Conagra Brands (CAG) AI Stock Analysis

• Market Cap: $10.09B
• Dividend Yield: 6.62%
• Average Volume (3M): 7.69M
• Price to Earnings (P/E): 30.9
• Beta (1Y): -0.05
• Revenue Growth: -3.15%
• EPS Growth: -65.38%
• Country: US
• Employees: 18,500
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Packaged Foods
• EPS (TTM): 0.51
• Shares Outstanding: 477,362,460
• 10 Day Avg. Volume: 9,660,352
• 30 Day Avg. Volume: 7,686,180
• PEG Ratio: -0.95
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.09
• Enterprise Value/Market Cap: 1.82
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 5.92
• Enterprise Value/Ebitda: 3.27
• 1Y Price Target: $23.08
• Price Target Upside: 9.96% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 67 Neutral
• Price Target: $24.50 ▲(16.72%Upside)

Conagra Brands' overall stock score reflects a combination of strong financial health, particularly in balance sheet and cash flow, tempered by challenges in profitability and technical trends. The attractive dividend yield offsets some valuation concerns, while the earnings call highlights management's efforts to address supply and inflation challenges. The stock's current technical indicators suggest continued bearish pressure, necessitating caution for potential investors.

Positive Factors

Financial performance

CAG's EPS should benefit from ongoing productivity efforts and expected interest expense savings as well as a 53rd week in FY26.

Negative Factors

Debt concerns

The leverage targets are concerning, with $1.5 billion in debt due over the next year.

Earnings pressure

Protein inflation within the cost of goods sold is expected to be a significant headwind to earnings growth.

Pricing power limitations

The company faces limited pricing power in its largest category, single-serve frozen meals, due to high demand elasticity.

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 diverse range of packaged food products to retailers, foodservice operators, and industrial customers. The company's key revenue streams are its branded consumer products, sold through grocery stores, supermarkets, and e-commerce platforms, and its commercial food products, supplied to restaurants and other foodservice establishments. Conagra leverages significant economies of scale in manufacturing and distribution to maintain competitive pricing and profitability. Additionally, strategic partnerships and acquisitions play a crucial role in expanding Conagra's brand portfolio and market reach, driving sales growth and enhancing its ability to innovate in response to consumer trends.

Conagra Brands Financial Statement Overview

Summary

Conagra Brands demonstrates a mixed financial performance. The company maintains a strong balance sheet with low leverage and solid equity financing. However, there are challenges in profitability and revenue growth, as reflected in declining margins and inconsistent revenue trends. Cash flow generation remains robust, supporting overall financial health. Attention to operational efficiencies and cost management will be crucial for improving profitability and sustaining growth.

Income Statement

Conagra Brands shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 26.4%, indicating a stable ability to generate profit from sales. However, the net profit margin has decreased to 2.8% from 5.5% in 2022, raising concerns about cost control and profitability. Revenue growth has been inconsistent, with a decline of 2.6% from 2023 to 2024. The EBIT margin has significantly decreased to 2.1% in the TTM, down from 8.9% in 2021, reflecting challenges in operational efficiency.

Balance Sheet

Conagra Brands exhibits a strong balance sheet with a debt-to-equity ratio of 0.22 in the TTM, a substantial improvement from previous years, indicating reduced leverage. The equity ratio is robust at 42.3%, suggesting a stable financial structure with adequate shareholder equity to cover assets. Return on equity (ROE) is 3.7% in the TTM, which is lower than previous years, mainly due to declining net income. Overall, the balance sheet reflects a stable financial position with reduced financial risk.

Cash Flow

The cash flow statement reveals a commendable free cash flow generation, with a TTM free cash flow of $1.45 billion, showing resilience despite decreased net income. The operating cash flow to net income ratio is approximately 5.56, indicating strong cash generation relative to net income. However, free cash flow has decreased by 11% from the previous year, necessitating attention to sustaining operational cash flows. Overall, cash flow management remains a strong aspect of Conagra's financial health.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	11.74B	12.05B	12.28B	11.54B	11.18B	11.05B
Gross Profit	3.10B	3.33B	3.26B	2.84B	3.18B	3.07B
EBITDA	1.22B	1.45B	1.69B	1.94B	2.22B	1.85B
Net Income	329.10M	347.20M	683.60M	888.20M	1.30B	840.10M
Balance Sheet
Total Assets	20.74B	20.86B	22.05B	22.44B	22.20B	22.30B
Cash, Cash Equivalents and Short-Term Investments	49.40M	77.70M	93.30M	83.30M	79.20M	553.30M
Total Debt	8.15B	8.61B	9.42B	9.18B	9.19B	9.95B
Total Liabilities	11.97B	12.35B	13.25B	13.57B	13.56B	14.35B
Stockholders Equity	8.78B	8.44B	8.74B	8.79B	8.55B	7.88B
Cash Flow
Free Cash Flow	1.45B	1.63B	633.20M	712.90M	961.70M	1.47B
Operating Cash Flow	1.83B	2.02B	995.40M	1.18B	1.47B	1.84B
Investing Cash Flow	-536.60M	-375.00M	-354.90M	-434.90M	-340.30M	-153.80M
Financing Cash Flow	-1.32B	-1.66B	-631.60M	-738.00M	-1.61B	-1.37B

Conagra Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 20.99 is below the 20-day moving average (MA) of 21.50, below the 50-day MA of 22.55, and below the 200-day MA of 25.66, indicating a bearish trend. The MACD of -0.54 indicates Negative momentum. The RSI at 37.08 is Neutral, neither overbought nor oversold. The STOCH value of 52.79 is Neutral, 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
PPC	80 Outperform	$10.84B	9.01	36.53%	―	2.35%	145.82%
Sector *	70 Neutral	CHF40.00B	26.25	19.01%	2.35%	9.18%	-0.59%
MKC	69 Neutral	$20.17B	26.10	14.19%	2.35%	0.89%	4.85%
CAG	67 Neutral	$10.09B	30.93	3.67%	6.62%	-3.15%	-65.38%
GIS	63 Neutral	$29.20B	13.14	24.57%	4.46%	-1.87%	-5.16%
CPB	61 Neutral	$9.32B	20.65	11.67%	4.88%	8.65%	-38.57%
SJM	47 Neutral	$11.10B	22.22	-17.87%	4.12%	6.69%	-261.87%

Conagra Brands Corporate Events

Conagra Brands Director Fran Horowitz to Step Down

On June 17, 2025, Fran Horowitz informed Conagra Brands, Inc. that she will not stand for reelection to the Board of Directors at the 2025 Annual Meeting of Shareholders in September. Her decision was not due to any disagreement with the Board or the Company.

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.

Conagra Brands Sells Chef Boyardee for $600 Million

On May 1, 2025, Conagra Brands announced the sale of its Chef Boyardee shelf-stable product line to Hometown Food Company for $600 million in cash, expected to close in the first quarter of fiscal year 2026. This divestiture is part of Conagra’s strategy to reshape its portfolio for long-term growth and focus on its frozen and healthy-snacking businesses, while using the proceeds to pay down debt. The transaction, contributing approximately $450 million to fiscal 2024 net sales, is anticipated to be four percent dilutive to adjusted earnings per share if completed at the start of fiscal year 2025.