CAG Investment Analysis Report & Stock Research, ConAgra Foods

ConAgra Foods (CAG)

CAG Stock Report

2-Year Price History

View Larger CAG Chart
NYSE:CAG
$22.35
(11/20 6:40PM)
-0.1%
Open$22.38 Mkt Cap$9.9 Billion
High$22.5 52Wk High$22.73
Low$22.21 52Wk Low$13.52
Volume2.7 Million Avg Vol 10D3.5 Million

Ockham's Rating/Recommendation Summary

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CAG Revenue

As a value investing shop, we are interested in seeing how CAG's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 1.27x and the low end of the range at 0.91x.

With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for CAG of 0.84x is well below its normal historic Price to Sales levels. At a price of $22.35, CAG is 24% below where we would expect to see it. Clearly, this stock looks undervalued compared to historical levels, at least on a Price to Sales basis. This will positively affect our analysis because it is rare to find a stock this far below historical norms, and we would expect some price appreciation to bring this metric back towards a more normal range.

CAG Cash Earnings

Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. CAG is significantly below its historical average multiple of Cash Earnings. Looking at the last 10 years we can get a good understanding of what investors have grown to expect from CAG. For example, CAG's Cash Earnings ratio per share has fluctuated between 10.93 and 15.21 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where CAG is with respect to prior business periods.

So with CAG's current price (latest close of $22.35) and most recent level of Cash Earnings reported, we see significant opportunity from a value perspective. At its current price level, CAG is 27% below its average level of Price to Cash Earnings on a historical basis. This means that investors were willing to pay for a much higher stock price than currently for the same level of Cash in the past, on a relative basis. There are a couple of important things to remember, however. First, value doesn't exist in a vacuum. So if the market doesn't recognize this value, even a great disparity in Price to Cash Earnings cannot force an immediate stock price reaction. Second, patience is key when looking at securities that have reached these levels of Price to Cash Earnings versus their historical norms. So be patient with CAG.

CAG Dividends

While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.

In CAG’s case, the estimated annual dividend is $0.80 resulting in a current dividend yield of 3.58%. Similar to our review of Sales and Cash Earnings per share, we evaluate dividend yields from CAG against the historic high and low levels over the past 10 years. The highest dividend yield from CAG over this period was 5.92% while the lowest dividend yield was 2.54% It is never a good sign for a company to pay significantly lower dividends, in this case 15.37% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.

Peer Comparison

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ConAgra Foods Industry Grouping

(11/20/2009)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not incuding CAG) 22.60 5.63 » 26.47 0.99 0.28 » 1.28 11.14% 21.19%
*10 year range does not include current year values
Coca-Cola FEMSA SAB De CV KOF $10.2 Billion $55.12 15.53 5.69 » 17.95 1.95 0.63 » 2.53 13.49% 13.72%
Coca-Cola Enterprises Inc. CCE $10.0 Billion $20.42 48.62 3.67 » 51.05 0.46 0.16 » 0.76 4.70% 34.84%
ConAgra Foods CAG $9.9 Billion $22.35 9.63 4.61 » 15.98 0.84 0.35 » 1.16 -2.60% 15.90%
Fomento Economico Mexicano S.A.B. de C.V. ADS Repr 4 shares FMX $9.4 Billion $43.52 17.00 2.78 » 18.52 1.56 0.29 » 1.21 12.41% 13.38%
Coca Cola Hellenic Bottling Co SA ADS CCH $9.1 Billion $25.00 11.42 4.15 » 21.61 0.96 0.34 » 1.89 13.95% 10.64%
Mead Johnson Nutrition Company - Shs - A MJN $9.1 Billion $44.31 20.42 11.85 » 23.20 0.00 0.00 » 0.00 n/a 33.36%

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Interested in CAG? See What the Pundits Said on Zero Hedge

ConAgra Foods is one of the thousands of companies that use news analytics on, and it was recently discussed on Zero Hedge.

