Operating Margin

Watchlist Manager

Watchlist

Price: 18.17 USD 1.91%

Market Cap: $8.7B

12.9%

Declining

by 2.4%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

12.9%

Operating Income

$1.4B

Revenue

$11.2B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

12.9%

Operating Income

$1.4B

Revenue

$11.2B

Peer Comparison

Country		Company	Market Cap	Operating Margin
US		Conagra Brands Inc NYSE:CAG	8.6B USD	Loading...
JP	G	Goyo Foods Industry Co Ltd TSE:2230	53.2T JPY	Loading...
CH		Nestle SA SIX:NESN	185.8B CHF	Loading...
US		Mondelez International Inc NASDAQ:MDLZ	73.9B USD	Loading...
FR		Danone SA PAR:BN	42.5B EUR	Loading...
US		Hershey Co NYSE:HSY	38.8B USD	Loading...
CN		Muyuan Foods Co Ltd SZSE:002714	258.8B CNY	Loading...
CH		Chocoladefabriken Lindt & Spruengli AG SIX:LISN	26.5B CHF	Loading...
CN		Foshan Haitian Flavouring and Food Co Ltd SSE:603288	208.8B CNY	Loading...
US	K	Kellanova XMUN:KEL	24.7B EUR	Loading...
US		Kellogg Co NYSE:K	29B USD	Loading...

Market Distribution

Min	-4 087 900%
30th Percentile	-5.1%
Median	6%
70th Percentile	14.8%
Max	1 032 600%

Other Profitability Ratios

Conagra Brands Inc
Glance View

Economic Moat

None

Market Cap

8.7B USD

Industry

Food Products

Conagra Brands Inc., a stalwart of the American food processing industry, has steadily evolved from its origins in Nebraska wheat milling into a formidable player in the consumer packaged goods sector. Known for its diverse array of brands that stock the shelves of grocery stores nationwide, the company encompasses household names such as Healthy Choice, Marie Callender's, and Hunt's. Conagra has mastered the art of leveraging economies of scale and marketing to appeal to the diverse tastes of consumers, navigating trends that range from health-conscious eating to international flavors. By continually revamping its product portfolio, Conagra adapts to changing consumer preferences and demographic shifts, ensuring its offerings remain relevant and in demand. The company's innovation pipeline is a testament to its commitment to understanding and capitalizing on consumer insight to drive product development and refined marketing strategies. Underpinning Conagra’s business model is its intricate supply chain and efficient distribution network, which together bolster its ability to deliver products across North America with precision and speed. Conagra makes money by not only producing and selling a wide range of packaged foods but also by effectively managing its brand portfolio through strategic acquisitions and divestitures. In recent years, the acquisition of Pinnacle Foods has underscored this strategy, allowing Conagra to strengthen its foothold in the frozen foods sector, which has experienced a resurgence in popularity. This strategic agility is complemented by a disciplined focus on cost management, ensuring margins are maintained even as competition intensifies in the crowded consumer goods market. Through these multifaceted operations, Conagra not only sustains profitability but also positions itself as a proactive industry leader poised to cater to the ever-evolving tastes of its customers.

View CAG Analysis

CAG Intrinsic Value

Show

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Conagra Brands Inc
NYSE:CAG

Peer Comparison

Market Distribution

Other Profitability Ratios

Conagra Brands Inc
Glance View

See Also

Company

Help

Tools

Stocks

52 Week Range	16.08 27.62
Price Target

Conagra Brands Inc NYSE:CAG