CAG - Embedded Expectations Analysis - 2021 05 17
Conagra Brands, Inc. (CAG:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 20.3x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management may have concerns about their divestment opportunities, inflationary headwinds, and key product and category growthSpecifically, management may lack confidence in their ability to manage their margins, find valuable divestment opportunities, and continue to build momentum and further strengthen their business. In addition, they may be overstating the strength of their innovation track record, and they may be concerned about the permanent impact of remote workforce adoption and short-term inflationary headwinds. Furthermore, they may lack confidence in their ability to sustain overall product category growth, maintain snacking sales growth, and continue to beat net sales guidance
Conagra Brands is a packaged goods food company. The company's segments are: Grocery and Snacks, which includes branded, shelf stable food products sold in various retail channels; Refrigerated and Frozen, which includes branded, temperature controlled food products sold in various retail channels; International, which includes branded food products sold in retail and foodservice channels outside of the U.S.; Foodservice, which includes customized food products for sale to restaurants and other foodservice establishments; Pinnacle Foods, which includes and private-label food products; and Commercial Foods, which included commercially branded and private label food and ingredients, among others.
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