Campbell Soup (CPB) AI Stock Analysis

• Market Cap: $11.57B
• Dividend Yield: 3.87%
• Average Volume (3M): 4.03M
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.13
• Revenue Growth: 9.15%
• EPS Growth: -31.94%
• Country: US
• Employees: 14,400
• Sector: Consumer Defensive
• Sector Strength: 94
• Industry: Packaged Foods
• EPS (TTM): 1.74
• Shares Outstanding: 298,181,850
• 10 Day Avg. Volume: 3,204,959
• 30 Day Avg. Volume: 4,028,656
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.12
• Price to Cash Flow (P/CF): 5.50
• P/FCF Ratio: 6.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $40.86
• Price Target Upside: 5.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 15

Campbell Soup's overall score reflects a mix of financial strengths and challenges. While the company benefits from strong revenue growth and cash flow management, high leverage and low net profitability are concerns. Technical indicators suggest neutral momentum, and valuation appears high, though a solid dividend yield is a positive. Earnings guidance is cautious, reflecting challenges in key divisions.

Positive Factors

Market Potential

There is potential for the CPB shares to outperform their peers if the snacking category improves.

Portfolio Transformation

CPB's transformed portfolio enhances visibility to an improved long-term growth outlook driven by its leading snacks portfolio and momentum in the recently acquired Rao's brand.

Negative Factors

Earnings Challenges

CPB’s 2Q earnings faced several issues: organic sales & gross margin miss, a full year sales/profit/adj EPS cut and a revised outlook that is not fully de-risked given a 4Q weighting.

Snacks Segment Challenges

The snacks sales and margins largely drove changes in the outlook due to lower than anticipated recovery and operational headwinds.

Tariff Risks

Risk related to produce tariffs and metal cans for center store food categories remains high.

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 Soup Company generates revenue primarily through the sale of its branded food products across various retail channels, including supermarkets, mass merchandisers, and convenience stores. The Meals & Beverages segment contributes significantly to its revenue through the sale of canned soups, broths, and sauces. Meanwhile, the Snacks segment drives revenue through a broad portfolio of snack brands like Pepperidge Farm, Snyder's of Hanover, and Goldfish. In addition to traditional retail sales, Campbell's also leverages e-commerce platforms and partnerships with foodservice providers to reach consumers. The company's earnings are bolstered by its strong brand recognition, strategic product innovation, and efficient supply chain management.

Campbell Soup Financial Statement Overview

Summary

Campbell Soup shows solid revenue growth and robust cash flow management, indicating financial resilience. However, high leverage and a low net profit margin pose risks. Improving profitability and reducing financial risk will enhance long-term growth.

Income Statement

Campbell Soup's TTM (Trailing-Twelve-Months) revenue shows a healthy growth trend with a 5.04% increase compared to the previous year. The gross profit margin stands at 30.28%, indicating strong product pricing and cost control. However, the net profit margin of 3.44% is relatively low, suggesting challenges in controlling non-operating expenses or taxes. The EBIT margin is solid at 10.35%, but there's room for improvement in operational efficiency. Overall, the income statement reflects steady revenue growth and stable operational margins, but with a need to improve net profitability.

Balance Sheet

The company's debt-to-equity ratio is high at 1.96, indicating significant leverage, which could pose risks in volatile markets. The equity ratio is 24.57%, suggesting that a quarter of the assets are funded by shareholders' equity, reflecting moderate financial stability. Return on equity (ROE) is relatively low at 8.91%, highlighting challenges in generating returns for shareholders. While the balance sheet shows stability, the high leverage is a concern that needs to be addressed to enhance financial flexibility.

Cash Flow

Campbell Soup demonstrates strong cash flow management, with a 47.31% growth in free cash flow from the previous period, signaling robust operational performance. The operating cash flow to net income ratio is high at 3.55, indicating efficient cash generation from operations. The free cash flow to net income ratio of 2.82 suggests strong cash retention, supporting future investments and debt servicing. Overall, the cash flow statement reflects a strong cash generation capability, contributing to the company's financial resilience.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
10.12B	9.64B	9.36B	8.56B	8.48B	8.69B
	Gross Profit
3.09B	2.97B	2.92B	2.63B	2.81B	3.00B
	EBIT
1.02B	1.00B	1.31B	1.16B	1.54B	1.11B
	EBITDA
1.46B	1.41B	1.70B	1.50B	1.86B	1.44B
	Net Income Common Stockholders
521.00M	567.00M	858.00M	757.00M	1.00B	1.63B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
291.00M	108.00M	189.00M	109.00M	69.00M	859.00M
	Total Assets
6.82B	15.23B	12.06B	11.89B	11.73B	12.37B
	Total Debt
3.08B	7.54B	4.97B	5.05B	5.29B	6.45B
	Net Debt
2.79B	7.43B	4.78B	4.94B	5.22B	5.59B
	Total Liabilities
5.71B	11.44B	8.39B	8.56B	8.58B	9.80B
	Stockholders Equity
1.10B	3.79B	3.66B	3.33B	3.15B	2.56B
Cash Flow		Free Cash Flow
984.00M	668.00M	773.00M	939.00M	760.00M	1.10B
	Operating Cash Flow
1.24B	1.19B	1.14B	1.18B	1.03B	1.40B
	Investing Cash Flow
-3.05B	-3.13B	-340.00M	-230.00M	-158.00M	2.27B
	Financing Cash Flow
2.47B	1.86B	-723.00M	-910.00M	-1.67B	-2.99B

Campbell Soup Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 38.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 38.79 is above the 20-day moving average (MA) of 38.77, below the 50-day MA of 38.79, and below the 200-day MA of 43.50, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 54.95 is Neutral, neither overbought nor oversold. The STOCH value of 77.95 is Neutral, 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	76 Outperform	$11.85B	10.94	28.70%	―	2.93%	237.51%
CAG	70 Outperform	$12.74B	39.04	3.67%	5.25%	-3.15%	-65.38%
KHC	67 Neutral	$35.47B	13.14	5.56%	5.39%	-2.98%	-2.22%
GIS	66 Neutral	$32.64B	13.09	27.37%	4.01%	-2.62%	4.27%
CPB	66 Neutral	$11.57B	22.34	13.43%	3.87%	9.15%	-31.94%
Sector *	62 Neutral	$20.22B	13.99	-16.14%	3.22%	1.15%	3.41%
SJM	61 Neutral	$12.25B	22.22	-3.55%	3.73%	7.07%	-181.54%

Campbell Soup Corporate Events

Campbell Soup Completes Sale of Noosa Yoghurt

On February 24, 2025, Campbell’s Company announced the completion of the sale of its noosa yoghurt business to Lakeview Farms, LLC. This divestiture, which follows the acquisition of noosa as part of Sovos Brands in March 2024, is expected to slightly reduce earnings per share in fiscal 2025 by approximately $0.01.