A Look at Campbell Soup's (CPB) Valuation Following CFO Leadership Change

Campbell's (CPB) just announced that Todd E. Cunfer will take over as Chief Financial Officer and Executive Vice President, stepping in for Carrie L. Anderson. Leadership changes at this level often catch investors’ attention because of their potential to impact company direction.

See our latest analysis for Campbell's.

Campbell's has been under pressure lately, with its 1-year total shareholder return down 31.6% and the share price recently sliding further to $31.02. Although the new CFO appointment followed a series of shareholder proposals and activism around governance and sustainability, these changes have not yet shifted long-term momentum. Momentum continues to lag despite modest short-term bumps.

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With Campbell's stock trading at an 11 percent discount to analyst price targets and a significant intrinsic value gap, the real question is whether current levels present a buying opportunity or if the market is already factoring in all future growth.

Most Popular Narrative: 10% Undervalued

A fair value of $34.58 stands above Campbell's last close at $31.02, hinting at meaningful upside if the narrative forecast comes true.

Ongoing execution of expanded cost savings initiatives and supply chain optimization, including the newly raised $375 million target, should progressively improve operational efficiency, bolster net margins, and generate incremental earnings growth over the next several years.

Read the complete narrative.

Want to unlock the math behind this analyst outlook? The case for upside here rides on bold profit margin expansion and future profits. What does the narrative assume for Campbell's future growth, and are those profit targets realistic? Click through and scrutinize the numbers driving this valuation.

Result: Fair Value of $34.58 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent volume declines in core categories and rising import costs could limit Campbell's progress. These factors may act as catalysts that challenge the current narrative.

Find out about the key risks to this Campbell's narrative.

Another View: SWS DCF Model Says More Upside

While the analyst valuation puts Campbell’s fair value around $34.58 using future earnings and multiples, our SWS DCF model takes a different approach and points to a much larger upside. The DCF model estimates fair value at $63.97, which is more than double the current share price. Which method reflects reality best, and what does this wide gap say about market expectations?

Look into how the SWS DCF model arrives at its fair value.

Build Your Own Campbell's Narrative

If you want to dig deeper or prefer to shape your own perspective, you can generate a personalized story in just a few minutes: Do it your way

A great starting point for your Campbell's research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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