CONAGRA BRANDS INC (CAG) Stock Fundamental Analysis
USA - NYSE:CAG - US2058871029 - Common Stock
18.72 USD
-0.39 (-2.04%)
18.75 USD
+0.03 (+0.16%)
We assign a fundamental rating of 5 out of 10 to CAG. CAG was compared to 87 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
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
With a decent Return On Assets value of 5.50%, CAG is doing good in the industry, outperforming 75.86% of the companies in the same industry.
CAG has a Return On Equity of 12.90%. This is in the better half of the industry: CAG outperforms 77.01% of its industry peers.
With a decent Return On Invested Capital value of 7.56%, CAG is doing good in the industry, outperforming 75.86% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CAG is significantly below the industry average of 28.37%.
| 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 85.06% of its industry peers.
CAG's Profit Margin has improved in the last couple of years.
CAG's Operating Margin of 14.49% is amongst the best of the industry. CAG outperforms 82.76% of its industry peers.
CAG's Operating Margin has declined in the last couple of years.
CAG's Gross Margin of 25.95% is fine compared to the rest of the industry. CAG outperforms 62.07% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CAG is still creating some value.
CAG has about the same amout of shares outstanding than it did 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.
CAG has a Altman-Z score (1.66) which is in line with its industry peers.
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 better Debt to FCF ratio (6.19) than 73.56% of its industry peers.
A Debt/Equity ratio of 0.79 indicates that CAG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.79, CAG is not doing good in the industry: 62.07% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 6.19 | ||
| Altman-Z | 1.66 |
ROIC/WACC1.16
WACC6.53%
2.3 Liquidity
CAG has a Current 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.
CAG's Current ratio of 0.71 is on the low side compared to the rest of the industry. CAG is outperformed by 82.76% 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.
The Quick ratio of CAG (0.24) is worse than 91.95% 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 -14.96%.
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 -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)-14.96%
EPS 3Y-0.99%
EPS 5Y0.17%
EPS Q2Q%-26.42%
Revenue 1Y (TTM)-3.64%
Revenue growth 3Y0.22%
Revenue growth 5Y0.99%
Sales Q2Q%-5.81%
3.2 Future
The Earnings Per Share is expected to grow by 0.48% on average over the next years.
Based on estimates for the next years, CAG will show a small growth in Revenue. The Revenue will grow by 0.37% on average per year.
EPS Next Y-21.96%
EPS Next 2Y-8.33%
EPS Next 3Y-3.79%
EPS Next 5Y0.48%
Revenue Next Year-3.58%
Revenue Next 2Y-2.18%
Revenue Next 3Y-1.01%
Revenue Next 5Y0.37%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.67 indicates a reasonable valuation of CAG.
Based on the Price/Earnings ratio, CAG is valued cheaper than 88.51% of the companies in the same industry.
When comparing the Price/Earnings ratio of CAG to the average of the S&P500 Index (27.90), we can say CAG is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.69, the valuation of CAG can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CAG indicates a rather cheap valuation: CAG is cheaper than 90.80% of the companies listed in the same industry.
CAG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.67 | ||
| Fwd PE | 9.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CAG indicates a somewhat cheap valuation: CAG is cheaper than 73.56% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAG indicates a rather cheap valuation: CAG is cheaper than 90.80% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.88 | ||
| EV/EBITDA | 7.89 |
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 -3.79% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)49.57
EPS Next 2Y-8.33%
EPS Next 3Y-3.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.33%, CAG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.91, CAG pays a better dividend. On top of this CAG pays more dividend than 95.40% 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.33% |
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 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
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 slower than its dividend. This means the dividend growth is not sustainable.
DP58.07%
EPS Next 2Y-8.33%
EPS Next 3Y-3.79%
18.72
-0.39 (-2.04%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners93.39%
Inst Owner Change0.65%
Ins Owners0.64%
Ins Owner Change4.62%
Market Cap8.97B
Analysts55.38
Price Target21.46 (14.64%)
Short Float %5.02%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.33% |
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)-1.3%
PT rev (3m)-15.12%
EPS NQ rev (1m)-0.21%
EPS NQ rev (3m)-29.53%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-22.62%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-2.47%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-3.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.67 | ||
| Fwd PE | 9.69 | ||
| P/S | 0.77 | ||
| P/FCF | 6.88 | ||
| P/OCF | 5.3 | ||
| P/B | 1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.89 |
EPS(TTM)2.16
EY11.54%
EPS(NY)1.93
Fwd EY10.32%
FCF(TTM)2.72
FCFY14.54%
OCF(TTM)3.53
OCFY18.88%
SpS24.24
BVpS18.65
TBVpS-8.33
PEG (NY)N/A
PEG (5Y)49.57
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
WACC6.53%
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)-14.96%
EPS 3Y-0.99%
EPS 5Y0.17%
EPS Q2Q%-26.42%
EPS Next Y-21.96%
EPS Next 2Y-8.33%
EPS Next 3Y-3.79%
EPS Next 5Y0.48%
Revenue 1Y (TTM)-3.64%
Revenue growth 3Y0.22%
Revenue growth 5Y0.99%
Sales Q2Q%-5.81%
Revenue Next Year-3.58%
Revenue Next 2Y-2.18%
Revenue Next 3Y-1.01%
Revenue Next 5Y0.37%
EBIT growth 1Y-14.45%
EBIT growth 3Y-1.31%
EBIT growth 5Y-2.04%
EBIT Next Year4.99%
EBIT Next 3Y4.34%
EBIT Next 5Y6.04%
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%