NYSE:CPB

Stock Analysis Report

Executive Summary

Campbell Soup Company, together with its subsidiaries, manufactures and markets food and beverage products.


Snowflake Analysis

Average dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has Campbell Soup's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CPB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.5%

CPB

5.9%

US Food

10.5%

US Market


1 Year Return

15.9%

CPB

-8.8%

US Food

-11.5%

US Market

Return vs Industry: CPB exceeded the US Food industry which returned -8.8% over the past year.

Return vs Market: CPB exceeded the US Market which returned -11.5% over the past year.


Shareholder returns

CPBIndustryMarket
7 Day-2.5%5.9%10.5%
30 Day-3.3%-9.0%-15.4%
90 Day-10.7%-17.7%-21.4%
1 Year19.7%15.9%-6.5%-8.8%-9.6%-11.5%
3 Year-15.0%-22.8%-15.9%-22.7%12.6%5.4%
5 Year9.4%-5.2%17.5%3.8%32.8%18.1%

Price Volatility Vs. Market

How volatile is Campbell Soup's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Campbell Soup undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CPB ($44.19) is trading below our estimate of fair value ($100.04)

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


Price To Earnings Ratio

PE vs Industry: CPB is poor value based on its PE Ratio (29x) compared to the Food industry average (17.9x).

PE vs Market: CPB is poor value based on its PE Ratio (29x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: CPB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CPB is overvalued based on its PB Ratio (5.4x) compared to the US Food industry average (1.6x).


Next Steps

Future Growth

How is Campbell Soup forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

-5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPB's earnings are forecast to decline over the next 3 years (-5.9% per year).

Earnings vs Market: CPB's earnings are forecast to decline over the next 3 years (-5.9% per year).

High Growth Earnings: CPB's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CPB's revenue is expected to decline over the next 3 years (-0.6% per year).

High Growth Revenue: CPB's revenue is forecast to decline over the next 3 years (-0.6% 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 (28.1%)


Next Steps

Past Performance

How has Campbell Soup performed over the past 5 years?

-5.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPB has a large one-off loss of $166.0M impacting its January 26 2020 financial results.

Growing Profit Margin: CPB's current net profit margins (5.7%) are lower than last year (6.5%).


Past Earnings Growth Analysis

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

Accelerating Growth: CPB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CPB had negative earnings growth (-1.5%) over the past year, making it difficult to compare to the Food industry average (-0.7%).


Return on Equity

High ROE: CPB's Return on Equity (18.3%) is considered low.


Next Steps

Financial Health

How is Campbell Soup's financial position?


Financial Position Analysis

Short Term Liabilities: CPB's short term assets ($1.6B) do not cover its short term liabilities ($2.5B).

Long Term Liabilities: CPB's short term assets ($1.6B) do not cover its long term liabilities ($6.6B).


Debt to Equity History and Analysis

Debt Level: CPB's debt to equity ratio (232.7%) is considered high.

Reducing Debt: CPB's debt to equity ratio has reduced from 258.8% to 232.7% over the past 5 years.

Debt Coverage: CPB's debt is well covered by operating cash flow (23.6%).

Interest Coverage: CPB's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet

Inventory Level: CPB has a high level of physical assets or inventory.

Debt Coverage by Assets: CPB's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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

3.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CPB's dividend (3.17%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: CPB's dividend (3.17%) is low compared to the top 25% of dividend payers in the US market (5.45%).


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.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (92%), CPB's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CPB's dividends in 3 years are forecast to be covered by earnings (54.5% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Mark Clouse (51yo)

1.17s

Tenure

US$7,358,305

Compensation

Mr. Mark A. Clouse has been President, Chief Executive Officer and Director of Campbell Soup Company since January 22, 2019. He served as the Chief Executive Officer of Pinnacle Foods Inc. from May 23, 201 ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD7.36M) is below average for companies of similar size in the US market ($USD11.74M).

