ConAgra Beneish M Score

CAG
 Stock
  

USD 38.12  0.29  0.77%   

This module uses fundamental data of ConAgra Foods to approximate the value of its Beneish M Score. ConAgra Foods M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Continue to ConAgra Foods Piotroski F Score and ConAgra Foods Altman Z Score analysis.
  
ConAgra Foods Debt Current is projected to increase significantly based on the last few years of reporting. The past year's Debt Current was at 891.6 Million. The current year Debt Non Current is expected to grow to about 8.9 B, whereas Issuance Repayment of Debt Securities is forecasted to decline to (538.1 M).
At this time, it appears that ConAgra Foods is an unlikely manipulator. The earnings manipulation may begin if ConAgra Foods' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by ConAgra Foods executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of ConAgra Foods' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.82
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.02Focus
Asset QualityN/AFocus
Expense Coverage1.07Focus
Gross Margin Strengs1.12Focus
Accruals Factor1.07Focus
Depreciation Resistance0.93Focus
Net Sales Growth1.03Focus
Financial Leverage Condition1.04Focus

ConAgra Foods Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if ConAgra Foods' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense1.6 B1.5 B
Significantly Up
Decreasing
Slightly volatile
Revenues11.9 B11.5 B
Fairly Up
Decreasing
Slightly volatile
Trade and Non Trade Receivables909.6 M867.4 M
Sufficiently Up
Decreasing
Slightly volatile
Property Plant and Equipment Net2.7 B2.7 B
Fairly Down
Decreasing
Slightly volatile
Operating Income1.5 B1.4 B
Notably Up
Increasing
Slightly volatile
Net Cash Flow from Operations1.6 B1.2 B
Significantly Up
Decreasing
Slightly volatile
Liabilities Non Current11.1 B10.1 B
Significantly Up
Decreasing
Slightly volatile
Current Liabilities3.6 B3.5 B
Fairly Up
Increasing
Slightly volatile
Total Liabilities14.8 B13.6 B
Significantly Up
Decreasing
Very volatile
Gross Margin27.5724.6084
Moderately Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion402.3 M375.4 M
Notably Up
Increasing
Slightly volatile
Debt Non Current8.9 B8.1 B
Significantly Up
Decreasing
Stable
Debt Current914.8 M891.6 M
Fairly Up
Increasing
Slightly volatile
Total Debt9.9 BB
Significantly Up
Increasing
Stable
Assets Non Current20.4 B19.4 B
Notably Up
Increasing
Slightly volatile
Current Assets3.1 BB
Fairly Up
Decreasing
Slightly volatile
Total Assets23.5 B22.4 B
Sufficiently Up
Increasing
Slightly volatile

ConAgra Foods Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between ConAgra Foods' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards ConAgra Foods in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find ConAgra Foods' degree of accounting gimmicks and manipulations.

About ConAgra Foods Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

1.6 Billion

ConAgra Foods Operating Expenses is projected to decrease significantly based on the last few years of reporting. The past year's Operating Expenses was at 1.43 Billion

ConAgra Foods ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, ConAgra Foods' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to ConAgra Foods' managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About ConAgra Foods Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze ConAgra Foods's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of ConAgra Foods using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of ConAgra Foods based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Conagra Brands, Inc., together with its subsidiaries, operates as a consumer packaged goods food company in North America. Conagra Brands, Inc. was founded in 1919 and is headquartered in Chicago, Illinois. Conagra Brands operates under Packaged Foods classification in the United States and is traded on New York Stock Exchange. It employs 18000 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in ConAgra Foods without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with ConAgra Foods

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if ConAgra Foods position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ConAgra Foods will appreciate offsetting losses from the drop in the long position's value.

Moving together with ConAgra Foods

+0.85JPMJPMorgan Chase Fiscal Year End 13th of January 2023 PairCorr
The ability to find closely correlated positions to ConAgra Foods could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ConAgra Foods when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back ConAgra Foods - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling ConAgra Foods to buy it.
The correlation of ConAgra Foods is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as ConAgra Foods moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ConAgra Foods moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for ConAgra Foods can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Continue to ConAgra Foods Piotroski F Score and ConAgra Foods Altman Z Score analysis. Note that the ConAgra Foods information on this page should be used as a complementary analysis to other ConAgra Foods' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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Is ConAgra Foods' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of ConAgra Foods. If investors know ConAgra will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about ConAgra Foods listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.48) 
Market Capitalization
18.2 B
Quarterly Revenue Growth YOY
0.095
Return On Assets
0.0453
Return On Equity
6.74
The market value of ConAgra Foods is measured differently than its book value, which is the value of ConAgra that is recorded on the company's balance sheet. Investors also form their own opinion of ConAgra Foods' value that differs from its market value or its book value, called intrinsic value, which is ConAgra Foods' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ConAgra Foods' market value can be influenced by many factors that don't directly affect ConAgra Foods' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between ConAgra Foods' value and its price as these two are different measures arrived at by different means. Investors typically determine ConAgra Foods value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ConAgra Foods' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.