Campbell Soup (CPB) AI Stock Analysis

• Market Cap: $6.43B
• Dividend Yield: 5.64%
• Average Volume (3M): 8.41M
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.15
• Revenue Growth: 2.71%
• EPS Growth: 4.90%
• Country: US
• Employees: 14,400
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.51
• Shares Outstanding: 298,146,480
• 10 Day Avg. Volume: 12,806,051
• 30 Day Avg. Volume: 8,406,228
• PEG Ratio: 2.53
• Price to Book (P/B): 2.47
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 13.65
• Enterprise Value/Market Cap: 1.99
• Enterprise Value/Revenue: 1.28
• Enterprise Value/Gross Profit: 4.35
• Enterprise Value/Ebitda: 8.78
• 1Y Price Target: $23.86
• Price Target Upside: 10.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 15
• EPS Forecast (FY): 2.22
• Revenue Forecast (FY): $9.79B

• Rating: 54 Neutral
• Price Target: $23.50 ▲(8.90% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

CPB scores mid-range driven by pressured fundamentals (profitability downshift and high leverage) despite resilient cash generation. Technicals are weak with the stock in a clear downtrend, while valuation is supportive thanks to a moderate P/E and high dividend yield. The latest earnings call adds a mixed outlook: strong RAO’S/Meals & Beverages and cost actions, but Snacks weakness and a back-half-weighted recovery plan.

Positive Factors

Cash Generation

Steady operating cash flow and improved trailing‑twelve‑month free cash flow provide recurring internal funding to cover working capital, dividends and capex. Over the next 2–6 months this reduces liquidity stress, helps service debt, and supports execution of deleveraging and cost plans.

RAO'S Brand Momentum

Strong, sustained consumption growth for RAO’S indicates durable brand strength within Meals & Beverages. As a higher‑growth, higher‑margin franchise, RAO’S can materially offset weakness elsewhere, improve mix and support margin recovery and revenue resilience across the medium term.

Product Innovation Momentum

Consecutive quarter growth from product innovation (Milano, Chessmen) signals effective R&D and successful SKU rollouts that drive distribution gains. Sustained innovation diversifies revenue, supports premium pricing and margin leverage, and reduces dependence on challenged subcategories over coming quarters.

Negative Factors

Elevated Leverage

Elevated debt‑to‑equity and a TTM debt spike materially constrain financial flexibility, increase refinancing and interest rate risk, and limit the ability to invest or respond to shocks. Over 2–6 months this raises the priority of deleveraging and constrains strategic and capital allocation choices.

Snacks Profitability Pressure

A sharp margin compression in Snacks and a notable sales decline signal structural earnings pressure in a core category. Lower margins increase fixed‑cost deleverage from prior investments and necessitate prolonged promotional, pricing or cost actions—recovery is likely multi‑quarter and dampens company earnings power.

Capital Allocation Constraints

Management’s pause on buybacks, trimmed capex and a near‑term ~$140–$150M acquisition payment preserve liquidity but limit returns and reinvestment. These choices support deleveraging but constrain growth initiatives and shareholder optionality over the medium term while balance‑sheet repairs occur.

Campbell Soup Business Overview & Revenue Model

Company Description

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. This segment provides Campbell's condensed and ready-to-serve soups; Swanson broth and stocks; Pacific Foods broth, soups, and non-dairy beverages; Prego pasta sauces; Pace Mexican sauces; Campbell's gravies, pasta, beans, and dinner sauces; Swanson canned poultry; Plum baby food and snacks; V8 juices and beverages; and Campbell's tomato juice. The Snacks segment retails Pepperidge Farm cookies, crackers, fresh bakery, and frozen products; Milano cookies and Goldfish crackers; and Snyder's of Hanover pretzels, Lance sandwich crackers, Cape Cod and Kettle Brand potato chips, Late July snacks, Snack Factory Pretzel Crisps, Pop Secret popcorn, Emerald nuts, and other snacking products. This segment is also involved in the retail business in Latin America. It sells its products through retail food chains, mass discounters and merchandisers, club stores, convenience stores, drug stores, and dollar stores, as well as e-commerce and other retail, commercial, and non-commercial establishments, and independent contractor distributors. The company was founded in 1869 and is headquartered in Camden, New Jersey.

