Conagra Story

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CAG -- USA Stock  

USD 36.19  1.11  2.98%

Conagra Brands is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 8th of April 2021. Conagra Brands Tangible Asset Value is projected to decrease significantly based on the last few years of reporting. The past year's Tangible Asset Value was at 5.95 Billion. The current year Interest Coverage is expected to grow to 4.57, whereas Average Assets are forecasted to decline to about 22.4 B. While some baby boomers are getting worried about consumer defensive space, it is reasonable to digest Conagra Brands as an investment alternative.
Published few days ago
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Should I exit my Conagra (NYSE:CAG) holdings?
The company has 9.54 B in debt with debt to equity (D/E) ratio of 1.13, which is OK given its current industry classification.
Conagra Brands has performance score of 9 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.3866, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Conagra's beta means in this case. As returns on the market increase, Conagra Brands returns are expected to increase less than the market. However, during the bear market, the loss on holding Conagra Brands will be expected to be smaller as well. Although it is extremely important to respect Conagra Brands historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Conagra Brands technical indicators, you can presently evaluate if the expected return of 0.18% will be sustainable into the future. Conagra Brands right now shows a risk of 1.41%. Please confirm Conagra Brands jensen alpha, maximum drawdown, semi variance, as well as the relationship between the sortino ratio and potential upside to decide if Conagra Brands will be following its price patterns.
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

Breaking down Conagra Brands Indicators

Conagra Brands reported the last year's revenue of 11.52 B. Total Income to common stockholders was 1.11 B with profit before taxes, overhead, and interest of 3.1 B.

Asset Breakdown

18.8 B
Assets Non Current
14.3 B
Goodwill
Current Assets
Total Assets22.45 Billion
Current Assets2.76 Billion
Assets Non Current18.79 Billion
Goodwill14.31 Billion

Will Conagra continue to surge?

Latest Jensen Alpha is up to 0.01. Price may dip again. Conagra Brands has relatively low volatility with skewness of -0.84 and kurtosis of 1.39. 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. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Conagra Brands' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Conagra Brands' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Conclusion on Conagra Brands

Although many of the other players under the packaged foods industry are still a bit expensive, Conagra Brands may offer a potential longer-term growth to shareholders. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Conagra as the current risk-reward utility is not appealing enough. 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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