CONAGRA BRANDS INC (CAG) Stock Fundamental Analysis
NYSE:CAG - New York Stock Exchange, Inc. - US2058871029 - Common Stock
We assign a fundamental rating of 5 out of 10 to CAG. CAG was compared to 91 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 bad growth rate and is valued cheaply. 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.
In the past 5 years CAG has always been profitable.
Each year in the past 5 years CAG had a positive operating cash flow.
1.2 Ratios
CAG has a Return On Assets of 2.34%. This is comparable to the rest of the industry: CAG outperforms 45.35% of its industry peers.
Looking at the Return On Equity, with a value of 5.60%, CAG is in line with its industry, outperforming 48.84% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.32%, CAG is doing good in the industry, outperforming 76.74% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CAG is in line with the industry average of 9.02%.
The last Return On Invested Capital (8.32%) for CAG is above the 3 year average (7.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.34% | ||
| ROE | 5.6% | ||
| ROIC | 8.32% |
ROA(3y)2.91%
ROA(5y)3.67%
ROE(3y)7.35%
ROE(5y)9.58%
ROIC(3y)7.89%
ROIC(5y)7.89%
1.3 Margins
With a Profit Margin value of 4.13%, CAG perfoms like the industry average, outperforming 59.30% of the companies in the same industry.
In the last couple of years the Profit Margin of CAG has declined.
Looking at the Operating Margin, with a value of 15.58%, CAG belongs to the top of the industry, outperforming 84.88% of the companies in the same industry.
In the last couple of years the Operating Margin of CAG has remained more or less at the same level.
CAG has a Gross Margin of 27.39%. This is in the better half of the industry: CAG outperforms 63.95% of its industry peers.
In the last couple of years the Gross Margin of CAG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.58% | ||
| PM (TTM) | 4.13% | ||
| GM | 27.39% |
OM growth 3Y-3.57%
OM growth 5Y1.45%
PM growth 3Y-37.17%
PM growth 5Y-16.52%
GM growth 3Y-1.09%
GM growth 5Y-0.05%
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 more 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
CAG has an Altman-Z score of 1.83. This is not the best score and indicates that CAG is in the grey zone with still only limited risk for bankruptcy at the moment.
CAG has a Altman-Z score of 1.83. This is comparable to the rest of the industry: CAG outperforms 44.19% of its industry peers.
CAG has a debt to FCF ratio of 5.54. This is a neutral value as CAG would need 5.54 years to pay back of all of its debts.
CAG's Debt to FCF ratio of 5.54 is fine compared to the rest of the industry. CAG outperforms 60.47% of its industry peers.
CAG has a Debt/Equity ratio of 0.84. This is a neutral value indicating CAG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.84, CAG is not doing good in the industry: 72.09% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.54 | ||
| Altman-Z | 1.83 |
ROIC/WACC1.18
WACC7.04%
2.3 Liquidity
A Current Ratio of 0.70 indicates that CAG may have some problems paying its short term obligations.
With a Current ratio value of 0.70, CAG is not doing good in the industry: 86.05% of the companies in the same industry are doing better.
A Quick Ratio of 0.22 indicates that CAG may have some problems paying its short term obligations.
CAG has a worse Quick ratio (0.22) than 94.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
CAG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.00%.
The Earnings Per Share has been growing slightly by 5.84% on average over the past years.
CAG shows a decrease in Revenue. In the last year, the revenue decreased by -2.00%.
CAG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.79% yearly.
EPS 1Y (TTM)-8%
EPS 3Y0.38%
EPS 5Y5.84%
EPS Q2Q%-1.41%
Revenue 1Y (TTM)-2%
Revenue growth 3Y2.52%
Revenue growth 5Y4.79%
Sales Q2Q%-0.41%
3.2 Future
CAG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.69% yearly.
Based on estimates for the next years, CAG will show a small growth in Revenue. The Revenue will grow by 0.65% on average per year.
EPS Next Y-2.33%
EPS Next 2Y0.63%
EPS Next 3Y1.69%
EPS Next 5Y1.69%
Revenue Next Year-1.59%
Revenue Next 2Y-0.06%
Revenue Next 3Y0.07%
Revenue Next 5Y0.65%
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
With a Price/Earnings ratio of 10.16, the valuation of CAG can be described as very reasonable.
83.72% of the companies in the same industry are more expensive than CAG, based on the Price/Earnings ratio.
CAG is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
CAG is valuated reasonably with a Price/Forward Earnings ratio of 9.51.
93.02% 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 24.44. CAG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 9.51 |
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 72.09% of the companies listed in the same industry.
80.23% 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 | 8.03 | ||
| EV/EBITDA | 8.63 |
4.3 Compensation for Growth
The decent profitability rating of CAG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.74
EPS Next 2Y0.63%
EPS Next 3Y1.69%
5. Dividend
5.1 Amount
CAG has a Yearly Dividend Yield of 5.43%, which is a nice return.
Compared to an average industry Dividend Yield of 3.86, CAG pays a better dividend. On top of this CAG pays more dividend than 90.70% 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 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.43% |
5.2 History
The dividend of CAG is nicely growing with an annual growth rate of 11.19%!
