THE CAMPBELL'S COMPANY (CPB) Stock Fundamental Analysis
NASDAQ:CPB - Nasdaq - US1344291091 - Common Stock - Currency: USD
Taking everything into account, CPB scores 5 out of 10 in our fundamental rating. CPB was compared to 91 industry peers in the Food Products industry. While CPB is still in line with the averages on profitability rating, there are concerns on its financial health. CPB is not valued too expensively and it also shows a decent growth rate. Finally CPB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CPB was profitable.
In the past year CPB had a positive cash flow from operations.
In the past 5 years CPB has always been profitable.
Each year in the past 5 years CPB had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CPB (3.06%) is comparable to the rest of the industry.
With a decent Return On Equity value of 11.73%, CPB is doing good in the industry, outperforming 71.43% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.15%, CPB is doing good in the industry, outperforming 78.02% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CPB is significantly below the industry average of 28.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.06% | ||
| ROE | 11.73% | ||
| ROIC | 8.15% |
ROA(3y)5.73%
ROA(5y)7.78%
ROE(3y)20.37%
ROE(5y)31.28%
ROIC(3y)9.24%
ROIC(5y)9.93%
1.3 Margins
CPB's Profit Margin of 4.44% is fine compared to the rest of the industry. CPB outperforms 65.93% of its industry peers.
CPB's Profit Margin has improved in the last couple of years.
CPB has a Operating Margin of 13.47%. This is amongst the best in the industry. CPB outperforms 81.32% of its industry peers.
In the last couple of years the Operating Margin of CPB has declined.
With a decent Gross Margin value of 30.62%, CPB is doing good in the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Gross Margin of CPB has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.47% | ||
| PM (TTM) | 4.44% | ||
| GM | 30.62% |
OM growth 3Y-9.83%
OM growth 5Y-3.15%
PM growth 3Y-20.75%
PM growth 5Y17.72%
GM growth 3Y-2.15%
GM growth 5Y-1.48%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CPB is creating some value.
The number of shares outstanding for CPB remains at a similar level compared to 1 year ago.
CPB has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CPB is higher compared to a year ago.
2.2 Solvency
CPB has an Altman-Z score of 1.89. This is not the best score and indicates that CPB is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of CPB (1.89) is comparable to the rest of the industry.
The Debt to FCF ratio of CPB is 9.54, which is on the high side as it means it would take CPB, 9.54 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.54, CPB is in the better half of the industry, outperforming 62.64% of the companies in the same industry.
A Debt/Equity ratio of 1.77 is on the high side and indicates that CPB has dependencies on debt financing.
CPB has a Debt to Equity ratio of 1.77. This is amonst the worse of the industry: CPB underperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | 9.54 | ||
| Altman-Z | 1.89 |
ROIC/WACC1.26
WACC6.49%
2.3 Liquidity
CPB has a Current Ratio of 0.78. This is a bad value and indicates that CPB is not financially healthy enough and could expect problems in meeting its short term obligations.
CPB's Current ratio of 0.78 is on the low side compared to the rest of the industry. CPB is outperformed by 80.22% of its industry peers.
A Quick Ratio of 0.33 indicates that CPB may have some problems paying its short term obligations.
With a Quick ratio value of 0.33, CPB is not doing good in the industry: 89.01% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
CPB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.01%.
CPB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.35% yearly.
The Revenue has grown by 8.65% in the past year. This is quite good.
CPB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.52% yearly.
EPS 1Y (TTM)1.01%
EPS 3Y1.22%
EPS 5Y3.35%
EPS Q2Q%-2.67%
Revenue 1Y (TTM)8.65%
Revenue growth 3Y4.37%
Revenue growth 5Y3.52%
Sales Q2Q%4.47%
3.2 Future
Based on estimates for the next years, CPB will show a small growth in Earnings Per Share. The EPS will grow by 4.49% on average per year.
CPB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.45% yearly.
EPS Next Y-4.32%
EPS Next 2Y-3.39%
EPS Next 3Y0%
EPS Next 5Y4.49%
Revenue Next Year6.33%
Revenue Next 2Y2.14%
Revenue Next 3Y1.91%
Revenue Next 5Y2.45%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.36, the valuation of CPB can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CPB indicates a rather cheap valuation: CPB is cheaper than 80.22% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CPB to the average of the S&P500 Index (27.50), we can say CPB is valued rather cheaply.
The Price/Forward Earnings ratio is 10.74, which indicates a very decent valuation of CPB.
Based on the Price/Forward Earnings ratio, CPB is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, CPB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.36 | ||
| Fwd PE | 10.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CPB is valued a bit cheaper than 68.13% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CPB indicates a somewhat cheap valuation: CPB is cheaper than 78.02% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.77 | ||
| EV/EBITDA | 8.37 |
4.3 Compensation for Growth
The decent profitability rating of CPB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.09
EPS Next 2Y-3.39%
EPS Next 3Y0%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.98%, CPB is a good candidate for dividend investing.
