📊 CAG Key Takeaways
Investment Thesis
Conagra Brands is experiencing severe profitability deterioration with negative operating and net margins despite significant revenue growth, indicating operational distress rather than healthy expansion. The company's weak liquidity position (0.89x current ratio, $46.6M cash against $7.2B debt) combined with negative interest coverage and negative returns on equity/assets raises substantial concerns about financial stability and debt service capacity.
CAG Strengths
- Strong revenue growth of 2886.8% YoY suggests significant business expansion or major acquisition integration
- Positive operating cash flow of $331.2M demonstrates underlying business can generate cash despite accounting losses
- Free cash flow of $112.6M after capital expenditures provides some liquidity cushion for debt obligations
CAG Risks
- Severe profitability crisis with -8.9% net margin and -4.5% operating margin indicating fundamental operational challenges
- Critically low liquidity with current ratio of 0.89x and quick ratio of 0.28x creating potential working capital stress
- High leverage with $7.2B long-term debt and negative interest coverage ratio (-0.8x) raises debt sustainability concerns and refinancing risks
- Negative returns on equity (-6.2%) and assets (-2.6%) indicate shareholder capital is being destroyed rather than deployed productively
- Extreme revenue growth rate (2886.8%) is unsustainable and may reflect one-time acquisition or accounting adjustments rather than organic growth
Key Metrics to Watch
- Operating margin recovery trajectory and path to profitability
- Debt-to-EBITDA ratio and refinancing schedule for maturing obligations
- Cash conversion and free cash flow sustainability relative to debt service requirements
- Organic revenue growth rate once integration is complete
- Working capital trends and ability to maintain current ratio above 1.0x
CAG Financial Metrics
💡 AI Analyst Insight
The relatively thin 2.0% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
CAG Profitability Ratios
CAG vs Consumer Sector
How CONAGRA BRANDS INC. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CAG Balance Sheet & Liquidity
CAG 5-Year Financial Trend
5-Year Trend Summary: CONAGRA BRANDS INC.'s revenue has shown modest growth of 10% over the 5-year period. The most recent EPS of $1.42 reflects profitable operations.
CAG Growth Metrics (YoY)
CAG Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $3.0B | $164.5M | $0.59 |
| Q1 2026 | $2.6B | $164.5M | $0.34 |
| Q3 2025 | $2.8B | $145.1M | $0.30 |
| Q2 2025 | $3.2B | $284.5M | $0.59 |
| Q1 2025 | $2.8B | $319.7M | $0.67 |
| Q3 2024 | $3.0B | -$77.5M | $0.64 |
| Q2 2024 | $3.2B | -$77.5M | $0.60 |
| Q1 2024 | $2.9B | -$77.5M | $-0.16 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CAG Capital Allocation
CAG SEC Filings
Access official SEC EDGAR filings for CONAGRA BRANDS INC. (CIK: 0000023217)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CAG
What is the AI rating for CAG?
CONAGRA BRANDS INC. (CAG) has an AI rating of SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CAG's key strengths?
Strong revenue growth of 2886.8% YoY suggests significant business expansion or major acquisition integration. Positive operating cash flow of $331.2M demonstrates underlying business can generate cash despite accounting losses.
What are the risks of investing in CAG?
Severe profitability crisis with -8.9% net margin and -4.5% operating margin indicating fundamental operational challenges. Critically low liquidity with current ratio of 0.89x and quick ratio of 0.28x creating potential working capital stress.
What is CAG's revenue and growth?
CONAGRA BRANDS INC. reported revenue of $5.6B.
Does CAG pay dividends?
CONAGRA BRANDS INC. pays dividends, with $334.8M distributed to shareholders in the trailing twelve months.
Where can I find CAG SEC filings?
Official SEC filings for CONAGRA BRANDS INC. (CIK: 0000023217) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CAG's EPS?
CONAGRA BRANDS INC. has a diluted EPS of $-1.04.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.