Education
About Us
Working with TipRanks
Follow Us
Conagra Brands (CAG)
NYSE:CAG
Top Page
Conagra Brands
(NYSE:CAG)
Select Model
Select Model
Rating:52Neutral
Price Target:
$17.50
â–²(5.55% Upside)
Conagra Brands' overall stock score reflects significant challenges in financial performance, particularly declining revenue and profitability. While the earnings call suggests some optimism with expected sales growth and innovation, valuation concerns due to a negative P/E ratio and technical indicators pointing to a bearish trend weigh on the score. The high dividend yield provides some support, but operational and market challenges remain.
Positive Factors
Innovation and Health & Wellness Focus
Focusing on health and wellness trends aligns with consumer preferences, potentially driving long-term growth in the frozen and snack categories.
Project Catalyst Implementation
Project Catalyst's focus on AI and process efficiency can enhance operational effectiveness, leading to cost savings and improved margins over time.
Strong Snack Segment Growth
Robust growth in the snack segment indicates strong consumer demand and effective marketing, supporting revenue growth and market position.
Negative Factors
Declining Revenue Trend
A declining revenue trend suggests challenges in maintaining sales momentum, which could impact long-term financial health and market competitiveness.
Operating Margin Pressure
Pressure on operating margins can limit profitability and financial flexibility, affecting the company's ability to invest in growth initiatives.
Cost of Goods Sold Inflation
Sustained inflation in cost of goods sold can erode profit margins and necessitate price increases, potentially affecting consumer demand.
Conagra Brands (CAG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.10B
Dividend Yield7.87%
Average Volume (3M)9.67M
Price to Earnings (P/E)―
Beta (1Y)-0.08
Revenue Growth-5.82%
EPS Growth-119.70%
CountryUS
Employees18,500
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.45
Shares Outstanding478,369,480
10 Day Avg. Volume10,616,730
30 Day Avg. Volume9,670,339
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 Cap1.17
Enterprise Value/Revenue0.85
Enterprise Value/Gross Profit3.45
Enterprise Value/Ebitda10.55
Forecast
1Y Price Target
$18.92Price Target Upside14.09% Upside
Rating ConsensusHold
Number of Analyst Covering14
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Conagra Brands Business Overview & Revenue Model
Company DescriptionConagra 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 MoneyConagra 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 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:Dec 19, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 02, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a mixed outlook for Conagra Brands. The company is experiencing positive trends in sales growth and innovation, particularly in the snacks and frozen segments, and is optimistic about future efficiency gains from Project Catalyst. However, challenges such as the Ardent Mills EPS impact, operating margin pressures, and impairment charges due to stock price declines are significant concerns. The balance of these factors suggests cautious optimism but underscores notable challenges.Q2-2026 Updates
Positive Updates
Positive Organic Sales Growth Expected
Despite not providing formal quarterly guidance, Conagra Brands expects organic net sales growth in the second half of Fiscal Year 2026, supported by momentum in December and favorable inventory and trade conditions.
Innovation and Health & Wellness Focus
Conagra Brands has reported continued success and improvement in its innovation performance, with a focus on health and wellness trends such as protein presence, clean labels, and vegetable nutrition, particularly benefiting frozen and snack categories.
Project Catalyst Implementation
Project Catalyst aims to reengineer core business processes using AI and technology for increased effectiveness and efficiency, which is expected to deliver significant returns in the future.
Strong Snack Segment Growth
The snack segment, particularly Slim Jim and Fatty, is experiencing robust growth due to a strong marketing plan and favorable consumer trends.
Negative Updates
Ardent Mills EPS Shortfall
The company acknowledged a shortfall related to Ardent Mills, estimated to impact EPS by approximately $0.05, due to various challenges in the P&L.
3Q Operating Margin Pressure
Operating margins in the third quarter are expected to be below second-quarter levels due to increased A&P spending and inventory absorption headwinds.
Impairment Charge Due to Stock Decline
Conagra Brands took a sizable impairment charge related to a sustained decline in stock price and market cap, requiring an increased discount rate in their financial assessments.
Chicken Supply Chain Challenges
The company continues to face challenges in the chicken segment, despite completion of the Baked Chicken facility, and has had to invest in increasing capacity for popular new products.
