Conagra Brands Inc

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CAG : NYSE : Consumer Goods
$39.13 | %
Today's Range: 38.75 - 39.27
Avg. Daily Volume: 3546100.0
01/20/17 - 4:04 PM ET

Financial Analysis


CONAGRA BRANDS INC's gross profit margin for the second quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. CONAGRA BRANDS INC has average liquidity. Currently, the Quick Ratio is 1.23 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 29.49% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)2088.42358.8
EBITDA ($mil)394.7367.3
EBIT ($mil)353.9317.8
Net Income ($mil)122.1154.9


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)1442.595.9
Total Assets ($mil)11425.015994.6
Total Debt ($mil)3452.07905.2
Equity ($mil)4446.73433.8


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin33.0430.66
EBITDA Margin18.8915.57
Operating Margin16.9513.47
Sales Turnover0.850.65
Return on Assets5.51-10.9
Return on Equity8.3117.93
Debt Q2 FY16 Q2 FY15
Current Ratio1.920.99
Debt/Capital0.440.7
Interest Expense54.179.2
Interest Coverage6.544.01


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)435.21434.13
Div / share0.250.25
EPS0.260.18
Book value / share10.227.91
Institutional Own % n/a n/a
Avg Daily Volume3416134.02923505.0

Valuation


BUY. CONAGRA BRANDS INC's P/E ratio indicates a significant premium compared to an average of 36.79 for the Food Products industry and a significant premium compared to the S&P 500 average of 25.41. To use another comparison, its price-to-book ratio of 3.79 indicates a premium versus the S&P 500 average of 2.83 and a discount versus the industry average of 4.98. 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 47.18 Peers 36.79   CAG 11.83 Peers 18.05

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 20.69 Peers 22.23   CAG 0.87 Peers 1.97

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 3.79 Peers 4.98   CAG -42.66 Peers 203.45

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.

 

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 1.73 Peers 2.32   CAG -6.79 Peers 25.88

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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