Conagra BrandsMEX:CAG 37 Gross Margin % is 23.59% as of Feb. 2026, which is 15% below its 10-year median of 27.79. GuruFocus rates MEX:CAG with a GF Score™ of 37/100 and a GF Value™ of MXN431.50 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 1,900 Consumer Packaged Goods companies, Conagra Brands ranks worse than 55.53% on this metric.
The historical rank and industry rank for Conagra Brands's Gross Margin % or its related term are showing as below:
MEX:CAG'
s Gross Margin % Range Over the Past 10 Years
Min: 24.16 Med: 27.79 Max: 29.95
Current: 24.16
During the past 13 years, the highestGross Margin % of Conagra Brands was 29.95%. The lowest was 24.16%. And the median was 27.79%.
MEX:CAG's Gross Margin % is ranked worse than 55.53% of 1900
companies
in the Consumer Packaged Goods industry
Industry Median: 26.37
vs MEX:CAG: 24.16
Conagra Brands had a gross margin of 23.59% for the quarter that ended in Feb. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Conagra Brands was -1.00% per year.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Conagra Brands had a gross margin of 23.59% for the quarter that ended in Feb. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Conagra Brands Gross Margin % Related Terms
Conagra Brands Gross Margin % Historical Data
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The historical data trend for Conagra Brands's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:CAG vs CPB, PPC, LW: Gross Margin % Comparison
For the Packaged Foods subindustry, Conagra Brands's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Conagra Brands Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Conagra Brands's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Conagra Brands's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Conagra Brands (MEX:CAG) has a Gross Margin % of 23.59% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Conagra Brands and its competitors. This is 15% below median its historical median of 27.79. Over the past decade, Conagra Brands' Gross Margin % has ranged from 24.16 to 29.95. According to the industry distribution chart, Conagra Brands ranks #1055 out of 1900 companies in the Consumer Packaged Goods industry, placing it in the top 55.5%.
Is Conagra Brands' Gross Margin % too high?
Conagra Brands' current Gross Margin % of 23.59% is 15% below median its 10-year median of 27.79. Over the past 10 years, this metric has ranged from a low of 24.16 to a high of 29.95. The Consumer Packaged Goods industry median Gross Margin % is 26.37. Conagra Brands' value of 23.59% is 10.5% below this industry median. Based on the distribution chart, Conagra Brands ranks #1055 out of 1900 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, Conagra Brands has a GF Score™ of 37/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Conagra Brands' Gross Margin % compare to CPB and PPC?
According to the Consumer Packaged Goods industry distribution chart, Conagra Brands ranks #1055 out of 1900 companies for Gross Margin %. This places Conagra Brands in the lower half of its industry. The industry median Gross Margin % is 26.37. Conagra Brands' value of 23.59% is 10.5% below this benchmark. Historically, Conagra Brands' own Gross Margin % has ranged from 24.16 to 29.95 over the past decade. While the company's 10-year median is 27.79 vs. the industry median of 26.37, Conagra Brands has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.37, based on 1,900 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Conagra Brands's current Gross Margin % of 23.59% is 10.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Conagra Brands and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Conagra Brands's current Gross Margin % is 23.59%, which is 15% below median its own 10-year median of 27.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Conagra Brands stock overvalued right now?
Based on GuruFocus' analysis, Conagra Brands (MEX:CAG) is currently considered Possible Value Trap. The stock's GF Value™ is MXN431.50, compared to a current price of MXN236.22 — trading 45.3% below its estimated fair value. The current Gross Margin % is 23.59%, which is 15% below median its 10-year median of 27.79 and 10.5% below the Consumer Packaged Goods industry median of 26.37. Conagra Brands' overall GF Score™ is 37/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Conagra Brands (MEX:CAG), the current Gross Margin % is 23.59% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Conagra Brands (MEX:CAG) Overvalued in 2026?
Based on GuruFocus' analysis, Conagra Brands stock appears to be undervalued.
The current stock price of MXN236.22 is trading 45.3% below its estimated GF Value™ of MXN431.50.
GuruFocus considers Conagra Brands to be Possible Value Trap.
Key valuation signals for MEX:CAG:
Gross Margin %: 23.59% (15% below median its 10-year median of 27.79)
GF Value™: MXN431.50 vs. price of MXN236.22 (45.3% below fair value)
Industry Position: 10.5% below the Consumer Packaged Goods median (#1055 of 1900)
No single metric tells the full story. See the MEX:CAG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Conagra Brands is a packaged food company that operates predominantly in the United States (91% of fiscal 2025 revenue). Most of its revenue comes from frozen food, including brands like Marie Callender's, Healthy Choice, Banquet, and Birds Eye. Conagra also sells snacks, shelf-stable staples, and refrigerated food through brands like Duncan Hines, Hunt's, Slim Jim, Vlasic, Orville Redenbacher's, Reddi-wip, and Wish-Bone. The company primarily sells through the US retail channel, with just 9% of fiscal 2025 revenue coming from international markets and 9% from foodservice.
37GF Score
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