NYSE:CAG

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Undervalued 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

-10.6%

CAG

-3.3%

US Food

-4.2%

US Market


1 Year Return

25.4%

CAG

12.3%

US Food

14.0%

US Market

Return vs Industry: CAG exceeded the US Food industry which returned 12.3% over the past year.

Return vs Market: CAG exceeded the US Market which returned 14% over the past year.


Shareholder returns

CAGIndustryMarket
7 Day-10.6%-3.3%-4.2%
30 Day-9.4%-3.4%-1.8%
90 Day0.6%-0.8%2.6%
1 Year29.0%25.4%15.2%12.3%16.3%14.0%
3 Year-22.6%-28.5%-3.6%-11.3%43.2%34.0%
5 Year21.3%-16.7%38.2%22.0%65.9%47.6%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CAG ($29.23) is trading below our estimate of fair value ($66.28)

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 (17.6x) compared to the Food industry average (22.7x).

PE vs Market: CAG is good value based on its PE Ratio (17.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: CAG is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: CAG is good value based on its PB Ratio (1.9x) 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 14 analysts?

13.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CAG's forecast earnings growth (13.7% per year) is above the savings rate (1.7%).

Earnings vs Market: CAG's earnings (13.7% per year) are forecast to grow faster than the US market (13.1% per year).

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

Revenue vs Market: CAG's revenue (0.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: CAG's revenue (0.7% per year) is forecast to grow slower than 20% 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 (14.7%).


Next Steps

Past Performance

How has Conagra Brands performed over the past 5 years?

21.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CAG has a large one-off loss of $344.2M impacting its November 24 2019 financial results.

Growing Profit Margin: CAG's current net profit margins (7.6%) are lower than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: CAG's earnings have grown significantly by 21.7% per year over the past 5 years.

Accelerating Growth: CAG's earnings growth over the past year (9.8%) is below its 5-year average (21.7% per year).

Earnings vs Industry: CAG earnings growth over the past year (9.8%) exceeded the Food industry -5.6%.


Return on Equity

High ROE: CAG's Return on Equity (10.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Conagra Brands's financial position?


Financial Position Analysis

Short Term Liabilities: CAG's short term assets ($3.0B) do not cover its short term liabilities ($3.4B).

Long Term Liabilities: CAG's short term assets ($3.0B) do not cover its long term liabilities ($11.4B).


Debt to Equity History and Analysis

Debt Level: CAG's debt to equity ratio (134.1%) is considered high.

Reducing Debt: CAG's debt to equity ratio has reduced from 148.2% to 134.1% over the past 5 years.

Debt Coverage: CAG's debt is not well covered by operating cash flow (12.5%).

Interest Coverage: CAG's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet

Inventory Level: CAG has a low level of unsold assets or inventory.

Debt Coverage by Assets: CAG's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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

2.91%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.5%markettop25%3.8%industryaverage2.8%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: CAG's dividend (2.91%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: CAG's dividend (2.91%) is low compared to the top 25% of dividend payers in the US market (3.77%).


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 reasonable payout ratio (51.2%), CAG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CAG's dividends in 3 years are forecast to be well covered by earnings (39% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Sean Connolly (54yo)

4.8yrs

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 Hillshire Brands Company since Jun ...


CEO Compensation Analysis

Compensation vs Market: Sean's total compensation ($USD14.39M) is above average for companies of similar size in the US market ($USD10.82M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Sean Connolly
President4.8yrsUS$14.39m0.063% $9.0m
David Marberger
Executive VP & CFO3.5yrsUS$3.63m0.0077% $1.1m
Thomas McGough
Co-COO & Executive VP1.3yrsUS$3.64m0.030% $4.3m
Darren Serrao
Co-COO & Executive VP1.3yrsUS$2.96m0.011% $1.6m
Colleen Batcheler
Executive VP12yrsUS$3.37m0.035% $5.0m
Mindy Simon
Chief Information Officer2.7yrsno datano data
Brian Kearney
Head of Investor Relations0yrsno datano data
Jonathan Harris
Chief Communications Officer & Senior VP4.5yrsno datano data
Charisse Brock
Executive VP & Chief Human Resources Officer4.3yrsno data0.0083% $1.2m
Stephen Tibey
Senior Vice President of Supply Chain Management0yrsno datano data

3.9yrs

Average Tenure

54yo

Average Age

Experienced Management: CAG's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sean Connolly
President4.8yrsUS$14.39m0.063% $9.0m
Richard Lenny
Non-Executive Chairman1.8yrsUS$437.55k0.014% $2.0m
Craig Omtvedt
Independent Director3.3yrsUS$262.40k0.015% $2.2m
Anil Arora
Independent Director1.6yrsUS$210.69k0.0010% $146.6k
Stephen Butler
Independent Director16.8yrsUS$285.40k0.011% $1.6m
Thomas Brown
Independent Director6.3yrsUS$260.90k0.0063% $895.0k
Joie Gregor
Independent Director11yrsUS$280.90k0.011% $1.6m
Melissa Lora
Independent Director1.1yrsUS$100.08k0.00060% $85.4k
Rajive Johri
Independent Director11.1yrsUS$263.90k0.00088% $125.2k
Ruth Marshall
Independent Director12.8yrsUS$286.90k0.00066% $93.9k

5.6yrs

Average Tenure

66yo

Average Age

Experienced Board: CAG's board of directors are considered experienced (5.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CAG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.3%.


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$14.230b
  • Shares outstanding: 486.81m
  • 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 food company in North America. The company operates through Grocery & Snacks, Refrigerated & Frozen, International, Foodservice, and Pinnacle Foods segments. The Grocery & Snacks segment primarily offers shelf stable food products in various retail channels in the United States. The Refrigerated & Frozen segment provides temperature controlled food products in various retail channels in the United States. The International reporting segment offers food products in various temperature states in retail and foodservice channels outside of the United States. The Foodservice segment offers food products, including meals, entrees, sauces, and various custom-manufactured culinary products packaged for sale to restaurants and other foodservice establishments in the United States. The Pinnacle Foods segment provides branded and private-label food products in various retail and foodservice channels in the United States and Canada. The company sells its products under the Birds Eye, Marie Callender's, Banquet, Healthy Choice, Slim Jim, Reddi-wip, Vlasic, Angie's BOOMCHICKAPOP, Duke's, Earth Balance, Gardein, Frontera, Banquet, Chef Boyardee, Alexia, Blake's, and BIGS brands. The company was formerly known as ConAgra Foods, Inc. and changed its name to Conagra Brands, Inc. in November 2016. Conagra Brands, Inc. was founded in 1919 and is headquartered in Chicago, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 23:51
End of Day Share Price2020/02/24 00:00
Earnings2019/11/24
Annual Earnings2019/05/26


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.