Campbell Soup (NYSE:CPB) - Share price, News & Analysis

Q: What is the Fair Price of CPB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

CPB ($48.36) is trading below our estimate of [[fair value]] ($108.5)

CPB fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	5/6
Financial Health	3/6
Dividends	5/6

CPB Stock Overview

Campbell Soup Company, together with its subsidiaries, manufactures and markets food and beverage products the United States and internationally.

Rewards

Trading at 55.4% below our estimate of its fair value

Earnings are forecast to grow 6.5% per year

Earnings grew by 17.7% over the past year

Pays a reliable dividend of 3.06%

Risk Analysis

Has a high level of debt

Significant insider selling over the past 3 months

Campbell Soup Competitors

J. M. Smucker

NYSE:SJM

US$14.0b

Conagra Brands

NYSE:CAG

US$16.5b

Lamb Weston Holdings

NYSE:LW

US$10.6b

McCormick

NYSE:MKC

US$22.6b

Price History & Performance

Summary of all time highs, changes and price drops for Campbell Soup
Historical stock prices
Current Share Price	US$48.36
52 Week High	US$51.94
52 Week Low	US$39.76
Beta	0.39
1 Month Change	5.34%
3 Month Change	7.09%
1 Year Change	4.95%
3 Year Change	16.81%
5 Year Change	-5.90%
Change since IPO	250.12%

Recent News & Updates

Jun 26

We Think Campbell Soup (NYSE:CPB) Can Stay On Top Of Its Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Jun 10

Campbell Soup (NYSE:CPB) Has Re-Affirmed Its Dividend Of US$0.37

Campbell Soup Company ( NYSE:CPB ) has announced that it will pay a dividend of US$0.37 per share on the 1st of August...

Shareholder Returns

	CPB	US Food	US Market
7D	-0.08%	-0.6%	0.7%
1Y	4.9%	-0.9%	-18.4%

Return vs Industry: CPB exceeded the US Food industry which returned -0.6% over the past year.

Return vs Market: CPB exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is CPB's price volatile compared to industry and market?
CPB volatility
CPB Average Weekly Movement	4.0%
Food Industry Average Movement	7.0%
Market Average Movement	8.2%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	3.4%

Stable Share Price: CPB is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CPB's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1869	14,100	Mark Clouse	https://www.campbellsoupcompany.com

Campbell Soup Company, together with its subsidiaries, manufactures and markets food and beverage products the United States and internationally. The company operates through Meals & Beverages and Snacks segments. The Meals & Beverages segment engages in the retail and foodservice businesses in the United States and Canada.

Campbell Soup Fundamentals Summary

How do Campbell Soup's earnings and revenue compare to its market cap?
CPB fundamental statistics
Market Cap	US$14.50b
Earnings (TTM)	US$949.00m
Revenue (TTM)	US$8.45b

15.3x

P/E Ratio

1.7x

P/S Ratio

Is CPB overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CPB income statement (TTM)
Revenue	US$8.45b
Cost of Revenue	US$5.80b
Gross Profit	US$2.65b
Other Expenses	US$1.70b
Earnings	US$949.00m

Last Reported Earnings

May 01, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.16
Gross Margin	31.37%
Net Profit Margin	11.23%
Debt/Equity Ratio	138.9%

How did CPB perform over the long term?

See historical performance and comparison

Dividends

3.1%

Current Dividend Yield

47%

Payout Ratio

Does CPB pay a reliable dividends?

See CPB dividend history and benchmarks

When do you need to buy CPB by to receive an upcoming dividend?
Campbell Soup dividend dates
Ex Dividend Date	Jul 06 2022
Dividend Pay Date	Aug 01 2022
Days until Ex dividend	1 day
Days until Dividend pay date	25 days

Does CPB pay a reliable dividends?

See CPB dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is CPB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CPB?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CPB. This is calculated by dividing CPB's market cap by their current preferred multiple.
What is CPB's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$14.50b

CPB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.3x
Enterprise Value/EBITDA	11.1x
PEG Ratio	2.4x

Price to Earnings Ratio vs Peers

How does CPB's PE Ratio compare to its peers?

