THE CAMPBELL'S COMPANY (CPB) Stock Fundamental Analysis
NASDAQ:CPB - Nasdaq - US1344291091 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to CPB. CPB was compared to 90 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.
CPB had a positive operating cash flow in the past year.
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
With a Return On Assets value of 3.27%, CPB perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
The Return On Equity of CPB (13.32%) is better than 70.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.42%, CPB is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CPB is in line with the industry average of 8.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 13.32% | ||
| ROIC | 7.42% |
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
With a decent Profit Margin value of 5.15%, CPB is doing good in the industry, outperforming 74.44% of the companies in the same industry.
CPB's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 13.25%, CPB belongs to the best of the industry, outperforming 82.22% of the companies in the same industry.
In the last couple of years the Operating Margin of CPB has declined.
CPB has a Gross Margin of 30.94%. This is in the better half of the industry: CPB outperforms 71.11% of its industry peers.
CPB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.25% | ||
| PM (TTM) | 5.15% | ||
| GM | 30.94% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CPB is still creating some value.
CPB has about the same amout of shares outstanding than it did 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 1.84. 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.
Looking at the Altman-Z score, with a value of 1.84, CPB is in line with its industry, outperforming 44.44% of the companies in the same industry.
CPB has a debt to FCF ratio of 9.93. This is a negative value and a sign of low solvency as CPB would need 9.93 years to pay back of all of its debts.
With a Debt to FCF ratio value of 9.93, CPB perfoms like the industry average, outperforming 57.78% of the companies in the same industry.
CPB has a Debt/Equity ratio of 1.96. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CPB (1.96) is worse than 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.96 | ||
| Debt/FCF | 9.93 | ||
| Altman-Z | 1.84 |
ROIC/WACC1.1
WACC6.73%
2.3 Liquidity
CPB has a Current Ratio of 0.93. 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 Current ratio of 0.93. This is in the lower half of the industry: CPB underperforms 77.78% of its industry peers.
A Quick Ratio of 0.55 indicates that CPB may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.55, CPB is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.15% over the past year.
CPB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.35% yearly.
Looking at the last year, CPB shows a quite strong growth in Revenue. The Revenue has grown by 9.15% in the last year.
CPB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.52% yearly.
EPS 1Y (TTM)4.15%
EPS 3Y1.22%
EPS 5Y3.35%
EPS Q2Q%-7.5%
Revenue 1Y (TTM)9.15%
Revenue growth 3Y4.37%
Revenue growth 5Y3.52%
Sales Q2Q%9.32%
3.2 Future
The Earnings Per Share is expected to grow by 5.40% 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 2.70% on average per year.
EPS Next Y-2.41%
EPS Next 2Y0.57%
EPS Next 3Y2.88%
EPS Next 5Y5.4%
Revenue Next Year6.62%
Revenue Next 2Y2.63%
Revenue Next 3Y2.36%
Revenue Next 5Y2.7%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.86, the valuation of CPB can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CPB indicates a somewhat cheap valuation: CPB is cheaper than 78.89% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, CPB is valued rather cheaply.
The Price/Forward Earnings ratio is 11.42, which indicates a very decent valuation of CPB.
80.00% of the companies in the same industry are more expensive than CPB, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.43. CPB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.86 | ||
| Fwd PE | 11.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CPB is valued a bit cheaper than the industry average as 63.33% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CPB is valued a bit cheaper than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.77 | ||
| EV/EBITDA | 9.18 |
4.3 Compensation for Growth
CPB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.53
EPS Next 2Y0.57%
EPS Next 3Y2.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.46%, CPB is a good candidate for dividend investing.
CPB's Dividend Yield is rather good when compared to the industry average which is at 4.58. CPB pays more dividend than 86.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, CPB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
5.2 History
The dividend of CPB has a limited annual growth rate of 1.22%.
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)1.22%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
85.99% 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.
DP85.99%
EPS Next 2Y0.57%
EPS Next 3Y2.88%
35.69
+0.21 (+0.59%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners58.96%
Inst Owner Change-0.53%
Ins Owners18.26%
Ins Owner Change0.26%
Market Cap10.64B
Analysts57.33
Price Target43.04 (20.59%)
Short Float %9.54%
Short Ratio5.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
Yearly Dividend1.49
Dividend Growth(5Y)1.22%
DP85.99%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.08%
Min EPS beat(2)0.9%
Max EPS beat(2)1.26%
EPS beat(4)4
Avg EPS beat(4)2.28%
Min EPS beat(4)0.83%
Max EPS beat(4)6.14%
EPS beat(8)7
Avg EPS beat(8)2.3%
EPS beat(12)10
Avg EPS beat(12)4.42%
EPS beat(16)12
Avg EPS beat(16)3.82%
Revenue beat(2)0
Avg Revenue beat(2)-2.42%
Min Revenue beat(2)-2.89%
Max Revenue beat(2)-1.95%
Revenue beat(4)0
Avg Revenue beat(4)-1.73%
Min Revenue beat(4)-2.89%
Max Revenue beat(4)-0.34%
Revenue beat(8)0
Avg Revenue beat(8)-1.23%
Revenue beat(12)3
Avg Revenue beat(12)-0.25%
Revenue beat(16)4
Avg Revenue beat(16)-0.46%
PT rev (1m)-1.8%
PT rev (3m)-11.82%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)-15.74%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-4.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.81%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.86 | ||
| Fwd PE | 11.42 | ||
| P/S | 1.05 | ||
| P/FCF | 13.77 | ||
| P/OCF | 8.6 | ||
| P/B | 2.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.18 |
EPS(TTM)3.01
EY8.43%
EPS(NY)3.13
Fwd EY8.76%
FCF(TTM)2.59
FCFY7.26%
OCF(TTM)4.15
OCFY11.63%
SpS33.94
BVpS13.11
TBVpS-18.82
PEG (NY)N/A
PEG (5Y)3.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 13.32% | ||
| ROCE | 10.73% | ||
| ROIC | 7.42% | ||
| ROICexc | 7.9% | ||
| ROICexgc | 30.73% | ||
| OM | 13.25% | ||
| PM (TTM) | 5.15% | ||
| GM | 30.94% | ||
| FCFM | 7.64% |
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-Score4
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.96 | ||
| Debt/FCF | 9.93 | ||
| Debt/EBITDA | 4.3 | ||
| Cap/Depr | 106.16% | ||
| Cap/Sales | 4.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.59% | ||
| Profit Quality | 148.37% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 1.84 |
F-Score4
WACC6.73%
ROIC/WACC1.1
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)4.15%
EPS 3Y1.22%
EPS 5Y3.35%
EPS Q2Q%-7.5%
EPS Next Y-2.41%
EPS Next 2Y0.57%
EPS Next 3Y2.88%
EPS Next 5Y5.4%
Revenue 1Y (TTM)9.15%
Revenue growth 3Y4.37%
Revenue growth 5Y3.52%
Sales Q2Q%9.32%
Revenue Next Year6.62%
Revenue Next 2Y2.63%
Revenue Next 3Y2.36%
Revenue Next 5Y2.7%
EBIT growth 1Y0.52%
EBIT growth 3Y-5.89%
EBIT growth 5Y0.25%
EBIT Next Year34.61%
EBIT Next 3Y12.24%
EBIT Next 5Y9.32%
FCF growth 1Y-12.06%
FCF growth 3Y-4.21%
FCF growth 5Y-8.01%
OCF growth 1Y7.93%
OCF growth 3Y4.61%
OCF growth 5Y-3.25%