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CONAGRA BRANDS INC (CAG) Stock Fundamental Analysis

NYSE:CAG - New York Stock Exchange, Inc. - US2058871029 - Common Stock - Currency: USD

22.31  -0.17 (-0.76%)

Premarket: 22.39 +0.08 (+0.36%)

Fundamental Rating

5

Overall CAG gets a fundamental rating of 5 out of 10. We evaluated CAG against 90 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.


Dividend Valuation Growth Profitability Health

6

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.
Each year in the past 5 years CAG had a positive operating cash flow.
CAG Yearly Net Income VS EBIT VS OCF VS FCFCAG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B 1.5B 2B

1.2 Ratios

Looking at the Return On Assets, with a value of 1.59%, CAG is in line with its industry, outperforming 44.44% of the companies in the same industry.
With a Return On Equity value of 3.75%, CAG perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
The Return On Invested Capital of CAG (7.97%) is better than 75.56% of its industry peers.
CAG had an Average Return On Invested Capital over the past 3 years of 7.89%. This is in line with the industry average of 8.67%.
The last Return On Invested Capital (7.97%) for CAG is above the 3 year average (7.89%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 1.59%
ROE 3.75%
ROIC 7.97%
ROA(3y)2.91%
ROA(5y)3.67%
ROE(3y)7.35%
ROE(5y)9.58%
ROIC(3y)7.89%
ROIC(5y)7.89%
CAG Yearly ROA, ROE, ROICCAG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20

1.3 Margins

Looking at the Profit Margin, with a value of 2.80%, CAG is in line with its industry, outperforming 54.44% of the companies in the same industry.
In the last couple of years the Profit Margin of CAG has declined.
CAG has a Operating Margin of 14.89%. This is amongst the best in the industry. CAG outperforms 86.67% of its industry peers.
In the last couple of years the Operating Margin of CAG has remained more or less at the same level.
The Gross Margin of CAG (26.61%) is better than 64.44% of its industry peers.
CAG's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 14.89%
PM (TTM) 2.8%
GM 26.61%
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%
CAG Yearly Profit, Operating, Gross MarginsCAG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30

3

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 more shares outstanding than it did 1 year ago.
CAG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CAG has been reduced compared to a year ago.
CAG Yearly Shares OutstandingCAG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
CAG Yearly Total Debt VS Total AssetsCAG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

2.2 Solvency

Based on the Altman-Z score of 1.75, we must say that CAG is in the distress zone and has some risk of bankruptcy.
CAG has a Altman-Z score (1.75) which is comparable to the rest of the industry.
The Debt to FCF ratio of CAG is 5.62, which is a neutral value as it means it would take CAG, 5.62 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CAG (5.62) is better than 74.44% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that CAG is somewhat dependend on debt financing.
The Debt to Equity ratio of CAG (0.81) is worse than 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.81
Debt/FCF 5.62
Altman-Z 1.75
ROIC/WACC1.17
WACC6.84%
CAG Yearly LT Debt VS Equity VS FCFCAG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.3 Liquidity

A Current Ratio of 0.69 indicates that CAG may have some problems paying its short term obligations.
The Current ratio of CAG (0.69) is worse than 82.22% of its industry peers.
A Quick Ratio of 0.23 indicates that CAG may have some problems paying its short term obligations.
With a Quick ratio value of 0.23, CAG is not doing good in the industry: 93.33% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.69
Quick Ratio 0.23
CAG Yearly Current Assets VS Current LiabilitesCAG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2

3. Growth

3.1 Past

The earnings per share for CAG have decreased strongly by -12.31% in the last year.
CAG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.84% yearly.
The Revenue has decreased by -3.15% in the past year.
CAG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.79% yearly.
EPS 1Y (TTM)-12.31%
EPS 3Y0.38%
EPS 5Y5.84%
EPS Q2Q%-26.09%
Revenue 1Y (TTM)-3.15%
Revenue growth 3Y2.52%
Revenue growth 5Y4.79%
Sales Q2Q%-6.33%

3.2 Future

CAG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.56% yearly.
Based on estimates for the next years, CAG will show a small growth in Revenue. The Revenue will grow by 0.37% on average per year.
EPS Next Y-11.63%
EPS Next 2Y-4.96%
EPS Next 3Y-1.89%
EPS Next 5Y1.56%
Revenue Next Year-3.09%
Revenue Next 2Y-1.03%
Revenue Next 3Y-0.75%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
CAG Yearly Revenue VS EstimatesCAG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B
CAG Yearly EPS VS EstimatesCAG Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4

7

4. Valuation

4.1 Price/Earnings Ratio

CAG is valuated reasonably with a Price/Earnings ratio of 9.49.
Based on the Price/Earnings ratio, CAG is valued cheaper than 84.44% of the companies in the same industry.
When comparing the Price/Earnings ratio of CAG to the average of the S&P500 Index (25.91), we can say CAG is valued rather cheaply.
A Price/Forward Earnings ratio of 9.25 indicates a reasonable valuation of CAG.
CAG's Price/Forward Earnings ratio is rather cheap when compared to the industry. CAG is cheaper than 94.44% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.85, CAG is valued rather cheaply.
Industry RankSector Rank
PE 9.49
Fwd PE 9.25
CAG Price Earnings VS Forward Price EarningsCAG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 68.89% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CAG is valued cheaper than 86.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.35
EV/EBITDA 8.3
CAG Per share dataCAG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

