Conagra Brands (CAG) AI Stock Analysis

• Market Cap: $7.74B
• Dividend Yield: 7.87%
• Average Volume (3M): 13.30M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.07
• Revenue Growth: -5.82%
• EPS Growth: -119.70%
• Country: US
• Employees: 18,500
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.45
• Shares Outstanding: 478,369,480
• 10 Day Avg. Volume: 13,971,753
• 30 Day Avg. Volume: 13,303,010
• PEG Ratio: 0.04
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.92
• P/FCF Ratio: 8.23
• Enterprise Value/Market Cap: 1.98
• Enterprise Value/Revenue: 1.36
• Enterprise Value/Gross Profit: 5.56
• Enterprise Value/Ebitda: 17.01
• 1Y Price Target: $18.73
• Price Target Upside: 15.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): 1.72
• Revenue Forecast (FY): $11.25B

• Rating: 58 Neutral
• Price Target: $17.00 ▲(5.00% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is held back primarily by weakening financial performance (declining revenue/profitability and pressured free cash flow). Partially offsetting this are moderately positive technical momentum, supportive income characteristics from the high dividend yield (despite a negative P/E), and a cautiously optimistic outlook from management with reaffirmed guidance and improved free cash flow conversion expectations.

Positive Factors

Strong branded position in snacks & frozen

Conagra’s entrenched branded portfolio and recent outperformance in snacks and frozen reflect durable category advantages: strong consumer recognition, scale in retail distribution, and focused innovation. That combination supports sustained revenue mix, pricing power, and margin resilience over the next several quarters.

Improved leverage management

A lower debt-to-equity profile increases financial flexibility and reduces interest burden, making it easier to fund investments, sustain dividends, or weather commodity swings. Improved leverage is a durable credit-strengthening move that supports long-term capital allocation and risk management.

Stronger cash generation targets & affirmed guidance

Management’s raised FCF conversion target and reaffirmed fiscal outlook signal durable improvement in cash conversion and operational discipline. Higher FCF conversion supports reinvestment, debt paydown, and shareholder distributions, strengthening the company’s ability to execute strategic initiatives like Project Catalyst.

Negative Factors

Declining revenue trend

Sustained top-line decline undermines scale benefits in manufacturing and negotiating leverage with retailers. Over multiple quarters this reduces gross throughput, constrains marketing ROI, and limits the firm’s capacity to absorb input cost swings, making margin recovery and investment funding harder.

Negative net income & margin compression

Persistently negative net income and falling operating margins indicate structural profitability pressure rather than temporary noise. Reduced margins weaken return on equity and limit retained earnings for reinvestment, raising the risk profile for longer-term growth and capacity improvement plans.

Operational disruptions & impairment risks

Recurring operational headwinds—third-party shortfalls, supply chain constraints (chicken), and an impairment tied to sustained stock declines—signal execution and asset-recovery risks. These structural issues can elevate capex, depress near-term earnings, and constrain strategic initiatives until resolved.

Conagra Brands Business Overview & Revenue Model

Company Description

Conagra Brands, Inc., together with its subsidiaries, operates as a consumer packaged goods food company in North America. The company operates in four segments: Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice. The Grocery & Snacks segment primarily offers shelf stable food products through various retail channels in the United States. The Refrigerated & Frozen segment provides temperature-controlled food products through various retail channels in the United States. The International segment offers food products in various temperature states through retail and foodservice channels outside of the United States. The Foodservice segment offers branded and customized food products, including meals, entrees, sauces, and various custom-manufactured culinary products packaged for restaurants and other foodservice establishments in the United States. The company sells its products under the Birds Eye, Duncan Hines, Healthy Choice, Marie Callender's, Reddi-wip, Slim Jim, Angie's BOOMCHICKAPOP, Duke's, Earth Balance, Gardein, and Frontera 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 1861 and is headquartered in Chicago, Illinois.

How the Company Makes Money

Conagra makes money primarily by selling branded packaged foods to retailers (e.g., grocery chains, mass merchandisers, club stores, and e-commerce retailers) and, to a smaller extent, to foodservice operators and distributors. Revenue is generated when Conagra ships products to these customers, typically at wholesale prices that reflect negotiated trade terms (such as promotional allowances, discounts, and slotting or merchandising programs) that can reduce net sales. The company’s largest revenue stream is the volume of branded products sold across its core categories (notably frozen and shelf-stable foods), with demand influenced by consumer preferences, category trends, and promotional activity. Earnings are driven by the spread between net sales and the costs to produce and deliver products, including key agricultural and packaging inputs, labor, manufacturing overhead, logistics, and marketing; profitability is therefore sensitive to commodity and freight cost inflation/deflation and Conagra’s ability to take pricing actions and manage product mix. Additional contributors to results can include product innovation and brand investment to support pricing power and share, plus disciplined portfolio management (e.g., introducing new items, rationalizing lower-performing SKUs, and potential acquisitions/divestitures). Information on specific customer or partnership arrangements is not available here (null).

