CONAGRA BRANDS INC (CAG) Stock Fundamental Analysis
USA - NYSE:CAG - US2058871029 - Common Stock
17.45 USD
+0.02 (+0.11%)
17.49 USD
+0.04 (+0.23%)
We assign a fundamental rating of 5 out of 10 to CAG. CAG was compared to 86 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
CAG had positive earnings in the past year.
In the past year CAG had a positive cash flow from operations.
In the past 5 years CAG has always been profitable.
CAG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.02%, CAG is doing good in the industry, outperforming 63.95% of the companies in the same industry.
CAG has a better Return On Equity (9.53%) than 70.93% of its industry peers.
With a decent Return On Invested Capital value of 7.02%, CAG is doing good in the industry, outperforming 73.26% 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 29.14%.
| 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 80.23% of the companies in the same industry.
In the last couple of years the Profit Margin of CAG has grown nicely.
With an excellent Operating Margin value of 13.76%, CAG belongs to the best of the industry, outperforming 80.23% of the companies in the same industry.
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 60.47% of the companies in the same industry.
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.
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
The debt/assets ratio for CAG has been reduced compared to a year ago.
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 43.02% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 7.26, CAG is in the better half of the industry, outperforming 68.60% of the companies in the same industry.
CAG has a Debt/Equity ratio of 0.81. This is a neutral value indicating 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: 65.12% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 7.26 | ||
| Altman-Z | 1.65 |
ROIC/WACC1.05
WACC6.67%
2.3 Liquidity
A Current Ratio of 1.06 indicates that CAG should not have too much problems paying its short term obligations.
CAG's Current ratio of 1.06 is on the low side compared to the rest of the industry. CAG is outperformed by 77.91% of its industry peers.
A Quick Ratio of 0.44 indicates that CAG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.44, CAG is doing worse than 76.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
CAG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.96%.
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 -4.11% 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)-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.
The Revenue is expected to grow by 0.37% on average over the next years.
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
The Price/Earnings ratio is 8.08, 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 90.70% of the companies listed in the same industry.
CAG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
A Price/Forward Earnings ratio of 9.26 indicates a reasonable valuation of CAG.
90.70% of the companies in the same industry are more expensive than CAG, based on the Price/Forward Earnings ratio.
CAG is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.08 | ||
| Fwd PE | 9.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAG is valued a bit cheaper than the industry average as 69.77% of the companies are valued more expensively.
89.53% of the companies in the same industry are more expensive than CAG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.32 | ||
| EV/EBITDA | 8.1 |
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 -3.79% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)46.21
EPS Next 2Y-9.5%
EPS Next 3Y-3.79%
5. Dividend
5.1 Amount
CAG has a Yearly Dividend Yield of 8.03%, which is a nice return.
Compared to an average industry Dividend Yield of 5.16, CAG pays a better dividend. On top of this CAG pays more dividend than 95.35% 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 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.03% |
5.2 History
On average, the dividend of CAG grows each year by 10.50%, which is quite nice.
CAG has paid a dividend for at least 10 years, which is 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.
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%
17.45
+0.02 (+0.11%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners93.39%
Inst Owner Change-6.58%
Ins Owners0.64%
Ins Owner Change4.6%
Market Cap8.35B
Revenue(TTM)11.45B
Net Income(TTM)850.10M
Analysts55.38
Price Target21.39 (22.58%)
Short Float %5.2%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.03% |
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)0%
EPS NQ rev (3m)-6.55%
EPS NY rev (1m)-1.34%
EPS NY rev (3m)-20%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.08 | ||
| Fwd PE | 9.26 | ||
| P/S | 0.73 | ||
| P/FCF | 7.32 | ||
| P/OCF | 5.41 | ||
| P/B | 0.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.1 |
EPS(TTM)2.16
EY12.38%
EPS(NY)1.88
Fwd EY10.8%
FCF(TTM)2.38
FCFY13.67%
OCF(TTM)3.23
OCFY18.5%
SpS23.94
BVpS18.64
TBVpS-8.35
PEG (NY)N/A
PEG (5Y)46.21
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
WACC6.67%
ROIC/WACC1.05
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%.