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Conagra Brands
(NYSE:CAG)
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Rating:58Neutral
Price Target:
$16.00
â–²(8.33% Upside)
Action:Reiterated
Date:07/28/26
The score is held back primarily by weakened profitability and a cautious FY27 outlook (continued volume declines and lower operating margins), partly offset by strong and resilient cash generation, improving leverage versus prior years, and some near-term technical stabilization above shorter moving averages. The high dividend yield supports valuation appeal but comes with elevated sustainability risk given the earnings and guidance backdrop.
Positive Factors
Strong free cash flow conversion
Conagra’s 119% FCF conversion demonstrates durable cash generation that can fund deleveraging, targeted capex and brand investment even when GAAP earnings are volatile. Strong cash flow provides a structural buffer to execute turnaround plans and meet debt obligations over the next 2–3 years.
Negative Factors
Persistent volume declines
Six consecutive years of volume declines indicate structural demand erosion or competitive weakness in core categories. Sustained volume losses reduce operating leverage, force pricing tradeoffs, and make margin recovery dependent on difficult SKU rationalization and consistent brand regain over many quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow conversion
Conagra’s 119% FCF conversion demonstrates durable cash generation that can fund deleveraging, targeted capex and brand investment even when GAAP earnings are volatile. Strong cash flow provides a structural buffer to execute turnaround plans and meet debt obligations over the next 2–3 years.
Read all positive factors
Conagra Brands Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Reveals profitability across different business units, highlighting which segments drive earnings and where operational efficiencies or challenges exist.
Reveals profitability across different business units, highlighting which segments drive earnings and where operational efficiencies or challenges exist.
Data provided by:
The Fly
The FlyConagra Brands (CAG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.94B
Dividend Yield8.44%
Average Volume (3M)21.02M
Price to Earnings (P/E)―
Beta (1Y)-0.09
Revenue Growth-2.85%
EPS Growth-265.99%
CountryUS
Employees18,300
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)-4.00
Shares Outstanding478,565,640
10 Day Avg. Volume17,200,697
30 Day Avg. Volume21,022,957
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.99
Price to Sales (P/S)0.56
P/FCF Ratio6.42
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$13.69Price Target Upside-7.30% Downside
Rating ConsensusHold
Number of Analyst Covering13
EPS Forecast (FY)1.46
Revenue Forecast (FY)$10.87B
Conagra Brands Business Overview & Revenue Model
Company Description
Conagra Brands, Inc., a prominent manufacturer of packaged food products, conducts its business across North America through its various subsidiary companies. The firm organizes its extensive operations into four distinct segments: Grocery & Snack...
How the Company Makes Money
Conagra makes money by selling packaged food products to retailers and foodservice customers, recognizing revenue primarily from product sales (net of trade promotions, discounts, and returns). Its key revenue streams are: (1) Branded consumer pac...
Conagra Brands Earnings Call Summary
Earnings Call Date:Jul 15, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 01, 2026
Earnings Call Sentiment Negative
The call presented a mixed picture: management outlined concrete, credible actions (dividend reduction freeing ~$1B, $40M increase in brand spend, targeted >4% productivity, and strong free cash flow conversion of 119%) and clear strategic priorities (portfolio simplification, supply chain investments, pricing, and innovation). However, the company faces persistent top-line challenges (organic volumes down mid-single-digits for a sixth consecutive year), material margin compression (from ~16% historically to a guided 10%–10.5%), inflation that still outpaces productivity, a $40M tariff headwind concentrated in Q1, elevated near-term CapEx, and near-term leverage/refinancing risk. Overall, while management has a plan and financial flexibility to act, the near-term operating and macro pressures and sustained volume declines make the outlook cautiously negative.Positive Updates
Dividend Reduction Frees Cash for Deleveraging and Investment
Company cut the dividend to accelerate progress toward a 3.0x leverage target; management said the cut frees roughly $1.0 billion of incremental cash over the next ~3 years to pay down debt and fund reinvestment.
Negative Updates
Persistent Volume Declines
Organic volumes are forecast down mid-single-digits for the year (guidance weighted toward frozen); the company noted this would be the sixth consecutive fiscal year of volume declines, highlighting sustained top-line pressure.
Read all updates
Q4-2026 Updates
Positive
Negative
Dividend Reduction Frees Cash for Deleveraging and Investment
Company cut the dividend to accelerate progress toward a 3.0x leverage target; management said the cut frees roughly $1.0 billion of incremental cash over the next ~3 years to pay down debt and fund reinvestment.
