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-0.000336247478143966 0.000336247478143847 0.000248823133826514 -0.00168123739071959 0.00235373234700741 -0.00168123739071959 0.00235373234700741 0.0014458641560188
Stock impact report

Conagra Brands: A High Yield With A $7 Billion Catch [Seeking Alpha]

ConAgra Brands, Inc. (CAG) 
Last conagra brands, inc. earnings: 3/31 07:28 am Check Earnings Report
US:NYSE Investor Relations: conagrabrands.com/investor-relations
Company Research Source: Seeking Alpha
Organic sales turned positive in Q3 after declining since FY23, but margins are shrinking as Conagra absorbs inflation to win back volume lost to private labels. Dividend at risk: The 10% yield is barely covered by free cash flow, and a cut of around 20% under the new CEO would not be surprising. Misleading valuation: Conagra trades at a cheap forward P/E of 8, but once you account for $7.3 billion in net debt, the EV/FCF jumps to 20. jetcityimage/iStock Editorial via Getty Images Introduction Conagra Brands ( CAG ) is, at first sight, a company I would love to own. The company pays out a dividend of almost 10%, has an easy-to-understand business, which makes it more predictable than companies in other market CAG's $7.3B net debt and 7–9x net debt/FCF ratio inflate its EV, making the stock less attractive and underpinning the Hold rating and $10 target price. The abrupt CEO change raises concerns about potential dividend cuts, strategic shifts, and uncommunicated intern Show less Read more
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