Conagra Brands Inc. (CAG) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/S above the industry

Conagra Brands's price-to-sales of 0.63 is above the Food and Kindred Products median of 0.58 (book value is negative, so we use sales).

Trading below fair value

The share price of $14.83 is below our fair value estimate of $30.45.

Margin of safety over 20%

The price is 51.3% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -2.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -1.8% over the last twelve months; the Food and Kindred Products median is 1.4%.

Guidance raised

Conagra Brands raised its fiscal 2027 Interest expense outlook on Sep 30, 2026.

Gross margin slipping

Gross margin was 23.8% over the last twelve months, against 25.4% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on invested capital

Needs operating income and invested capital.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was -17.0% over the last twelve months, against a 5-year average of 1.8%.

Net margin below the industry

Conagra Brands's net margin of -17.0% is below the Food and Kindred Products median of -4.1%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 156% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.10 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.05; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Conagra Brands paid dividends worth 5.9% of the share price over the last twelve months.

Yield above Treasuries

The 5.9% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Conagra Brands yields 5.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Covered by free cash flow

Dividends take 76.4% of free cash flow.