in the tighteners. The biggest percentage movers in the CDR NAIG LQD 50 were Campbell Soup Company (+11.76%), Ryder System Inc. (+2%), and CONAGRA FOODS Inc (+1.57%) in the wideners, and Kraft Foods Inc. (-9.09%), Wells Fargo & Company (-7.66%), and JP Morgan Chase & Co. (-6.98%) in the tighteners.In the names of the HY index, today's biggest percentage movers were Intelsat Ltd (+36.2%), CIT Group Inc (+2.45%), and DISH DBS

“… rgan Chase & Co. (-6.98%) in the tighteners.In the names of the HY index, today's biggest percentage movers were Intelsat Ltd (+36.2%), CIT Group Inc (+2.45%), and DISH DBS …”

See Who is Talking About News from CAG on Mad Money

Boo-yah to you from green bay. >> let me give you a boomer sooner boo-yah to you, right back at you, sir. >> caller: yes. Thank you. Okay. I have 50 shares of CONAGRA. I was wondering if I should sell it off in order to get into that internet -- or the mobile internet play. >> no, why would you? >> why would you sell-off CONAGRA, it's a perfectly good sir, no, never make that switch. I happen to like the mobile internet tsunami. I think buy ten shares of apple. High yielder that yields 3.76 which is ran by a fantastic manager, mr. Rodkin. I want to stay in that one. I like it. Don't believe in the headlines. Kraft missed the beat.

“… bile internet play. >> no, why would you? >> why would you sell-off CONAGRA, it's a perfectly good sir, no, never make that switch. I happen to like the mobile internet tsunami. I think buy ten shares of apple. High yielder that yields 3.76 which is ran by a fantastic manager, mr. Rodkin. I want to stay in that one. I like it. Don't believe in the headlines. Kraft missed the beat. …”

ConAgra Foods (CAG) Discussed on CNBC's Mad Money

ConAgra Foods is in the news. Find out how this impacts CAG trading on Ockham Research.

Yield is 5.4%. Lynn energy, monster yield. That's natural gas play, it's going to have a really good next 18 months. CONAGRA, the food stock that has the best yield except for kraft and I don't care for kraft. Glacier, it's mentioned in my wave bank, energy, food, eweuribeeweuribeeweutility

“… gy, food, eweuribeeweuribeeweutility …”

ConAgra Foods (CAG) Discussed on CNBC's Mad Money

ConAgra Foods is in the news. Find out how this impacts CAG trading on Ockham Research.

>> best kind. >> these are my five stocks. Bristol myers, CONAGRA, duke energy, glacier bank corp, gbci, and line energy. Am I diversified? >> i'm not just thinking about this as being a great portfolio. I'm tig thiing about it on a

“… >> best kind. >> these are my five stocks. Bristol myers, CONAGRA, duke energy, glacier bank corp, gbci, and line energy. Am I diversified? >> i'm not just thinking about this as being a great portfolio. I'm tig thiing about it on a …”

ConAgra Foods (CAG) Discussed on CNBC's The Call

ConAgra Foods is in the news. Find out how this impacts CAG trading on Ockham Research.

>> new home sales rose .7 of a percent last month, less than economists forecast, however the strongest number 11 months. Shares of kb home are down 6% after the builder reported a bigger-than-expected quarterly >>> and CONAGRA raised the dividend by 5% a few days after the company upped its earnings that is cnbc.Com news now. We are first in business i'm court any reagan. >>> good morning, welcome to the call, i'm trish regan live on the floor of the new york stock exchange, 90 minutes into trading, we are watching the markets strive to gain some ground here, down just 8 points right now on the dow jones we are going to discuss this exactly, how your portfolio should be positioned as this quarter comes to an end in the face of all kinds of mixed economic news. >> hello, trish, i'm larry kudlow. Dissension at the fed, a day after ben bernanke says interest rates will stay low for a long time, fed governor kevin warsh says she might need to be raised sooner rather than later. Well, we will discuss. >> and i'm melissa francis. We go live to the g-20 summit and talk about whether world leaders can agree to stop trade easier said than done, right?

