CONAGRA BRANDS INC (CAG) Stock Fundamental Analysis
USA - NYSE:CAG - US2058871029 - Common Stock
19.17 USD
-0.27 (-1.39%)
19.22 USD
+0.05 (+0.26%)
We assign a fundamental rating of 5 out of 10 to CAG. CAG was compared to 89 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
In the past year CAG was profitable.
CAG had a positive operating cash flow in the past year.
Each year in the past 5 years CAG has been profitable.
In the past 5 years CAG always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CAG (5.50%) is better than 73.86% of its industry peers.
CAG has a better Return On Equity (12.90%) than 75.00% of its industry peers.
CAG has a Return On Invested Capital of 7.56%. This is in the better half of the industry: CAG outperforms 72.73% 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 28.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 12.9% | ||
| ROIC | 7.56% |
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 has a better Profit Margin (9.92%) than 85.23% of its industry peers.
CAG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 14.49%, CAG belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
In the last couple of years the Operating Margin of CAG has declined.
CAG's Gross Margin of 25.95% is fine compared to the rest of the industry. CAG outperforms 60.23% of its industry peers.
CAG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.49% | ||
| PM (TTM) | 9.92% | ||
| GM | 25.96% |
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.
The debt/assets ratio for CAG has been reduced compared to a year ago.
2.2 Solvency
CAG has an Altman-Z score of 1.66. This is a bad value and indicates that CAG is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CAG (1.66) is comparable to the rest of the industry.
CAG has a debt to FCF ratio of 6.19. This is a slightly negative value and a sign of low solvency as CAG would need 6.19 years to pay back of all of its debts.
CAG has a Debt to FCF ratio of 6.19. This is in the better half of the industry: CAG outperforms 73.86% of its industry peers.
A Debt/Equity ratio of 0.79 indicates that CAG is somewhat dependend on debt financing.
CAG's Debt to Equity ratio of 0.79 is on the low side compared to the rest of the industry. CAG is outperformed by 60.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 6.19 | ||
| Altman-Z | 1.66 |
ROIC/WACC1.16
WACC6.5%
2.3 Liquidity
A Current Ratio of 0.71 indicates that CAG may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.71, CAG is doing worse than 82.95% of the companies in the same industry.
A Quick Ratio of 0.24 indicates that CAG may have some problems paying its short term obligations.
CAG has a worse Quick ratio (0.24) than 92.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
CAG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.86%.
The Earnings Per Share has been growing slightly by 0.17% on average over the past years.
The Revenue has decreased by -3.64% in the past year.
The Revenue has been growing slightly by 0.99% on average over the past years.
EPS 1Y (TTM)-13.86%
EPS 3Y-0.99%
EPS 5Y0.17%
EPS Q2Q%-8.2%
Revenue 1Y (TTM)-3.64%
Revenue growth 3Y0.22%
Revenue growth 5Y0.99%
Sales Q2Q%-4.27%
3.2 Future
CAG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.72% yearly.
Based on estimates for the next years, CAG will show a small growth in Revenue. The Revenue will grow by 0.35% on average per year.
EPS Next Y-21.94%
EPS Next 2Y-8.22%
EPS Next 3Y-2.69%
EPS Next 5Y0.72%
Revenue Next Year-3.32%
Revenue Next 2Y-2.04%
Revenue Next 3Y-0.83%
Revenue Next 5Y0.35%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
A Price/Earnings ratio of 8.33 indicates a reasonable valuation of CAG.
Based on the Price/Earnings ratio, CAG is valued cheaper than 88.64% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. CAG is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.68, the valuation of CAG can be described as very reasonable.
Based on the Price/Forward Earnings ratio, CAG is valued cheaper than 85.23% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, CAG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.33 | ||
| Fwd PE | 10.68 |
4.2 Price Multiples
71.59% of the companies in the same industry are more expensive than CAG, based on the Enterprise Value to EBITDA ratio.
CAG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CAG is cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.04 | ||
| EV/EBITDA | 7.9 |
4.3 Compensation for Growth
CAG has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as CAG's earnings are expected to decrease with -2.69% in the coming years.
PEG (NY)N/A
PEG (5Y)47.67
EPS Next 2Y-8.22%
EPS Next 3Y-2.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.20%, CAG is a good candidate for dividend investing.