CPB's Dividend Yield is rather good when compared to the industry average which is at 4.86. CPB pays more dividend than 85.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, CPB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.98% |
5.2 History
The dividend of CPB has a limited annual growth rate of 1.22%.
CPB has paid a dividend for at least 10 years, which is a reliable track record.
CPB has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.22%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
100.00% of the earnings are spent on dividend by CPB. This is not a sustainable payout ratio.
CPB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP100%
EPS Next 2Y-3.39%
EPS Next 3Y0%
30.98
-0.32 (-1.02%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners59.38%
Inst Owner Change-0.14%
Ins Owners18.27%
Ins Owner Change0.27%
Market Cap9.24B
Analysts56
Price Target37.14 (19.88%)
Short Float %12.14%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.98% |
Yearly Dividend1.49
Dividend Growth(5Y)1.22%
DP100%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.71%
Min EPS beat(2)1.26%
Max EPS beat(2)10.16%
EPS beat(4)4
Avg EPS beat(4)3.29%
Min EPS beat(4)0.83%
Max EPS beat(4)10.16%
EPS beat(8)7
Avg EPS beat(8)2.95%
EPS beat(12)10
Avg EPS beat(12)4.19%
EPS beat(16)13
Avg EPS beat(16)5.34%
Revenue beat(2)1
Avg Revenue beat(2)-1.04%
Min Revenue beat(2)-2.89%
Max Revenue beat(2)0.81%
Revenue beat(4)1
Avg Revenue beat(4)-1.45%
Min Revenue beat(4)-2.89%
Max Revenue beat(4)0.81%
Revenue beat(8)1
Avg Revenue beat(8)-0.98%
Revenue beat(12)3
Avg Revenue beat(12)-0.44%
Revenue beat(16)5
Avg Revenue beat(16)-0.3%
PT rev (1m)-10.06%
PT rev (3m)-15.24%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-19.29%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-2.01%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-2.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.36 | ||
| Fwd PE | 10.74 | ||
| P/S | 0.9 | ||
| P/FCF | 12.77 | ||
| P/OCF | 7.96 | ||
| P/B | 2.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.37 |
EPS(TTM)2.99
EY9.65%
EPS(NY)2.88
Fwd EY9.31%
FCF(TTM)2.43
FCFY7.83%
OCF(TTM)3.89
OCFY12.56%
SpS34.3
BVpS12.98
TBVpS-18.4
PEG (NY)N/A
PEG (5Y)3.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.06% | ||
| ROE | 11.73% | ||
| ROCE | 11.5% | ||
| ROIC | 8.15% | ||
| ROICexc | 8.25% | ||
| ROICexgc | 32.01% | ||
| OM | 13.47% | ||
| PM (TTM) | 4.44% | ||
| GM | 30.62% | ||
| FCFM | 7.07% |
ROA(3y)5.73%
ROA(5y)7.78%
ROE(3y)20.37%
ROE(5y)31.28%
ROIC(3y)9.24%
ROIC(5y)9.93%
ROICexc(3y)9.37%
ROICexc(5y)10.22%
ROICexgc(3y)38.55%
ROICexgc(5y)44.5%
ROCE(3y)12.83%
ROCE(5y)13.65%
ROICexcg growth 3Y-11.01%
ROICexcg growth 5Y0.34%
ROICexc growth 3Y-13.98%
ROICexc growth 5Y-3.68%
OM growth 3Y-9.83%
OM growth 5Y-3.15%
PM growth 3Y-20.75%
PM growth 5Y17.72%
GM growth 3Y-2.15%
GM growth 5Y-1.48%
F-Score6
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | 9.54 | ||
| Debt/EBITDA | 3.78 | ||
| Cap/Depr | 99.09% | ||
| Cap/Sales | 4.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.81% | ||
| Profit Quality | 159.25% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | 1.89 |
F-Score6
WACC6.49%
ROIC/WACC1.26
Cap/Depr(3y)97.74%
Cap/Depr(5y)94.22%
Cap/Sales(3y)4.05%
Cap/Sales(5y)3.77%
Profit Quality(3y)110.65%
Profit Quality(5y)95.04%
High Growth Momentum
Growth
EPS 1Y (TTM)1.01%
EPS 3Y1.22%
EPS 5Y3.35%
EPS Q2Q%-2.67%
EPS Next Y-4.32%
EPS Next 2Y-3.39%
EPS Next 3Y0%
EPS Next 5Y4.49%
Revenue 1Y (TTM)8.65%
Revenue growth 3Y4.37%
Revenue growth 5Y3.52%
Sales Q2Q%4.47%
Revenue Next Year6.33%
Revenue Next 2Y2.14%
Revenue Next 3Y1.91%
Revenue Next 5Y2.45%
EBIT growth 1Y2.61%
EBIT growth 3Y-5.89%
EBIT growth 5Y0.25%
EBIT Next Year34.48%
EBIT Next 3Y11.88%
EBIT Next 5Y8.58%
FCF growth 1Y6.64%
FCF growth 3Y-4.21%
FCF growth 5Y-8.01%
OCF growth 1Y16.23%
OCF growth 3Y4.61%
OCF growth 5Y-3.25%