| 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.
Campbell Soup Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$49.94 |
| 52 Week High | US$51.94 |
| 52 Week Low | US$39.76 |
| Beta | 0.36 |
| 1 Month Change | 1.81% |
| 3 Month Change | -1.21% |
| 1 Year Change | 15.66% |
| 3 Year Change | 17.12% |
| 5 Year Change | -6.98% |
| Change since IPO | 261.56% |
Recent News & Updates
If EPS Growth Is Important To You, Campbell Soup (NYSE:CPB) Presents An Opportunity
It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...
Campbell Soup: Not Great, But Cheap Enough To Warrant Consideration
Campbell Soup Company has had something of a mixed operating history, with recent results suggesting that 2022 might be a difficult year for the business. Overall, though, the business is solid and it will likely fare well in the long run. Add in how cheap shares are relative to similar firms, and it's a 'buy' candidate. One of the most iconic companies in the world, particularly when talking about those dedicated to the food space, has got to be Campbell Soup Company (CPB). This enterprise, which dates back to 1869, has become a global plier in providing soup and other related products. In recent years, the fundamental performance of the company has been somewhat mixed. Revenue has increased and some profitability metrics have followed suit. But at the same time, others have been rather volatile. Though this is an issue, it's also true that shares of the business are trading at very cheap levels relative to similar high-quality food providers. And on an absolute basis, shares are still like affordable. Because of all of this, I have decided to rate the firm a ‘buy’, indicating that I feel like it should outperform the broader market for the foreseeable future at least. Taking a bite out of Campbell Soup Company If you are reading this article, odds are you already know a little bit about Campbell Soup Company. In fact, most Americans know something about this firm. According to management, Campbell Soup Company focuses on providing a variety of food products to its customers. To best understand the company, we should break it up into its individual operating segments. The largest of its segments as of today is referred to as Meals & Beverages. Through this, the company sells products such as Campbell’s condensed and ready-to-serve soups, Swanson broth and stocks, Pacific Foods broth, soups, and nondairy beverages, Prego pasta sauces, Pace Mexican sauces, any variety of other products like juices, canned poultry, and more. Last year, this particular segment made up 53.5% of the company's revenue and 62.6% of its segment operating profits. The other segment is referred to as Snacks. Through it, the company sells products such as Pepperidge Farm cookies, crackers, fresh bakery and frozen products, and other related offerings. It sells Milano cookies, Goldfish crackers, Snyder’s of Hanover pretzels, Kettle Brand potato chips, Emerald nuts, and other similar products. This unit is also responsible for its retail business in Latin America, and its European chips business. Last year, this segment accounted for 46.5% of the company's revenue and for 37.4% of its segment operating profits. There are other ways to divide the company. For instance, management also provides data based on product category. Although the company is most certainly known best for its hallmark soup brand, soup products as a whole only accounted for 30.3% of the company's revenue last year. The snacks category was meaningfully larger at 47.1% of revenue. Other simple meals made up 13.4% of the company's revenue, while beverages accounted for 9.2%. It is also true that the company is a global player. However, it is still very much US-centric. I say this because, in 2021, the company generated 93.8% of its revenue from its domestic market. Author - SEC EDGAR Data Over the past few years, the management team at Campbell Soup Company has done well to grow the company stop line. Sales increased from $5.84 billion in 2017 to $8.48 billion last year. It is worth noting, of course, that not every year has been a win for the enterprise. Sales in 2020 were actually higher than in 2021, coming in at $8.69 billion. It's worth digging into understanding why sales for the company have historically fluctuated in recent years. A big contributor to the decline in revenue in 2021 compared to 2020 seems to have been the absence of a 53rd week that was there for the 2020 fiscal year. That hit the company to the tune of roughly 2%, accounting for substantially all of the decline the company experienced during that timeframe. Outside of that, however, the company has undergone a number of changes in recent years. In the final quarter of its 2021 fiscal year, for instance, the business completed the sale of its Plum baby food and snacks business. In 2019, it sold multiple businesses, including its US refrigerated soup business, its Garden Fresh Gourmet business, and its Bolthouse Farms business. Of course, the company has also added other properties to its portfolio during this timeframe. In 2018, as an example, it acquired both Pacific Foods of Oregon and Snyder’s-Lance. Because of the amount of acquisition and divestiture activity the company regularly engages in, investors would be wise to view the firm as an enterprise dedicated to constantly refreshing its brand by recycling out product lines that no longer make sense for it and bringing in those that it feels could be highly complementary or that could help to achieve faster growth. On the bottom line, things have been much more volatile. Net income has been all over the map in recent years, with no clear trend. The metric has gone from a low point of $211 million to a high point of $1.63 billion. Given this extreme volatility and the absence of a trend, I do think that there are other profitability metrics that deserve more attention when it comes to placing a value on the enterprise. One of these would be EBITDA. Although it has also been volatile, dropping between 2017 and 2019, the overall trend has been positive, with the metric climbing from $1.70 billion in 2017 to $1.89 billion last year. Operating cash flow has been quite volatile. But if you adjust for changes in working capital, it would have risen in four of the past five years, ultimately climbing from $1.29 billion in 2017 to $1.32 billion last year. Author - SEC EDGAR Data When it comes to the current fiscal year, things have been a bit more complicated. Revenue in the first nine months of its 2022 fiscal year totaled $6.58 billion. That's down slightly from the $6.60 billion achieved the same time one year earlier. Net income has also fallen, dropping from $714 million to $661 million. Operating cash flow has risen, climbing from $881 million to $1.10 billion. But if we adjust for changes in working capital, it would have fallen from $1.06 billion to $992 million, while EBITDA has gone from $1.41 billion to $1.26 billion. When it comes to the 2022 fiscal year as a whole, management expects revenue to be either flat or to increase by 1%. This should be driven largely by organic revenue climbing by between 1% and 2%. However, inflationary pressures are going to push EBITDA down by between 1.5% and 4.5% to, at the midpoint, $1.83 billion, while earnings per share should come in at between $2.75 and $2.85, implying, at the midpoint, net income of roughly $841.6 million. No guidance was given when it came to adjusted operating cash flow. But a rough approximation should give us a reading of around $1.28 billion for the year.
