CAMPBELL SOUP CO (CPB)

US1344291091 - Common Stock

44.45  +0.38 (+0.86%)

After market: 44.45 0 (0%)

Fundamental Rating

5

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 has a great profitability rating, there are some minor concerns on its financial health. CPB has a valuation in line with the averages, but it does not seem to be growing. Finally CPB also has an excellent dividend rating.



7

1. Profitability

1.1 Basic Checks

CPB had positive earnings in the past year.
In the past year CPB had a positive cash flow from operations.
In the past 5 years CPB has always been profitable.
In the past 5 years CPB always reported a positive cash flow from operatings.

1.2 Ratios

CPB's Return On Assets of 6.33% is fine compared to the rest of the industry. CPB outperforms 73.63% of its industry peers.
CPB has a better Return On Equity (19.90%) than 90.11% of its industry peers.
With an excellent Return On Invested Capital value of 10.20%, CPB belongs to the best of the industry, outperforming 86.81% of the companies in the same industry.
CPB had an Average Return On Invested Capital over the past 3 years of 10.85%. This is above the industry average of 7.96%.
Industry RankSector Rank
ROA 6.33%
ROE 19.9%
ROIC 10.2%
ROA(3y)7.34%
ROA(5y)7.36%
ROE(3y)25.98%
ROE(5y)32.12%
ROIC(3y)10.85%
ROIC(5y)10.43%

1.3 Margins

CPB has a Profit Margin of 8.26%. This is amongst the best in the industry. CPB outperforms 80.22% of its industry peers.
In the last couple of years the Profit Margin of CPB has grown nicely.
Looking at the Operating Margin, with a value of 14.39%, CPB belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
CPB's Operating Margin has declined in the last couple of years.
CPB has a better Gross Margin (31.41%) than 76.92% of its industry peers.
In the last couple of years the Gross Margin of CPB has declined.
Industry RankSector Rank
OM 14.39%
PM (TTM) 8.26%
GM 31.41%
OM growth 3Y-0.64%
OM growth 5Y-4.89%
PM growth 3Y-21.19%
PM growth 5Y18.37%
GM growth 3Y-3.23%
GM growth 5Y-3.33%

4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CPB is still creating some value.
CPB has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CPB has less shares outstanding
CPB has a better debt/assets ratio than last year.

2.2 Solvency

CPB has an Altman-Z score of 2.62. 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.
CPB has a Altman-Z score of 2.62. This is comparable to the rest of the industry: CPB outperforms 57.14% of its industry peers.
CPB has a debt to FCF ratio of 7.33. This is a slightly negative value and a sign of low solvency as CPB would need 7.33 years to pay back of all of its debts.
CPB has a better Debt to FCF ratio (7.33) than 63.74% of its industry peers.
A Debt/Equity ratio of 1.17 is on the high side and indicates that CPB has dependencies on debt financing.
With a Debt to Equity ratio value of 1.17, CPB is not doing good in the industry: 79.12% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.17
Debt/FCF 7.33
Altman-Z 2.62
ROIC/WACC1.39
WACC7.33%

2.3 Liquidity

A Current Ratio of 1.01 indicates that CPB should not have too much problems paying its short term obligations.
CPB has a worse Current ratio (1.01) than 74.73% of its industry peers.
CPB has a Quick Ratio of 1.01. 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 has a worse Quick ratio (0.43) than 82.42% of its industry peers.
Industry RankSector Rank
Current Ratio 1.01
Quick Ratio 0.43

3

3. Growth

3.1 Past

The earnings per share for CPB have decreased by -6.17% in the last year.
The Earnings Per Share has been growing slightly by 0.89% on average over the past years.
CPB shows a small growth in Revenue. In the last year, the Revenue has grown by 1.02%.
Measured over the past years, CPB shows a small growth in Revenue. The Revenue has been growing by 7.18% on average per year.
EPS 1Y (TTM)-6.17%
EPS 3Y0.45%
EPS 5Y0.89%
EPS growth Q2Q0%
Revenue 1Y (TTM)1.02%
Revenue growth 3Y2.49%
Revenue growth 5Y7.18%
Revenue growth Q2Q-1.17%

3.2 Future

The Earnings Per Share is expected to grow by 6.13% on average over the next years.
Based on estimates for the next years, CPB will show a small growth in Revenue. The Revenue will grow by 2.04% on average per year.
EPS Next Y3.25%
EPS Next 2Y4.35%
EPS Next 3Y4.83%
EPS Next 5Y6.13%
Revenue Next Year0.22%
Revenue Next 2Y1.29%
Revenue Next 3Y1.47%
Revenue Next 5Y2.04%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 15.38, which indicates a correct valuation of CPB.
76.92% of the companies in the same industry are more expensive than CPB, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.48, CPB is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.61, CPB is valued correctly.
CPB's Price/Forward Earnings ratio is rather cheap when compared to the industry. CPB is cheaper than 80.22% of the companies in the same industry.
CPB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.79.
Industry RankSector Rank
PE 15.38
Fwd PE 13.61

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CPB is valued a bit cheaper than 75.82% of the companies in the same industry.
65.93% of the companies in the same industry are more expensive than CPB, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 21.48
EV/EBITDA 10.07

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of CPB may justify a higher PE ratio.
PEG (NY)4.73
PEG (5Y)17.28
EPS Next 2Y4.35%
EPS Next 3Y4.83%

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.42%, CPB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.35, CPB pays a better dividend. On top of this CPB pays more dividend than 85.71% of the companies listed in the same industry.
CPB's Dividend Yield is a higher than the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 3.42%

5.2 History

The dividend of CPB has a limited annual growth rate of 1.14%.
CPB has been paying a dividend for at least 10 years, so it has a reliable track record.
CPB has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.14%
Div Incr Years0
Div Non Decr Years10

5.3 Sustainability

CPB pays out 58.09% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of CPB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP58.09%
EPS Next 2Y4.35%
EPS Next 3Y4.83%

CAMPBELL SOUP CO

NYSE:CPB (3/28/2024, 8:04:00 PM)

After market: 44.45 0 (0%)

44.45

+0.38 (+0.86%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.25B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.42%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 15.38
Fwd PE 13.61
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.73
PEG (5Y)17.28
Profitability
Industry RankSector Rank
ROA 6.33%
ROE 19.9%
ROCE
ROIC
ROICexc
ROICexgc
OM 14.39%
PM (TTM) 8.26%
GM 31.41%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.77
Health
Industry RankSector Rank
Debt/Equity 1.17
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.01
Quick Ratio 0.43
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-6.17%
EPS 3Y0.45%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.25%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.02%
Revenue growth 3Y2.49%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y