CONAGRA BRANDS INC (CAG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CAG - US2058871029 - Common Stock
17.85 USD
+0.03 (+0.17%)
17.89 USD
+0.04 (+0.22%)
Overall CAG gets a fundamental rating of 4 out of 10. We evaluated CAG against 87 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 valued quite cheap, but it does not seem to be growing. CAG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CAG had positive earnings in the past year.
CAG had a positive operating cash flow in the past year.
CAG had positive earnings in each of the past 5 years.
Each year in the past 5 years CAG had a positive operating cash flow.
1.2 Ratios
CAG has a better Return On Assets (4.02%) than 63.22% of its industry peers.
CAG has a better Return On Equity (9.53%) than 72.41% of its industry peers.
The Return On Invested Capital of CAG (7.02%) is better than 75.86% 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 28.38%.
| 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
The Profit Margin of CAG (7.42%) is better than 80.46% of its industry peers.
CAG's Profit Margin has improved in the last couple of years.
CAG's Operating Margin of 13.76% is amongst the best of the industry. CAG outperforms 81.61% of its industry peers.
In the last couple of years the Operating Margin of CAG has declined.
Looking at the Gross Margin, with a value of 25.43%, CAG is in the better half of the industry, outperforming 60.92% 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.
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.
Compared to 1 year ago, CAG has an improved debt to assets ratio.
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.
With a Altman-Z score value of 1.66, CAG perfoms like the industry average, outperforming 41.38% of the companies in the same industry.
The Debt to FCF ratio of CAG is 7.26, which is on the high side as it means it would take CAG, 7.26 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CAG (7.26) is better than 71.26% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that CAG is somewhat dependend on debt financing.
CAG has a worse Debt to Equity ratio (0.81) than 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 7.26 | ||
| Altman-Z | 1.66 |
ROIC/WACC1
WACC7.02%
2.3 Liquidity
A Current Ratio of 1.06 indicates that CAG should not have too much problems paying its short term obligations.
The Current ratio of CAG (1.06) is worse than 77.01% 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.
Looking at the Quick ratio, with a value of 0.44, CAG is doing worse than 77.01% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing slightly by 0.17% on average over the past years.
CAG shows a decrease in Revenue. In the last year, the revenue decreased by -4.11%.
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
Based on estimates for the next years, CAG will show a small growth in Earnings Per Share. The EPS will grow by 0.09% on average per year.
The Revenue is expected to decrease by -0.08% on average over the next years.
EPS Next Y-23.01%
EPS Next 2Y-9.5%
EPS Next 3Y-4.12%
EPS Next 5Y0.09%
Revenue Next Year-3.82%
Revenue Next 2Y-2.34%
Revenue Next 3Y-1.16%
Revenue Next 5Y-0.08%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
With a Price/Earnings ratio of 8.26, the valuation of CAG can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CAG indicates a rather cheap valuation: CAG is cheaper than 91.95% of the companies listed in the same industry.
CAG is valuated cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.48, which indicates a very decent valuation of CAG.
CAG's Price/Forward Earnings ratio is rather cheap when compared to the industry. CAG is cheaper than 90.80% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.56. CAG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.26 | ||
| Fwd PE | 9.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAG is valued a bit cheaper than 68.97% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CAG is valued cheaply inside the industry as 89.66% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.48 | ||
| EV/EBITDA | 8.2 |
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 -4.12% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)47.27
EPS Next 2Y-9.5%
EPS Next 3Y-4.12%
5. Dividend
5.1 Amount
CAG has a Yearly Dividend Yield of 7.86%, which is a nice return.
Compared to an average industry Dividend Yield of 5.06, CAG pays a better dividend. On top of this CAG pays more dividend than 95.40% of the companies listed 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 | 7.86% |
5.2 History
On average, the dividend of CAG grows each year by 10.50%, which is quite nice.
CAG has been paying a dividend for at least 10 years, so it has 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 78.70% 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.
DP78.7%
EPS Next 2Y-9.5%
EPS Next 3Y-4.12%
17.85
+0.03 (+0.17%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners93.39%
Inst Owner Change-2.73%
Ins Owners0.64%
Ins Owner Change3.97%
Market Cap8.54B
Revenue(TTM)11.45B
Net Income(TTM)850.10M
Analysts55.38
Price Target21.21 (18.82%)
Short Float %6.49%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.86% |
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)-1.15%
PT rev (3m)-2.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.26 | ||
| Fwd PE | 9.48 | ||
| P/S | 0.75 | ||
| P/FCF | 7.48 | ||
| P/OCF | 5.53 | ||
| P/B | 0.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.2 |
EPS(TTM)2.16
EY12.1%
EPS(NY)1.88
Fwd EY10.55%
FCF(TTM)2.38
FCFY13.36%
OCF(TTM)3.23
OCFY18.08%
SpS23.94
BVpS18.64
TBVpS-8.35
PEG (NY)N/A
PEG (5Y)47.27
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 | 1.66 |
F-Score7
WACC7.02%
ROIC/WACC1
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-4.12%
EPS Next 5Y0.09%
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-1.16%
Revenue Next 5Y-0.08%
EBIT growth 1Y-15.14%
EBIT growth 3Y-1.31%
EBIT growth 5Y-2.04%
EBIT Next Year4.99%
EBIT Next 3Y3.96%
EBIT Next 5Y5.32%
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 4 / 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%.