CONAGRA BRANDS INC (CAG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CAG - US2058871029 - Common Stock
17.465 USD
0 (-0.03%)
CAG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 has a valuation in line with the averages, 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.
- CAG had a positive operating cash flow in the past year.
- 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
- CAG has a Return On Assets (-0.50%) which is in line with its industry peers.
- The Return On Equity of CAG (-1.21%) is comparable to the rest of the industry.
- With a decent Return On Invested Capital value of 6.94%, 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 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
- CAG's Profit Margin has improved in the last couple of years.
- CAG has a better Operating Margin (12.86%) than 83.91% of its industry peers.
- In the last couple of years the Operating Margin of CAG has declined.
- CAG has a Gross Margin of 24.57%. This is comparable to the rest of the industry: CAG outperforms 58.62% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CAG is still 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 1.66, we must say that CAG is in the distress zone and has some risk of bankruptcy.
- CAG's Altman-Z score of 1.66 is in line compared to the rest of the industry. CAG outperforms 41.38% of its industry peers.
- 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.
- The Debt to FCF ratio of CAG (8.70) is better than 62.07% of its industry peers.
- CAG has a Debt/Equity ratio of 0.85. This is a neutral value indicating CAG is somewhat dependend on debt financing.
- CAG has a worse Debt to Equity ratio (0.85) than 63.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 8.7 | ||
| Altman-Z | 1.66 |
ROIC/WACC1.01
WACC6.88%
2.3 Liquidity
- A Current Ratio of 0.89 indicates that CAG may have some problems paying its short term obligations.
- With a Current ratio value of 0.89, CAG is not doing good in the industry: 78.16% of the companies in the same industry are doing better.
- A Quick Ratio of 0.28 indicates that CAG may have some problems paying its short term obligations.
- The Quick ratio of CAG (0.28) is worse than 93.10% 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.
- CAG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.17% yearly.
- The Revenue has decreased by -5.82% 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)-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-23.4%
EPS Next 2Y-10.19%
EPS Next 3Y-4.79%
EPS Next 5Y-1%
Revenue Next Year-3.88%
Revenue Next 2Y-2.42%
Revenue Next 3Y-1.23%
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
- Based on the Price/Earnings ratio of 9.14, the valuation of CAG can be described as reasonable.
- Based on the Price/Earnings ratio, CAG is valued cheaper than 88.51% of the companies in the same industry.
- CAG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
- Based on the Price/Forward Earnings ratio of 9.41, the valuation of CAG can be described as reasonable.
- Based on the Price/Forward Earnings ratio, CAG is valued cheaply inside the industry as 95.40% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. CAG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.14 | ||
| Fwd PE | 9.41 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CAG indicates a somewhat cheap valuation: CAG is cheaper than 65.52% of the companies listed 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 | 9.53 | ||
| EV/EBITDA | 8.49 |
4.3 Compensation for Growth
- CAG's earnings are expected to decrease with -4.79% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)52.3
EPS Next 2Y-10.19%
EPS Next 3Y-4.79%
5. Dividend
5.1 Amount
- CAG has a Yearly Dividend Yield of 8.06%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.28, 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 1.82, CAG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.06% |
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
- 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-10.19%
EPS Next 3Y-4.79%
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 9.14 and the Price/Book (PB) ratio is 1.03.
Can you provide the financial health for CAG stock?
The financial health rating of CONAGRA BRANDS INC (CAG) is 3 / 10.