ConAgra Foods Profitability Analysis

CAG Stock  USD 29.31  0.69  2.30%   
Based on ConAgra Foods' profitability indicators, ConAgra Foods is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in May. Profitability indicators assess ConAgra Foods' ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1989-11-30
Previous Quarter
286.2 M
Current Value
308.6 M
Quarterly Volatility
187.4 M
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, ConAgra Foods' Sales General And Administrative To Revenue is most likely to increase slightly in the upcoming years. The ConAgra Foods' current Operating Cash Flow Sales Ratio is estimated to increase to 0.18, while Days Sales Outstanding is projected to decrease to 21.10. At this time, ConAgra Foods' Non Operating Income Net Other is most likely to increase significantly in the upcoming years. The ConAgra Foods' current Change To Netincome is estimated to increase to about 729.7 M, while Operating Income is projected to decrease to roughly 1.1 B.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.160.2777
Way Down
Slightly volatile
Net Profit Margin0.07980.076
Sufficiently Up
Slightly volatile
Operating Profit Margin0.140.1318
Notably Up
Slightly volatile
Pretax Profit Margin0.09210.0877
Sufficiently Up
Slightly volatile
Return On Assets0.04790.0377
Significantly Up
Slightly volatile
Return On Equity0.150.1057
Significantly Up
Very volatile
For ConAgra Foods profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ConAgra Foods to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ConAgra Foods utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ConAgra Foods's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ConAgra Foods over time as well as its relative position and ranking within its peers.
  
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For more detail on how to invest in ConAgra Stock please use our How to Invest in ConAgra Foods guide.
Is ConAgra Foods' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of ConAgra Foods. If investors know ConAgra will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about ConAgra Foods listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.1)
Dividend Share
1.38
Earnings Share
1.99
Revenue Per Share
25.336
Quarterly Revenue Growth
(0.02)
The market value of ConAgra Foods is measured differently than its book value, which is the value of ConAgra that is recorded on the company's balance sheet. Investors also form their own opinion of ConAgra Foods' value that differs from its market value or its book value, called intrinsic value, which is ConAgra Foods' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ConAgra Foods' market value can be influenced by many factors that don't directly affect ConAgra Foods' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between ConAgra Foods' value and its price as these two are different measures arrived at by different means. Investors typically determine if ConAgra Foods is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ConAgra Foods' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

ConAgra Foods Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining ConAgra Foods's current stock value. Our valuation model uses many indicators to compare ConAgra Foods value to that of its competitors to determine the firm's financial worth.
ConAgra Foods is number one stock in return on equity category among related companies. It is number one stock in return on asset category among related companies reporting about  0.50  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for ConAgra Foods is roughly  1.99 . At this time, ConAgra Foods' Return On Equity is most likely to slightly decrease in the upcoming years.Comparative valuation analysis is a catch-all model that can be used if you cannot value ConAgra Foods by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for ConAgra Foods' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the ConAgra Foods' earnings, one of the primary drivers of an investment's value.

ConAgra Return On Asset vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

ConAgra Foods

Return On Equity

 = 

Net Income

Total Equity

 = 
0.1
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

ConAgra Foods

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0526
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

ConAgra Return On Asset Comparison

ConAgra Foods is currently under evaluation in return on asset category among related companies.

ConAgra Foods Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in ConAgra Foods, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ConAgra Foods will eventually generate negative long term returns. The profitability progress is the general direction of ConAgra Foods' change in net profit over the period of time. It can combine multiple indicators of ConAgra Foods, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-51.1 M-53.6 M
Operating Income1.3 B1.1 B
Income Before Tax793.4 M845.4 M
Total Other Income Expense Net-368.6 M-387.1 M
Net Income785.7 M642.6 M
Income Tax Expense251.5 M302.9 M
Net Income Applicable To Common Shares786.1 M666.4 M
Net Income From Continuing Ops785.7 M692.4 M
Non Operating Income Net Other243.8 M256 M
Net Interest Income-368.6 M-387.1 M
Interest Income4.5 M4.3 M
Change To Netincome695 M729.7 M
Net Income Per Share 1.72  0.90 
Income Quality 2.19  1.88 
Net Income Per E B T 0.87  0.51 

ConAgra Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on ConAgra Foods. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of ConAgra Foods position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the ConAgra Foods' important profitability drivers and their relationship over time.

ConAgra Foods Profitability Trends

ConAgra Foods profitability trend refers to the progression of profit or loss within a business. An upward trend means that ConAgra Foods' profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is ConAgra Foods' gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

ConAgra Foods Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between ConAgra Foods different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards ConAgra Foods in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down ConAgra Foods' future profitability.

Use ConAgra Foods in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if ConAgra Foods position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ConAgra Foods will appreciate offsetting losses from the drop in the long position's value.

ConAgra Foods Pair Trading

ConAgra Foods Pair Trading Analysis

The ability to find closely correlated positions to ConAgra Foods could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ConAgra Foods when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back ConAgra Foods - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling ConAgra Foods to buy it.
The correlation of ConAgra Foods is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as ConAgra Foods moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ConAgra Foods moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for ConAgra Foods can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your ConAgra Foods position

In addition to having ConAgra Foods in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Compulsion
Compulsion Theme
Companies involved in research, development, and manufacturing of products with compulsion characteristics such as cigarettes, addictive drugs and alcohol. The Compulsion theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Compulsion Theme or any other thematic opportunities.
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When determining whether ConAgra Foods is a strong investment it is important to analyze ConAgra Foods' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact ConAgra Foods' future performance. For an informed investment choice regarding ConAgra Stock, refer to the following important reports:
Check out Trending Equities.
For more detail on how to invest in ConAgra Stock please use our How to Invest in ConAgra Foods guide.
Note that the ConAgra Foods information on this page should be used as a complementary analysis to other ConAgra Foods' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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When running ConAgra Foods' price analysis, check to measure ConAgra Foods' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy ConAgra Foods is operating at the current time. Most of ConAgra Foods' value examination focuses on studying past and present price action to predict the probability of ConAgra Foods' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move ConAgra Foods' price. Additionally, you may evaluate how the addition of ConAgra Foods to your portfolios can decrease your overall portfolio volatility.
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To fully project ConAgra Foods' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of ConAgra Foods at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include ConAgra Foods' income statement, its balance sheet, and the statement of cash flows.
Potential ConAgra Foods investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although ConAgra Foods investors may work on each financial statement separately, they are all related. The changes in ConAgra Foods's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on ConAgra Foods's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.