Now trading at a price of $37.58, ConAgra Brands has moved 0.4% so far today. In contrast, the S&P 500 index moved -1.0%. Read below for a basic value analysis of ConAgra Brands.
ConAgra Brands shares moved 9.0% over the last 52 weeks, with a high of $41.3 and a low of $31.02. During this time, the stock outperformed the S&P 500 index by 17.0%. As of January 2022, the company's 50-day average price is $36.0. Conagra Brands, Inc., together with its subsidiaries, operates as a consumer packaged goods food company in North America. The large-cap Consumer Staples company has 18,000 full time employees and is based in Chicago, IL. ConAgra Brands has returned a 3.4% dividend yield over the last 12 months.
Snapshot of the Company's Consistent Operating Margins:
| 2019-05-31 | 2020-05-31 | 2021-05-31 | 2022-05-31 | |
|---|---|---|---|---|
| Revenue (MM) | $9,538 | $11,054 | $11,185 | $11,536 |
| Revenue Growth | n/a | 15.89% | 1.18% | 3.14% |
| Gross Margins | 27.8% | 27.8% | 28.4% | 24.6% |
| Gross Margins Growth | n/a | 0.0% | 2.16% | -13.38% |
| Operating Margins | 12.4% | 13.1% | 15.9% | 11.7% |
| Operating Margins Growth | n/a | 5.65% | 21.37% | -26.42% |
| Net Margins | 7.11% | 7.6% | 11.61% | 7.7% |
| Net Margins Growth | n/a | 6.89% | 52.76% | -33.68% |
| Earnings Per Share | $1.52 | $1.72 | $2.66 | $1.41 |
| EPS Growth | n/a | 13.16% | 54.65% | -46.99% |
| Diluted Shares (MM) | 446 | 489 | 488 | 477 |
| Free Cash Flow (MM) | $772 | $1,473 | $962 | $713 |
| FCF Growth | n/a | 90.72% | -34.72% | -25.87% |
| Capital Expenditures (MM) | -$353 | -$370 | -$506 | -$464 |
| Net Debt / EBITDA | 6.7 | 4.97 | 4.02 | 4.97 |
ConAgra Brands Is Overpriced:
Compared to the Consumer Staples sector's average of 24.36, ConAgra Brands has a trailing twelve month P/E ratio of 26.7 and, according to its EPS guidance of 2.81, an expected P/E ratio of 13.4. ConAgra Brands's PEG ratio is 0.89 based on its 13% compound average growth rate of historical and projected earnings per share. This suggests that company's shares are undervalued.
Furthermore, ConAgra Brands is likely undervalued in terms of its equity because its P/B ratio is 2.1 compared to its sector average of 4.29. The company's shares are currently trading 37.3% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 1.83 * 18.183) = $27.36
ConAgra Brands Is the Subject of Mixed Market Indicators:
14 analysts are following ConAgra Brands and have set target prices ranging from $35.0 to $48.0 per share. On average, they have given the company a rating of hold. At the current price of $37.58, CAG is trading -8.65% away from its average analyst target price of $41.14 per share, implying an analyst consensus of some upside potential for the stock.
The company has an average amount of shares sold short since 4.1% of the company's shares are tied to short positions. Institutions own 84.7% of ConAgra Brands's shares, while the insider ownership rate stands at 0.46%. The biggest shareholder is the Vanguard Group, Inc. with a 12% stake in the company worth approximately $2,140,554,461.
