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ConAgra Foods Inc
CAG : NYSE : Consumer Goods
$44.69 -0.19 | -0.42%
Today's Range: 44.48 - 44.96
Avg. Daily Volume: 2,862,300
04/28/16 - 3:59 PM ET

Financial Analysis


CONAGRA FOODS INC's gross profit margin for the third quarter of its fiscal year 2015 has increased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. CONAGRA FOODS INC has weak liquidity. Currently, the Quick Ratio is 0.52 which 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 decreased by 17.95% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q3 FY15 Q3 FY14
Net Sales ($mil)2924.12907.3
EBITDA ($mil)0.00.0
EBIT ($mil)443.8385.8
Net Income ($mil)204.6-954.1


Balance Sheet Q3 FY15 Q3 FY14
Cash & Equiv. ($mil)502.6137.3
Total Assets ($mil)13187.217868.9
Total Debt ($mil)5499.78370.2
Equity ($mil)3653.54452.9


Profitability Q3 FY15 Q3 FY14
Gross Profit Margin28.624.83
EBITDA Margin0.00.0
Operating Margin15.1813.27
Sales Turnover0.910.71
Return on Assets-4.43-4.39
Return on Equity20.42.63
Debt Q3 FY15 Q3 FY14
Current Ratio1.351.06
Debt/Capital0.60.65
Interest Expense76.979.8
Interest Coverage5.774.83


Share Data Q3 FY15 Q3 FY14
Shares outstanding (mil)436.42427.05
Div / share0.250.25
EPS0.410.49
Book value / share8.3710.43
Institutional Own % n/a n/a
Avg Daily Volume2940582.03241951.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 24.81 for the Food Products industry and a value on par with the S&P 500 average of 24.17. To use another comparison, its price-to-book ratio of 5.31 indicates a significant premium versus the S&P 500 average of 2.76 and a significant discount versus the industry average of 9.41. The price-to-sales ratio is below the S&P 500 average and is well below 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 26.15 Peers 24.81   CAG 13.40 Peers 18.86

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

CAG is trading at a valuation on par with 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 18.44 Peers 21.71   CAG NM Peers 0.94

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

CAG is trading at a valuation on par with 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.

CAG's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CAG 5.31 Peers 9.41   CAG 580.00 Peers 77.97

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.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

CAG is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CAG 1.62 Peers 2.42   CAG -6.50 Peers -3.38

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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