Read all positive updates
Company Guidance
Management guided FY27 with volumes down mid‑single digits and organic net sales roughly -2% at the midpoint (implying price/mix of about +3%), with pricing actions effective mid‑Q2 (half‑year impact); Q1 operating margin is expected in the high single digits while full‑year operating margin guidance is ~10.0–10.5%. They plan productivity above 4% versus P&L inflation of ~5%, a $40M increase in brand building (+14%), an incremental ~$125M of CapEx (≈$100M tied to insourcing/protein projects), and a tariff/tariff‑wrap headwind of ~$40M concentrated in Q1. The dividend reduction frees roughly $1B of cash over ~3 years (about 3/4 benefit into FY27) to accelerate deleveraging toward a 3.0x target; FY26 free cash flow conversion was 119%.Conagra Brands Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
58
Neutral
Cash Flow
72
Positive
| Breakdown | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.28B | 11.61B | 12.05B | 12.28B | 11.54B |
| Gross Profit | 2.70B | 3.00B | 3.33B | 3.26B | 2.84B |
| EBITDA | -1.63B | 1.97B | 1.45B | 1.69B | 1.94B |
| Net Income | -1.92B | 1.15B | 347.20M | 683.60M | 888.20M |
Balance Sheet | |||||
| Total Assets | 17.27B | 20.93B | 20.86B | 22.05B | 22.44B |
| Cash, Cash Equivalents and Short-Term Investments | 218.00M | 68.00M | 77.70M | 93.30M | 83.30M |
| Total Debt | 7.27B | 8.07B | 8.61B | 9.42B | 9.18B |
| Total Liabilities | 10.92B | 12.00B | 12.35B | 13.25B | 13.57B |
| Stockholders Equity | 6.36B | 8.93B | 8.44B | 8.74B | 8.79B |
Cash Flow | |||||
| Free Cash Flow | 978.70M | 1.30B | 1.63B | 633.20M | 712.90M |
| Operating Cash Flow | 1.40B | 1.69B | 2.02B | 995.40M | 1.18B |
| Investing Cash Flow | 262.60M | -542.20M | -375.00M | -354.90M | -434.90M |
| Financing Cash Flow | -1.52B | -1.16B | -1.66B | -631.60M | -738.00M |
Conagra Brands Technical Analysis
Neutral
14.77
Price Trends
13.68
Positive
14.09
Positive
15.54
Negative
Market Momentum
0.28
Negative
58.69
Neutral
62.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAG, the sentiment is Neutral. The current price of 14.77 is above the 20-day moving average (MA) of 14.32, above the 50-day MA of 13.68, and below the 200-day MA of 15.54, indicating a neutral trend. The MACD of 0.28 indicates Negative momentum. The RSI at 58.69 is Neutral, neither overbought nor oversold. The STOCH value of 62.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $13.69B | 8.46 | 25.58% | 3.78% | 9.54% | 108.44% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $6.55B | 10.72 | 15.30% | 7.14% | -2.90% | 33.92% | |
62 Neutral | $12.75B | -91.74 | -2.44% | 3.72% | 3.72% | 88.76% | |
61 Neutral | $19.08B | -210.29 | -0.99% | 6.77% | -5.45% | -104.44% | |
58 Neutral | $6.94B | -3.63 | -24.31% | 9.48% | -2.85% | -265.99% | |
53 Neutral | $30.65B | -5.34 | -13.85% | 6.23% | -1.75% | -319.68% |
* Consumer Defensive Sector Average
CAG
Conagra Brands
14.51
-2.81
-16.22%
CPB
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21.98
-8.38
-27.61%
GIS
General Mills
35.75
-10.40
-22.53%
SJM
JM Smucker
119.26
13.68
12.96%
MKC
McCormick & Company
50.90
-17.04
-25.09%
KHC
Kraft Heinz
25.85
0.74
2.93%
Conagra Brands Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Conagra Brands Issues $500 Million Senior Notes Offering
Positive
Jul 28, 2026
On July 28, 2026, Conagra Brands, Inc. completed a $500 million public offering of 5.400% senior unsecured notes due August 1, 2031, with interest payments starting February 1, 2027. The notes, issued under an existing indenture with U.S. Bank Tru...
Business Operations and StrategyExecutive/Board Changes
Conagra COO Retirement Triggers Executive Leadership Restructuring
Neutral
Jul 28, 2026
Conagra Brands announced that Executive Vice President and Chief Operating Officer Thomas McGough notified the company on July 24, 2026, of his decision to retire no later than September 4, 2026. Following his departure, Conagra plans to eliminate...
Executive/Board ChangesShareholder Meetings
Conagra Director Manny Chirico Will Not Seek Reelection
Neutral
Jun 23, 2026
On June 22, 2026, Conagra Brands reported that Emanuel “Manny” Chirico has decided not to stand for reelection to its Board of Directors at the company’s 2026 Annual Meeting of Shareholders, scheduled for September. Chirico will ...
Business Operations and StrategyRegulatory Filings and Compliance
Conagra Brands Updates Bylaws to Enable Virtual Meetings
Neutral
May 7, 2026
On May 5, 2026, Conagra Brands, Inc.’s board approved amended and restated bylaws that, among other updates, explicitly authorize virtual stockholder meetings in line with Delaware law and remove obsolete provisions. The revisions also adjus...
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.