ConAgra Foods Declares Dividend of $0.25 per Share



Price movement 

ConAgra Foods (CAG) has a market cap of $20.9 billion. It fell by 0.81% to close at $47.72 per share on July 12, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -0.02%, 1.6%, and 14.6%, respectively, on the same day. CAG is trading 0.73% above its 20-day moving average, 3.2% above its 50-day moving average, and 11.9% above its 200-day moving average.

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Related ETF and peers

The iShares Russell 3000 ETF (IWV) invests 0.07% of its holdings in ConAgra Foods. The ETF tracks a cap-weighted index that measures the investable US equities market, covering the entire market-cap spectrum, including micro caps. The YTD price movement of IWV was 6.5% on July 12.

The market caps of ConAgra Foods’ competitors are as follows:

  • General Mills (GIS): $42.7 billion
  • J.M. Smucker (SJM): $17.6 billion
  • TreeHouse Foods (THS): $5.7 billion

ConAgra declared dividends

ConAgra Foods has declared a dividend of $0.25 per share on its common stock. The dividend will be paid on August 31, 2016, to shareholders of record at the close of business on July 29, 2016.

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ConAgra Foods’ performance in fiscal 4Q16

ConAgra Foods reported fiscal 4Q16 net sales of $2.8 billion, a fall of 9.7% compared to net sales of $3.1 billion in fiscal 4Q15. Sales of its consumer and commercial foods segments fell by 11.9% and 5.7%, respectively, in fiscal 4Q16 compared to fiscal 4Q15.

The company’s net income and EPS (earnings per share) fell to $117.6 million and $0.27, respectively, in fiscal 4Q16 compared to $209.2 million and $0.48, respectively, in fiscal 4Q15. It reported EPS from continuing operations of -$0.07 compared to $0.54 in fiscal 4Q15.

Fiscal 2016 results

In fiscal 2016, CAG reported net sales of $11.6 billion, a fall of 2.5% YoY (year-over-year). Its net income and EPS fell to -$677.0 million and -$1.56, respectively, in fiscal 2016 compared to -$252.6 million and -$0.59, respectively, in fiscal 2015.

CAG’s receivables rose by 13.2%, and its inventories fell by 3.7% in fiscal 2016. The company reported cash and cash equivalents of $834.5 million, compared to $164.7 million in fiscal 2015. Its current ratio rose to 1.4x, and its long-term DE (debt-to-equity) ratio fell to 2.5x, compared to current and DE ratios of 1.1x and 2.8x, respectively, in fiscal 2015.

Future plans

ConAgra Foods is planning to separate into two business entities, ConAgra Brands and Lamb Weston. The spin-off of the Lamb Weston business is expected to be complete in 2016 and be tax-free to the company and its shareholders.

The company expects EPS growth to be in the double digits due to a continuation of productivity, price and mix, low-cost initiatives, and lower interest expenses.

In the next part of this series, we’ll discuss WhiteWave Foods.


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