Conagra Brands (CAG) AI Stock Analysis

• Market Cap: $8.88B
• Dividend Yield: 7.54%
• Average Volume (3M): 11.71M
• Price to Earnings (P/E): 10.5
• Beta (1Y): >-0.01
• Revenue Growth: -4.11%
• EPS Growth: 72.17%
• Country: US
• Employees: 18,500
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.39
• Shares Outstanding: 478,351,650
• 10 Day Avg. Volume: 12,166,171
• 30 Day Avg. Volume: 11,713,984
• 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: 1.92
• Enterprise Value/Revenue: 1.49
• Enterprise Value/Gross Profit: 5.86
• Enterprise Value/Ebitda: 8.91
• 1Y Price Target: $20.25
• Price Target Upside: 9.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 64 Neutral
• Price Target: $20.00 ▲(7.76% Upside)

Conagra Brands' overall stock score reflects a combination of mixed financial performance, neutral technical indicators, and attractive valuation. The company's strong dividend yield and low P/E ratio are significant positives. However, declining revenue, cash flow challenges, and inflationary pressures pose risks. The earnings call highlighted strategic successes but also underscored ongoing challenges, leading to a cautious outlook.

Positive Factors

Debt Reduction

Reducing net debt enhances financial stability and flexibility, allowing Conagra to better navigate economic uncertainties and invest in growth opportunities.

Frozen Portfolio Performance

Improvement in frozen portfolio volumes indicates strong demand and effective market positioning, contributing to long-term growth in a key segment.

Supply Chain Efficiency

High service levels and productivity gains reflect operational excellence, supporting margin stability and customer satisfaction in the long term.

Negative Factors

Declining Revenue

A decline in organic net sales suggests challenges in maintaining market share and growth, potentially impacting future revenue and profitability.

Inflationary Pressures

High inflation rates increase input costs, squeezing margins and potentially leading to higher prices, which can affect demand and profitability.

Cash Flow Challenges

Declining cash flow growth indicates potential liquidity issues, limiting Conagra's ability to invest in growth initiatives and manage financial obligations effectively.

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 Brands generates revenue primarily through the sale of its packaged food products across multiple categories, including frozen, refrigerated, and shelf-stable goods. The company's revenue model is built on a combination of direct sales to retailers, food service distributors, and direct-to-consumer channels. Key revenue streams include branded products, private label offerings, and innovative new products that cater to consumer trends such as health and wellness. Furthermore, Conagra has formed strategic partnerships and collaborations with retailers and food service companies to enhance distribution and visibility of its brands, contributing to increased market penetration and sales. Additionally, the company invests in marketing and promotional activities to drive brand awareness and consumer engagement, which further supports its revenue generation efforts.

Conagra Brands Financial Statement Overview

Summary

Conagra Brands presents a mixed financial picture. The income statement shows profitability but declining revenue and margins. The balance sheet reflects improved leverage and stability, with a significant reduction in debt. However, cash flow metrics indicate challenges in cash generation and conversion efficiency. Overall, while the company maintains a stable financial position, the declining trends in revenue and cash flow warrant attention.

Income Statement

Conagra Brands shows a mixed performance in its income statement. The TTM data reveals a decline in revenue growth rate at -1.40%, indicating a contraction in sales. Gross profit margin stands at 25.35%, which is reasonable but has decreased compared to previous periods. The net profit margin is 7.42%, showing profitability but also a decline from prior years. EBIT and EBITDA margins are at 9.94% and 15.52%, respectively, reflecting operational efficiency but also a downward trend. Overall, the company maintains profitability, but the declining revenue and margins are concerning.

Balance Sheet

The balance sheet of Conagra Brands indicates a stable financial position with a debt-to-equity ratio of 0.12 in the TTM, significantly improved from previous years, suggesting reduced leverage. Return on equity (ROE) is at 9.60%, indicating a decent return on shareholders' investments. The equity ratio is not explicitly calculated, but the improved debt metrics suggest a stronger equity position. The company has successfully reduced its debt burden, enhancing financial stability, though the ROE has decreased from past performance.

Cash Flow

Cash flow analysis shows challenges, with a free cash flow growth rate of -12.42% in the TTM, indicating a decline in cash generation. The operating cash flow to net income ratio is 0.43, and the free cash flow to net income ratio is 0.74, reflecting moderate cash conversion efficiency. While the company generates positive cash flow, the declining growth and moderate conversion ratios highlight potential liquidity concerns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.45B	11.61B	12.05B	12.28B	11.54B	11.18B
Gross Profit	2.90B	3.12B	3.35B	3.28B	2.82B	3.40B
EBITDA	1.91B	1.96B	1.44B	1.47B	1.79B	2.22B
Net Income	850.10M	1.15B	347.20M	683.60M	888.20M	1.30B
Balance Sheet
Total Assets	21.17B	20.93B	20.86B	22.05B	22.44B	22.20B
Cash, Cash Equivalents and Short-Term Investments	698.10M	68.00M	77.70M	93.30M	83.30M	79.20M
Total Debt	8.28B	8.31B	8.61B	9.42B	9.18B	9.19B
Total Liabilities	12.26B	12.00B	12.35B	13.25B	13.57B	13.56B
Stockholders Equity	8.92B	8.93B	8.44B	8.74B	8.79B	8.55B
Cash Flow
Free Cash Flow	1.14B	1.30B	1.63B	633.20M	712.90M	961.70M
Operating Cash Flow	1.54B	1.69B	2.02B	995.40M	1.18B	1.47B
Investing Cash Flow	246.10M	-542.20M	-375.00M	-354.90M	-434.90M	-340.30M
Financing Cash Flow	-1.22B	-1.16B	-1.66B	-631.60M	-738.00M	-1.61B

Conagra Brands Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 18.56 is above the 20-day moving average (MA) of 18.53, below the 50-day MA of 18.90, and below the 200-day MA of 22.01, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 48.45 is Neutral, neither overbought nor oversold. The STOCH value of 37.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CAG.

Conagra Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MKC	70 Outperform	$18.12B	23.37	13.92%	2.67%	1.64%	-1.83%
GIS	68 Neutral	$25.81B	9.16	30.98%	5.00%	-3.26%	25.58%
CPB	67 Neutral	$9.14B	15.30	15.64%	5.06%	6.40%	6.17%
CAG	64 Neutral	$8.88B	10.47	9.65%	7.54%	-4.11%	72.17%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KHC	56 Neutral	$29.74B	12.81	-11.68%	6.27%	-3.83%	-384.08%
SJM	49 Neutral	$11.23B	22.22	-21.32%	4.12%	2.54%	-293.39%

Conagra Brands Corporate Events

Conagra Brands Completes $1 Billion Senior Notes Offering

On July 22, 2025, Conagra Brands completed a public offering of $1 billion in senior notes, split between $500 million due in 2030 and $500 million due in 2035. This move, facilitated by major financial institutions, aims to strengthen the company’s financial position, with implications for its debt management and market operations.

The most recent analyst rating on (CAG) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on Conagra Brands stock, see the CAG Stock Forecast page.