Conagra Brands Inc

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CAG : NYSE : Consumer Goods
$33.755 -0.095 | -0.28%
Today's Range: 33.64 - 33.96
Avg. Daily Volume: 3942800.0
07/20/17 - 3:59 PM ET

Financial Analysis


CONAGRA BRANDS INC's gross profit margin for the fourth quarter of its fiscal year 2016 has increased 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 BRANDS INC has very weak liquidity. Currently, the Quick Ratio is 0.47 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 9.80% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)1861.72827.5
EBITDA ($mil)322.30.0
EBIT ($mil)254.149.2
Net Income ($mil)151.3117.6


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)251.4834.5
Total Assets ($mil)10096.313390.6
Total Debt ($mil)2996.45528.0
Equity ($mil)4077.83713.6


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin32.427.05
EBITDA Margin17.310.0
Operating Margin13.651.74
Sales Turnover0.780.7
Return on Assets6.33-5.05
Return on Equity13.345.8
Debt Q4 FY16 Q4 FY15
Current Ratio1.171.41
Debt/Capital0.420.6
Interest Expense37.561.0
Interest Coverage6.780.81


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)425.5438.07
Div / share0.20.25
EPS0.36-0.07
Book value / share9.588.48
Institutional Own % n/a n/a
Avg Daily Volume3845241.03084210.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 29.54 for the Food Products industry and a premium compared to the S&P 500 average of 24.52. To use another comparison, its price-to-book ratio of 3.50 indicates a premium versus the S&P 500 average of 3.06 and a discount versus the industry average of 4.55. The price-to-sales ratio is below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, CONAGRA BRANDS INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CAG 26.86 Peers 29.54   CAG 12.16 Peers 20.68

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 16.54 Peers 19.91   CAG 0.54 Peers 2.27

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.

 

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 3.50 Peers 4.55   CAG 155.10 Peers 65.40

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 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 1.83 Peers 2.24   CAG -17.08 Peers 3.43

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 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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