Conagra Brands (CAG)
NYSE:CAG
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Conagra Brands
(NYSE:CAG)
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Rating:56Neutral
Price Target:
$15.50
â–²(2.11% Upside)
Action:ReiteratedDate:04/14/26
Overall score reflects pressured recent financial performance (revenue decline and TTM net loss) and weak price momentum, partially offset by supportive valuation (low P/E and high dividend yield) and constructive management guidance pointing to margin and cash-flow improvement despite ongoing commodity/tariff and inventory risks.
Positive Factors
Free Cash Flow Generation
Despite a recent net loss, Conagra reported roughly $0.84B FCF TTM and raised free‑cash‑flow conversion to ~105%. Durable positive FCF supports debt service, dividends, reinvestment, and M&A optionality, giving the company balance sheet flexibility while it repairs operating momentum.
Negative Factors
Sharp Revenue Decline
A steep TTM revenue decline and a slight net loss erode operating leverage and return on equity. Sustained top‑line weakness forces reliance on cost cuts and portfolio fixes to restore profitability, and if volumes don't recover, margins and cash generation may remain constrained over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
Despite a recent net loss, Conagra reported roughly $0.84B FCF TTM and raised free‑cash‑flow conversion to ~105%. Durable positive FCF supports debt service, dividends, reinvestment, and M&A optionality, giving the company balance sheet flexibility while it repairs operating momentum.
Read all positive factors
Conagra Brands (CAG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.26B
Dividend Yield7.87%
Average Volume (3M)14.98M
Price to Earnings (P/E)11.3
Beta (1Y)-0.06
Revenue Growth-5.82%
EPS Growth-119.70%
CountryUS
Employees18,500
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.39
Shares Outstanding478,437,160
10 Day Avg. Volume13,838,027
30 Day Avg. Volume14,975,820
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)1.20
Price to Sales (P/S)0.92
P/FCF Ratio8.23
Enterprise Value/Market Cap1.85
Enterprise Value/Revenue1.20
Enterprise Value/Gross Profit4.97
Enterprise Value/Ebitda14.34
Forecast
1Y Price Target
$16.00Price Target Upside5.40% Upside
Rating ConsensusHold
Number of Analyst Covering15
EPS Forecast (FY)1.7
Revenue Forecast (FY)$11.29B
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 ...
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 generate...
Conagra Brands Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows sales performance across various business divisions, indicating which segments are growing, stable, or declining, and where strategic focus might be needed.
Shows sales performance across various business divisions, indicating which segments are growing, stable, or declining, and where strategic focus might be needed.
Data provided by:
The Fly
The FlyConagra Brands Earnings Call Summary
Earnings Call Date:Apr 01, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jul 09, 2026
Earnings Call Sentiment Positive
The call balanced clear operational improvements and strong cash-generation progress against ongoing macro-related headwinds. Highlights include recovering volume (notably in Frozen and Snacks), strong productivity (over 5% delivered), an expectation to hit the high end of prior operating margin guidance, and raised free cash flow conversion (to ~105%). Lowlights center on exposure to commodity inflation (especially proteins and diesel), tariff-wrap headwinds, Ardent Mills earnings volatility, spot freight spikes and elevated inventory. On balance, management presented a constructive path to margin and cash improvement while acknowledging remaining commodity and macro risks.Positive Updates
Volume Momentum and Market Share Recoveries
Total portfolio returned to growth this quarter with particularly strong momentum in Frozen and Snacks. Refrigerated & Frozen shipments were +3.9% in Q3 (Q3 a year ago was -3%), and management reported ~88% of the core frozen business is holding or gaining share.
Negative Updates
Inflation and Tariff Uncertainty
Company noted a multi-year inflation supercycle with core inflation previously estimated at ~4% and tariffs ~3% (total ~7% before mitigation). Management expects wrap of tariff mitigation to create some headwind next year (initially estimated $80M headwind, now potentially ~50% of that). Core inflation has been somewhat unfavorable relative to prior assumptions.
Read all updates
Q3-2026 Updates
Positive
Negative
Volume Momentum and Market Share Recoveries
Total portfolio returned to growth this quarter with particularly strong momentum in Frozen and Snacks. Refrigerated & Frozen shipments were +3.9% in Q3 (Q3 a year ago was -3%), and management reported ~88% of the core frozen business is holding or gaining share.