“… few days after the company upped its earnings that is cnbc.Com news now. We are first in business i'm court any reagan. >>> good morning, welcome to the call, i'm trish regan live on the floor of the new york stock exchange, 90 minutes into trading, we are watching the markets strive to gain some ground here, down just 8 points right now on the dow jones we are going to discuss this exactly, how your portfolio should be positioned as this quarter comes to an end in the face of all kinds of mixed economic news. >> hello, trish, i'm larry kudlow. Dissension at the fed, a day after ben bernanke says interest rates will stay low for a long time, fed governor kevin warsh says she might need to be raised sooner rather than later. Well, we will discuss. >> and i'm melissa francis. We go live to the g-20 summit and talk about whether world leaders can agree to stop trade easier said than done, right? …”

ConAgra Foods (CAG) Discussed on CNBC's Street Signs

ConAgra Foods is in the news. Find out how this impacts CAG trading on Ockham Research.

>> what does cheerios on fire have to do with our segment is >> a lot of people doubted general mills could generate such an upside surprise that it would matter, particularly after CONAGRA's number yesterday. This general mills number was bottom-line terrific. General mills goes from being a consistent grower to be an actually better than consistent the stock's being ramped here. >> oh, no -- pabst blue ribbon. >> they're raising prices. Ever since somehow the bush administration let bud go through with imbev, this beer company, even those volumes are not up, they've been raising prices and raising prices. There's this benign thing that's amazing. Molsen is -- >> why would you say that's a lot of people would say that's rather malicious. >> I think if there weren't an antitrust department I would like into beer pricing. It probably, to me, the least -- went from being the most competitive beverage other than

“… rific. General mills goes from being a consistent grower to be an actually better than consistent the stock's being ramped here. >> oh, no -- pabst blue ribbon. >> they're raising prices. Ever since somehow the bush administration let bud go through with imbev, this beer company, even those volumes are not up, they've been raising prices and raising prices. There's this benign thing that's amazing. Molsen is -- >> why would you say that's a lot of people would say that's rather malicious. >> I think if there weren't an antitrust department I would like into beer pricing. It probably, to me, the least -- went from being the most competitive beverage other than …”

ConAgra Foods (CAG) Discussed on CNBC's Closing Bell

ConAgra Foods is in the news. Find out how this impacts CAG trading on Ockham Research.

Estimates, at the low end of their range. $is 124 to $134. The street looking for $134. Carmax topped estimates, CONAGRA raised full year forecast. Google shares, the price target got raised today to $560. That from a cancord adams. The dow closing higher. >> nice to see you, sir. >> i'm going to hand it back to maria bartiromo. >> we are talking with the prime minister of poland. We have vaclav klaus coming on the show. So nice to meet you. >> you never know who you are going to run into on the floor of the new york stock exchange. The prime minister of hungry stopping by the set. I'm going to sit down with the president of the czech republic. Vaclav klaus to weigh in on a recent policy shift from the u.S. In terms of the foreign we get his thoughts on that as

“… . >> nice to see you, sir. >> i'm going to hand it back to maria bartiromo. >> we are talking with the prime minister of poland. We have vaclav klaus coming on the show. So nice to meet you. >> you never know who you are going to run into on the floor of the new york stock exchange. The prime minister of hungry stopping by the set. I'm going to sit down with the president of the czech republic. Vaclav klaus to weigh in on a recent policy shift from the u.S. In terms of the foreign we get his thoughts on that as …”

ConAgra Foods (CAG) Discussed on Fox Business's Countdown to the Closing Bell

ConAgra Foods is in the news. Find out how this impacts CAG trading on Ockham Research.

Clorox the name to watch. Lowes coming out with numbers cawshesz on earning's view for the next fiscal year. CONAGRA coming under-pressure. Maceys loving what they are doing in their stores in each individual area trying to gear the stores to particular customers in the area. That's giving a boost. Tech stocks on the move as well. >> all right, new highs above a million shares. >> we love our shorts out there too. Buyers and sellers. All the industries in the green so are commodities. Gold at $116. >> the president's politicking on the global station. >> nasdaq up eight.

