CONAGRA FOODS INC's gross profit margin for the second quarter of its fiscal year 2015 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. 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 has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has significantly decreased by 38.34% 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||Q2 FY15||Q2 FY14|
|Net Sales ($mil)||3092.7||3136.4|
|Net Income ($mil)||154.9||10.0|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||95.9||121.9|
|Total Assets ($mil)||15994.6||19501.7|
|Total Debt ($mil)||7905.2||8478.6|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||29.93||27.4|
|Return on Assets||-10.9||2.06|
|Return on Equity||-12.28||2.35|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||434.13||425.92|
|Div / share||0.25||0.25|
|Book value / share||7.91||13.08|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3355084.0||3412180.0|
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 5.06 indicates a significant premium versus the S&P 500 average of 2.51 and a premium versus the industry average of 4.73. The price-to-sales ratio is below the S&P 500 average and is well below 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 29.92||CAG 12.47||Peers 36.69|
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 significant discount to its peers.
|CAG 16.34||Peers 22.56||CAG NA||Peers 1.06|
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 5.06||Peers 4.73||CAG -460.71||Peers 113.19|
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 1.25||Peers 2.89||CAG 0.44||Peers -2.20|
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.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
CAG has a sales growth rate that significantly exceeds its peers.
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