Conagra Brands Inc (CAG) Stock Analysis
Verdict: AVOID
A value trap restructuring: The 50% dividend cut and massive goodwill impairment signal a floor that hasn't finished forming.
Investment score: 38/100
Analysis as of
Is Conagra Brands Inc stock worth reviewing? The TradeMates thesis
Conagra is currently a distressed legacy food giant struggling with structural volume declines and significant balance sheet write-downs. While the dividend yield remains visually attractive at 4.8%, the recent 50% cut and negative 24% ROE suggest the payout is still not supported by earnings. Peers like SFD offer better P/E valuations (10.2x) without the massive net losses observed here.
7-factor investment score
- Valuation: 45/100 (weight 20%)
- Financial Health: 20/100 (weight 15%)
- Technical Momentum: 50/100 (weight 15%)
- Earnings Quality: 30/100 (weight 15%)
- Insider Sentiment: 40/100 (weight 10%)
- Analyst Consensus: 25/100 (weight 10%)
- Risk-Adjusted Return: 55/100 (weight 15%)
Conagra Brands Inc opportunities and risks
What speaks for CAG
- Strategic Leaner Course
What speaks against CAG
- Structural Volume Decline
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| CAG | n/a | 0.6x | n/a | 23.9% | -17.0% | 13.8% |
| GIS | n/a | 1.0x | 10.1x | 33.4% | -0.5% | 8.5% |
| HRL | 29.8x | 1.1x | 15.9x | 15.7% | 3.8% | 5.0% |
| MKC | 8.3x | 1.8x | 13.1x | 38.6% | 22.0% | 8.6% |
| SJM | n/a | 1.4x | 19.2x | 33.5% | -1.5% | 9.1% |
| SFD | 10.2x | 0.7x | 6.9x | 13.4% | 6.5% | 7.9% |
| Peer median | 8.3x | 1.1x | 13.1x | 33.4% | 3.8% | 8.5% |
Frequently asked questions about Conagra Brands Inc (CAG)
Is CAG stock a good investment?
The TradeMates model rates Conagra Brands Inc as AVOID with an investment score of 38/100. Conagra is currently a distressed legacy food giant struggling with structural volume declines and significant balance sheet write-downs. While the dividend yield remains visually attractive at 4.8%, the recent 50% cut and negative 24% ROE suggest the payout is still not supported by earnings. Peers like SFD offer better P/E valuations (10.2x) without the massive net losses observed here. This is algorithmic model output, not personal investment advice.
Is CAG stock a buy?
The TradeMates model verdict for CAG is AVOID with an investment score of 38/100. Treat this as a model signal to review, not a personal buy recommendation.