📊 CAG Key Takeaways
Is Conagra Brands Inc.. (CAG) a Good Investment?
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.
Conagra’s latest fundamentals show weak earnings quality: despite a reported surge in revenue, margins are negative, net losses are substantial, and interest coverage is below zero. The business is still generating positive operating cash flow and free cash flow, but liquidity is thin and leverage remains meaningful, limiting flexibility until profitability and coverage ratios recover.
Why Buy Conagra Brands Inc.. Stock? CAG 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
- Free cash flow of $112.6M after capital expenditures provides some liquidity cushion for debt obligations
- Positive operating cash flow and free cash flow despite earnings pressure
- Large asset base and positive stockholders' equity provide some balance sheet support
- Gross margin remains positive, indicating the core business still retains underlying pricing power
CAG Stock Risks: Conagra Brands Inc.. Investment 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
- Negative operating and net margins signal significant profitability deterioration
- Weak liquidity with a 0.89x current ratio and 0.28x quick ratio raises near-term balance sheet pressure
- High debt load and negative interest coverage suggest constrained financial flexibility if earnings do not rebound
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
- Operating margin and interest coverage
- Free cash flow generation relative to long-term debt
Conagra Brands Inc.. (CAG) Financial Metrics & Key Ratios
💡 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 Profit Margin, ROE & Profitability Analysis
CAG vs Consumer Sector: How Conagra Brands Inc.. Compares
How Conagra Brands Inc.. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Conagra Brands Inc.. Stock Overvalued? CAG Valuation Analysis 2026
Based on fundamental analysis, Conagra Brands Inc.. shows some fundamental concerns relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Conagra Brands Inc.. Balance Sheet: CAG Debt, Cash & Liquidity
CAG Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
CAG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $2.8B | $145.1M | $0.30 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Conagra Brands Inc.. Dividends, Buybacks & Capital Allocation
CAG SEC Filings: Latest 10-K & 10-Q Analysis
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 a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CAG's key strengths?
Claude: 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. ChatGPT: Positive operating cash flow and free cash flow despite earnings pressure. Large asset base and positive stockholders' equity provide some balance sheet support.
What are the risks of investing in CAG?
Claude: 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. ChatGPT: Negative operating and net margins signal significant profitability deterioration. Weak liquidity with a 0.89x current ratio and 0.28x quick ratio raises near-term balance sheet pressure.
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?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CAG a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Conagra Brands Inc.. has a SELL rating with 84% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CAG stock overvalued or undervalued?
Valuation metrics for CAG: ROE of -6.2% (sector avg: 18%), net margin of -8.9% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy CAG stock in 2026?
Our dual AI analysis gives Conagra Brands Inc.. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CAG's free cash flow?
Conagra Brands Inc..'s operating cash flow is $331.2M, with capital expenditures of $218.6M. FCF margin is 2.0%.
How does CAG compare to other Consumer stocks?
Vs Consumer sector averages: Net margin -8.9% (avg: 8%), ROE -6.2% (avg: 18%), current ratio 0.89 (avg: 1.5).