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)11.19%
Div Incr Years5
Div Non Decr Years17
5.3 Sustainability
CAG pays out 135.95% 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.
DP135.95%
EPS Next 2Y0.63%
EPS Next 3Y1.69%
CONAGRA BRANDS INC
NYSE:CAG (1/21/2025, 8:04:00 PM)
Premarket: 25.69 -0.01 (-0.04%)25.7
-0.12 (-0.46%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners89.32%
Inst Owner Change-0.16%
Ins Owners0.51%
Ins Owner Change1.85%
Market Cap12.27B
Analysts66.36
Price Target30.6 (19.07%)
Short Float %3.36%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.43% |
Yearly Dividend1.38
Dividend Growth(5Y)11.19%
DP135.95%
Div Incr Years5
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.68%
Min EPS beat(2)-11.84%
Max EPS beat(2)2.48%
EPS beat(4)3
Avg EPS beat(4)0.15%
Min EPS beat(4)-11.84%
Max EPS beat(4)5.47%
EPS beat(8)7
Avg EPS beat(8)4.33%
EPS beat(12)10
Avg EPS beat(12)5.39%
EPS beat(16)13
Avg EPS beat(16)3.97%
Revenue beat(2)1
Avg Revenue beat(2)-1.18%
Min Revenue beat(2)-2.72%
Max Revenue beat(2)0.35%
Revenue beat(4)1
Avg Revenue beat(4)-1.22%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)0.35%
Revenue beat(8)1
Avg Revenue beat(8)-1.47%
Revenue beat(12)3
Avg Revenue beat(12)-0.93%
Revenue beat(16)6
Avg Revenue beat(16)-0.38%
PT rev (1m)-4.36%
PT rev (3m)-2.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.51%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 9.51 | ||
| P/S | 1.03 | ||
| P/FCF | 8.03 | ||
| P/OCF | 6.4 | ||
| P/B | 1.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.63 |
EPS(TTM)2.53
EY9.84%
EPS(NY)2.7
Fwd EY10.52%
FCF(TTM)3.2
FCFY12.45%
OCF(TTM)4.02
OCFY15.62%
SpS24.99
BVpS18.44
TBVpS-9.81
PEG (NY)N/A
PEG (5Y)1.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.34% | ||
| ROE | 5.6% | ||
| ROCE | 11.29% | ||
| ROIC | 8.32% | ||
| ROICexc | 8.34% | ||
| ROICexgc | 35.51% | ||
| OM | 15.58% | ||
| PM (TTM) | 4.13% | ||
| GM | 27.39% | ||
| FCFM | 12.8% |
ROA(3y)2.91%
ROA(5y)3.67%
ROE(3y)7.35%
ROE(5y)9.58%
ROIC(3y)7.89%
ROIC(5y)7.89%
ROICexc(3y)7.92%
ROICexc(5y)7.96%
ROICexgc(3y)35.02%
ROICexgc(5y)39.72%
ROCE(3y)10.33%
ROCE(5y)10.27%
ROICexcg growth 3Y-9.41%
ROICexcg growth 5Y-0.75%
ROICexc growth 3Y0.69%
ROICexc growth 5Y7.83%
OM growth 3Y-3.57%
OM growth 5Y1.45%
PM growth 3Y-37.17%
PM growth 5Y-16.52%
GM growth 3Y-1.09%
GM growth 5Y-0.05%
F-Score7
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.54 | ||
| Debt/EBITDA | 3.29 | ||
| Cap/Depr | 96.99% | ||
| Cap/Sales | 3.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.79% | ||
| Profit Quality | 309.99% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.22 | ||
| Altman-Z | 1.83 |
F-Score7
WACC7.04%
ROIC/WACC1.18
Cap/Depr(3y)106.15%
Cap/Depr(5y)108.81%
Cap/Sales(3y)3.4%
Cap/Sales(5y)3.61%
Profit Quality(3y)213.8%
Profit Quality(5y)178.16%
High Growth Momentum
Growth
EPS 1Y (TTM)-8%
EPS 3Y0.38%
EPS 5Y5.84%
EPS Q2Q%-1.41%
EPS Next Y-2.33%
EPS Next 2Y0.63%
EPS Next 3Y1.69%
EPS Next 5Y1.69%
Revenue 1Y (TTM)-2%
Revenue growth 3Y2.52%
Revenue growth 5Y4.79%
Sales Q2Q%-0.41%
Revenue Next Year-1.59%
Revenue Next 2Y-0.06%
Revenue Next 3Y0.07%
Revenue Next 5Y0.65%
EBIT growth 1Y-4.85%
EBIT growth 3Y-1.14%
EBIT growth 5Y6.31%
EBIT Next Year16.05%
EBIT Next 3Y6.92%
EBIT Next 5Y5.92%
FCF growth 1Y86.74%
FCF growth 3Y19.15%
FCF growth 5Y16.06%
OCF growth 1Y58%
OCF growth 3Y11.13%
OCF growth 5Y12.35%