Conagra Brands Financial Statement Overview

Summary

Fundamentals are pressured by declining revenue and profitability, including negative net income in the TTM period and weaker gross/EBIT/EBITDA margins. Leverage management has improved (better debt-to-equity), but return on equity has fallen significantly. Operating cash flow is positive, yet free cash flow has declined and shows negative growth, tempering the financial outlook.

Income Statement

Conagra Brands shows a declining revenue trend with a negative growth rate in the TTM period. The gross profit margin has decreased compared to previous years, indicating pressure on profitability. The net profit margin is significantly low, with a negative net income in the TTM period, highlighting challenges in maintaining profitability. EBIT and EBITDA margins have also declined, reflecting operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has improved in the TTM period, indicating better leverage management. However, the return on equity has significantly decreased, reflecting reduced profitability from shareholders' equity. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Operating cash flow remains positive, but the free cash flow has declined, indicating reduced cash available after capital expenditures. The free cash flow to net income ratio is relatively strong, but the negative free cash flow growth rate in the TTM period raises concerns about cash generation capabilities.

Breakdown	TTM	May 2025	May 2024	May 2023	May 2022	May 2021
Income Statement
Total Revenue	11.23B	11.61B	12.05B	12.28B	11.54B	11.18B
Gross Profit	2.76B	3.00B	3.33B	3.26B	2.84B	3.18B
EBITDA	901.20M	1.97B	1.45B	1.69B	1.94B	2.22B
Net Income	-98.00M	1.15B	347.20M	683.60M	888.20M	1.30B
Balance Sheet
Total Assets	19.54B	20.93B	20.86B	22.05B	22.44B	22.20B
Cash, Cash Equivalents and Short-Term Investments	46.60M	68.00M	77.70M	93.30M	83.30M	79.20M
Total Debt	7.62B	8.07B	8.61B	9.42B	9.18B	9.19B
Total Liabilities	11.45B	12.00B	12.35B	13.25B	13.57B	13.56B
Stockholders Equity	8.09B	8.93B	8.44B	8.74B	8.79B	8.55B
Cash Flow
Free Cash Flow	876.40M	1.30B	1.63B	633.20M	712.90M	961.70M
Operating Cash Flow	1.27B	1.69B	2.02B	995.40M	1.18B	1.47B
Investing Cash Flow	291.00M	-542.20M	-375.00M	-354.90M	-434.90M	-340.30M
Financing Cash Flow	-1.55B	-1.16B	-1.66B	-631.60M	-738.00M	-1.61B

Conagra Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAG, the sentiment is Negative. The current price of 16.19 is below the 20-day moving average (MA) of 18.19, below the 50-day MA of 18.00, and below the 200-day MA of 18.14, indicating a bearish trend. The MACD of -0.56 indicates Positive momentum. The RSI at 31.70 is Neutral, neither overbought nor oversold. The STOCH value of 4.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CAG.

Conagra Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GIS	68 Neutral	$20.67B	15.38	27.21%	5.19%	-5.65%	0.41%
MKC	65 Neutral	$15.32B	22.59	14.03%	2.61%	1.64%	-1.83%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SJM	61 Neutral	$10.95B	-3.86	-21.55%	4.45%	-0.66%	-326.55%
CAG	58 Neutral	$7.74B	-3.16	-1.13%	7.87%	-5.82%	-119.70%
CPB	54 Neutral	$6.43B	14.14	13.98%	5.64%	2.71%	4.90%
KHC	54 Neutral	$27.10B	-4.90	-13.44%	6.75%	-3.70%	-431.05%

Conagra Brands Corporate Events

Conagra Brands Expands Board, Adds Two Independent Directors

On February 18, 2026, Conagra Brands, Inc. expanded its Board of Directors from 11 to 12 members and appointed John Mulligan and Pietro Satriano as independent directors, with Mulligan joining the Human Resources and Nominating Corporate Governance Committees and Satriano joining the Audit / Finance Committee. Both were confirmed as independent under NYSE and company standards, with Satriano also deemed financially literate under SEC rules, and each will receive pro-rated fiscal 2026 cash retainers and approximately $60,000 in restricted stock units, aligning their compensation with that of other non-employee directors and underscoring Conagra’s ongoing emphasis on governance and financial oversight at the board level.

The most recent analyst rating on (CAG) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Conagra Brands stock, see the CAG Stock Forecast page.

Conagra Reaffirms 2026 Outlook, Highlights Strong Cash Generation

On February 16, 2026, Conagra Brands reaffirmed its fiscal 2026 guidance ahead of its presentation at the Consumer Analyst Group of New York conference, signaling confidence in its current strategy despite a modest sales outlook. The company maintained expectations for organic net sales to range from a 1% decline to 1% growth versus fiscal 2025, an adjusted operating margin of about 11.0% to 11.5%, and adjusted EPS of $1.70 to $1.85.

Conagra also raised its forecast for free cash flow conversion to approximately 100% for the full year, up from a prior target of about 90%, indicating improved cash generation relative to earnings. The company plans to showcase new product innovations launching in calendar 2026, reinforcing its emphasis on branded innovation to support margins and sustain its competitive position in the packaged food sector.

The most recent analyst rating on (CAG) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Conagra Brands stock, see the CAG Stock Forecast page.