CONAGRA FOODS INC's gross profit margin for the first quarter of its fiscal year 2015 has increased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. CONAGRA FOODS INC has very weak liquidity. Currently, the Quick Ratio is 0.25 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 40.70% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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|Income Statement||Q1 FY15||Q1 FY14|
|Net Sales ($mil)||2793.8||3701.0|
|Net Income ($mil)||-1241.4||482.3|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||114.3||133.7|
|Total Assets ($mil)||15692.0||19373.1|
|Total Debt ($mil)||7870.0||8491.2|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||28.51||23.04|
|Return on Assets||-12.59||3.3|
|Return on Equity||-16.76||2.47|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||428.21||424.83|
|Div / share||0.25||0.25|
|Book value / share||7.84||13.33|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3531846.0||3249136.0|
HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. Conducting a second comparison, its price-to-book ratio of 5.22 indicates a significant premium versus the S&P 500 average of 2.58 and a premium versus the industry average of 5.03. The price-to-sales ratio is below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, CONAGRA FOODS INC proves to trade at a premium to investment alternatives within the industry.
|CAG NM||Peers 28.81||CAG 13.35||Peers 15.77|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
CAG's P/E is negative making this valuation measure meaningless.
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
CAG is trading at a discount to its peers.
|CAG 16.90||Peers 20.27||CAG NA||Peers 1.49|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
CAG is trading at a discount to its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|CAG 5.22||Peers 5.03||CAG -543.33||Peers -2.00|
Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
CAG is trading at a valuation on par with its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, CAG is expected to significantly trail its peers on the basis of its earnings growth rate.
|CAG 1.17||Peers 1.64||CAG -5.71||Peers 0.17|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
CAG is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
CAG significantly trails its peers on the basis of sales growth
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