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 4 out of 10. We evaluated CAG against 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 has a bad growth rate and is valued cheaply. 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
CAG has a Return On Assets of 1.59%. This is comparable to the rest of the industry: CAG outperforms 41.57% of its industry peers.
CAG has a Return On Equity (3.75%) which is comparable to the rest of the industry.
CAG has a better Return On Invested Capital (7.97%) than 75.28% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CAG is in line with the industry average of 7.60%.
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
The Profit Margin of CAG (2.80%) is comparable to the rest of the industry.
CAG's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 14.89%, CAG belongs to the top of the industry, outperforming 85.39% of the companies in the same industry.
In the last couple of years the Operating Margin of CAG has remained more or less at the same level.
Looking at the Gross Margin, with a value of 26.61%, CAG is in the better half of the industry, outperforming 62.92% of the companies in the same industry.
In the last couple of years the Gross Margin of CAG has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CAG is destroying value.
Compared to 1 year ago, CAG has more shares outstanding
CAG has less shares outstanding than it did 5 years ago.
CAG has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.73, we must say that CAG is in the distress zone and has some risk of bankruptcy.
CAG has a Altman-Z score of 1.73. This is comparable to the rest of the industry: CAG outperforms 46.07% of its industry peers.
CAG has a debt to FCF ratio of 5.62. This is a neutral value as CAG would need 5.62 years to pay back of all of its debts.
CAG has a Debt to FCF ratio of 5.62. This is amongst the best in the industry. CAG outperforms 82.02% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that CAG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.81, CAG is doing worse than 66.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 5.62 | ||
| Altman-Z | 1.73 |
ROIC/WACC0.85
WACC9.35%
2.3 Liquidity
A Current Ratio of 0.69 indicates that CAG may have some problems paying its short term obligations.
With a Current ratio value of 0.69, CAG is not doing good in the industry: 82.02% of the companies in the same industry are doing better.
CAG has a Quick Ratio of 0.69. 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 worse Quick ratio (0.23) than 94.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
CAG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.31%.
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.
The Revenue has been growing slightly by 4.79% on average over the past years.
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
Based on estimates for the next years, CAG will show a small growth in Earnings Per Share. The EPS will grow by 0.24% on average per year.
Based on estimates for the next years, CAG will show a decrease in Revenue. The Revenue will decrease by -0.09% on average per year.
EPS Next Y-11.63%
EPS Next 2Y-4.96%
EPS Next 3Y-1.89%
EPS Next 5Y0.24%
Revenue Next Year-3.15%
Revenue Next 2Y-1.28%
Revenue Next 3Y-0.97%
Revenue Next 5Y-0.09%
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
CAG is valuated reasonably with a Price/Earnings ratio of 9.19.
84.27% of the companies in the same industry are more expensive than CAG, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.32. CAG is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.96, 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 95.51% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CAG to the average of the S&P500 Index (22.13), we can say CAG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 8.96 |
4.2 Price Multiples
68.54% of the companies in the same industry are more expensive than CAG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CAG is valued cheaply inside the industry as 93.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.12 | ||
| EV/EBITDA | 8.14 |
4.3 Compensation for Growth
The decent profitability rating of CAG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.57
EPS Next 2Y-4.96%
EPS Next 3Y-1.89%
5. Dividend
5.1 Amount
CAG has a Yearly Dividend Yield of 6.28%, which is a nice return.
CAG's Dividend Yield is rather good when compared to the industry average which is at 4.45. CAG pays more dividend than 91.01% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, CAG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.28% |
5.2 History
The dividend of CAG is nicely growing with an annual growth rate of 11.19%!
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)11.19%
Div Incr Years5
Div Non Decr Years17
5.3 Sustainability
203.43% of the earnings are spent on dividend by CAG. This is not a sustainable payout ratio.
The dividend of CAG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP203.43%
EPS Next 2Y-4.96%
EPS Next 3Y-1.89%
21.6
+0.03 (+0.14%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners87.94%
Inst Owner Change0.37%
Ins Owners0.53%
Ins Owner Change0.82%
Market Cap10.31B
Analysts65.22
Price Target26.65 (23.38%)
Short Float %3.21%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.28% |
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)-4.21%
PT rev (3m)-5.01%
EPS NQ rev (1m)-0.78%
EPS NQ rev (3m)-1.04%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.03%
Revenue NQ rev (1m)-0.72%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 8.96 | ||
| P/S | 0.88 | ||
| P/FCF | 7.12 | ||
| P/OCF | 5.63 | ||
| P/B | 1.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.14 |
EPS(TTM)2.35
EY10.88%
EPS(NY)2.41
Fwd EY11.17%
FCF(TTM)3.03
FCFY14.05%
OCF(TTM)3.84
OCFY17.76%
SpS24.59
BVpS18.39
TBVpS-8.81
PEG (NY)N/A
PEG (5Y)1.57
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 | 1.73 |
F-Score6
WACC9.35%
ROIC/WACC0.85
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 5Y0.24%
Revenue 1Y (TTM)-3.15%
Revenue growth 3Y2.52%
Revenue growth 5Y4.79%
Sales Q2Q%-6.33%
Revenue Next Year-3.15%
Revenue Next 2Y-1.28%
Revenue Next 3Y-0.97%
Revenue Next 5Y-0.09%
EBIT growth 1Y-9.64%
EBIT growth 3Y-1.14%
EBIT growth 5Y6.31%
EBIT Next Year12.48%
EBIT Next 3Y4.63%
EBIT Next 5Y4.5%
FCF growth 1Y90.48%
FCF growth 3Y19.15%
FCF growth 5Y16.06%
OCF growth 1Y62.33%
OCF growth 3Y11.13%
OCF growth 5Y12.35%