Conagra Brands Inc
Exchange: NYSESector: Consumer DefensiveIndustry: Packaged Foods
Founded in 1921, Utz Quality Foods, LLC. is the largest family‐managed, privately held, salty snack company in the United States, producing a full line of products including potato chips, pretzels, cheese snacks, corn chips, tortillas, veggie stix/straws, popcorn, onion rings, pork skins and more. Its brands, which include Utz ®, Golden Flake ®, Zapp's ®, Dirty ® Potato Chips, Good Health ®, Bachman ®, Bachman Jax ®, Wachusett ®, Snikiddy ®, and Boulder Canyon ®, among others, are distributed nationally and internationally through grocery, mass‐ merchant, club stores, convenience stores, drug stores and other channels. Based in Hanover, Pennsylvania, Utz operates eleven manufacturing facilities located in Pennsylvania, Alabama, Arizona, Indiana, Louisiana and Massachusetts as well as 1500+ DSD routes.
Did you know?
Net income compounded at 9.2% annually over 6 years.
Current Price
$15.72
+1.29%GoodMoat Value
$32.79
108.6% undervaluedProfile
Valuation (TTM)
Market Cap$7.52B
P/E-173.67
EV$14.97B
P/B0.84
Shares Out478.37M
P/Sales0.67
Revenue$11.18B
EV/EBITDA15.91
Conagra Brands Inc (CAG) Stock Analysis
GoodMoat Analysis
Conagra Brands, a major packaged foods company, appears deeply undervervalued with a GoodMoat Target of $32.79, suggesting a significant margin of safety. However, the business shows weak recent performance with negative revenue growth and profitability, and its moat score is likely low, failing the initial quality gate for a value investor.
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Conagra Brands Inc is a large-scale packaged foods manufacturer, operating in the consumer defensive sector. Its portfolio includes well-known brands across frozen, canned, and snack categories. According to the GoodMoat Investment Framework, the first step is to assess the business's moat and quality. While specific moat criteria are not fully detailed, packaged food companies often rely on brand strength and scale, but these advantages are frequently challenged by private label and shifting consumer trends. The provided data indicates significant operational challenges: revenue declined -6.8% YoY, the P/E is negative due to a GAAP loss, and ROE is -1.1%. These metrics suggest the company currently fails the 'Quality Indicators' section, with several weak ratings on profitability and growth. The framework's Decision Framework (Step 1) states that a business with a low moat score or multiple weak quality ratings should not proceed further. Despite a seemingly attractive valuation—with a current price of $15.32 versus a GoodMoat Target of $32.79, implying a margin of safety over 100%—the analysis must first pass the Moat & Quality Gate. The negative fundamentals and likely low moat score indicate it does not. Therefore, while the price appears deeply undervalued, the underlying business currently lacks the durable competitive advantages and financial strength required by the framework for a favourable assessment, making it an unfavourable candidate for a traditional value investment approach without evidence of a sustainable turnaround.
Market Cap$7.52B
Current Price$15.72
P/E Ratio-173.67
Forward P/E—
PEG Ratio-4.34
EPS$2.40
Book Value$18.67
P/B Ratio0.84
CAG Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 8.6% FCF growth (CAGR)
Cash vs Debt
Net Debt: 8.0B
Revenue
9.5B
FY19
11.1B
FY20
11.2B
FY21
11.5B
FY22
12.3B
FY23
12.1B
FY24
11.6B
FY25
Net Income
678M
FY19
840M
FY20
1.3B
FY21
888M
FY22
684M
FY23
347M
FY24
1.2B
FY25
CAG 52-Week Range
$15.16
$24.36
50-Day MA: $17.74200-Day MA: $17.81
Did you know?
Net income compounded at 9.2% annually over 6 years.
Conagra Brands Inc (CAG) Financial Summary
Conagra Brands Inc (CAG) is a Consumer Defensive company in the Packaged Foods industry, listed on NYSE. The stock currently trades at $15.72 with a market capitalization of $7.52B.
Key valuation metrics include a P/E ratio of -173.67, price-to-book ratio of 0.84, and EPS of $2.40. The company reports a profit margin of -0.4% and return on equity of -0.5%.
CAG Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $7.52B |
| P/E Ratio | -173.67 |
| EPS | $2.40 |
| P/B Ratio | 0.84 |
| P/S Ratio | 0.67 |
| EV/EBITDA | 15.91 |
| Dividend Yield | 8.90% |
| Profit Margin | -0.4% |
| Return on Equity | -0.5% |
| Debt/Equity | 0.90 |
CAG Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $9.54B | $678.30M |
| FY20 | $11.05B | $840.10M |
| FY21 | $11.18B | $1.30B |
| FY22 | $11.54B | $888.20M |
| FY23 | $12.28B | $683.60M |
| FY24 | $12.05B | $347.20M |
| FY25 | $11.61B | $1.15B |
Conagra Brands Inc (CAG) Valuation
Based on GoodMoat's DCF model, Conagra Brands Inc has a fair value estimate of $32.79. At the current price of $15.72, the stock appears 52.1% undervalued relative to our intrinsic value estimate.
CAG Quality Indicators
Conagra Brands Inc maintains a profit margin of -0.4% and an operating margin of 12.2%. Return on equity stands at -0.5%. The current ratio is 0.71. Debt-to-equity ratio is 0.90.
About Conagra Brands Inc
Founded in 1921, Utz Quality Foods, LLC. is the largest family‐managed, privately held, salty snack company in the United States, producing a full line of products including potato chips, pretzels, cheese snacks, corn chips, tortillas, veggie stix/straws, popcorn, onion rings, pork skins and more. Its brands, which include Utz ®, Golden Flake ®, Zapp's ®, Dirty ® Potato Chips, Good Health ®, Bachman ®, Bachman Jax ®, Wachusett ®, Snikiddy ®, and Boulder Canyon ®, among others, are distributed nationally and internationally through grocery, mass‐ merchant, club stores, convenience stores, drug stores and other channels. Based in Hanover, Pennsylvania, Utz operates eleven manufacturing facilities located in Pennsylvania, Alabama, Arizona, Indiana, Louisiana and Massachusetts as well as 1500+ DSD routes.
CAG Free Cash Flow
Conagra Brands Inc generated $1.31B in trailing twelve-month free cash flow, representing an FCF yield of 17.37%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
CAG Shares Outstanding
Conagra Brands Inc has 0.48 billion shares outstanding at a share price of $15.72, giving it a market capitalization of $7.52B.