CONAGRA BRANDS INC (CAG) Stock Fundamental Analysis
NYSE:CAG - New York Stock Exchange, Inc. - US2058871029 - Common Stock - Currency: USD
CAG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on CAG. Finally CAG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CAG was profitable.
In the past year CAG had a positive cash flow from operations.
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
With a decent Return On Assets value of 5.50%, CAG is doing good in the industry, outperforming 71.43% of the companies in the same industry.
With a decent Return On Equity value of 12.90%, CAG is doing good in the industry, outperforming 73.63% of the companies in the same industry.
CAG has a Return On Invested Capital of 7.56%. This is in the better half of the industry: CAG outperforms 71.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CAG is significantly below the industry average of 28.19%.
| 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's Profit Margin of 9.92% is amongst the best of the industry. CAG outperforms 84.62% of its industry peers.
CAG's Profit Margin has improved in the last couple of years.
The Operating Margin of CAG (14.49%) is better than 82.42% of its industry peers.
In the last couple of years the Operating Margin of CAG has declined.
CAG has a better Gross Margin (25.95%) than 61.54% of its industry peers.
In the last couple of years the Gross Margin of CAG has declined.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CAG is creating some value.
The number of shares outstanding for CAG remains at a similar level compared to 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 1.66, we must say that CAG is in the distress zone and has some risk of bankruptcy.
CAG has a Altman-Z score (1.66) which is comparable to the rest of the industry.
The Debt to FCF ratio of CAG is 6.19, which is on the high side as it means it would take CAG, 6.19 years of fcf income to pay off 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 75.82% 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 63.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 6.19 | ||
| Altman-Z | 1.66 |
ROIC/WACC1.13
WACC6.7%
2.3 Liquidity
A Current Ratio of 0.71 indicates that CAG may have some problems paying its short term obligations.
CAG has a worse Current ratio (0.71) than 82.42% of its industry peers.
CAG has a Quick Ratio of 0.71. This is a bad value and indicates that CAG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.24, CAG is doing worse than 94.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
The earnings per share for CAG have decreased strongly by -13.86% in the last year.
CAG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.17% yearly.
CAG shows a decrease in Revenue. In the last year, the revenue decreased by -3.64%.
CAG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.99% yearly.
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
Based on estimates for the next years, CAG will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.86% on average per year.
The Revenue is expected to grow by 4.11% on average over the next years.
EPS Next Y-3.76%
EPS Next 2Y0.61%
EPS Next 3Y2.95%
EPS Next 5Y12.86%
Revenue Next Year-1.09%
Revenue Next 2Y-0.57%
Revenue Next 3Y0.78%
Revenue Next 5Y4.11%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.10, the valuation of CAG can be described as reasonable.
Based on the Price/Earnings ratio, CAG is valued cheaply inside the industry as 90.11% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.91. CAG is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.42, the valuation of CAG can be described as reasonable.
Based on the Price/Forward Earnings ratio, CAG is valued cheaply inside the industry as 94.51% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.11, CAG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.1 | ||
| Fwd PE | 8.42 |
4.2 Price Multiples
73.63% of the companies in the same industry are more expensive than CAG, based on the Enterprise Value to EBITDA ratio.
91.21% 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 | 6.83 | ||
| EV/EBITDA | 7.94 |
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)46.36
EPS Next 2Y0.61%
EPS Next 3Y2.95%
5. Dividend
5.1 Amount
CAG has a Yearly Dividend Yield of 7.13%, which is a nice return.
CAG's Dividend Yield is rather good when compared to the industry average which is at 4.67. CAG pays more dividend than 89.01% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, CAG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.13% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.5%
Div Incr Years5
Div Non Decr Years17
5.3 Sustainability
CAG pays out 58.07% of its income as dividend. This is a bit on the high side, but may be sustainable.
CAG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP58.07%
EPS Next 2Y0.61%
EPS Next 3Y2.95%
NYSE:CAG (7/30/2025, 3:03:07 PM)
18.64
-0.39 (-2.05%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners87.94%
Inst Owner Change0.94%
Ins Owners0.53%
Ins Owner Change4.1%
Market Cap8.90B
Analysts55.38
Price Target22.04 (18.24%)
Short Float %7.45%
Short Ratio3.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.13% |
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)-12.82%
PT rev (3m)-20.77%
EPS NQ rev (1m)-32.17%
EPS NQ rev (3m)-35.44%
EPS NY rev (1m)-4.57%
EPS NY rev (3m)-10.24%
Revenue NQ rev (1m)-3.4%
Revenue NQ rev (3m)-6.01%
Revenue NY rev (1m)-0.9%
Revenue NY rev (3m)-3.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.1 | ||
| Fwd PE | 8.42 | ||
| P/S | 0.77 | ||
| P/FCF | 6.83 | ||
| P/OCF | 5.26 | ||
| P/B | 1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.94 |
EPS(TTM)2.3
EY12.34%
EPS(NY)2.21
Fwd EY11.88%
FCF(TTM)2.73
FCFY14.65%
OCF(TTM)3.55
OCFY19.03%
SpS24.32
BVpS18.71
TBVpS-8.36
PEG (NY)N/A
PEG (5Y)46.36
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
WACC6.7%
ROIC/WACC1.13
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-3.76%
EPS Next 2Y0.61%
EPS Next 3Y2.95%
EPS Next 5Y12.86%
Revenue 1Y (TTM)-3.64%
Revenue growth 3Y0.22%
Revenue growth 5Y0.99%
Sales Q2Q%-4.27%
Revenue Next Year-1.09%
Revenue Next 2Y-0.57%
Revenue Next 3Y0.78%
Revenue Next 5Y4.11%
EBIT growth 1Y-14.45%
EBIT growth 3Y-1.31%
EBIT growth 5Y-2.04%
EBIT Next Year29.14%
EBIT Next 3Y8.96%
EBIT Next 5Y13.12%
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%