Conagra Brands Inc.

Consumer Staples
Packaged Foods
www.conagrabrands.com

Earnings Score
Moat Score
Safety Score

Market Cap $13.21B
PE 27
Debt $8.78B
Cash $128.70M
EV $21.86B
FCF $1.46B

Earnings

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Sales & Net Margins

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Earnings	$494.30M
EBIT	$1.14B
ROE	6%
ROA	5%
FCF	$1.46B
Equity	$8.70B
Growth Stability	36%
PE	26.73
PEG	-3.06
PB	1.52
P/FCF	9.03
P/S	1.11
Price/Cash	0.01
Debt/Equity	1.01
Debt/FCF	6
Net Margins	17%
Gross Margins	27%
Op. Margins	10%
Earnings CAGR	1%
Sales Growth YoY	-4%
Sales Growth QoQ	-4%
Sales CAGR	21%
FCF CAGR	2%
Equity CAGR	12%
Earnings Stability	0.01
Earnings Growth YoY	46%
Earnings Growth QoQ	-182%
Earnings CAGR 5Y	-9%

Sales CAGR 5Y	3%
FCF CAGR 5Y	0%
Equity CAGR 5Y	3%
Earnings CAGR 3Y	3%
Sales CAGR 3Y	3%
FCF CAGR 3Y	36%
Equity CAGR 3Y	0%
Market Cap	$13.21B
Revenue	$11.94B
Dividend Yield	5%
Payout Ratio	135%
Assets	$21.25B
Total Debt	$8.78B
Cash	$128.70M
Shares Outstanding	477.27M
EV	21.86B
Earnings Score	6%
Moat Score	76%
Safety Score	53%
Final Score	45%
Working Capital	-230.6M
Current Ratio	0.94
Gross Profit	$3.25B
Shares Growth 3y	-1%
Equity Growth QoQ	2%
Equity Growth YoY	-3%

Assets & ROA

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Stockholders Equity & ROE

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Conagra Brands is a packaged food company that operates predominantly in the United States (over 90% of revenue and profits). It has a significant presence in the freezer aisle, with brands such as Marie Callender's, Healthy Choice, Banquet, and Birds Eye. Other popular brands include Duncan Hines, Hunt's, Slim Jim, Vlasic, Orville Redenbacher's, Reddi-Wip, Wish-Bone and Chef Boyardee. While the majority of revenue is sold into the U.S. retail channel, 7% of fiscal 2021 sales were to the food-service channel, down from 11% in fiscal 2019 due to the pandemic.

SEC Filings

Direct access to Conagra Brands Inc. (CAG) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Aug 25
- 10-K May 26
- 10-Q Feb 25
2023
- 10-Q Nov 26
- 10-Q Aug 27
- 10-K May 28
- 10-Q Feb 26
2022
- 10-Q Nov 27
- 10-Q Aug 28
- 10-K May 29
- 10-Q Feb 27

Sector Comparison

How does Conagra Brands Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Conagra Brands Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 1%

Stability 1%

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Conagra Brands Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Conagra Brands Inc..

Years

Calculation mode

= $16B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1.5B	$1.5B	$1.5B	$1.5B	$1.6B	$1.6B	$1.6B	$1.6B	$1.7B	$1.7B	$1.7B	$17B
DCF		$1.4B	$1.2B	$1.2B	$1.1B	$983M	$908M	$838M	$774M	$715M	$660M	$6.6B
Value	$16B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	05/2015	05/2016	05/2017	05/2018	05/2019	05/2020	05/2021	05/2022	05/2023	05/2024	TTM
Net Margins	-13%	-45%	8%	10%	7%	8%	12%	8%	6%	3%	17%
ROA	-	13%	12%	14%	7%	8%	10%	7%	7%	6%	5%
ROE	-	-18%	16%	22%	9%	11%	15%	10%	8%	4%	6%

Good Net Margins (16.7%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	05/2015	05/2016	05/2017	05/2018	05/2019	05/2020	05/2021	05/2022	05/2023	05/2024	TTM
Debt over FCF	-	7.81	3.4	5.48	13.85	7.19	9.37	13.34	15.98	5.18	6
Debt over Equity	1.93	1.6	0.78	1.02	1.43	1.33	1.04	1.07	1.15	0.99	1.01
Growth Stability	-	-	-	-	100%	100%	100%	95%	68%	36%	36%

Bad Debt/FCF ratio (6)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Neutral Debt/Equity ratio (1.01)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (36%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	05/2015	05/2016	05/2017	05/2018	05/2019	05/2020	05/2021	05/2022	05/2023	05/2024	CAGR 5Y
Revenue YoY growth	-	-21%	422%	1%	20%	16%	1%	3%	6%	-2%	3%
Earnings YoY growth	-	168%	-194%	26%	-16%	24%	55%	-32%	-23%	-49%	-9%
Equity YoY growth	-	-18%	7%	-8%	99%	7%	9%	3%	-1%	-3%	3%
FCF YoY growth	-	-23%	20%	-25%	10%	91%	-35%	-26%	-11%	157%	0%