industry.
- CAG has a better Return On Invested Capital (6.94%) than 74.71% 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 27.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.5% | ||
| ROE | -1.21% | ||
| ROIC | 6.94% |
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
- In the last couple of years the Profit Margin of CAG has grown nicely.
- Looking at the Operating Margin, with a value of 12.86%, CAG belongs to the top of the industry, outperforming 83.91% of the companies in the same industry.
- CAG's Operating Margin has declined in the last couple of years.
- The Gross Margin of CAG (24.57%) is comparable to the rest of the industry.
- CAG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.86% | ||
| PM (TTM) | N/A | ||
| GM | 24.57% |
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.
- 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
- Based on the Altman-Z score of 1.68, we must say that CAG is in the distress zone and has some risk of bankruptcy.
- CAG's Altman-Z score of 1.68 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 8.70. This is a slightly negative value and a sign of low solvency as CAG would need 8.70 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 8.70, CAG is in the better half of the industry, outperforming 62.07% of the companies in the same industry.
- CAG has a Debt/Equity ratio of 0.85. This is a neutral value indicating CAG is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.85, CAG is doing worse than 63.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 8.7 | ||
| Altman-Z | 1.68 |
ROIC/WACC1
WACC6.93%
2.3 Liquidity
- CAG has a Current Ratio of 0.89. 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 Current ratio of CAG (0.89) is worse than 78.16% of its industry peers.
- A Quick Ratio of 0.28 indicates that CAG may have some problems paying its short term obligations.
- With a Quick ratio value of 0.28, CAG is not doing good in the industry: 90.80% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
- The earnings per share for CAG have decreased strongly by -24.51% 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.
- CAG shows a decrease in Revenue. In the last year, the revenue decreased by -5.82%.
- The Revenue has been growing slightly by 0.99% on average over the past years.
EPS 1Y (TTM)-24.51%
EPS 3Y-0.99%
EPS 5Y0.17%
EPS Q2Q%-35.71%
Revenue 1Y (TTM)-5.82%
Revenue growth 3Y0.22%
Revenue growth 5Y0.99%
Sales Q2Q%-6.76%
3.2 Future
- Based on estimates for the next years, CAG will show a decrease in Earnings Per Share. The EPS will decrease by -1.00% on average per year.
- CAG is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.05% yearly.
EPS Next Y-24.3%
EPS Next 2Y-10.81%
EPS Next 3Y-5.2%
EPS Next 5Y-1%
Revenue Next Year-3.88%
Revenue Next 2Y-2.4%
Revenue Next 3Y-1.21%
Revenue Next 5Y-0.05%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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
- The Price/Earnings ratio is 9.69, which indicates a very decent valuation of CAG.
- 89.66% of the companies in the same industry are more expensive than CAG, based on the Price/Earnings ratio.
- CAG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.32.
- CAG is valuated reasonably with a Price/Forward Earnings ratio of 10.12.
- 91.95% of the companies in the same industry are more expensive than CAG, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, CAG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.69 | ||
| Fwd PE | 10.12 |
4.2 Price Multiples
- CAG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CAG is cheaper than 65.52% 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 87.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.1 | ||
| EV/EBITDA | 8.76 |
4.3 Compensation for Growth
- CAG's earnings are expected to decrease with -5.20% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)55.43
EPS Next 2Y-10.81%
EPS Next 3Y-5.2%
5. Dividend
5.1 Amount
- CAG has a Yearly Dividend Yield of 7.85%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.30, 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 1.83, CAG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.85% |
5.2 History
- The dividend of CAG is nicely growing with an annual growth rate of 10.50%!
- 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)10.5%
Div Incr Years5
Div Non Decr Years17
5.3 Sustainability
- The earnings of CAG are negative and hence is the payout ratio. CAG will probably not be able to sustain this dividend level.
DP-682.55%
EPS Next 2Y-10.81%
EPS Next 3Y-5.2%
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.
What is the valuation status of CONAGRA BRANDS INC (CAG) stock?
ChartMill assigns a valuation rating of 6 / 10 to CONAGRA BRANDS INC (CAG). This can be considered as Fairly Valued.
What is the profitability of CAG stock?
CONAGRA BRANDS INC (CAG) has a profitability rating of 5 / 10.
What is the valuation of CONAGRA BRANDS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CONAGRA BRANDS INC (CAG) is 9.69 and the Price/Book (PB) ratio is 1.09.
Can you provide the financial health for CAG stock?
The financial health rating of CONAGRA BRANDS INC (CAG) is 3 / 10.