Conagra Brands: Time To Cut The Dividend And Pay Down Debt

Conagra is currently caught in a share price drawdown of ~65%, now exceeding in severity the declines recorded during the implosion of the tech bubble and the 2008 financial crisis. Now that market expectations have been revised lower multiple times, Conagra now trades at ~8.7x forward earnings, one of the lowest valuation multiples in the company's history. With organic net sales growth of +2.4% during Q3-26, CAG reported some of the strongest top-line growth numbers in the packaged food industry.