4.3 Compensation for Growth

CAG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.62
EPS Next 2Y-4.96%
EPS Next 3Y-1.89%

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 6.15%, CAG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.58, CAG pays a better dividend. On top of this CAG pays more dividend than 90.00% 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 2.36.
Industry RankSector Rank
Dividend Yield 6.15%

5.2 History

The dividend of CAG is nicely growing with an annual growth rate of 11.19%!
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)11.19%
Div Incr Years5
Div Non Decr Years17
CAG Yearly Dividends per shareCAG Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

CAG pays out 203.43% of its income as dividend. This is not a sustainable payout ratio.
CAG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP203.43%
EPS Next 2Y-4.96%
EPS Next 3Y-1.89%
CAG Yearly Income VS Free CF VS DividendCAG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B 1.5B
CAG Dividend Payout.CAG Dividend Payout, showing the Payout Ratio.CAG Dividend Payout.PayoutRetained Earnings

CONAGRA BRANDS INC

NYSE:CAG (5/22/2025, 8:04:00 PM)

Premarket: 22.39 +0.08 (+0.36%)

22.31

-0.17 (-0.76%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)04-03 2025-04-03/bmo
Earnings (Next)07-09 2025-07-09/amc
Inst Owners89.44%
Inst Owner Change0.34%
Ins Owners0.51%
Ins Owner Change0.02%
Market Cap10.65B
Analysts65.22
Price Target27.82 (24.7%)
Short Float %3.19%
Short Ratio2.32
Dividend
Industry RankSector Rank
Dividend Yield 6.15%
Yearly Dividend1.38
Dividend Growth(5Y)11.19%
DP203.43%
Div Incr Years5
Div Non Decr Years17
Ex-Date04-28 2025-04-28 (0.35)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.78%
Min EPS beat(2)-4.3%
Max EPS beat(2)2.74%
EPS beat(4)2
Avg EPS beat(4)-1.98%
Min EPS beat(4)-11.84%
Max EPS beat(4)5.47%
EPS beat(8)6
Avg EPS beat(8)1.62%
EPS beat(12)10
Avg EPS beat(12)5.1%
EPS beat(16)12
Avg EPS beat(16)3.71%
Revenue beat(2)1
Avg Revenue beat(2)-1.33%
Min Revenue beat(2)-3.1%
Max Revenue beat(2)0.44%
Revenue beat(4)1
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-3.1%
Max Revenue beat(4)0.44%
Revenue beat(8)1
Avg Revenue beat(8)-1.74%
Revenue beat(12)2
Avg Revenue beat(12)-1.3%
Revenue beat(16)5
Avg Revenue beat(16)-0.63%
PT rev (1m)-0.52%
PT rev (3m)-7.07%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-5.93%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-5.19%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-1.33%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-1.49%
Valuation
Industry RankSector Rank
PE 9.49
Fwd PE 9.25
P/S 0.91
P/FCF 7.35
P/OCF 5.82
P/B 1.21
P/tB N/A
EV/EBITDA 8.3
EPS(TTM)2.35
EY10.53%
EPS(NY)2.41
Fwd EY10.81%
FCF(TTM)3.03
FCFY13.6%
OCF(TTM)3.84
OCFY17.2%
SpS24.59
BVpS18.39
TBVpS-8.81
PEG (NY)N/A
PEG (5Y)1.62
Profitability
Industry RankSector Rank
ROA 1.59%
ROE 3.75%
ROCE 10.63%
ROIC 7.97%
ROICexc 8%
ROICexgc 32.25%
OM 14.89%
PM (TTM) 2.8%
GM 26.61%
FCFM 12.34%
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-Score6
Asset Turnover0.57
Health
Industry RankSector Rank
Debt/Equity 0.81
Debt/FCF 5.62
Debt/EBITDA 3.31
Cap/Depr 94.7%
Cap/Sales 3.26%
Interest Coverage 250
Cash Conversion 85.09%
Profit Quality 440.17%
Current Ratio 0.69
Quick Ratio 0.23
Altman-Z 1.75
F-Score6
WACC6.84%
ROIC/WACC1.17
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)-12.31%
EPS 3Y0.38%
EPS 5Y5.84%
EPS Q2Q%-26.09%
EPS Next Y-11.63%
EPS Next 2Y-4.96%
EPS Next 3Y-1.89%
EPS Next 5Y1.56%
Revenue 1Y (TTM)-3.15%
Revenue growth 3Y2.52%
Revenue growth 5Y4.79%
Sales Q2Q%-6.33%
Revenue Next Year-3.09%
Revenue Next 2Y-1.03%
Revenue Next 3Y-0.75%
Revenue Next 5Y0.37%
EBIT growth 1Y-9.64%
EBIT growth 3Y-1.14%
EBIT growth 5Y6.31%
EBIT Next Year13.36%
EBIT Next 3Y5.31%
EBIT Next 5Y5.44%
FCF growth 1Y90.48%
FCF growth 3Y19.15%
FCF growth 5Y16.06%
OCF growth 1Y62.33%
OCF growth 3Y11.13%
OCF growth 5Y12.35%