ConAgra Hits 52-Week Low Despite Three EPS Beats
ConAgra Brands has beaten EPS consensus in three of its last four quarters, most recently posting $0.47 against a $0.457 estimate, yet shares printed a 52-week low this week. The driver is $7.48 billi
CAG Hits 52-Week Low Despite Three EPS Beats
NEW YORK, August 14 —
ConAgra Brands, Inc. (CAG) has beaten EPS consensus in three of its last four quarters, most recently posting $0.47, yet shares hit a 52-week low this week. The disconnect is the balance sheet: $7.48 billion in total debt against $220 million in cash, with a new material financial obligation disclosed in late July.
- Net debt of $7.26B nearly matches market cap of $7.37B; analyst consensus of $14.38 sits below the current $15.39.
- Trailing FCF of $859M on $11.28B revenue; forward P/E of 9.9x against shares at a 52-week low.
- 11.7% of float is short; two 424B5 filings and a new debt obligation from late July.
Debt Is Doing the Pricing, Not Earnings
Conagra, incorporated in 1919 and headquartered in Chicago, sells frozen and shelf-stable food under brands including Birds Eye, Marie Callender's, Healthy Choice, Reddi-wip, Slim Jim, Duncan Hines, and Angie's BOOMCHICKAPOP across its Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice segments. Trailing-twelve-month revenue reached $11.28 billion with 3.6% growth and a 24.0% gross margin, numbers that would look stable at a normal capital structure. The problem: $7.48 billion in debt against $220 million in cash leaves a net-debt load that nearly mirrors the company's $7.37 billion market cap, turning a century-old packaged-food franchise into a balance-sheet-first credit story.
Why the July Filings Changed the Read
On July 21 and 22, Conagra filed two 424B5 prospectus supplements, signaling active use of its shelf registration. A week later, an 8-K dated July 28 disclosed a new material definitive agreement and the creation of a new material direct financial obligation. With debt and equity nearly equal in value, the new obligations signal management is still borrowing rather than cutting its debt load. The proxy filed August 11, which surfaced 2026 CEO compensation per Quiver Quantitative, arrived as shares printed fresh lows and 11.7% of the float sat short.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| CAG | $7.4B | 9.9x | -19.7% |
| CPB | $6.9B | 12.0x | -28.4% |
| GIS | $20.8B | 12.1x | -21.6% |
| HRL | $13.4B | 15.7x | -14.2% |
| ADM | $38.6B | 14.2x | +34.1% |
| TSN | $19.8B | 12.6x | -0.7% |
The Number That Proves This Wrong
The $859 million in trailing free cash flow is the primary bull case, and at 9.9x forward P/E the operating business is not broken. Applied entirely to debt reduction, that cash generation would take roughly eight years to retire the net-debt load, leaving nothing for dividends or reinvestment. The specific test at the next earnings release: whether net debt is declining in absolute terms. If that new July obligation added leverage rather than restructured existing debt, the $14.38 analyst consensus becomes a destination rather than a floor. Run the free ConAgra Brands, Inc. deep-dive, or test the assumptions in a DCF calculator.
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Frequently Asked Questions
Why is ConAgra stock hitting 52-week lows?
The primary driver is a $7.48 billion debt load against only $220 million in cash, leaving net debt of $7.26 billion that nearly matches the company's $7.37 billion market cap. Two 424B5 prospectus supplements filed July 21 and 22, followed by an 8-K on July 28 disclosing a new material direct financial obligation, reinforced the read that management is still relying on capital markets rather than reducing leverage.
What is ConAgra's trailing free cash flow?
ConAgra generated $859 million in trailing free cash flow on $11.28 billion in revenue. Applied entirely to debt reduction, that cash generation would take roughly eight years to retire the net-debt load, leaving nothing for dividends or reinvestment.
What did ConAgra file with the SEC in July?
ConAgra filed two 424B5 prospectus supplements on July 21 and 22, signaling active use of its shelf registration. An 8-K dated July 28 then disclosed a new material definitive agreement and the creation of a new material direct financial obligation.
What is ConAgra's forward P/E ratio?
Shares trade at a forward P/E of 9.9x at a 52-week low, with analyst consensus of $14.38 sitting below the current price of $15.39. The low multiple reflects the balance sheet, not the operating business, which the article describes as not broken at current earnings levels.
What brands does ConAgra own?
ConAgra sells frozen and shelf-stable food under brands including Birds Eye, Marie Callender's, Healthy Choice, Reddi-wip, Slim Jim, Duncan Hines, and Angie's BOOMCHICKAPOP. The company operates across four segments: Grocery Snacks, Refrigerated Frozen, International, and Foodservice.
Conagra Brands shares hit a fresh 52-week low this week even as the company has beaten EPS consensus in three of its last four quarters — a disconnect that crystallized three days ago when the company filed supplemental proxy materials ahead of its annual shareholder meeting while carrying $7.48 billion in debt against $220 million in cash.