Read all positive updates
Company Guidance
The company reiterated positive near‑term guidance, saying it expects positive organic net sales growth in Q4 and an operating‑margin inflection from Q3 to Q4 that takes results to the high end of its prior 11.0%–11.5% FY26 guide (with an implied exit rate above ~12%), driven by productivity (core productivity + tariff mitigation of just over 5% year‑to‑date), lower A&P (more in line with a ~2.5% average in Q4), and the 53rd week tailwind; material‑cost hedges are ~60% covered for Q1 and ~40% for the full year (proteins only ~15% covered), diesel covered only through the end of this fiscal year, and freight largely on contracted line haul; inflation was characterized as ~4% core + ~3% tariff (total ~7%) with prior mitigation modeled at ~1% (now likely closer to ~0.5%), free‑cash‑flow conversion was raised to ~105% (with a 90%+ conversion target as the baseline going forward), inventory stands at ~$2.0 billion with further reductions planned via Project Catalyst/AI, and Ardent Mills distributions were maintained despite equity earnings weakness (payout above 100% this year).Conagra Brands Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
62
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | May 2025 | May 2024 | May 2023 | May 2022 | May 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.18B | 11.61B | 12.05B | 12.28B | 11.54B | 11.18B |
| Gross Profit | 2.70B | 3.00B | 3.33B | 3.26B | 2.84B | 3.18B |
| EBITDA | 937.20M | 1.97B | 1.45B | 1.69B | 1.94B | 2.22B |
| Net Income | -43.30M | 1.15B | 347.20M | 683.60M | 888.20M | 1.30B |
Balance Sheet | ||||||
| Total Assets | 19.21B | 20.93B | 20.86B | 22.05B | 22.44B | 22.20B |
| Cash, Cash Equivalents and Short-Term Investments | 55.10M | 68.00M | 77.70M | 93.30M | 83.30M | 79.20M |
| Total Debt | 6.56B | 8.07B | 8.61B | 9.42B | 9.18B | 9.19B |
| Total Liabilities | 11.05B | 12.00B | 12.35B | 13.25B | 13.57B | 13.56B |
| Stockholders Equity | 8.16B | 8.93B | 8.44B | 8.74B | 8.79B | 8.55B |
Cash Flow | ||||||
| Free Cash Flow | 842.00M | 1.30B | 1.63B | 633.20M | 712.90M | 961.70M |
| Operating Cash Flow | 1.24B | 1.69B | 2.02B | 995.40M | 1.18B | 1.47B |
| Investing Cash Flow | 286.10M | -542.20M | -375.00M | -354.90M | -434.90M | -340.30M |
| Financing Cash Flow | -1.53B | -1.16B | -1.66B | -631.60M | -738.00M | -1.61B |
Conagra Brands Technical Analysis
Negative
15.18
Price Trends
17.54
Negative
17.28
Negative
17.68
Negative
Market Momentum
-0.55
Negative
33.87
Neutral
36.35
Neutral
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 15.18 is below the 20-day moving average (MA) of 15.61, below the 50-day MA of 17.54, and below the 200-day MA of 17.68, indicating a bearish trend. The MACD of -0.55 indicates Negative momentum. The RSI at 33.87 is Neutral, neither overbought nor oversold. The STOCH value of 36.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CAG.
Conagra Brands Risk Analysis
Conagra Brands disclosed 36 risk factors in its most recent earnings report. Conagra Brands reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Conagra Brands Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $14.44B | 4.70 | 27.31% | 2.61% | 1.64% | -1.83% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $9.70B | -3.86 | -21.55% | 4.45% | -0.66% | -326.55% | |
60 Neutral | $18.99B | 20.26 | 23.70% | 5.19% | -5.65% | 0.41% | |
56 Neutral | $7.26B | 11.30 | -0.51% | 7.87% | -5.82% | -119.70% | |
54 Neutral | $6.09B | 14.14 | 13.98% | 5.64% | 2.71% | 4.90% | |
54 Neutral | $27.30B | -4.90 | -13.44% | 6.75% | -3.70% | -431.05% |
* Consumer Defensive Sector Average
CAG
Conagra Brands
15.18
-9.18
-37.68%
CPB
Campbell Soup
20.43
-16.30
-44.37%
GIS
General Mills
35.59
-20.24
-36.26%
SJM
JM Smucker
90.91
-22.42
-19.78%
MKC
McCormick & Company
53.71
-22.36
-29.39%
KHC
Kraft Heinz
23.06
-4.95
-17.68%
Conagra Brands Corporate Events
Business Operations and StrategyExecutive/Board Changes
Conagra Brands Announces New CEO and Leadership Transition
Positive
Apr 13, 2026
Conagra Brands announced on April 13, 2026, that veteran consumer goods executive John Brase will become President and Chief Executive Officer and join the board, effective June 1, 2026, succeeding long-time leader Sean Connolly, who will step dow...
Executive/Board Changes
Conagra Brands Expands Board, Adds Two Independent Directors
Positive
Feb 18, 2026
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 Governanc...
Business Operations and StrategyFinancial Disclosures
Conagra Reaffirms 2026 Outlook, Highlights Strong Cash Generation
Positive
Feb 17, 2026
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 maint...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.