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Conagra Brands
(NYSE:CAG)
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Rating:47Neutral
Price Target:
$15.00
▼(-7.81% Downside)
Action:Reiterated
Date:10/01/26
The score is held down primarily by the sharp profitability breakdown, significant revenue contraction, and elevated leverage. Technicals also reflect a clear downtrend, despite oversold readings. A high dividend yield, continued positive cash flow, and management’s maintained guidance/debt paydown plans provide partial support but do not fully offset the fundamental and trend pressures.
Positive Factors
Brand Portfolio and Market Position
A broad portfolio of recognized brands and leadership in several snack categories support retailer relevance, consumer awareness and distribution scale. Continued marketing and innovation investment can strengthen these positions and provide a durable platform for restoring growth over the next several quarters.
Negative Factors
Sharp Profitability and Revenue Deterioration
The shift from prior-year earnings to large losses indicates that the existing revenue base is not currently converting into sustainable operating profit. If sales weakness and elevated costs persist, lower earnings will constrain reinvestment, debt reduction and the company’s financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Brand Portfolio and Market Position
A broad portfolio of recognized brands and leadership in several snack categories support retailer relevance, consumer awareness and distribution scale. Continued marketing and innovation investment can strengthen these positions and provide a durable platform for restoring growth over the next several quarters.
Read all positive factors
Conagra Brands Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Reveals profitability across different business units, highlighting which segments drive earnings and where operational efficiencies or challenges exist.
Reveals profitability across different business units, highlighting which segments drive earnings and where operational efficiencies or challenges exist.
Data provided by:
The Fly
The FlyConagra Brands (CAG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.89B
Dividend Yield8.73%
Average Volume (3M)13.29M
Price to Earnings (P/E)―
Beta (1Y)-0.05
Revenue Growth-1.80%
EPS Growth-323.82%
CountryUS
Employees17,400
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)-3.98
Shares Outstanding477,411,530
10 Day Avg. Volume10,769,572
30 Day Avg. Volume13,289,574
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.99
Price to Sales (P/S)0.56
P/FCF Ratio6.42
Enterprise Value/Market Cap2.19
Enterprise Value/Revenue1.34
Enterprise Value/Gross Profit5.65
Enterprise Value/Ebitda-13.70
Forecast
1Y Price Target
$13.62Price Target Upside-16.32% Downside
Rating ConsensusHold
Number of Analyst Covering13
EPS Forecast (FY)1.46
Revenue Forecast (FY)$10.83B
Conagra Brands Business Overview & Revenue Model
Company Description
Conagra Brands, Inc., a prominent manufacturer of packaged food products, conducts its business across North America through its various subsidiary companies. The firm organizes its extensive operations into four distinct segments: Grocery & Snack...
How the Company Makes Money
Conagra makes money primarily by selling packaged food products to customers such as grocery retailers, club stores, mass merchandisers, e-commerce retailers, distributors, and foodservice operators. Revenue is generated when these customers purch...
Conagra Brands Earnings Call Summary
Earnings Call Date:Sep 30, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Jan 01, 2027
Earnings Call Sentiment Positive
The call was cautiously positive. Conagra reported a Q1 EPS beat, maintained full-year margin and inflation-range guidance, made progress on debt reduction, and described strong performance in Sweet Treats, early A&P traction and multiple operational initiatives. These positives were tempered by a 2% Q2 organic sales decline outlook, elevated inflation, lower expected Q2 operating margin, approximately 10% frozen volume declines, weaker permissible snacking performance and leverage that remains above the 3x target.Positive Updates
Q1 EPS Beat and Operating Margin
Q1 operating margin was 11.5%. The EPS beat versus expectations was driven by SG&A timing and a one-time benefit, an approximately $0.03 benefit from Ardent Mills, inflation below the company's internal forecast, and tariff refunds of close to $0.01.
Negative Updates
Q2 Organic Sales Expected to Decline
The company guided to a 2% decline in Q2 organic sales. The outlook reflects prudent elasticity assumptions and Thanksgiving timing, which may cause shipments to run below consumption in Q2 because seasonal items fall in Q2 this year rather than Q3.
Read all updates
Q1-2027 Updates
Positive
Negative
Q1 EPS Beat and Operating Margin
Q1 operating margin was 11.5%. The EPS beat versus expectations was driven by SG&A timing and a one-time benefit, an approximately $0.03 benefit from Ardent Mills, inflation below the company's internal forecast, and tariff refunds of close to $0.01.
