Campbell Soup (CPB) AI Stock Analysis

• Market Cap: $9.78B
• Dividend Yield: 4.76%
• Average Volume (3M): 3.96M
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.13
• Revenue Growth: 8.65%
• EPS Growth: -38.57%
• Country: US
• Employees: 14,400
• Sector: Consumer Defensive
• Sector Strength: 66
• Industry: Packaged Foods
• EPS (TTM): 0.73
• Shares Outstanding: 298,129,970
• 10 Day Avg. Volume: 5,398,542
• 30 Day Avg. Volume: 3,962,153
• PEG Ratio: 1.11
• Price to Book (P/B): 3.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.72
• Enterprise Value/Market Cap: 2.14
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 6.76
• Enterprise Value/Ebitda: 3.68
• 1Y Price Target: $36.29
• Price Target Upside: 10.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 15

• Rating: 65 Neutral
• Price Target: $37.00 ▲(12.84%Upside)

Campbell Soup's overall stock score is influenced mainly by solid financial performance, particularly in revenue growth and cash flow management. However, high leverage and low net profit margin present risks. The technical analysis indicates bearish trends, while the valuation remains reasonable. The earnings call provides a mixed outlook, with strengths in Meals and Beverages offset by challenges in the Snacks segment and cautious guidance.

Positive Factors

Cost Savings

Campbell now expects to achieve $130 million of cost savings in FY25, up $10 million from the prior expectation, with the company having achieved $110 million against its $250 million objective by FY28 so far in FY25.

Earnings

Campbell reported a better than expected third quarter including EPS of $0.73 representing a 3% decline, which was $0.08 ahead of our estimate and the consensus estimate.

Meals & Beverages Performance

Meals & Beverages was a bright spot in the quarter with 2% underlying OSG better than the Street and solid in an absolute sense with some visibility to these trends continuing as management seemed optimistic on the sustainability of recent consumer-related tailwinds.

Negative Factors

Inflation and Tariffs

The company's fiscal year outlook reflects slightly higher inflation and tariffs, leading to a decrease in expected earnings.

Snacks Segment Weakness

The recovery in Snacks is taking longer than expected driven by weaker category trends and competitive activity.

Tariffs Impact

Tariffs are expected to be a $0.03 to $0.05 drag on EPS in 4Q25 primarily driven by soup shipments to Canada, increased costs for tin plate/aluminum, and finished goods/raw materials imports for the Rao’s business from Italy.

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 through its diversified product offerings in the Meals & Beverages and Snacks segments. The Meals & Beverages division includes sales from soups, broths, sauces, and beverages under various brand names like Campbell's and V8, targeting both retail consumers and the foodservice industry. The Snacks division comprises a variety of products such as cookies, crackers, and bakery items, sold under brands like Pepperidge Farm and Lance. Revenue streams are bolstered by Campbell's extensive distribution network, strategic pricing, marketing campaigns, and innovation in product development. Additionally, the company benefits from significant partnerships with retailers and distributors to ensure widespread product availability. Campbell Soup Company's earnings are influenced by factors such as consumer preferences, commodity costs, and economic conditions, which impact pricing strategies and profit margins.

Campbell Soup Financial Statement Overview

Summary

Campbell Soup shows strong revenue growth and cash flow management, with a 5.04% revenue increase and a 47.31% growth in free cash flow. However, the high debt-to-equity ratio of 1.96 presents financial risks, and the net profit margin is relatively low at 3.44%, indicating challenges in profitability. Overall, the financial performance is solid but could benefit from improved leverage management and profitability.

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
10.22B	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
1.08B	1.00B	1.31B	1.16B	1.54B	1.11B
	EBITDA
1.38B	1.41B	1.70B	1.50B	1.86B	1.44B
	Net Income Common Stockholders
454.00M	567.00M	858.00M	757.00M	1.00B	1.63B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	108.00M	189.00M	109.00M	69.00M	859.00M
	Total Assets
0.00	15.23B	12.06B	11.89B	11.73B	12.37B
	Total Debt
6.90B	7.54B	4.97B	5.05B	5.29B	6.45B
	Net Debt
6.90B	7.43B	4.78B	4.94B	5.22B	5.59B
	Total Liabilities
0.00	11.44B	8.39B	8.56B	8.58B	9.80B
	Stockholders Equity
0.00	3.79B	3.66B	3.33B	3.15B	2.56B
Cash Flow		Free Cash Flow
808.00M	668.00M	773.00M	939.00M	760.00M	1.10B
	Operating Cash Flow
1.16B	1.19B	1.14B	1.18B	1.03B	1.40B
	Investing Cash Flow
-221.00M	-3.13B	-340.00M	-230.00M	-158.00M	2.27B
	Financing Cash Flow
-900.00M	1.86B	-723.00M	-910.00M	-1.67B	-2.99B

Campbell Soup Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 32.79 is below the 20-day moving average (MA) of 34.21, below the 50-day MA of 35.73, and below the 200-day MA of 41.04, indicating a bearish trend. The MACD of -0.64 indicates Positive momentum. The RSI at 32.12 is Neutral, neither overbought nor oversold. The STOCH value of 9.63 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	80 Outperform	$10.94B	9.09	36.53%	―	2.35%	145.82%
KHC	68 Neutral	$30.87B	11.82	5.36%	6.13%	-4.25%	-4.04%
CAG	67 Neutral	$10.30B	31.56	3.67%	6.49%	-3.15%	-65.38%
CPB	65 Neutral	$9.78B	21.67	11.67%	4.76%	8.65%	-38.57%
Sector *	65 Neutral	$8.82B	14.91	4.71%	6.22%	3.60%	-2.66%
GIS	63 Neutral	$29.33B	11.76	27.37%	4.48%	-2.62%	4.27%
SJM	60 Neutral	$10.19B	22.22	-17.87%	4.51%	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.