CONAGRA BRANDS INC (CAG) Stock Fundamental Analysis
USA - NYSE:CAG - US2058871029 - Common Stock
18.07 USD
-0.43 (-2.32%)
CAG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 86 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 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.
Each year in the past 5 years CAG had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.02%, CAG is doing good in the industry, outperforming 65.12% of the companies in the same industry.
CAG has a Return On Equity of 9.53%. This is in the better half of the industry: CAG outperforms 70.93% of its industry peers.
With a decent Return On Invested Capital value of 7.02%, CAG is doing good in the industry, outperforming 73.26% of the companies in the same industry.
CAG had an Average Return On Invested Capital over the past 3 years of 7.92%. This is significantly below the industry average of 28.75%.
| 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
CAG has a better Profit Margin (7.42%) than 80.23% of its industry peers.
CAG's Profit Margin has improved in the last couple of years.
The Operating Margin of CAG (13.76%) is better than 80.23% of its industry peers.
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 60.47% 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.
CAG has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for CAG has been reduced compared to 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 1.68. This is a bad value and indicates that CAG is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.68, CAG perfoms like the industry average, outperforming 41.86% of the companies in the same industry.
CAG has a debt to FCF ratio of 7.26. This is a slightly negative value and a sign of low solvency as CAG would need 7.26 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.26, CAG is in the better half of the industry, outperforming 68.60% of the companies in the same industry.
CAG has a Debt/Equity ratio of 0.81. This is a neutral value indicating CAG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.81, CAG is not doing good in the industry: 63.95% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 7.26 | ||
| Altman-Z | 1.68 |
ROIC/WACC1.07
WACC6.54%
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 Current ratio of 1.06. This is in the lower half of the industry: CAG underperforms 77.91% 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 77.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The earnings per share for CAG have decreased strongly by -14.96% 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.
Looking at the last year, CAG shows a decrease in Revenue. The Revenue has decreased by -4.11% in the last year.
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
CAG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.48% yearly.
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-23.01%
EPS Next 2Y-9.5%
EPS Next 3Y-4.26%
EPS Next 5Y0.48%
Revenue Next Year-3.82%
Revenue Next 2Y-2.34%
Revenue Next 3Y-1.19%
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
With a Price/Earnings ratio of 8.37, the valuation of CAG can be described as very reasonable.
Based on the Price/Earnings ratio, CAG is valued cheaper than 89.53% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.08. CAG is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.59, which indicates a very decent valuation of CAG.
89.53% of the companies in the same industry are more expensive than CAG, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.09, CAG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 9.59 |
4.2 Price Multiples
CAG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CAG is cheaper than 68.60% of the companies in the same industry.
89.53% 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 | 7.58 | ||
| EV/EBITDA | 8.36 |
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 -4.26% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)47.85
EPS Next 2Y-9.5%
EPS Next 3Y-4.26%
5. Dividend
5.1 Amount
CAG has a Yearly Dividend Yield of 7.58%, which is a nice return.
Compared to an average industry Dividend Yield of 5.10, CAG pays a better dividend. On top of this CAG pays more dividend than 95.35% 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 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.58% |
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
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-9.5%
EPS Next 3Y-4.26%
NYSE:CAG (10/28/2025, 3:56:08 PM)
18.07
-0.43 (-2.32%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners93.39%
Inst Owner Change-0.66%
Ins Owners0.64%
Ins Owner Change4.69%
Market Cap8.64B
Revenue(TTM)11.45B
Net Income(TTM)850.10M
Analysts55.38
Price Target21.46 (18.76%)
Short Float %5.2%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.58% |
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)-6.55%
EPS NY rev (1m)-1.34%
EPS NY rev (3m)-20%
Revenue NQ rev (1m)-0.72%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)-2.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 9.59 | ||
| P/S | 0.75 | ||
| P/FCF | 7.58 | ||
| P/OCF | 5.6 | ||
| P/B | 0.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.36 |
EPS(TTM)2.16
EY11.95%
EPS(NY)1.88
Fwd EY10.43%
FCF(TTM)2.38
FCFY13.2%
OCF(TTM)3.23
OCFY17.86%
SpS23.94
BVpS18.64
TBVpS-8.35
PEG (NY)N/A
PEG (5Y)47.85
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
WACC6.54%
ROIC/WACC1.07
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-23.01%
EPS Next 2Y-9.5%
EPS Next 3Y-4.26%
EPS Next 5Y0.48%
Revenue 1Y (TTM)-4.11%
Revenue growth 3Y0.22%
Revenue growth 5Y0.99%
Sales Q2Q%-5.81%
Revenue Next Year-3.82%
Revenue Next 2Y-2.34%
Revenue Next 3Y-1.19%
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%.