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 −9.8% 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
- −15%
Operating margin · Packaged Foods median 7.7% · 12 months to Q1 2027
- Share count, year on year
- +0.08%
Share count, year on year · flat: no meaningful dilution
- 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 Q1 2027
- 24%
- Operating margin12 months to Q1 2027
- −15%
- Net margin12 months to Q1 2027
- −17%
- Free cash flow margin
- 7.8%
- Revenue, trailing twelve months
- $11.2B
- Free cash flow, trailing twelve months
- $877M
- Net income, trailing twelve months
- −$1.91B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −9.8%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from CAG and who it buys from, as the companies report it.
- WMTWalmart29%
Share of revenue · FY2026 10-K
- 10 largest customers60%
Combined share of revenue · FY2026 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; CAG’s own figures are from its FY2026 10-K. Smaller customers and suppliers go unreported.
Packaged Foods
The closest names by size in the same industry