Conagra Brands Inc

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CAG : NYSE : Consumer Goods
$38.82 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 2986300.0
05/25/17 - 4:03 PM ET

Financial Analysis


CONAGRA BRANDS INC's gross profit margin for the third quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. CONAGRA BRANDS INC has weak liquidity. Currently, the Quick Ratio is 0.82 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 15.54% 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 FY16 Q3 FY15
Net Sales ($mil)1981.22199.3
EBITDA ($mil)398.7375.2
EBIT ($mil)332.4305.8
Net Income ($mil)179.7204.6


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)683.6502.6
Total Assets ($mil)10499.013187.2
Total Debt ($mil)2974.25499.7
Equity ($mil)4221.33653.5


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin34.9332.97
EBITDA Margin20.1217.05
Operating Margin16.7813.9
Sales Turnover0.840.74
Return on Assets5.76-4.43
Return on Equity8.5913.03
Debt Q3 FY16 Q3 FY15
Current Ratio1.621.35
Debt/Capital0.410.6
Interest Expense45.776.4
Interest Coverage7.274.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)425.5436.42
Div / share0.20.25
EPS0.410.16
Book value / share9.928.37
Institutional Own % n/a n/a
Avg Daily Volume3095855.03037312.0

Valuation


BUY. CONAGRA BRANDS INC's P/E ratio indicates a significant premium compared to an average of 29.98 for the Food Products industry and a significant premium compared to the S&P 500 average of 25.02. To use another comparison, its price-to-book ratio of 3.80 indicates a premium versus the S&P 500 average of 3.00 and a discount versus the industry average of 4.90. 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 45.95 Peers 29.98   CAG 11.95 Peers 18.51

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 19.94 Peers 20.62   CAG 0.80 Peers 1.73

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 3.80 Peers 4.90   CAG -25.46 Peers 69.06

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 1.82 Peers 2.41   CAG -9.70 Peers 5.03

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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