Company Guidance
During the Conagra Brands Second Quarter Fiscal Year 2026 Earnings Q&A Call, the company provided guidance indicating a positive outlook for organic net sales growth in the second half of the fiscal year. Despite not offering formal quarterly guidance, CEO Sean Connolly emphasized momentum going into the second half, expecting organic net sales growth. CFO Dave Marberger highlighted managing trade inventory shifts from Q2 to Q3 and overcoming supply constraints from the previous year. The company maintained its annual sales and operating margin outlook, despite a $30 million shortfall from Ardent Mills, by leveraging favorable factors such as tariff timing and chicken inflation. Conagra also expressed optimism about its Project Catalyst initiative, which aims to enhance core business processes through automation and AI, promising efficiency gains in the future. Additionally, the company is focused on expanding its presence in high-priority segments like frozen and snacks, driven by strong innovation and promotional activities, while maintaining confidence in its ability to manage inflationary pressures and achieve margin expansion over time.Conagra Brands Financial Statement Overview
Summary
Conagra Brands faces challenges with declining revenue and profitability, as reflected in the income statement. While the balance sheet shows improved leverage, the reduced return on equity indicates profitability concerns. Cash flow analysis reveals pressure on free cash flow generation, impacting overall financial health. The company needs to address operational inefficiencies and enhance cash generation to improve its financial standing.Income Statement
Conagra Brands shows a declining revenue trend with a negative growth rate in the TTM period. The gross profit margin has decreased compared to previous years, indicating pressure on profitability. The net profit margin is significantly low, with a negative net income in the TTM period, highlighting challenges in maintaining profitability. EBIT and EBITDA margins have also declined, reflecting operational inefficiencies.Balance Sheet
The company's debt-to-equity ratio has improved in the TTM period, indicating better leverage management. However, the return on equity has significantly decreased, reflecting reduced profitability from shareholders' equity. The equity ratio remains stable, suggesting a balanced asset structure.Cash Flow
Operating cash flow remains positive, but the free cash flow has declined, indicating reduced cash available after capital expenditures. The free cash flow to net income ratio is relatively strong, but the negative free cash flow growth rate in the TTM period raises concerns about cash generation capabilities.| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.61B | 12.05B | 12.28B | 11.54B | 11.18B |
| Gross Profit | 3.00B | 3.33B | 3.26B | 2.84B | 3.18B |
| EBITDA | 1.97B | 1.45B | 1.69B | 1.94B | 2.22B |
| Net Income | 1.15B | 347.20M | 683.60M | 888.20M | 1.30B |
Balance Sheet | |||||
| Total Assets | 20.93B | 20.86B | 22.05B | 22.44B | 22.20B |
| Cash, Cash Equivalents and Short-Term Investments | 68.00M | 77.70M | 93.30M | 83.30M | 79.20M |
| Total Debt | 8.31B | 8.65B | 9.47B | 9.24B | 9.23B |
| Total Liabilities | 12.00B | 12.35B | 13.25B | 13.57B | 13.56B |
| Stockholders Equity | 8.93B | 8.44B | 8.74B | 8.79B | 8.55B |
Cash Flow | |||||
| Free Cash Flow | 1.30B | 1.63B | 633.20M | 712.90M | 961.70M |
| Operating Cash Flow | 1.69B | 2.02B | 995.40M | 1.18B | 1.47B |
| 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
Negative
16.58
Price Trends
17.29
Negative
17.83
Negative
19.54
Negative
Market Momentum
-0.21
Positive
42.55
Neutral
46.65
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 16.58 is below the 20-day moving average (MA) of 17.24, below the 50-day MA of 17.29, and below the 200-day MA of 19.54, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 42.55 is Neutral, neither overbought nor oversold. The STOCH value of 46.65 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $18.18B | 23.43 | 13.92% | 2.61% | 1.64% | -1.83% | |
66 Neutral | $23.43B | 9.63 | 27.29% | 5.19% | -5.65% | 0.41% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | $7.89B | 13.67 | 14.82% | 5.64% | 2.71% | 4.90% | |
52 Neutral | $8.10B | -81.10 | -1.16% | 7.87% | -5.82% | -119.70% | |
49 Neutral | $10.73B | -8.92 | -17.44% | 4.45% | -0.66% | -326.55% | |
48 Neutral | $27.72B | -6.29 | -9.73% | 6.75% | -3.70% | -431.05% |
* Consumer Defensive Sector Average
CAG
Conagra Brands
16.69
-7.68
-31.51%
CPB
Campbell Soup
26.39
-10.55
-28.55%
GIS
General Mills
43.48
-12.50
-22.33%
SJM
JM Smucker
100.12
2.20
2.25%
MKC
McCormick & Company
66.84
-3.22
-4.60%
KHC
Kraft Heinz
23.39
-3.70
-13.66%
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.