ConAgra Story

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CAG -- USA Stock  

USD 37.56  0.44  1.16%

ConAgra Brands is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 1st of October 2020. As many millenniums are trying to avoid consumer defensive space, it makes sense to digest ConAgra Brands a little further and try to understand its current market patterns. I will address a few possible reasons shareholders do not currently respect this stock.
Published over three weeks ago
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How much will ConAgra Brands owe in October?
The company has 10 B in debt with debt to equity (D/E) ratio of 1.26, which is OK given its current industry classification. ConAgra Brands has a current ratio of 0.86, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. The company has Net Profit Margin of 7.6 %, which may imply that it executes well on its competitive polices and has reasonable control over its expenses and variable costs. This is very large. In the same way, it shows Net Operating Margin of 19.84 %, which entails that for every 100 dollars of revenue, it generated 0.2 of operating income.
ConAgra Brands financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of ConAgra Brands, including all of ConAgra Brands's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of ConAgra Brands assets, the company is considered highly leveraged. Understanding the composition and structure of overall ConAgra Brands debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding ConAgra Total Liabilities

ConAgra Brands liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. ConAgra Brands has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on ConAgra Brands balance sheet include debt obligations and money owed to different ConAgra Brands vendors, workers, and loan providers. Below is the chart of ConAgra short long-term liabilities accounts currently reported on its balance sheet.
You can use ConAgra Brands financial leverage analysis tool to get a better grip on understanding its financial position

How important is ConAgra Brands's Liquidity

ConAgra Brands financial leverage refers to using borrowed capital as a funding source to finance ConAgra Brands ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. ConAgra Brands financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between ConAgra Brands's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for ConAgra Brands, but it might be worth checking our own buy vs. sell analysis

What is driving ConAgra Brands Investor Appetite?

The latest indifference towards the small price fluctuations of ConAgra Brands could raise concerns from shareholders as the firm it trading at a share price of 35.71 on slow start in volume. The company directors and management did not add any value to ConAgra Brands investors in August. However, most investors can still diversify their portfolios with ConAgra Brands to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.36. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.

Asset Breakdown

17.3 B
Assets Non Current
13.1 B
Current Assets
Total Assets20.69 Billion
Current Assets2.91 Billion
Assets Non Current17.26 Billion
Goodwill13.1 Billion

Will price continue to surge in October 2020?

The potential upside is down to 3.2 as of today. ConAgra Brands has relatively low volatility with skewness of 0.45 and kurtosis of 4.48. However, we advise all investors to independently investigate ConAgra Brands to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

The Bottom Line

When is the right time to buy or sell ConAgra Brands? Buying stocks such as ConAgra Brands isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily bases. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor trade any shares of ConAgra Brands at this time. The ConAgra Brands risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to ConAgra Brands.

About Contributor

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 Raphi Shpitalnik do not own shares of ConAgra Brands. Please refer to our Terms of Use for any information regarding our disclosure principles.

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