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 91 industry peers in the Food Products industry. There are concerns on the financial health of CPB while its profitability can be described as average. CPB is not valued too expensively and it also shows a decent growth rate. 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.
CPB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CPB has a Return On Assets of 3.06%. This is comparable to the rest of the industry: CPB outperforms 59.34% of its industry peers.
With a decent Return On Equity value of 11.73%, CPB is doing good in the industry, outperforming 73.63% of the companies in the same industry.
CPB has a Return On Invested Capital of 8.15%. This is in the better half of the industry: CPB outperforms 79.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CPB is significantly below the industry average of 28.40%.
| 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 has a better Profit Margin (4.44%) than 65.93% of its industry peers.
In the last couple of years the Profit Margin of CPB has grown nicely.
The Operating Margin of CPB (13.47%) is better than 81.32% of its industry peers.
In the last couple of years the Operating Margin of CPB has declined.
CPB has a Gross Margin of 30.62%. This is in the better half of the industry: CPB outperforms 71.43% of its industry peers.
CPB's Gross Margin has been stable in the last couple of years.
| 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
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.
The number of shares outstanding for CPB has been reduced compared to 5 years ago.
CPB has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.90 indicates that CPB is not a great score, but indicates only limited risk for bankruptcy at the moment.
CPB has a Altman-Z score of 1.90. This is comparable to the rest of the industry: CPB outperforms 46.15% of its industry peers.
CPB has a debt to FCF ratio of 9.54. This is a negative value and a sign of low solvency as CPB would need 9.54 years to pay back of all of its debts.
CPB has a better Debt to FCF ratio (9.54) than 62.64% of its industry peers.
A Debt/Equity ratio of 1.77 is on the high side and indicates that CPB has dependencies on debt financing.
CPB has a worse Debt to Equity ratio (1.77) than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | 9.54 | ||
| Altman-Z | 1.9 |
ROIC/WACC1.26
WACC6.45%
2.3 Liquidity
A Current Ratio of 0.78 indicates that CPB may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.78, CPB is doing worse than 79.12% of the companies in the same industry.
A Quick Ratio of 0.33 indicates that CPB may have some problems paying its short term obligations.
CPB has a Quick ratio of 0.33. This is amonst the worse of the industry: CPB underperforms 87.91% of its industry peers.
| 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
CPB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.49% yearly.
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-4.33%
EPS Next 2Y-3.37%
EPS Next 3Y0.07%
EPS Next 5Y4.49%
Revenue Next Year6.33%
Revenue Next 2Y2.15%
Revenue Next 3Y1.94%
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 10.45, the valuation of CPB can be described as very reasonable.
Based on the Price/Earnings ratio, CPB is valued a bit cheaper than the industry average as 79.12% of the companies are valued more expensively.
CPB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
With a Price/Forward Earnings ratio of 10.83, the valuation of CPB can be described as very reasonable.
85.71% 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 21.90. CPB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.45 | ||
| Fwd PE | 10.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CPB is valued a bit cheaper than 67.03% of the companies in the same industry.
CPB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CPB is cheaper than 78.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.89 | ||
| EV/EBITDA | 8.42 |
4.3 Compensation for Growth
The decent profitability rating of CPB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.12
EPS Next 2Y-3.37%
EPS Next 3Y0.07%
5. Dividend
5.1 Amount
CPB has a Yearly Dividend Yield of 5.04%, which is a nice return.
CPB's Dividend Yield is rather good when compared to the industry average which is at 4.75. CPB pays more dividend than 86.81% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, CPB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.04% |
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 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
CPB pays out 100.00% of its income as dividend. This is not a sustainable payout ratio.
The dividend of CPB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP100%
EPS Next 2Y-3.37%
EPS Next 3Y0.07%
31.25
-0.69 (-2.16%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners59.38%
Inst Owner Change-0.56%
Ins Owners18.27%
Ins Owner Change0.25%
Market Cap9.32B
Analysts57.33
Price Target38.45 (23.04%)
Short Float %11.19%
Short Ratio5.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.04% |
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)-10.67%
PT rev (3m)-12.7%
EPS NQ rev (1m)-19.2%
EPS NQ rev (3m)-19.51%
EPS NY rev (1m)-1.96%
EPS NY rev (3m)-2.13%
Revenue NQ rev (1m)-2.8%
Revenue NQ rev (3m)-3.12%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.45 | ||
| Fwd PE | 10.83 | ||
| P/S | 0.91 | ||
| P/FCF | 12.89 | ||
| P/OCF | 8.03 | ||
| P/B | 2.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.42 |
EPS(TTM)2.99
EY9.57%
EPS(NY)2.89
Fwd EY9.23%
FCF(TTM)2.42
FCFY7.76%
OCF(TTM)3.89
OCFY12.45%
SpS34.29
BVpS12.98
TBVpS-18.4
PEG (NY)N/A
PEG (5Y)3.12
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 | 1.9 |
F-Score6
WACC6.45%
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-4.33%
EPS Next 2Y-3.37%
EPS Next 3Y0.07%
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 2Y2.15%
Revenue Next 3Y1.94%
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%