Conagra Brands (CAG) AI Stock Analysis

• Market Cap: $8.26B
• Dividend Yield: 7.87%
• Average Volume (3M): 9.57M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.07
• Revenue Growth: -5.82%
• EPS Growth: -119.70%
• Country: US
• Employees: 18,500
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.45
• Shares Outstanding: 478,369,480
• 10 Day Avg. Volume: 11,231,672
• 30 Day Avg. Volume: 9,571,250
• 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: 1.15
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 3.45
• Enterprise Value/Ebitda: 10.55
• 1Y Price Target: $18.69
• Price Target Upside: 10.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $17.50 ▲(3.06% 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 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 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

• Technical Analysis Sentiment: Negative
• Last Price: 16.98
• 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 Negative. The current price of 16.98 is below the 20-day moving average (MA) of 17.47, below the 50-day MA of 17.53, and below the 200-day MA of 19.99, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 40.08 is Neutral, neither overbought nor oversold. The STOCH value of 20.03 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
MKC	73 Outperform	$18.49B	23.84	13.92%	2.61%	1.64%	-1.83%
GIS	66 Neutral	$25.29B	10.07	27.29%	5.11%	-5.65%	0.41%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
CPB	60 Neutral	$8.51B	14.32	14.82%	5.46%	2.71%	4.90%
CAG	52 Neutral	$8.26B	-82.51	-1.16%	7.87%	-5.82%	-119.70%
SJM	49 Neutral	$10.58B	-8.73	-17.44%	4.40%	-0.66%	-326.55%
KHC	48 Neutral	$28.59B	-6.37	-9.73%	6.63%	-3.70%	-431.05%

Conagra Brands Corporate Events

Conagra Brands’ Earnings Call: Balancing Success and Challenges

Conagra Brands’ recent earnings call painted a mixed picture, highlighting both successes and challenges. The company celebrated achievements in divestitures, debt reduction, and supply chain performance. However, these positives were tempered by declines in net sales, reduced earnings per share (EPS), and ongoing inflationary pressures.

Conagra Brands Appoints New Senior Vice President

On October 2, 2025, Conagra Brands announced the appointment of Melissa Napier as Senior Vice President, Corporate Controller, effective October 17, 2025. Napier, who has extensive experience in the food industry and finance, will report to CFO David Marberger. This leadership change is part of Conagra’s strategic management adjustments following the departure of William E. Johnson.

The most recent analyst rating on (CAG) stock is a Hold with a $20.50 price target. To see the full list of analyst forecasts on Conagra Brands stock, see the CAG Stock Forecast page.

Conagra Brands Reports Q1 2026 Earnings Amid Challenges

Conagra Brands, Inc., a leading branded food company in North America, is known for its diverse portfolio of popular food brands and its focus on innovation and collaboration to meet changing consumer preferences. In its first-quarter earnings report for fiscal year 2026, Conagra Brands announced a 5.8% decrease in reported net sales and a 64.9% drop in reported diluted earnings per share compared to the previous year. Despite these declines, the company reaffirmed its fiscal 2026 guidance, highlighting its strategic execution and progress in reshaping its portfolio.

Conagra Brands Holds Annual Shareholders Meeting

On September 17, 2025, Conagra Brands held its Annual Meeting of Shareholders where several key decisions were made. The shareholders elected eleven directors to serve until the 2025 Annual Meeting, did not approve the executive officer compensation on an advisory basis, and ratified the appointment of KPMG LLP as the independent auditor for fiscal 2026.

The most recent analyst rating on (CAG) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Conagra Brands stock, see the CAG Stock Forecast page.

Conagra Brands Announces Resignation of Senior VP

On September 17, 2025, William E. Johnson announced his resignation as Senior Vice President and Corporate Controller of Conagra Brands, effective October 17, 2025, to pursue another opportunity. His departure is not due to any disagreements with the company. David S. Marberger, the Executive Vice President and Chief Financial Officer, will assume the role of principal accounting officer temporarily without additional compensation until a successor is appointed.

The most recent analyst rating on (CAG) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Conagra Brands stock, see the CAG Stock Forecast page.