“… ustomers in the area. That's giving a boost. Tech stocks on the move as well. >> all right, new highs above a million shares. >> we love our shorts out there too. Buyers and sellers. All the industries in the green so are commodities. Gold at $116. >> the president's politicking on the global station. >> nasdaq up eight. …”

ConAgra Foods (CAG) Discussed on CNBC's Closing Bell

ConAgra Foods is in the news. Find out how this impacts CAG trading on Ockham Research.

Cash for clunkers increased traffic at carmax. Carnival the cruise line beat their 2009 outlook, giving a lift to royal caribbean. CONAGRA, increased prices to lift sales. Up in chicago we start with brian at the nasdaq. >> thank you, scott. Fascinating day because the range has been so tight. Basically a 12-point range, .4%, about nine points. Let's start with what is working, microsoft up 1.5%. Silicone valley insiders say they are gaining shares. Cramer pointed out they should have more. Amazon, dan brown's lost symbol sales record is a net positive. Palm, nokia rumors in europe. Google right now clinging to that 500 level. Mr. Whopner talked about it. On "street signs" they said google is not making money on their businesses so why not buy some companies.

“… ay because the range has been so tight. Basically a 12-point range, .4%, about nine points. Let's start with what is working, microsoft up 1.5%. Silicone valley insiders say they are gaining shares. Cramer pointed out they should have more. Amazon, dan brown's lost symbol sales record is a net positive. Palm, nokia rumors in europe. Google right now clinging to that 500 level. Mr. Whopner talked about it. On "street signs" they said google is not making money on their businesses so why not buy some companies. …”

ConAgra Foods (CAG) Discussed on Fox Business's Countdown to the Closing Bell

ConAgra Foods is in the news. Find out how this impacts CAG trading on Ockham Research.

The small and mid-size stocks, the russell 2000. When you look at the far right, up a full percentage point, so they're rallying the most. We have a story regarding good news and bad news. CONAGRA food with weaker they are seeing continued progress in consumer foods for the rest of the year. If we look at the stock, moving down, 21.88. Lowe's giving a cautious earning outlook for next year, saying it expects the same-store sales to rise after three years of declines. Warning the 2010 view may have fallen short. Look at low, down 4 1/2%, to $21.01 on 19.2 million shares. Overall, the good day on the market. Contrasted to yesterday. What is driving aside from financials we talked about. >> the money on the sideline, every time the stock markets gets in, we see the commodities moving up on the weaker dollar. That's propelling the stock market to the up side. Look at the oil and gold

“… sumer foods for the rest of the year. If we look at the stock, moving down, 21.88. Lowe's giving a cautious earning outlook for next year, saying it expects the same-store sales to rise after three years of declines. Warning the 2010 view may have fallen short. Look at low, down 4 1/2%, to $21.01 on 19.2 million shares. Overall, the good day on the market. Contrasted to yesterday. What is driving aside from financials we talked about. >> the money on the sideline, every time the stock markets gets in, we see the commodities moving up on the weaker dollar. That's propelling the stock market to the up side. Look at the oil and gold …”

View All ConAgra Foods Stock News

Key Fundamentals

CAG - ConAgra Foods Fundamentals
Price (11/20 6:40PM) $22.35
Volume (11/20 6:40PM) 2.7 Million
Last Close Price $22.37
10 Day Average Volume 3.5 Million
13 Week Price Range $19.74 - $22.73
52 Week Price Range $13.52 - $22.73
LTM Revenue $12.6 Billion
 
Shares Outstanding (05/2009) 442.9 Million
Market Capitalization $9.9 Billion
Shares Held By Institutions 317.3 Million
Institutional Holders 615
% Shares Held By Institutions 71.60%
Earnings Per Share (EPS) $2.15
P/E Ratio 14.30
Book Value Per Share $10.84
 
Gross Margin 26.10%
Annual Dividend 0.80
Dividend Yield 3.60%
Beta 0.76
Fiscal Year Ends May

About ConAgra Foods

ConAgra Foods is considered to operate in the Consumer Goods sector. They specifically operate in the Processed/Packaged Goods business segment contained within the Food & Beverage industry.

A North America's packaged food company serving grocery retailers, as well as restaurants and other foodservice establishments.