How the Company Makes Money

Campbell’s makes money primarily by selling branded packaged foods and beverages to retailers and, to a lesser extent, to foodservice and other commercial customers. Revenue is generated when the company ships finished goods (e.g., soups and simple meals; crackers, cookies, and other snacks; and beverages) to customers such as grocery chains, mass merchandisers, club stores, convenience retailers, and distributors, typically under customer purchase orders and longer-term commercial relationships. A significant portion of sales is driven by established consumer brands, which support repeat purchasing and allow the company to compete on both volume and pricing/mix. Key revenue streams include (1) Meals & Beverages (anchored by the Campbell’s soup and meals franchise and V8 beverages) and (2) Snacks (including brands such as Goldfish, Pepperidge Farm, Snyder’s of Hanover, Lance, and Kettle Brand). Earnings are influenced by factors such as consumer demand, innovation/new product introductions, promotional spending and trade terms with retailers, pricing actions and product mix, input-cost and supply-chain dynamics, and the strength of brand equity and distribution. Specific significant partnerships: null.

Campbell Soup Financial Statement Overview

Summary

Stable revenue and solid cash generation (free cash flow improved in TTM) are positives, but profitability has meaningfully compressed in TTM and leverage is elevated with debt rising versus prior periods, limiting flexibility if earnings remain pressured.

Income Statement

Revenue has been broadly stable over the cycle, but TTM (Trailing-Twelve-Months) shows a decline versus the prior annual period. Profitability has compressed meaningfully from earlier years: operating and net margins are lower than the 2021–2023 range, and TTM net income is sharply weaker than recent history despite still-healthy gross margins for a packaged foods business. Overall, the income statement reflects solid core profitability but a clear downshift in earnings power and growth momentum.

Balance Sheet

Leverage is the main constraint: debt is high relative to equity (debt-to-equity consistently elevated, and total debt spikes in TTM versus prior annual periods). Equity has not grown enough to offset the higher debt load, limiting balance-sheet flexibility. Returns on equity remain respectable, but that strength is partly accompanied by higher leverage, which increases risk if earnings remain pressured.

Cash Flow

Cash generation is a relative bright spot. Operating cash flow is steady across years, and free cash flow improves in TTM (Trailing-Twelve-Months) with strong growth versus the prior year. However, cash flow does not fully track earnings quality in the most recent period: free cash flow covers only a moderate share of net income in TTM, and the company’s cash generation relative to its debt load appears limited, suggesting less cushion if refinancing or interest costs rise.

Breakdown	TTM	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	10.04B	10.25B	9.64B	9.36B	8.56B	8.48B
Gross Profit	2.94B	3.12B	2.97B	2.92B	2.63B	2.81B
EBITDA	1.46B	1.57B	1.42B	1.70B	1.50B	1.86B
Net Income	550.00M	602.00M	567.00M	858.00M	757.00M	1.00B
Balance Sheet
Total Assets	15.35B	14.90B	15.23B	12.06B	11.89B	11.73B
Cash, Cash Equivalents and Short-Term Investments	561.00M	132.00M	108.00M	189.00M	109.00M	69.00M
Total Debt	7.08B	7.21B	7.54B	4.97B	5.05B	5.29B
Total Liabilities	11.34B	10.99B	11.44B	8.39B	8.56B	8.58B
Stockholders Equity	4.00B	3.90B	3.79B	3.66B	3.33B	3.15B
Cash Flow
Free Cash Flow	919.00M	705.00M	668.00M	773.00M	939.00M	760.00M
Operating Cash Flow	1.13B	1.13B	1.19B	1.14B	1.18B	1.03B
Investing Cash Flow	-246.00M	-187.00M	-3.13B	-340.00M	-230.00M	-158.00M
Financing Cash Flow	-1.16B	-919.00M	1.86B	-723.00M	-910.00M	-1.67B

Campbell Soup Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPB, the sentiment is Negative. The current price of 21.58 is below the 20-day moving average (MA) of 25.18, below the 50-day MA of 26.48, and below the 200-day MA of 29.61, indicating a bearish trend. The MACD of -1.52 indicates Positive momentum. The RSI at 23.64 is Positive, neither overbought nor oversold. The STOCH value of 4.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CPB.

Campbell Soup Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPC	74 Outperform	$8.87B	8.73	30.72%	―	1.81%	24.67%
LW	65 Neutral	$5.68B	31.72	22.69%	3.37%	2.35%	9.61%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GIS	62 Neutral	$20.67B	15.38	27.21%	5.19%	-5.65%	0.41%
SJM	61 Neutral	$10.95B	-3.86	-21.55%	4.45%	-0.66%	-326.55%
CAG	58 Neutral	$7.74B	-3.16	-1.13%	7.87%	-5.82%	-119.70%
CPB	54 Neutral	$6.43B	14.14	13.98%	5.64%	2.71%	4.90%