Compensation vs Earnings: Insufficient data to compare Mark's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Mark Clouse
President1.17yrsUS$7.36m0.019% $2.5m
Adam Ciongoli
Executive VP4.67yrsUS$3.05m0.028% $3.8m
Mick Beekhuizen
Executive VP & CFO0.50yrno data0.023% $3.1m
Francisco Fraga
Chief Technology & Information Officer and VP2.42yrsno datano data
Kenneth Gosnell
VP of Finance Strategy & Investor Relationsno datano datano data
Anthony Sanzio
Senior Vice President of Communications & Public Affairs4yrsno datano data
Raymond Liguori
Vice President of Corporate Development8.92yrsno datano data
Diego Palmieri
VP & Chief Marketing Officer1.67yrsno datano data
Xavier Boza
Executive VP & Chief Human Resources Officer1.58yrsno data0.0071% $946.7k
David Stangis
VP of Corporate Responsibility & Chief Sustainability Officerno datano datano data

2.0yrs

Average Tenure

51yo

Average Age

Experienced Management: CPB's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Clouse
President1.17yrsUS$7.36m0.019% $2.5m
Sarah Hofstetter
Independent Director1.33yrsUS$268.67k0.000090% $12.0k
Bennett Dorrance
Independent Director31.17yrsUS$248.00k14.89% $2.0b
Mary Alice Malone
Independent Director30.17yrsUS$248.00k17.66% $2.4b
Keith McLoughlin
Independent Chairman1yrUS$3.75m0.017% $2.3m
Fabiola Arredondo
Independent Director3yrsUS$248.00k0.0027% $366.7k
Archbold van Beuren
Independent Director10.33yrsUS$270.50k0.63% $83.9m
Maria Hilado
Independent Director2.17yrsUS$255.50k0.0014% $190.7k
Howard Averill
Independent Director2.33yrsUS$273.00k0.00014% $18.7k
Marc Lautenbach
Independent Director5.75yrsUS$255.50k0.00047% $62.7k

2.7yrs

Average Tenure

56.5yo

Average Age

Experienced Board: CPB's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Campbell Soup Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Campbell Soup Company
  • Ticker: CPB
  • Exchange: NYSE
  • Founded: 1869
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$13.334b
  • Shares outstanding: 301.74m
  • Website: https://www.campbellsoupcompany.com

Number of Employees


Location

  • Campbell Soup Company
  • 1 Campbell Place
  • Camden
  • New Jersey
  • 8103
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPBNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
0HSTLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
CSCDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
CPB *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
C1PB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

Campbell Soup Company, together with its subsidiaries, manufactures and markets food and beverage products. It operates through Meals & Beverages and Snacks segments. The Meals & Beverages segment engages in the retail and foodservice businesses in the United States and Canada. This segment provides condensed and ready-to-serve soups; Swanson broth and stocks; Pacific Foods broth, soups, non-dairy beverages, and other simple meals; Prego pasta sauces; Pace Mexican sauces; Campbell’s gravies, pasta, beans, and dinner sauces; Swanson canned poultry; Plum baby food and snacks; V8 juices and beverages; and Campbell’s tomato juice. The segment also offers simple meals and shelf-stable beverages in Latin America. The Snacks segment retails Pepperidge Farm cookies, crackers, fresh bakery, and frozen products in the United States; Milano cookies and Goldfish crackers; and Snyder’s of Hanover pretzels, Lance sandwich crackers, Cape Cod and Kettle Brand potato chips, Late July snacks, Snack Factory Pretzel Crisps, Pop Secret popcorn, Emerald nuts, and other snacking products in the United States and Canada. The segment also engages in the chips business in Europe. The company sells its products through retail food chains, mass discounters, mass merchandisers, club stores, convenience stores, drug stores, and dollar stores, as well as e-commerce and other retail, commercial, and non-commercial establishments; and independent contractor distributors. Campbell Soup Company was founded in 1869 and is headquartered in Camden, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 00:45
End of Day Share Price2020/03/27 00:00
Earnings2020/01/26
Annual Earnings2019/07/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.