CONAGRA BRANDS INC (CAG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CAG - US2058871029 - Common Stock
16.08 USD
-0.77 (-4.57%)
16.14 USD
+0.06 (+0.37%)
We assign a fundamental rating of 4 out of 10 to CAG. 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 correctly, but it does not seem to be growing. Finally 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.
Each year in the past 5 years CAG has 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 -0.50%, CAG is in line with its industry, outperforming 41.38% of the companies in the same industry.
With a Return On Equity value of -1.21%, CAG perfoms like the industry average, outperforming 41.38% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.95%, CAG is doing good in the industry, outperforming 74.71% of the companies in the same industry.
CAG had an Average Return On Invested Capital over the past 3 years of 7.92%. This is significantly below the industry average of 28.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.5% | ||
| ROE | -1.21% | ||
| ROIC | 6.95% |
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.
CAG has a better Operating Margin (12.87%) than 83.91% of its industry peers.
In the last couple of years the Operating Margin of CAG has declined.
CAG's Gross Margin of 24.56% is in line compared to the rest of the industry. CAG outperforms 59.77% of its industry peers.
CAG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.87% | ||
| PM (TTM) | N/A | ||
| GM | 24.56% |
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.
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
The Debt to FCF ratio of CAG is 8.70, which is on the high side as it means it would take CAG, 8.70 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 8.70, CAG is doing good in the industry, outperforming 64.37% 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.
CAG's Debt to Equity ratio of 0.85 is on the low side compared to the rest of the industry. CAG is outperformed by 62.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 8.7 | ||
| Altman-Z | N/A |
ROIC/WACC1.02
WACC6.84%
2.3 Liquidity
A Current Ratio of 0.89 indicates that CAG may have some problems paying its short term obligations.
CAG has a Current ratio of 0.89. This is in the lower half of the industry: CAG underperforms 77.01% of its industry peers.
CAG has a Quick 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.
CAG's Quick ratio of 0.28 is on the low side compared to the rest of the industry. CAG is outperformed by 91.95% of its industry peers.
| 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
The Earnings Per Share is expected to grow by 0.09% on average over the next years.
CAG is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.08% yearly.
EPS Next Y-23.4%
EPS Next 2Y-10.19%
EPS Next 3Y-4.79%
EPS Next 5Y0.09%
Revenue Next Year-3.8%
Revenue Next 2Y-2.34%
Revenue Next 3Y-1.17%
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.
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 8.42, which indicates a very decent valuation of CAG.
Compared to the rest of the industry, the Price/Earnings ratio of CAG indicates a rather cheap valuation: CAG is cheaper than 89.66% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CAG to the average of the S&P500 Index (26.92), we can say CAG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.67, the valuation of CAG can be described as reasonable.
94.25% of the companies in the same industry are more expensive than CAG, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.57. CAG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.42 | ||
| Fwd PE | 8.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAG is valued a bit cheaper than 66.67% 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 | 8.78 | ||
| EV/EBITDA | 8.32 |
4.3 Compensation for Growth
A cheap valuation may be justified as CAG's earnings are expected to decrease with -4.79% in the coming years.
PEG (NY)N/A
PEG (5Y)48.16
EPS Next 2Y-10.19%
EPS Next 3Y-4.79%
5. Dividend
5.1 Amount
CAG has a Yearly Dividend Yield of 8.09%, which is a nice return.
CAG's Dividend Yield is rather good when compared to the industry average which is at 2.40. CAG pays more dividend than 95.40% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, CAG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.09% |
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 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of CAG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-682.55%
EPS Next 2Y-10.19%
EPS Next 3Y-4.79%
16.08
-0.77 (-4.57%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners90.39%
Inst Owner Change0%
Ins Owners0.64%
Ins Owner Change3.83%
Market Cap7.69B
Revenue(TTM)11.23B
Net Income(TTM)-98.00M
Analysts55.38
Price Target20.66 (28.48%)
Short Float %6.02%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.09% |
Yearly Dividend1.4
Dividend Growth(5Y)10.5%
DP-682.55%
Div Incr Years5
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.92%
Min EPS beat(2)2.06%
Max EPS beat(2)15.78%
EPS beat(4)2
Avg EPS beat(4)2.26%
Min EPS beat(4)-4.48%
Max EPS beat(4)15.78%
EPS beat(8)5
Avg EPS beat(8)1.24%
EPS beat(12)9
Avg EPS beat(12)3.66%
EPS beat(16)12
Avg EPS beat(16)4.63%
Revenue beat(2)0
Avg Revenue beat(2)-0.72%
Min Revenue beat(2)-1.13%
Max Revenue beat(2)-0.32%
Revenue beat(4)0
Avg Revenue beat(4)-1.85%
Min Revenue beat(4)-3.1%
Max Revenue beat(4)-0.32%
Revenue beat(8)1
Avg Revenue beat(8)-1.52%
Revenue beat(12)1
Avg Revenue beat(12)-1.59%
Revenue beat(16)3
Avg Revenue beat(16)-1.15%
PT rev (1m)-2.62%
PT rev (3m)-3.74%
EPS NQ rev (1m)-5.24%
EPS NQ rev (3m)-8.2%
EPS NY rev (1m)-0.5%
EPS NY rev (3m)-1.84%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.42 | ||
| Fwd PE | 8.67 | ||
| P/S | 0.68 | ||
| P/FCF | 8.78 | ||
| P/OCF | 6.06 | ||
| P/B | 0.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.32 |
EPS(TTM)1.91
EY11.88%
EPS(NY)1.86
Fwd EY11.54%
FCF(TTM)1.83
FCFY11.39%
OCF(TTM)2.65
OCFY16.5%
SpS23.49
BVpS16.91
TBVpS-8.03
PEG (NY)N/A
PEG (5Y)48.16
Graham Number26.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.5% | ||
| ROE | -1.21% | ||
| ROCE | 9.08% | ||
| ROIC | 6.95% | ||
| ROICexc | 6.97% | ||
| ROICexgc | 26.16% | ||
| OM | 12.87% | ||
| PM (TTM) | N/A | ||
| GM | 24.56% | ||
| FCFM | 7.8% |
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-Score5
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 8.7 | ||
| Debt/EBITDA | 3.74 | ||
| Cap/Depr | 101.71% | ||
| Cap/Sales | 3.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.26% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.28 | ||
| Altman-Z | N/A |
F-Score5
WACC6.84%
ROIC/WACC1.02
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)-24.51%
EPS 3Y-0.99%
EPS 5Y0.17%
EPS Q2Q%-35.71%
EPS Next Y-23.4%
EPS Next 2Y-10.19%
EPS Next 3Y-4.79%
EPS Next 5Y0.09%
Revenue 1Y (TTM)-5.82%
Revenue growth 3Y0.22%
Revenue growth 5Y0.99%
Sales Q2Q%-6.76%
Revenue Next Year-3.8%
Revenue Next 2Y-2.34%
Revenue Next 3Y-1.17%
Revenue Next 5Y-0.08%
EBIT growth 1Y-22.18%
EBIT growth 3Y-1.31%
EBIT growth 5Y-2.04%
EBIT Next Year4.1%
EBIT Next 3Y3.29%
EBIT Next 5Y5.32%
FCF growth 1Y-24.69%
FCF growth 3Y22.29%
FCF growth 5Y-2.41%
OCF growth 1Y-18.21%
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.
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 8.42 and the Price/Book (PB) ratio is 0.95.
Can you provide the financial health for CAG stock?
The financial health rating of CONAGRA BRANDS INC (CAG) is 3 / 10.