Campbell Soup (CPB) AI Stock Analysis

• Market Cap: $9.74B
• Dividend Yield: 4.72%
• Average Volume (3M): 5.80M
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.12
• Revenue Growth: 8.65%
• EPS Growth: -38.57%
• Country: US
• Employees: 14,400
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Packaged Foods
• EPS (TTM): 0.73
• Shares Outstanding: 298,129,970
• 10 Day Avg. Volume: 5,444,422
• 30 Day Avg. Volume: 5,795,796
• PEG Ratio: -1.52
• Price to Book (P/B): 2.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.23
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 5.12
• Enterprise Value/Ebitda: 2.79
• 1Y Price Target: $34.53
• Price Target Upside: 5.73% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 17

• Rating: 66 Neutral
• Price Target: $35.00 ▲(7.16%Upside)

Campbell Soup's stock score is influenced primarily by robust revenue growth and operational efficiency, despite challenges in net margins and leverage. While technical indicators show mixed signals, the valuation appears reasonable with a high dividend yield. Earnings call insights reveal challenges in the Snacks segment and tariff impacts, leading to a cautious outlook.

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 Performance

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

Negative Factors

Cost Inflation

The company will face 7.4% cost inflation, including 4.4% unmitigated tariff costs, which will exert pressure on net gross margin.

Snacks Segment Weakness

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

Tariff Impact

Tariffs on tinplate steel and aluminum from Canada have doubled from 25% to 50%, and tariffs on Rao's could increase to 30%, up from the prior 10% assumption.

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 demonstrates strong revenue growth and operational efficiency, but faces challenges with declining net profit margins and high financial leverage. While cash flow generation is robust, translating net income into free cash flow remains a concern. The company's financial health depends on managing leverage and improving profitability margins, with a strong focus on sustaining cash flow strength.

Income Statement

Campbell Soup's revenue growth has shown positive momentum, with a 6.16% increase in the latest TTM period compared to the previous annual report. While the gross profit margin remains stable at 30.21%, net profit margin has decreased to 4.44%, indicating some pressure on profitability. However, the EBIT margin at 10.55% and EBITDA margin at 13.48% suggest reasonable operational efficiency. The company's ability to grow revenue is a strong point, but declining net profitability might be a concern moving forward.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.78, indicating significant leverage, which could pose financial risk if not managed carefully. The return on equity is moderate at 11.73%, suggesting decent profitability relative to shareholder investments. The equity ratio stands at 26.10%, highlighting a lower proportion of equity financing compared to total assets. While the company maintains a solid asset base, the high leverage needs careful monitoring.

Cash Flow

Operating cash flow remains strong, with a favorable operating cash flow to net income ratio of 2.56, reflecting robust cash generation capability relative to net earnings. Free cash flow growth rate is healthy at 20.96%, supporting further investments and debt servicing. However, the free cash flow to net income ratio of 1.78 indicates that net earnings do not fully translate into free cash flow, which could affect liquidity in the long term. Overall, cash flow is a strong area for Campbell Soup, but attention to cash conversion efficiency is recommended.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	9.64B	9.36B	8.56B	8.48B	8.69B
Gross Profit	2.97B	2.92B	2.63B	2.81B	3.00B
EBITDA	1.41B	1.70B	1.50B	1.86B	1.44B
Net Income	567.00M	858.00M	757.00M	1.00B	1.63B
Balance Sheet
Total Assets	15.23B	12.06B	11.89B	11.73B	12.37B
Cash, Cash Equivalents and Short-Term Investments	108.00M	189.00M	109.00M	69.00M	859.00M
Total Debt	7.54B	4.97B	5.05B	5.29B	6.45B
Total Liabilities	11.44B	8.39B	8.56B	8.58B	9.80B
Stockholders Equity	3.79B	3.66B	3.33B	3.15B	2.56B
Cash Flow
Free Cash Flow	668.00M	773.00M	939.00M	760.00M	1.10B
Operating Cash Flow	1.19B	1.14B	1.18B	1.03B	1.40B
Investing Cash Flow	-3.13B	-340.00M	-230.00M	-158.00M	2.27B
Financing Cash Flow	1.86B	-723.00M	-910.00M	-1.67B	-2.99B

Campbell Soup Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.66
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPB, the sentiment is Positive. The current price of 32.66 is above the 20-day moving average (MA) of 31.26, above the 50-day MA of 32.41, and below the 200-day MA of 38.18, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 56.94 is Neutral, neither overbought nor oversold. The STOCH value of 81.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$11.35B	9.43	36.53%	―	2.35%	145.82%
KHC	74 Outperform	$33.94B	13.00	5.36%	5.58%	-4.25%	-4.04%
CAG	70 Outperform	$9.17B	8.00	13.27%	7.29%	-3.64%	231.77%
CPB	66 Neutral	$9.74B	21.58	11.67%	4.72%	8.65%	-38.57%
GIS	63 Neutral	$27.70B	12.46	24.57%	4.72%	-1.87%	-5.16%
SJM	56 Neutral	$11.63B	22.22	-17.87%	3.96%	6.69%	-261.87%
Sector *	51 Neutral	AU$2.24B	-0.35	-12.78%	10.63%	8.02%	-57.98%

Campbell Soup Corporate Events

Campbell Soup Appoints Mary Malone to Board

On July 17, 2025, Campbell Soup Company’s Board of Directors elected Mary Alice Dorrance Malone, Jr. as a director, with her term set to expire at the 2025 annual meeting of shareholders. Ms. Malone, Jr. was also appointed to the Compensation and Organization Committee and the Finance and Corporate Development Committee, reflecting a strategic move to strengthen the company’s governance and operational oversight.

The most recent analyst rating on (CPB) stock is a Hold with a $38.00 price target. To see the full list of analyst forecasts on Campbell Soup stock, see the CPB Stock Forecast page.