Shareholder Returns
| CPB | US Food | US Market | |
|---|---|---|---|
| 7D | 1.1% | 1.2% | 3.2% |
| 1Y | 15.7% | 5.0% | -10.1% |
Return vs Industry: CPB exceeded the US Food industry which returned 5% over the past year.
Return vs Market: CPB exceeded the US Market which returned -10.1% over the past year.
Price Volatility
| CPB volatility | |
|---|---|
| CPB Average Weekly Movement | 3.4% |
| Food Industry Average Movement | 6.2% |
| Market Average Movement | 7.7% |
| 10% most volatile stocks in US Market | 16.9% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: CPB is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: CPB's weekly volatility (3%) 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
| CPB fundamental statistics | |
|---|---|
| Market Cap | US$15.01b |
| Earnings (TTM) | US$949.00m |
| Revenue (TTM) | US$8.45b |
15.8x
P/E Ratio1.8x
P/S RatioIs CPB overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| 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 comparisonDividends
3.0%
Current Dividend Yield47%
Payout RatioValuation
Is CPB undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
5/6Valuation 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
Analyst Forecast
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.
| What is CPB's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$15.01b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 2.3x |
| Enterprise Value/EBITDA | 11.4x |
| PEG Ratio | 2.5x |
Price to Earnings Ratio vs Peers
How does CPB's PE Ratio compare to its peers?
| CPB PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 29.2x | ||
SJM J. M. Smucker | 22.6x | 9.6% | US$14.3b |
CAG Conagra Brands | 18.6x | 12.4% | US$16.5b |
LW Lamb Weston Holdings | 58.4x | 20.6% | US$11.7b |
K Kellogg | 17.3x | 4.3% | US$25.7b |
CPB Campbell Soup | 15.8x | 6.4% | US$15.0b |
Price-To-Earnings vs Peers: CPB is good value based on its Price-To-Earnings Ratio (15.8x) compared to the peer average (29.2x).
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 (15.8x) compared to the US Food industry average (18.6x)
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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 15.8x |
| Fair PE Ratio | 22.9x |
Price-To-Earnings vs Fair Ratio: CPB is good value based on its Price-To-Earnings Ratio (15.8x) compared to the estimated Fair Price-To-Earnings Ratio (22.9x).
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 ($49.94) is trading below our estimate of fair value ($107.69)
Significantly Below Fair Value: CPB is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is lower than the current share price.
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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
2/6Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
6.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CPB's forecast earnings growth (6.4% per year) is above the savings rate (1.9%).
Earnings vs Market: CPB's earnings (6.4% per year) are forecast to grow slower than the US market (14.4% per year).
High Growth Earnings: CPB's earnings are forecast to grow, but not significantly.
Revenue vs Market: CPB's revenue (1.8% per year) is forecast to grow slower than the US market (7.9% per year).
High Growth Revenue: CPB's revenue (1.8% 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 (24%)
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Past Performance
How has Campbell Soup performed over the past 5 years?
Past Performance Score
5/6Past 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 5.4%.
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.
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Financial Health
How is Campbell Soup's financial position?
Financial Health Score
3/6Financial 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
5/6Dividend Score 5/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
2.96%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CPB's dividend (2.96%) is higher than the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: CPB's dividend (2.96%) is low compared to the top 25% of dividend payers in the US market (3.96%).
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.
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Management
How experienced are the management team and are they aligned to shareholders interests?
3.8yrs
Average management tenure
CEO
Mark Clouse (54 yo)
3.58yrs
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 ($USD12.88M).
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 (4.7 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.
Top Shareholders
Company Information
Campbell Soup Company's 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
- Implied Market Cap: US$15.011b
- Shares outstanding: 300.58m
- Website: https://www.campbellsoupcompany.com
Number of Employees
Location
- Campbell Soup Company
- 1 Campbell Place
- Camden
- New Jersey
- 08103-1799
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/08/13 00:00 |
| End of Day Share Price | 2022/08/12 00:00 |
| Earnings | 2022/05/01 |
| Annual Earnings | 2021/08/01 |
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.