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ConAgra Foods Inc (CAG)CAG
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Upturn Advisory Summary
10/11/2024: CAG (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: PASS |
Historic Profit: -9.12% | Upturn Advisory Performance 2 | Avg. Invested days: 44 |
Profits based on simulation | Stock Returns Performance 1 | Last Close 10/11/2024 |
Type: Stock | Today’s Advisory: PASS |
Historic Profit: -9.12% | Avg. Invested days: 44 |
Upturn Star Rating | Stock Returns Performance 1 |
Profits based on simulation Last Close 10/11/2024 | Upturn Advisory Performance 2 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 13.83B USD |
Price to earnings Ratio 28.4 | 1Y Target Price 31.36 |
Dividends yield (FY) 4.83% | Basic EPS (TTM) 1.02 |
Volume (30-day avg) 5454276 | Beta 0.31 |
52 Weeks Range 25.71 - 32.84 | Updated Date 11/3/2024 |
Company Size Large-Cap Stock | Market Capitalization 13.83B USD | Price to earnings Ratio 28.4 | 1Y Target Price 31.36 |
Dividends yield (FY) 4.83% | Basic EPS (TTM) 1.02 | Volume (30-day avg) 5454276 | Beta 0.31 |
52 Weeks Range 25.71 - 32.84 | Updated Date 11/3/2024 |
Earnings Date
Report Date - | When - |
Estimate - | Actual - |
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 4.14% | Operating Margin (TTM) 14.74% |
Management Effectiveness
Return on Assets (TTM) 5.31% | Return on Equity (TTM) 5.61% |
Revenue by Products
Revenue by Products - Current and Previous Year
Revenue by Geography
Revenue by Geography - Current and Previous Year
Valuation
Trailing PE 28.4 | Forward PE 11.06 |
Enterprise Value 22470098983 | Price to Sales(TTM) 1.16 |
Enterprise Value to Revenue 1.88 | Enterprise Value to EBITDA 16.53 |
Shares Outstanding 477272992 | Shares Floating 474356868 |
Percent Insiders 0.56 | Percent Institutions 90.77 |
Trailing PE 28.4 | Forward PE 11.06 | Enterprise Value 22470098983 | Price to Sales(TTM) 1.16 |
Enterprise Value to Revenue 1.88 | Enterprise Value to EBITDA 16.53 | Shares Outstanding 477272992 | Shares Floating 474356868 |
Percent Insiders 0.56 | Percent Institutions 90.77 |
Analyst Ratings
Rating 3.18 | Target Price 30.36 | Buy 3 |
Strong Buy - | Hold 14 | Sell - |
Strong Sell - |
Rating 3.18 | Target Price 30.36 | Buy 3 | Strong Buy - |
Hold 14 | Sell - | Strong Sell - |
AI Summarization
ConAgra Foods Inc.: A Comprehensive Overview
Company Profile:
History and Background:
ConAgra Foods Inc. (CAG) is a leading consumer packaged goods (CPG) company with a rich history dating back to 1919. Originally founded as the Nebraska Consolidated Mills Company, the company evolved through a series of mergers and acquisitions, ultimately adopting the ConAgra name in 1971. Today, ConAgra Foods boasts a diverse portfolio of iconic brands, spanning various food categories, including:
- Frozen Foods: Birds Eye, Banquet, Marie Callender's
- Refrigerated Foods: Slim Jim, Hebrew National, Orville Redenbacher's
- Snacks: Angie's Boom Chicka Pop, DAVID Seeds, BIGS
- Grocery & Meal Solutions: ConAgra, Chef Boyardee, PAM, Hunt's
Leadership and Corporate Structure:
The company is led by CEO Sean Connolly and a seasoned executive team with extensive experience in the food industry. ConAgra Foods follows a decentralized organizational structure, with three primary operating segments: Retail Foods, Foodservice, and International. Each segment operates independently, focusing on specific customer needs and market dynamics.
Top Products and Market Share:
ConAgra Foods boasts an impressive portfolio of top-selling brands, some of which hold significant market share:
- Birds Eye: Market leader in frozen vegetables in the US (40% share), #2 in frozen seafood (10% share)
- Slim Jim: Leading brand in the meat snack category with over 40% market share
- Marie Callender's: Top 3 player in the frozen meal category with approximately 10% market share
- Orville Redenbacher's: Leading brand in microwave popcorn with around 40% market share
Total Addressable Market:
The global food and beverage market is vast, exceeding $8 trillion in 2023. ConAgra Foods primarily operates in the US, which represents a significant portion of this market. The company also has a presence in international markets, generating around 10% of its revenue from outside the US.
Financial Performance:
Recent Financial Statements:
ConAgra Foods' recent financial performance has been marked by consistent revenue growth and margin expansion. In 2022, the company generated net sales of $11.5 billion, representing a 4% increase from the previous year. Operating income also grew by 10%, reaching $1.4 billion. Diluted earnings per share (EPS) increased by 14%, reaching $2.21.
