CAGConagra Brands
Is the business good?
The checks split: nothing decisive, though margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is CAG?
Conagra Brands earns −9.6% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 19 points below what the capital costs: growth destroys value
- Operating margin
- −14%
Operating margin · Packaged Foods median 7.6% · 12 months to Q4 2026
- Gross margin
- 24%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 19% |
| FY2022 | 14% |
| FY2023 | 8.8% |
| FY2024 | 7.1% |
| FY2025 | 12% |
| FY2026 | −14% |
Details›
- Gross margin12 months to Q4 2026
- 24%
- Operating margin12 months to Q4 2026
- −14%
- Net margin12 months to Q4 2026
- −17%
- Free cash flow margin
- 8.7%
- Revenue, trailing twelve months
- $11.3B
- Free cash flow, trailing twelve months
- $979M
- Net income, trailing twelve months
- −$1.92B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −9.6%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Packaged Foods
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