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TheStreet Open House
ConAgra Foods Inc
CAG : NYSE : Consumer Goods
$33.53 -0.08 | -0.24%
Today's Range: 33.42 - 33.68
Avg. Daily Volume: 4,053,300
09/22/14 - 4:00 PM ET

Financial Analysis


CONAGRA FOODS INC's gross profit margin for the first quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. CONAGRA FOODS INC has very weak liquidity. Currently, the Quick Ratio is 0.42 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 7.15% 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 FY14 Q1 FY13
Net Sales ($mil)3701.04197.5
EBITDA ($mil)382.9455.5
EBIT ($mil)234.8308.5
Net Income ($mil)482.3144.3


Balance Sheet Q1 FY14 Q1 FY13
Cash & Equiv. ($mil)133.7194.2
Total Assets ($mil)19373.120468.8
Total Debt ($mil)8491.29685.7
Equity ($mil)5748.35364.7


Profitability Q1 FY14 Q1 FY13
Gross Profit Margin23.0523.34
EBITDA Margin10.3410.85
Operating Margin6.347.35
Sales Turnover0.890.8
Return on Assets3.33.26
Return on Equity4.612.43
Debt Q1 FY14 Q1 FY13
Current Ratio1.271.29
Debt/Capital0.60.64
Interest Expense0.0100.0
Interest Coverage0.03.09


Share Data Q1 FY14 Q1 FY13
Shares outstanding (mil)421.92421.88
Div / share0.250.25
EPS0.250.33
Book value / share13.6212.72
Institutional Own % n/a n/a
Avg Daily Volume4217066.03053316.0

Valuation


BUY. CONAGRA FOODS INC's P/E ratio indicates a significant premium compared to an average of 29.79 for the Food Products industry and a significant premium compared to the S&P 500 average of 19.94. To use another comparison, its price-to-book ratio of 2.46 indicates valuation on par with the S&P 500 average of 2.76 and a significant discount versus the industry average of 6.07. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CAG 55.80 Peers 29.79   CAG 8.73 Peers 14.80

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

CAG is trading at a significant premium to its peers.

 

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 significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CAG 13.89 Peers 20.02   CAG 0.25 Peers 1.92

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 significant discount to its peers.

 

Discount. 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.

CAG trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CAG 2.46 Peers 6.07   CAG -62.27 Peers 21.14

Discount. 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 significant discount to 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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CAG 0.82 Peers 1.74   CAG 5.41 Peers 5.84

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.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

CAG is keeping pace with its peers on the basis of sales growth.

 

 

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