tiprankstipranks
Trending News
More News >
Conagra Brands (CAG)
NYSE:CAG
Advertisement

Conagra Brands (CAG) AI Stock Analysis

Compare
1,759 Followers

Top Page

CAG

Conagra Brands

(NYSE:CAG)

Rating:70Outperform
Price Target:
$21.00
▲(8.81%Upside)
Conagra Brands' overall score is driven by its solid financial performance and attractive valuation, but is moderated by negative technical indicators and mixed earnings call signals. High leverage and ongoing inflation challenges are notable risks.
Positive Factors
Brand Renovation
Conagra has successfully renovated the Healthy Choice brand and upgraded the Banquet line, moving in the right direction for high protein and high fiber snacks.
Sales Outlook
Sales guidance assumes positive sales growth in the back half of FY26 from pricing actions and easing supply chain constraints.
Negative Factors
Cost Inflation
Elevated cost inflation, particularly in protein, is anticipated to impact Conagra Brands' financial performance negatively.
Earnings Guidance
The FY26 financial outlook for Conagra Brands is significantly below expectations, highlighting challenges with expected earnings per share.
Leverage Concerns
Despite efforts to pay down debt, Conagra Brands is expected to see an increase in net leverage, raising concerns about financial stability.

Conagra Brands (CAG) vs. SPDR S&P 500 ETF (SPY)

Conagra Brands Business Overview & Revenue Model

Company DescriptionConagra Brands, Inc. (CAG) is a leading American packaged foods company that specializes in the production and distribution of a wide range of food products. Headquartered in Chicago, Illinois, Conagra operates in both consumer foods and commercial foods sectors, offering a diverse portfolio of iconic brands such as Healthy Choice, Marie Callender's, Banquet, and Orville Redenbacher's. The company focuses on providing high-quality, convenient, and affordable food options to consumers, including frozen meals, snacks, condiments, and shelf-stable products that cater to various dietary preferences and occasions.
How the Company Makes MoneyConagra 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 Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
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.
Chart InsightsConagra Brands' Grocery and Snacks segment shows resilience with stable revenue, while International and Foodservice segments face challenges. The Refrigerator and Frozen segment is experiencing volatility, but the company is optimistic about volume growth in frozen snacks, supported by strategic investments. Despite inflation and tariff pressures, Conagra is focusing on productivity and supply chain improvements, aiming for long-term margin expansion. The company's debt reduction plan and consumer response to premium products like Banquet Mega Chicken Fillets highlight strategic shifts to navigate current financial pressures.
Data provided by:Main Street Data

Conagra Brands Earnings Call Summary

Earnings Call Date:Jul 10, 2025
(Q4-2025)
|
% Change Since: -5.30%|
Next Earnings Date:Oct 02, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balanced view, with strong consumer response to investments and strategic supply chain improvements as positive aspects, while persistent high inflation, temporary margin compression, and tariff impacts present significant challenges. The company's focus on productivity and debt reduction provides a positive outlook, but the current financial pressures are notable.
Q4-2025 Updates
Positive Updates
Strong Consumer Response to Volume-Focused Investments
Conagra Brands received a tremendous consumer response to volume-focused investments in frozen snacks, achieving absolute volume growth in Q2 of the previous year.
Supply Chain Resiliency Investments
Conagra is advancing supply chain resiliency investments, including a chicken plant that will enable the repatriation of outsourced production at lower costs.
5% Productivity and Tariff Mitigation Efforts
In fiscal 2026, Conagra expects a strong productivity rate of just over 5%, which includes core productivity and tariff mitigation efforts.
Debt Reduction Plan
Conagra plans to pay down $700 million in debt in fiscal 2026, including $600 million from divestitures and $100 million from discretionary cash flow.
Banquet Mega Chicken Fillets Success
The Banquet Mega Chicken Fillets product exceeded sales expectations, showcasing successful premiumization and increasing dollar ring per unit.
Negative Updates
Continued High Inflation Impact
Conagra has faced six consecutive years of above-average inflation, with cumulative higher costs amounting to over $2 billion, and an additional 11% cost increase across fiscal 2025 and fiscal 2026.
Temporary Margin Compression
The combination of high inflation and increased investment in volume growth has led to temporary margin compression.
Animal Protein and Material Costs Increase
Animal protein costs are inflating at double digits in fiscal 2026, contributing significantly to the overall 4% core inflation forecast.
Impact of Tariffs
Tariff impacts are expected to add an additional 3% to costs in fiscal 2026, with only partial mitigation planned.
Supply Chain Service Disruptions
Supply constraints impacted performance in the previous year, requiring investments to resolve service issues.
Company Guidance
During the Conagra Brands Fourth Quarter Fiscal 2025 Earnings Conference Call, the company provided guidance for fiscal 2026, highlighting several key metrics. Conagra plans to address an 11% cost increase due to inflation and tariffs by focusing on volume growth, particularly in frozen snacks, despite temporary margin compression. The company expects a 4% core inflation rate and has set a target of over 5% productivity gains, including tariff mitigation efforts. Conagra aims for a 90% cash flow conversion rate, with a $700 million debt reduction planned. The strategy also involves maintaining the dividend and investing in supply chain resiliency, with projections of margin expansion post-fiscal 2026.