CAG's Dividend Yield is rather good when compared to the industry average which is at 5.03. CAG pays more dividend than 94.32% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, CAG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.2% |
5.2 History
The dividend of CAG is nicely growing with an annual growth rate of 10.50%!
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
58.07% of the earnings are spent on dividend by CAG. This is a bit on the high side, but may be sustainable.
CAG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP58.07%
EPS Next 2Y-8.22%
EPS Next 3Y-2.69%
19.17
-0.27 (-1.39%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners88.63%
Inst Owner Change4.11%
Ins Owners0.64%
Ins Owner Change4.62%
Market Cap9.18B
Analysts55.38
Price Target21.52 (12.26%)
Short Float %6.13%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.2% |
Yearly Dividend1.4
Dividend Growth(5Y)10.5%
DP58.07%
Div Incr Years5
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.39%
Min EPS beat(2)-4.48%
Max EPS beat(2)-4.3%
EPS beat(4)1
Avg EPS beat(4)-4.47%
Min EPS beat(4)-11.84%
Max EPS beat(4)2.74%
EPS beat(8)5
Avg EPS beat(8)0.6%
EPS beat(12)9
Avg EPS beat(12)4.57%
EPS beat(16)11
Avg EPS beat(16)3.23%
Revenue beat(2)0
Avg Revenue beat(2)-2.97%
Min Revenue beat(2)-3.1%
Max Revenue beat(2)-2.84%
Revenue beat(4)1
Avg Revenue beat(4)-2.05%
Min Revenue beat(4)-3.1%
Max Revenue beat(4)0.44%
Revenue beat(8)1
Avg Revenue beat(8)-1.89%
Revenue beat(12)2
Avg Revenue beat(12)-1.4%
Revenue beat(16)5
Avg Revenue beat(16)-0.81%
PT rev (1m)-1.02%
PT rev (3m)-19.25%
EPS NQ rev (1m)-1.65%
EPS NQ rev (3m)-33.3%
EPS NY rev (1m)-18.89%
EPS NY rev (3m)-25.56%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)-3.36%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-4.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.33 | ||
| Fwd PE | 10.68 | ||
| P/S | 0.79 | ||
| P/FCF | 7.04 | ||
| P/OCF | 5.42 | ||
| P/B | 1.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.9 |
EPS(TTM)2.3
EY12%
EPS(NY)1.8
Fwd EY9.37%
FCF(TTM)2.72
FCFY14.2%
OCF(TTM)3.53
OCFY18.44%
SpS24.24
BVpS18.65
TBVpS-8.33
PEG (NY)N/A
PEG (5Y)47.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 12.9% | ||
| ROCE | 10.13% | ||
| ROIC | 7.56% | ||
| ROICexc | 7.59% | ||
| ROICexgc | 29.75% | ||
| OM | 14.49% | ||
| PM (TTM) | 9.92% | ||
| GM | 25.96% | ||
| FCFM | 11.23% |
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%
ROICexcg growth 3Y-5.95%
ROICexcg 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-Score6
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 6.19 | ||
| Debt/EBITDA | 3.4 | ||
| Cap/Depr | 99.77% | ||
| Cap/Sales | 3.35% | ||
| Interest Coverage | 3.94 | ||
| Cash Conversion | 81.69% | ||
| Profit Quality | 113.15% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | 1.66 |
F-Score6
WACC6.5%
ROIC/WACC1.16
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)-13.86%
EPS 3Y-0.99%
EPS 5Y0.17%
EPS Q2Q%-8.2%
EPS Next Y-21.94%
EPS Next 2Y-8.22%
EPS Next 3Y-2.69%
EPS Next 5Y0.72%
Revenue 1Y (TTM)-3.64%
Revenue growth 3Y0.22%
Revenue growth 5Y0.99%
Sales Q2Q%-4.27%
Revenue Next Year-3.32%
Revenue Next 2Y-2.04%
Revenue Next 3Y-0.83%
Revenue Next 5Y0.35%
EBIT growth 1Y-14.45%
EBIT growth 3Y-1.31%
EBIT growth 5Y-2.04%
EBIT Next Year5.52%
EBIT Next 3Y5.86%
EBIT Next 5Y9.08%
FCF growth 1Y-19.85%
FCF growth 3Y22.29%
FCF growth 5Y-2.41%
OCF growth 1Y-15.97%
OCF growth 3Y12.88%
OCF growth 5Y-1.68%