CONAGRA BRANDS INC (CAG) Stock Fundamental Analysis
NYSE:CAG - New York Stock Exchange, Inc. - US2058871029 - Common Stock - Currency: USD
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.
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.
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 Rank | Sector 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%
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 Rank | Sector 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%
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 5.62 | ||
| Altman-Z | 1.75 |
ROIC/WACC1.17
WACC6.84%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.23 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.49 | ||
| Fwd PE | 9.25 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.35 | ||
| EV/EBITDA | 8.3 |
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%
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 Rank | Sector 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
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%
22.31
-0.17 (-0.76%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.15% |
Yearly Dividend1.38
Dividend Growth(5Y)11.19%
DP203.43%
Div Incr Years5
Div Non Decr Years17
Ex-Date
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%