NYSE:CAG

Stock Analysis Report

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Executive Summary

Conagra Brands, Inc., together with its subsidiaries, operates as a consumer packaged goods food company in North America.


Snowflake Analysis

Proven track record average dividend payer.


Similar Companies

Share Price & News

How has Conagra Brands's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CAG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

CAG

0.4%

US Food

2.2%

US Market


1 Year Return

36.1%

CAG

6.0%

US Food

16.2%

US Market

Return vs Industry: CAG exceeded the US Food industry which returned 5.6% over the past year.

Return vs Market: CAG exceeded the US Market which returned 15.9% over the past year.


Shareholder returns

CAGIndustryMarket
7 Day1.1%0.4%2.2%
30 Day7.1%7.0%4.9%
90 Day14.7%11.4%17.8%
1 Year39.7%36.1%8.7%6.0%18.7%16.2%
3 Year19.8%10.7%5.4%-3.4%41.1%32.0%
5 Year24.0%-14.8%15.1%-0.2%74.5%55.7%

Price Volatility Vs. Market

How volatile is Conagra Brands's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Conagra Brands undervalued compared to its fair value and its price relative to the market?

33.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CAG ($38.06) is trading below our estimate of fair value ($57.6)

Significantly Below Fair Value: CAG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CAG is good value based on its PE Ratio (22.1x) compared to the US Food industry average (25.3x).

PE vs Market: CAG is poor value based on its PE Ratio (22.1x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: CAG is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: CAG is overvalued based on its PB Ratio (2.4x) compared to the US Food industry average (1.9x).


Next Steps

Future Growth

How is Conagra Brands forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

12.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CAG's forecast earnings growth (12.5% per year) is above the savings rate (2.2%).

Earnings vs Market: CAG's earnings (12.5% per year) are forecast to grow slower than the US market (22.4% per year).

High Growth Earnings: CAG's earnings are forecast to grow, but not significantly.

Revenue vs Market: CAG's revenue is expected to decline over the next 3 years (-0.1% per year).

High Growth Revenue: CAG's revenue is forecast to decline over the next 3 years (-0.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CAG's Return on Equity is forecast to be low in 3 years time (14.1%).


Next Steps

Past Performance

How has Conagra Brands performed over the past 5 years?

15.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CAG has a large one-off loss of $357.4M impacting its May 31 2020 financial results.

Growing Profit Margin: CAG's current net profit margins (7.6%) are higher than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: CAG's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: CAG's earnings growth over the past year (23.6%) exceeds its 5-year average (15.9% per year).

Earnings vs Industry: CAG earnings growth over the past year (23.6%) exceeded the Food industry -4%.


Return on Equity

High ROE: CAG's Return on Equity (10.6%) is considered low.


Next Steps

Financial Health

How is Conagra Brands's financial position?


Financial Position Analysis

Short Term Liabilities: CAG's short term assets ($2.9B) do not cover its short term liabilities ($3.3B).

Long Term Liabilities: CAG's short term assets ($2.9B) do not cover its long term liabilities ($11.1B).


Debt to Equity History and Analysis

Debt Level: CAG's debt to equity ratio (120.6%) is considered high.

Reducing Debt: CAG's debt to equity ratio has reduced from 170.4% to 120.6% over the past 5 years.

Debt Coverage: CAG's debt is not well covered by operating cash flow (19.2%).

Interest Coverage: CAG's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Conagra Brands's current dividend yield, its reliability and sustainability?

2.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CAG's dividend (2.23%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: CAG's dividend (2.23%) is low compared to the top 25% of dividend payers in the US market (4.54%).


Stability and Growth of Payments

Stable Dividend: CAG's dividend payments have been volatile in the past 10 years.

Growing Dividend: CAG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.3%), CAG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CAG's dividends in 3 years are forecast to be well covered by earnings (32.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average management tenure


CEO

Sean Connolly (55 yo)

5.33yrs

Tenure

US$14,392,748

Compensation

Mr. Sean M. Connolly has been the Chief Executive Officer and President of Conagra Brands, Inc. since April 6, 2015. Mr. Connolly served as the Chief Executive Officer at The Hillshire Brands Company since ...


CEO Compensation Analysis

Compensation vs Market: Sean's total compensation ($USD14.39M) is about average for companies of similar size in the US market ($USD11.35M).

Compensation vs Earnings: Sean's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sean Connolly
President5.33yrsUS$14.39m0.11%
$ 19.7m
David Marberger
Executive VP & CFO4yrsUS$3.63m0.018%
$ 3.4m
Thomas McGough
Co-COO & Executive VP1.83yrsUS$3.64m0.040%
$ 7.3m
Darren Serrao
Co-COO & Executive VP1.83yrsUS$2.96m0.019%
$ 3.5m
Colleen Batcheler
Executive VP12.5yrsUS$3.37m0.035%
$ 6.4m
Mindy Simon
Chief Information Officer3.17yrsno datano data
Brian Kearney
Head of Investor Relationsno datano datano data
Jonathan Harris
Chief Communications Officer & Senior VP5yrsno datano data
Charisse Brock
Executive VP & Chief Human Resources Officer4.75yrsno data0.014%
$ 2.6m
Stephen Tibey
Senior Vice President of Supply Chain Managementno datano datano data
James Kinnerk
President of Conagra International & Foodserviceno datano datano data
Derek De Mater
Executive VP & Chief Customer Officerno datano datano data

4.4yrs

Average Tenure

55yo

Average Age

Experienced Management: CAG's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sean Connolly
President5.33yrsUS$14.39m0.11%
$ 19.7m
Richard Lenny
Independent Non-Executive Chairman2.25yrsUS$437.55k0.020%
$ 3.6m
Craig Omtvedt
Independent Director3.75yrsUS$262.40k0.016%
$ 3.0m
Anil Arora
Independent Director2.08yrsUS$210.69k0.0021%
$ 378.8k
Stephen Butler
Independent Director17.25yrsUS$285.40k0.012%
$ 2.3m
Thomas Brown
Independent Director6.83yrsUS$260.90k0.0058%
$ 1.1m
Joie Gregor
Independent Director11.5yrsUS$280.90k0.013%
$ 2.4m
Melissa Lora
Independent Director1.58yrsUS$100.08k0.0017%
$ 303.8k
Rajive Johri
Independent Director11.58yrsUS$263.90k0.00088%
$ 161.0k
Scott Ostfeld
Independent Director1.5yrsUS$79.30kno data
Ruth Marshall
Independent Director13.25yrsUS$286.90k0.024%
$ 4.3m

5.3yrs

Average Tenure

66yo

Average Age

Experienced Board: CAG's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CAG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Conagra Brands, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Conagra Brands, Inc.
  • Ticker: CAG
  • Exchange: NYSE
  • Founded: 1919
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$18.301b
  • Shares outstanding: 487.24m
  • Website: https://www.conagrabrands.com

Number of Employees


Location

  • Conagra Brands, Inc.
  • 222 West Merchandise Mart Plaza
  • Suite 1300
  • Chicago
  • Illinois
  • 60654
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CAGNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
CAODB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969
0I2PLSE (London Stock Exchange)YesCommon StockGBUSDJan 1969
C1AG34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

Biography

Conagra Brands, Inc., together with its subsidiaries, operates as a consumer packaged goods food company in North America. The company operates through Grocery & Snacks, Refrigerated & Frozen, Internationa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/05 00:09
End of Day Share Price2020/08/04 00:00
Earnings2020/05/31
Annual Earnings2020/05/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.