CPB PE Ratio vs Peers

The above table shows the PE ratio for CPB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	29.1x
SJM J. M. Smucker	22.3x	9.6%	US$14.0b
CAG Conagra Brands	16.1x	10.1%	US$16.5b
LW Lamb Weston Holdings	45.3x	19.1%	US$10.6b
MKC McCormick	32.8x	10.7%	US$22.6b
CPB Campbell Soup	15.3x	6.5%	US$14.5b

Forward PE

Price-To-Earnings vs Peers: CPB is good value based on its Price-To-Earnings Ratio (15.3x) compared to the peer average (29.1x).

Price to Earnings Ratio vs Industry

How does CPB's PE Ratio compare vs other companies in the US Food Industry?

Price-To-Earnings vs Industry: CPB is good value based on its Price-To-Earnings Ratio (15.3x) compared to the US Food industry average (17.8x)

Price to Earnings Ratio vs Fair Ratio

What is CPB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CPB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	15.3x
Fair PE Ratio	22.8x

Price-To-Earnings vs Fair Ratio: CPB is good value based on its Price-To-Earnings Ratio (15.3x) compared to the estimated Fair Price-To-Earnings Ratio (22.8x).

Share Price vs Fair Value

What is the Fair Price of CPB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CPB ($48.36) is trading below our estimate of fair value ($108.5)

Significantly Below Fair Value: CPB is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: CPB is poor value based on its PEG Ratio (2.4x)

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Future Growth

How is Campbell Soup forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

6.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPB's forecast earnings growth (6.5% per year) is above the savings rate (1.9%).

Earnings vs Market: CPB's earnings (6.5% per year) are forecast to grow slower than the US market (13% per year).

High Growth Earnings: CPB's earnings are forecast to grow, but not significantly.

Revenue vs Market: CPB's revenue (1.7% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: CPB's revenue (1.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CPB's Return on Equity is forecast to be high in 3 years time (23.9%)

Discover growth companies

Past Performance

How has Campbell Soup performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

3.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CPB has high quality earnings.

Growing Profit Margin: CPB's current net profit margins (11.2%) are higher than last year (9.2%).

Past Earnings Growth Analysis

Earnings Trend: CPB's earnings have grown by 3.3% per year over the past 5 years.

Accelerating Growth: CPB's earnings growth over the past year (17.7%) exceeds its 5-year average (3.3% per year).

Earnings vs Industry: CPB earnings growth over the past year (17.7%) exceeded the Food industry 15.2%.

Return on Equity

High ROE: Whilst CPB's Return on Equity (27.95%) is high, this metric is skewed due to their high level of debt.

Discover strong past performing companies

Financial Health

How is Campbell Soup's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CPB's short term assets ($1.9B) do not cover its short term liabilities ($2.7B).

Long Term Liabilities: CPB's short term assets ($1.9B) do not cover its long term liabilities ($5.8B).

Debt to Equity History and Analysis

Debt Level: CPB's net debt to equity ratio (133.1%) is considered high.

Reducing Debt: CPB's debt to equity ratio has reduced from 228.1% to 138.9% over the past 5 years.

Debt Coverage: CPB's debt is well covered by operating cash flow (26.6%).

Interest Coverage: CPB's interest payments on its debt are well covered by EBIT (7.4x coverage).

Balance Sheet

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Dividend

What is Campbell Soup current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

3.06%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CPB's dividend (3.06%) is higher than the bottom 25% of dividend payers in the US market (1.61%).

High Dividend: CPB's dividend (3.06%) is low compared to the top 25% of dividend payers in the US market (4.27%).

Stability and Growth of Payments

Stable Dividend: CPB's dividends per share have been stable in the past 10 years.

Growing Dividend: CPB's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (47.1%), CPB's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (44.9%), CPB's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure

CEO

Mark Clouse (54 yo)

3.5yrs

Tenure

US$9,903,652

Compensation

Mr. Mark A. Clouse has been the President, Chief Executive Officer and Director of Campbell Soup Company since January 22, 2019. Mr. Clouse served as the Chief Executive Officer of Pinnacle Foods Inc. from...

CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD9.90M) is about average for companies of similar size in the US market ($USD13.41M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: CPB's management team is considered experienced (3.8 years average tenure).

Board Members

Experienced Board: CPB's board of directors are considered experienced (5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: CPB insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/06 00:00
End of Day Share Price	2022/07/06 00:00
Earnings	2022/05/01
Annual Earnings	2021/08/01