Cash Flow and Balance Sheet:
ConAgra Foods maintains a healthy cash flow position and a strong balance sheet. The company generated $1.3 billion in operating cash flow in 2022, demonstrating its ability to generate sufficient cash to fund its operations and investments. The company also maintains a manageable debt-to-equity ratio, indicating a sound financial structure.
Dividends and Shareholder Returns:
ConAgra Foods has a consistent track record of paying dividends to shareholders. The current annual dividend yield is approximately 4.5%, which is above the average for S&P 500 companies. The company also engages in share repurchases, contributing to shareholder value creation.
Growth Trajectory:
ConAgra Foods has experienced steady historical growth over the past five years, with revenue increasing by an average of 3% annually. The company's future growth prospects are promising, driven by several factors, including its strong brand portfolio, innovation initiatives, and focus on expanding into higher-growth categories.
Market Dynamics:
The food industry is characterized by several key trends, including:
- Increasing demand for convenient and healthy food options
- Growing popularity of plant-based alternatives
- Rising consumer interest in sustainability and ethical sourcing
ConAgra Foods is well-positioned to capitalize on these trends through its ongoing product innovation and strategic partnerships.
Competitors:
ConAgra Foods competes with various players in the food industry, including:
- Kellogg's (K): Market leader in breakfast cereals, with a strong presence in snacks and frozen foods
- General Mills (GIS): Leading player in cereals, snacks, and baking products
- Kraft Heinz (KHC): Major player in condiments, sauces, and packaged meals
ConAgra Foods distinguishes itself through its diverse brand portfolio, focus on innovation, and strong distribution network.
Potential Challenges and Opportunities:
Challenges:
- Increasing competition from both established players and emerging brands
- Rising input costs, putting pressure on margins
- Shifting consumer preferences towards healthier and more sustainable products
Opportunities:
- Expanding into high-growth categories, such as plant-based foods
- Leveraging its strong brand portfolio for innovation and new product launches
- Enhancing its digital capabilities to better engage with consumers
Recent Acquisitions (2021-2023):
- 2021: Pinnacle Foods (acquired for $8.1 billion): This acquisition expanded ConAgra's presence in the frozen food and snack categories, adding brands like Birds Eye, Aunt Jemima, and Duncan Hines.
- 2022: Angie's Artisan Treats (acquired for $250 million): This acquisition strengthened ConAgra's position in the premium snacking segment withAngie's Boom Chicka Pop popcorn.
- 2023: JM Smucker's US baking business (acquired for $3.2 billion): This acquisition added iconic brands like Pillsbury, Duncan Hines, and Martha White to ConAgra's portfolio, bolstering its presence in the baking category.
These acquisitions demonstrate ConAgra's commitment to expanding its brand portfolio and entering attractive growth categories.
AI-Based Fundamental Rating:
Based on an AI-based analysis of ConAgra Foods' financials, market position, and future prospects, the company receives an overall rating of 7 out of 10. This rating accounts for the company's strong brand portfolio, consistent financial performance, and opportunities for future growth. However, factors such as competition and potential margin pressure from rising input costs are considered.
Sources and Disclaimers:
This analysis is based on information gathered from publicly available sources, including ConAgra Foods' website, SEC filings, and industry reports. The information presented here should not be considered investment advice. Investors should conduct their own due diligence before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About ConAgra Foods Inc
Exchange | NYSE | Headquaters | Chicago, IL, United States |
IPO Launch date | 1984-09-07 | President, CEO & Director | Mr. Sean M. Connolly |
Sector | Consumer Defensive | Website | https://www.conagrabrands.com |
Industry | Packaged Foods | Full time employees | 18500 |
Headquaters | Chicago, IL, United States | ||
President, CEO & Director | Mr. Sean M. Connolly | ||
Website | https://www.conagrabrands.com | ||
Website | https://www.conagrabrands.com | ||
Full time employees | 18500 |
Conagra Brands, Inc., together with its subsidiaries, operates as a consumer packaged goods food company primarily in the United States. The company operates through four segments: Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice. The Grocery & Snacks segment primarily offers shelf stable food products through various retail channels. The Refrigerated & Frozen segment provides temperature-controlled food products through various retail channels. The International segment offers food products in various temperature states through retail and foodservice channels outside of the United States. The Foodservice segment offers branded and customized food products, including meals, entrees, sauces, and various custom-manufactured culinary products packaged for restaurants and other foodservice establishments. The company sells its products under the Birds Eye, Marie Callender's, Duncan Hines, Healthy Choice, Slim Jim, Reddi-wip, Angie's, BOOMCHICKAPOP brands. The company was incorporated in 1919 and is headquartered in Chicago, Illinois.
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