ConAgra Foods carries a debt of $8.98 billion, with a debt to equity (D/E) ratio of 1.05. This is acceptable within its current industry classification. However, ConAgra Foods' current ratio stands at 0.76, indicating that it may lack the necessary short-term capital to meet its financial obligations when they are due.
While debt can aid ConAgra Foods in the short term, difficulties may arise if the company struggles to repay it, either through new capital or free cash flow. In such a scenario, ConAgra Foods' shareholders could potentially lose their entire investment if the company fails to meet its legal debt repayment obligations.
However, it's more common for companies like ConAgra Foods to issue additional shares at discounted prices, which can dilute the holdings of existing shareholders. In this context, debt can be an excellent tool for ConAgra Foods to invest in growth at high rates of return.
When evaluating ConAgra Foods' use of debt, it's crucial to consider it in conjunction with cash and equity. Currently, ConAgra Foods is undervalued at $37.38 per share, with modest growth projections ahead.
A deeper look at ConAgra
Despite today's dip, ConAgra Foods (CAG) may present a potential buying opportunity from a valuation perspective. With a current valuation of
25.19B and a forward PE of 15.38, the stock seems reasonably priced relative to its earnings. The company's EBITDA stands at
2.2B, further underscoring its financial strength. Despite a total debt of
8.98B, ConAgra's operating margin of 0.16% and a return on equity of 0.09 suggest that it is efficiently managing its resources. Lastly, the company's EPS estimate for the current year is 2.74, which, coupled with a payout ratio of 0.61, indicates potential for future dividend growth.
We determine the current worth of ConAgra Foods using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of ConAgra Foods based exclusively on its
fundamental and basic
technical indicators. By analyzing ConAgra Foods's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of ConAgra Foods's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of ConAgra Foods. We calculate exposure to ConAgra Foods's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to ConAgra Foods's related companies.
ConAgra Foods Investment Alerts
ConAgra investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring ConAgra Foods performance across your portfolios.Please check all
investment alerts for ConAgra
ConAgra Foods Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare ConAgra value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across ConAgra Foods competition to find
correlations between indicators driving the intrinsic value of ConAgra.
ConAgra Foods Gross Profit
ConAgra Foods Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing ConAgra Foods previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show ConAgra Foods Gross Profit growth over the last 10 years. Please check ConAgra Foods'
gross profit and other
fundamental indicators for more details.
Breaking down ConAgra Foods Indicators
The entity reported the last year's revenue of 11.54
B. Total Income to common stockholders was 888.2
M with profit before taxes, overhead, and interest of 2.86
B.
Margins Breakdown
ConAgra profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or ConAgra Foods itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of ConAgra Foods profit margins.
| Operating Margin | 11.09 |
| EBITDA Margin | 0.17 |
| Gross Margin | 0.3 |
| Profit Margin | 0.069 |
ConAgra Foods Average Assets is increasing over the last 5 years. The previous year's value of ConAgra Foods Average Assets was 22,072,439,605. Moreover, ConAgra Foods Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 5 years. ConAgra Foods, a leading player in the Packaged Foods industry, experienced a dip in its stock price today, presenting a potential buying opportunity for investors.
The company boasts a robust net asset value of
$22.44 billion, indicating a strong financial position. Despite a net borrowing of $72.5 million, the company's net income stands at a healthy $888.2 million. The company's EBITDA is $1.79 billion, while its total operating expenses are $1.5 billion, indicating a healthy operating income of $1.4 billion. The forward dividend rate is $1.32, with a payout ratio of 0.6168, suggesting a strong return for shareholders. ConAgra Foods' market capitalization is
$15.83 billion, with a forward PE of 15.3846, indicating the stock is reasonably priced. The company's five-year return stands at 2.91%, and the forward dividend yield is 0.0399, suggesting potential for long-term growth. Despite today's dip, the company's 50-day moving average is $35.1122, and the 200-day moving average is $36.2652, indicating a generally upward trend. Given these factors, ConAgra Foods presents a potential buying opportunity for investors seeking a stable, dividend-paying stock in the food industry. .
ConAgra Foods has 87 percent likelihood to hit $34 in August
ConAgra Foods, a prominent player in the packaged foods industry, offers an intriguing investment opportunity. Although the potential upside is limited to 1.23, this could suggest a potential decrease in volatility. This reduced volatility may result in a more stable and predictable trading environment for the stock. With an 87 percent probability of reaching $34 in August, investors could expect profitable returns. However, it is essential to take into account the overall market conditions and company
fundamentals before making any investment decisions. ConAgra Foods displays extremely low volatility, with a skewness of -0.59 and a kurtosis of 0.7. Nonetheless, we recommend investors to further examine ConAgra Foods' technical indicators to ensure that all market information is available and reliable. Understanding different
market volatility trends often assists investors in timing the market. Proper use of volatility indicators allows traders to measure ConAgra Foods' stock risk against market volatility during both bullish and bearish trends.
The heightened level of volatility that accompanies bear markets can directly affect
ConAgra Foods' stock price, adding stress to investors as they watch the value of their shares decline. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. Despite the recent drop in ConAgra Foods' stock, it's important to consider the long-term potential of this investment. With an
Analyst Target Price Estimated Value of $40.416 and a
Valuation Real Value of $37.38, there is potential for growth in the future. The Analyst Overall Consensus suggests a 'Hold' position, backed by 12 estimates, including 4 strong buys. While the current Valuation Market Value stands at $32.98, the Posible Upside Price is estimated at $33.39, suggesting a potential for price recovery. However, investors should also consider the Posible Downside Price of $31.28. As always, it's crucial to balance these factors with your personal investment goals and risk tolerance. .
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of ConAgra Foods. Please refer to our
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