Conagra Brands (CAG) AI Stock Analysis

• Market Cap: $9.21B
• Dividend Yield: 7.26%
• Average Volume (3M): 11.88M
• Price to Earnings (P/E): 8.0
• Beta (1Y): >-0.01
• Revenue Growth: -3.64%
• EPS Growth: 231.77%
• Country: US
• Employees: 18,500
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Packaged Foods
• EPS (TTM): 0.56
• Shares Outstanding: 477,443,000
• 10 Day Avg. Volume: 14,443,898
• 30 Day Avg. Volume: 11,881,319
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.06
• Enterprise Value/Revenue: 1.63
• Enterprise Value/Gross Profit: 6.31
• Enterprise Value/Ebitda: 9.67
• 1Y Price Target: $20.58
• Price Target Upside: 6.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

• Rating: 72 Outperform
• Price Target: $21.50 ▲(11.51% Upside)

Conagra Brands' overall stock score reflects a solid financial foundation with attractive valuation metrics. However, technical indicators and earnings call insights highlight challenges such as high leverage, inflationary pressures, and supply constraints. The company's strategic investments in productivity and supply chain improvements are positive steps towards mitigating these 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.

Debt Management

Conagra Brands expects to pay down $700 million of debt this year, which indicates a focus on managing debt levels amidst financial challenges.

Negative Factors

Cost Inflation

Elevated cost inflation, particularly in protein, is anticipated to impact Conagra Brands' financial performance negatively.

Financial Outlook

The FY26 financial outlook for Conagra Brands is significantly below expectations, highlighting challenges with expected earnings per share.

Pricing and Consumer Sensitivity

Similar to other CPG companies, Conagra Brands sees continued pressure on the US consumer, with shoppers still looking for value and displaying increased sensitivity to dollars per item.

Conagra Brands Business Overview & Revenue Model

Company Description

Conagra Brands, Inc. is a North American packaged foods company headquartered in Chicago, Illinois. It operates in the consumer foods sector, offering a diverse portfolio of products that includes frozen meals, snacks, condiments, and meals sold under well-known brands such as Marie Callender's, Healthy Choice, Banquet, Reddi-wip, and Orville Redenbacher's. Conagra focuses on innovation and sustainability, aiming to meet evolving consumer preferences through its extensive range of food offerings across various distribution channels, including grocery stores, restaurants, and food service operations.

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 demonstrates a solid financial position with strong operational margins and recent improvements in net income and cash flow generation. However, high leverage and inconsistent revenue growth present challenges.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.61B	11.61B	12.05B	12.28B	11.54B	11.18B
Gross Profit	3.01B	3.12B	3.35B	3.28B	2.82B	3.40B
EBITDA	1.96B	1.96B	1.44B	1.47B	1.79B	2.22B
Net Income	1.15B	1.15B	347.20M	683.60M	888.20M	1.30B
Balance Sheet
Total Assets	20.93B	20.93B	20.86B	22.05B	22.44B	22.20B
Cash, Cash Equivalents and Short-Term Investments	68.00M	68.00M	77.70M	93.30M	83.30M	79.20M
Total Debt	8.31B	8.31B	8.61B	9.42B	9.18B	9.19B
Total Liabilities	12.00B	12.00B	12.35B	13.25B	13.57B	13.56B
Stockholders Equity	8.93B	8.93B	8.44B	8.74B	8.79B	8.55B
Cash Flow
Free Cash Flow	1.30B	1.30B	1.63B	633.20M	712.90M	961.70M
Operating Cash Flow	1.69B	1.69B	2.02B	995.40M	1.18B	1.47B
Investing Cash Flow	-542.20M	-542.20M	-375.00M	-354.90M	-434.90M	-340.30M
Financing Cash Flow	-1.16B	-1.16B	-1.66B	-631.60M	-738.00M	-1.61B

Conagra Brands Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.28
• 50DMA: Positive
• 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 Positive. The current price of 19.28 is above the 20-day moving average (MA) of 19.19, above the 50-day MA of 19.24, and below the 200-day MA of 23.14, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 51.43 is Neutral, neither overbought nor oversold. The STOCH value of 50.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CAG.

Conagra Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GIS	73 Outperform	$27.04B	12.34	24.57%	4.76%	-1.87%	-5.16%
CAG	72 Outperform	$9.21B	8.03	13.27%	7.26%	-3.64%	231.77%
CPB	69 Neutral	$10.15B	16.93	15.64%	4.53%	6.40%	6.17%
MKC	69 Neutral	$19.03B	24.62	14.19%	2.50%	0.89%	4.85%
Sector *	63 Neutral	$20.52B	14.80	-2.68%	3.09%	1.95%	-4.76%
KHC	56 Neutral	$32.30B	12.81	-11.68%	5.86%	-3.83%	-384.08%
SJM	55 Neutral	$12.00B	22.22	-21.32%	3.86%	2.54%	-293.39%

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.

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.

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.