CONAGRA BRANDS INC (CAG)
US2058871029 - Common Stock
Overall CAG gets a fundamental rating of 5 out of 10. We evaluated CAG against 91 industry peers in the Food Products industry. CAG scores excellent on profitability, but there are concerns on its financial health. CAG is cheap, but on the other hand it scores bad on growth. 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.
CAG had positive earnings in each of the past 5 years.
In the past 5 years CAG always reported a positive cash flow from operatings.
1.2 Ratios
CAG's Return On Assets of 4.34% is fine compared to the rest of the industry. CAG outperforms 63.74% of its industry peers.
The Return On Equity of CAG (10.40%) is better than 67.03% of its industry peers.
The Return On Invested Capital of CAG (7.28%) is better than 73.63% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CAG is in line with the industry average of 7.56%.
The 3 year average ROIC (6.94%) for CAG is below the current ROIC(7.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.34% | ||
| ROE | 10.4% | ||
| ROIC | 7.28% |
ROA(3y)4.3%
ROA(5y)3.95%
ROE(3y)11.04%
ROE(5y)10.59%
ROIC(3y)6.94%
ROIC(5y)6.52%
1.3 Margins
CAG has a better Profit Margin (7.86%) than 78.02% of its industry peers.
CAG's Profit Margin has declined in the last couple of years.
CAG has a Operating Margin of 15.96%. This is amongst the best in the industry. CAG outperforms 91.21% of its industry peers.
In the last couple of years the Operating Margin of CAG has remained more or less at the same level.
With a decent Gross Margin value of 27.44%, CAG is doing good in the industry, outperforming 68.13% of the companies in the same industry.
CAG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.96% | ||
| PM (TTM) | 7.86% | ||
| GM | 27.44% |
OM growth 3Y-2.38%
OM growth 5Y-0.82%
PM growth 3Y-9.83%
PM growth 5Y-11.36%
GM growth 3Y-1.71%
GM growth 5Y-2.08%
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 has been reduced compared to 1 year ago.
CAG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CAG has a worse debt to assets ratio.
2.2 Solvency
CAG has an Altman-Z score of 1.96. This is not the best score and indicates that CAG is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.96, CAG perfoms like the industry average, outperforming 47.25% of the companies in the same industry.
The Debt to FCF ratio of CAG is 6.12, which is on the high side as it means it would take CAG, 6.12 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CAG (6.12) is better than 67.03% of its industry peers.
A Debt/Equity ratio of 0.84 indicates that CAG is somewhat dependend on debt financing.
CAG has a worse Debt to Equity ratio (0.84) than 65.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 6.12 | ||
| Altman-Z | 1.96 |
ROIC/WACC1.05
WACC6.95%
2.3 Liquidity
CAG has a Current Ratio of 0.95. 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 Current ratio, with a value of 0.95, CAG is doing worse than 76.92% of the companies in the same industry.
A Quick Ratio of 0.33 indicates that CAG may have some problems paying its short term obligations.
CAG has a Quick ratio of 0.33. This is amonst the worse of the industry: CAG underperforms 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
CAG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.94%.
Measured over the past 5 years, CAG shows a small growth in Earnings Per Share. The EPS has been growing by 5.42% on average per year.
The Revenue has decreased by -0.78% in the past year.
CAG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.11% yearly.
EPS 1Y (TTM)-3.94%
EPS 3Y6.58%
EPS 5Y5.42%
EPS growth Q2Q-9.21%
Revenue 1Y (TTM)-0.78%
Revenue growth 3Y3.56%
Revenue growth 5Y9.11%
Revenue growth Q2Q-1.74%
3.2 Future
CAG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.54% yearly.
The Revenue is expected to grow by 1.60% on average over the next years.
EPS Next Y-4.14%
EPS Next 2Y-0.53%
EPS Next 3Y1.21%
EPS Next 5Y2.54%
Revenue Next Year-1.89%
Revenue Next 2Y-0.41%
Revenue Next 3Y0.32%
Revenue Next 5Y1.6%
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 decreasing.
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 11.28.
Based on the Price/Earnings ratio, CAG is valued cheaply inside the industry as 87.91% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 24.83. CAG is valued rather cheaply when compared to this.
CAG is valuated reasonably with a Price/Forward Earnings ratio of 11.07.
Based on the Price/Forward Earnings ratio, CAG is valued cheaper than 89.01% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, CAG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.28 | ||
| Fwd PE | 11.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAG is valued a bit cheaper than 76.92% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CAG is valued cheaper than 83.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.19 | ||
| EV/EBITDA | 9.82 |
4.3 Compensation for Growth
The decent profitability rating of CAG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.08
EPS Next 2Y-0.53%
EPS Next 3Y1.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.67%, CAG is a good candidate for dividend investing.
CAG's Dividend Yield is rather good when compared to the industry average which is at 3.56. CAG pays more dividend than 91.21% of the companies in the same industry.
CAG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.67% |
5.2 History
On average, the dividend of CAG grows each year by 9.00%, 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 in the last 3 years.
Dividend Growth(5Y)9%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
68.21% 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.
DP68.21%
EPS Next 2Y-0.53%
EPS Next 3Y1.21%
CONAGRA BRANDS INC
NYSE:CAG (4/17/2024, 7:04:00 PM)
After market: 30.24 0 (0%)30.24
+0.23 (+0.77%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap14.46B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.67% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.28 | ||
| Fwd PE | 11.07 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.34% | ||
| ROE | 10.4% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.96% | ||
| PM (TTM) | 7.86% | ||
| GM | 27.44% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-3.94%
EPS 3Y6.58%
EPS 5Y
EPS growth Q2Q
EPS Next Y-4.14%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.78%
Revenue growth 3Y3.56%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y