Conagra Brands Financial Statement Overview

Summary
Conagra Brands demonstrates a solid financial position with strong operational margins and improvements in net income and cash flow generation. However, high leverage and inconsistent revenue growth present challenges that need addressing for long-term stability.
Income Statement
75
Positive
Conagra Brands shows a mixed performance in its income statement. The gross profit margin has been stable, indicating consistent production efficiency. However, the net profit margin has fluctuated due to variable net income, with a significant increase in the most recent year. Revenue growth rate has been inconsistent, with some periods of decline, but a recovery in the latest year. EBIT and EBITDA margins remain healthy, reflecting strong operational profitability.
Balance Sheet
72
Positive
The balance sheet reflects moderate stability. The debt-to-equity ratio is relatively high, indicating significant leverage, which could pose a risk in volatile market conditions. Return on equity has improved recently due to increased net income, suggesting better use of shareholder funds. The equity ratio is stable, showing a balanced asset financing structure.
Cash Flow
68
Positive
Conagra's cash flow statement reveals some challenges. Free cash flow has shown volatility, with recent growth indicating better capital management. The operating cash flow to net income ratio is solid, suggesting effective cash generation relative to net income. However, the free cash flow to net income ratio has shown instability, highlighting potential issues in translating profits into cash.
BreakdownJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue11.61B12.05B12.28B11.54B11.18B
Gross Profit3.00B3.33B3.26B2.84B3.18B
EBITDA1.97B1.45B1.69B1.94B2.22B
Net Income1.15B347.20M683.60M888.20M1.30B
Balance Sheet
Total Assets20.93B20.86B22.05B22.44B22.20B
Cash, Cash Equivalents and Short-Term Investments68.00M77.70M93.30M83.30M79.20M
Total Debt8.07B8.61B9.42B9.18B9.19B
Total Liabilities12.00B12.35B13.25B13.57B13.56B
Stockholders Equity8.93B8.44B8.74B8.79B8.55B
Cash Flow
Free Cash Flow1.30B1.63B633.20M712.90M961.70M
Operating Cash Flow1.69B2.02B995.40M1.18B1.47B
Investing Cash Flow-542.20M-375.00M-354.90M-434.90M-340.30M
Financing Cash Flow-1.16B-1.66B-631.60M-738.00M-1.61B

Conagra Brands Technical Analysis

Technical Analysis Sentiment
Negative
Last Price19.30
Price Trends
50DMA
21.32
Negative
100DMA
23.22
Negative
200DMA
24.87
Negative
Market Momentum
MACD
-0.67
Negative
RSI
36.75
Neutral
STOCH
60.58
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 19.3 is below the 20-day moving average (MA) of 19.87, below the 50-day MA of 21.32, and below the 200-day MA of 24.87, indicating a bearish trend. The MACD of -0.67 indicates Negative momentum. The RSI at 36.75 is Neutral, neither overbought nor oversold. The STOCH value of 60.58 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 35 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$11.40B9.4736.53%2.35%145.82%
70
Outperform
$9.21B8.1713.27%7.25%-3.64%231.77%
69
Neutral
$19.18B25.1514.19%2.48%0.89%4.85%
65
Neutral
$27.20B15.73-4.29%2.57%1.03%4.90%
63
Neutral
$27.81B12.5124.57%4.73%-1.87%-5.16%
61
Neutral
$9.77B22.0111.67%4.70%8.65%-38.57%
56
Neutral
$11.59B22.22-17.87%3.98%6.69%-261.87%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CAG
Conagra Brands
19.30
-9.13
-32.11%
CPB
Campbell Soup
32.76
-12.18
-27.10%
GIS
General Mills
50.95
-12.73
-19.99%
SJM
JM Smucker
108.64
-5.05
-4.44%
MKC
McCormick & Company
71.45
-2.62
-3.54%
PPC
Pilgrim's Pride
47.29
10.40
28.19%

Conagra Brands Corporate Events

Private Placements and Financing
Conagra Brands Completes $1 Billion Senior Notes Offering
Neutral
Jul 22, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Conagra Brands Secures $2 Billion Credit Facility
Positive
Jun 30, 2025

On June 27, 2025, Conagra Brands entered into a Third Amended and Restated Revolving Credit Agreement with Bank of America and other lenders, establishing a $2.0 billion revolving credit facility. This new agreement replaces a prior facility and extends the maturity date to June 27, 2030. The facility includes provisions for interest rates based on the company’s credit ratings and contains customary covenants and events of default terms. The agreement enhances Conagra’s financial flexibility and may impact its operational strategies and stakeholder engagements.

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.

Executive/Board ChangesShareholder Meetings
Conagra Brands Director Fran Horowitz to Step Down
Neutral
Jun 18, 2025

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.

M&A TransactionsBusiness Operations and Strategy
Conagra Brands Sells Chef Boyardee for $600 Million
Neutral
May 1, 2025

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.

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.Date of analysis: Jul 19, 2025