CONAGRA BRANDS INC (CAG) Stock Fundamental Analysis
USA - NYSE:CAG - US2058871029 - Common Stock
18.47 USD
-0.31 (-1.65%)
18.5 USD
+0.03 (+0.16%)
Taking everything into account, CAG scores 5 out of 10 in our fundamental rating. CAG was compared to 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 has a bad growth rate and is valued cheaply. 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.
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's Return On Assets of 4.02% is fine compared to the rest of the industry. CAG outperforms 65.52% of its industry peers.
Looking at the Return On Equity, with a value of 9.53%, CAG is in the better half of the industry, outperforming 71.26% of the companies in the same industry.
CAG has a Return On Invested Capital of 7.02%. This is in the better half of the industry: CAG outperforms 73.56% 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 28.34%.
| 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 80.46% of the companies in the same industry.
CAG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.76%, CAG belongs to the top of the industry, outperforming 80.46% of the companies in the same industry.
CAG's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 25.43%, CAG is doing good in the industry, outperforming 60.92% 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.
Compared to 1 year ago, CAG has about the same amount of shares outstanding.
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
CAG has an Altman-Z score of 1.68. This is a bad value and indicates that CAG is not financially healthy and even has some risk of bankruptcy.
CAG has a Altman-Z score (1.68) which is in line with its industry peers.
The Debt to FCF ratio of CAG is 7.26, which is on the high side as it means it would take CAG, 7.26 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 7.26, CAG is doing good in the industry, outperforming 67.82% of the companies in the same industry.
A Debt/Equity ratio of 0.81 indicates that CAG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.81, CAG is doing worse than 64.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 7.26 | ||
| Altman-Z | 1.68 |
ROIC/WACC1.09
WACC6.41%
2.3 Liquidity
A Current Ratio of 1.06 indicates that CAG should not have too much problems paying its short term obligations.
CAG has a worse Current ratio (1.06) than 78.16% of its industry peers.
CAG has a Quick Ratio of 1.06. 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 has a Quick ratio of 0.44. This is in the lower half of the industry: CAG underperforms 78.16% of its industry peers.
| 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%.
The Earnings Per Share has been growing slightly by 0.17% on average over the past years.
CAG shows a decrease in Revenue. In the last year, the revenue decreased by -4.11%.
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
The Earnings Per Share is expected to grow by 0.48% on average over the next years.
CAG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.37% yearly.
EPS Next Y-21.96%
EPS Next 2Y-8.33%
EPS Next 3Y-3.79%
EPS Next 5Y0.48%
Revenue Next Year-3.58%
Revenue Next 2Y-2.18%
Revenue Next 3Y-1.01%
Revenue Next 5Y0.37%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 8.55, the valuation of CAG can be described as reasonable.
88.51% 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 26.83.
CAG is valuated reasonably with a Price/Forward Earnings ratio of 9.56.
Based on the Price/Forward Earnings ratio, CAG is valued cheaply inside the industry as 90.80% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.82, CAG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.55 | ||
| Fwd PE | 9.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAG is valued a bit cheaper than the industry average as 68.97% of the companies are valued more expensively.
CAG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CAG is cheaper than 88.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.74 | ||
| EV/EBITDA | 8.35 |
4.3 Compensation for Growth
The decent profitability rating of CAG 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)48.91
EPS Next 2Y-8.33%
EPS Next 3Y-3.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.66%, CAG is a good candidate for dividend investing.
CAG's Dividend Yield is rather good when compared to the industry average which is at 5.09. CAG pays more dividend than 95.40% of the companies in the same industry.
CAG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.66% |
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 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
78.70% of the earnings are spent on dividend by CAG. This is not a sustainable payout ratio.
CAG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP78.7%
EPS Next 2Y-8.33%
EPS Next 3Y-3.79%
18.47
-0.31 (-1.65%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners93.39%
Inst Owner Change0.21%
Ins Owners0.64%
Ins Owner Change4.69%
Market Cap8.84B
Revenue(TTM)11.45B
Net Income(TTM)850.10M
Analysts55.38
Price Target21.46 (16.19%)
Short Float %5.02%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.66% |
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)-0.28%
PT rev (3m)-2.64%
EPS NQ rev (1m)-6.27%
EPS NQ rev (3m)-28.24%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-18.91%
Revenue NQ rev (1m)-0.72%
Revenue NQ rev (3m)-2.39%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-2.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.55 | ||
| Fwd PE | 9.56 | ||
| P/S | 0.77 | ||
| P/FCF | 7.74 | ||
| P/OCF | 5.72 | ||
| P/B | 0.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.35 |
EPS(TTM)2.16
EY11.69%
EPS(NY)1.93
Fwd EY10.46%
FCF(TTM)2.38
FCFY12.91%
OCF(TTM)3.23
OCFY17.47%
SpS23.94
BVpS18.64
TBVpS-8.35
PEG (NY)N/A
PEG (5Y)48.91
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 | 1.68 |
F-Score7
WACC6.41%
ROIC/WACC1.09
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-21.96%
EPS Next 2Y-8.33%
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-3.58%
Revenue Next 2Y-2.18%
Revenue Next 3Y-1.01%
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%.