Conagra Brands (CAO) AI Stock Analysis

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Conagra Brands

(XETRA:CAO)

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Positive Factors

Positive Cash GenerationPositive operating and free cash flow in both the latest annual period and TTM gives Conagra internal liquidity despite reported losses. That cash generation can fund debt reduction and essential brand investment, although its weakening trend means the support must be monitored.

Negative Factors

Sharp Profitability DeteriorationResults have shifted from prior positive earnings to large 2026 losses, with TTM net margin around negative 17% and deeply negative operating margin. This erodes retained earnings and reduces the cushion available to absorb pricing, volume or cost pressure over the next several quarters.

Conagra Brands (CAO) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 6.88B
Dividend Yield: 8.10%
Average Volume (3M): 1,181
Price to Earnings (P/E): -3.6
Beta (1Y): 0.09
Revenue Growth: -7.44%
EPS Growth: -311.32%
Country: Germany
Employees: 17,400
Sector: Consumer Defensive
Sector Strength: 62
Industry: Packaged Foods

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 & Snacks,...

Conagra Brands Earnings Call Summary

Earnings Call Date:Sep 29, 2026(Q1-2027)|% Change Since:4.96%|Next Earnings Date:Dec 31, 2026

Earnings Call SentimentPositive

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.

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 Risk Analysis

Conagra Brands disclosed 36 risk factors in its most recent earnings report. Conagra Brands reported the most risks in the "Production" category.

Production - Risks related to the company’s ability to manufacture goods and services

Latest Risks Added

1 New Risk

1.Trading ArrangementsQ1, 2026

Conagra Brands Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

DE:CAO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HRL	58Neutral	$11.82B	33.75	4.33%	5.50%	0.73%	-54.64%
KHC	53Neutral	$29.56B	-8.57	-8.44%	6.53%	-1.62%	36.06%
GIS	52Neutral	$18.58B	-20.65	-10.69%	7.16%	-4.49%	-131.46%
CPB	49Neutral	$6.60B	16.39	10.18%	6.47%	-4.96%	-33.88%
BGS	37Underperform	$195.87M	-2.69	-16.45%	23.85%	-4.91%	68.74%

* Consumer Defensive Sector Average

Performance Comparison

DE:CAO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:CAO	Conagra Brands	13.02	-0.88	-6.32%
BGS	B&G Foods	2.39	-1.08	-31.20%
CPB	Campbell Soup Company	21.96	-6.33	-22.38%
GIS	General Mills Inc	34.08	-9.32	-21.47%
HRL	Hormel Foods Corp	21.26	0.84	4.12%
KHC	Kraft Heinz Co	24.52	1.93	8.53%

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.

Conagra Brands AI Stock Analysis