Read all positive updates
Company Guidance
Conagra guided to organic sales “down 2%” in Q2, with elasticity assumptions “frozen” at “more of a 2:1 elasticity” and Grocery & Snacks at “more of a 1:1 elasticity”; fiscal '27 inflation remains in the “5% to 6% range,” “towards the higher end of the range,” with Q2 and Q3 higher than Q1, Q3 “about the same,” and Q4 lower than Q3; Q2 operating margin is expected at “higher single digits” versus 11.5% in Q1, with A&P increasing to 3% of net sales from 2.3%; full-year gross margin is expected to be “relatively flat to the prior year,” leverage is expected to finish at “approximately 4x,” debt paydown is expected to be “approximately $250 million,” and the target remains 3x, with the majority of SKU-simplification benefits expected in fiscal '28.Conagra Brands Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
45
Neutral
Cash Flow
56
Neutral
| Breakdown | TTM | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.24B | 11.28B | 11.61B | 12.05B | 12.28B | 11.54B |
| Gross Profit | 2.68B | 2.70B | 3.00B | 3.33B | 3.26B | 2.84B |
| EBITDA | -1.10B | -1.05B | 1.97B | 1.45B | 1.69B | 1.94B |
| Net Income | -1.91B | -1.92B | 1.15B | 347.20M | 683.60M | 888.20M |
Balance Sheet | ||||||
| Total Assets | 17.70B | 17.27B | 20.93B | 20.86B | 22.05B | 22.44B |
| Cash, Cash Equivalents and Short-Term Investments | 371.60M | 218.00M | 68.00M | 77.70M | 93.30M | 83.30M |
| Total Debt | 7.76B | 7.27B | 8.07B | 8.61B | 9.42B | 9.18B |
| Total Liabilities | 11.30B | 10.92B | 12.00B | 12.35B | 13.25B | 13.57B |
| Stockholders Equity | 6.40B | 6.36B | 8.93B | 8.44B | 8.74B | 8.79B |
Cash Flow | ||||||
| Free Cash Flow | 877.00M | 978.70M | 1.30B | 1.63B | 633.20M | 712.90M |
| Operating Cash Flow | 1.28B | 1.40B | 1.69B | 2.02B | 995.40M | 1.18B |
| Investing Cash Flow | -349.10M | 262.60M | -542.20M | -375.00M | -354.90M | -434.90M |
| Financing Cash Flow | -1.26B | -1.52B | -1.16B | -1.66B | -631.60M | -738.00M |
Conagra Brands Technical Analysis
Negative
16.27
Price Trends
14.85
Negative
14.38
Negative
15.06
Negative
Market Momentum
-0.15
Negative
47.83
Neutral
63.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAG, the sentiment is Negative. The current price of 16.27 is above the 20-day moving average (MA) of 13.83, above the 50-day MA of 14.85, and above the 200-day MA of 15.06, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 47.83 is Neutral, neither overbought nor oversold. The STOCH value of 63.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CAG.
Conagra Brands Risk Analysis
Conagra Brands disclosed 36 risk factors in its most recent earnings report. Conagra Brands reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Conagra Brands Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $11.29B | 32.44 | 4.33% | 5.72% | 0.73% | -54.64% | |
54 Neutral | $5.83B | 14.60 | 10.18% | 7.26% | -4.96% | -33.88% | |
53 Neutral | $28.26B | -8.22 | -8.44% | 6.81% | -1.62% | 36.06% | |
52 Neutral | $17.87B | -19.74 | -10.69% | 7.49% | -4.49% | -131.46% | |
47 Neutral | $6.89B | -3.53 | -26.28% | 8.73% | -1.80% | -323.82% | |
46 Neutral | $177.99M | -2.38 | -16.45% | 26.89% | -4.91% | 68.74% |
* Consumer Defensive Sector Average
CAG
Conagra Brands
15.07
-2.04
-11.95%
BGS
B&G Foods
2.15
-1.73
-44.53%
CPB
Campbell Soup
21.26
-7.92
-27.15%
GIS
General Mills
35.18
-9.66
-21.54%
HRL
Hormel Foods
21.36
-1.16
-5.16%
KHC
Kraft Heinz
25.09
1.31
5.50%
Conagra Brands Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Conagra Shareholders Back Board, Auditor and Governance Changes
Positive
Sep 28, 2026
At its Sept. 23, 2026 annual meeting, Conagra Brands’ shareholders elected 11 directors to serve until the 2027 meeting, reaffirming the current board slate with generally strong support across nominees. Investors also ratified KPMG LLP as i...
Business Operations and StrategyPrivate Placements and Financing
Conagra Brands Issues $500 Million Senior Notes Offering
Positive
Jul 28, 2026
On July 28, 2026, Conagra Brands, Inc. completed a $500 million public offering of 5.400% senior unsecured notes due August 1, 2031, with interest payments starting February 1, 2027. The notes, issued under an existing indenture with U.S. Bank Tru...
Business Operations and StrategyExecutive/Board Changes
Conagra COO Retirement Triggers Executive Leadership Restructuring
Neutral
Jul 28, 2026
Conagra Brands announced that Executive Vice President and Chief Operating Officer Thomas McGough notified the company on July 24, 2026, of his decision to retire no later than September 4, 2026. Following his departure, Conagra plans to eliminate...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.