Conagra Brands (CAG) AI Stock Analysis

• Market Cap: $9.21B
• Dividend Yield: 7.25%
• Average Volume (3M): 10.72M
• Price to Earnings (P/E): 8.2
• Beta (1Y): -0.03
• Revenue Growth: -3.64%
• EPS Growth: 231.77%
• Country: US
• Employees: 18,500
• Sector: Consumer Defensive
• Sector Strength: 54
• Industry: Packaged Foods
• EPS (TTM): 0.56
• Shares Outstanding: 477,443,000
• 10 Day Avg. Volume: 14,548,010
• 30 Day Avg. Volume: 10,724,266
• PEG Ratio: 0.03
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.11
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 3.67
• Enterprise Value/Ebitda: 1.83
• 1Y Price Target: $21.25
• Price Target Upside: 10.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 15

• Rating: 70 Outperform
• 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 Business Overview & Revenue Model

Company Description

Conagra 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 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 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

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

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

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.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 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	8.07B	8.61B	9.42B	9.18B	9.19B
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: 19.30
• 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 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPC	76 Outperform	$11.40B	9.47	36.53%	―	2.35%	145.82%
CAG	70 Outperform	$9.21B	8.17	13.27%	7.25%	-3.64%	231.77%
MKC	69 Neutral	$19.18B	25.15	14.19%	2.48%	0.89%	4.85%
Sector *	65 Neutral	$27.20B	15.73	-4.29%	2.57%	1.03%	4.90%
GIS	63 Neutral	$27.81B	12.51	24.57%	4.73%	-1.87%	-5.16%
CPB	61 Neutral	$9.77B	22.01	11.67%	4.70%	8.65%	-38.57%
SJM	56 Neutral	$11.59B	22.22	-17.87%	3.98%	6.69%	-261.87%

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.

Conagra Brands Secures $2 Billion Credit Facility

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.

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.