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Campbell Soup (CPB)
NASDAQ:CPB
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Campbell Soup (CPB) AI Stock Analysis

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CPB

Campbell Soup

(NASDAQ:CPB)

Rating:66Neutral
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 (CPB) vs. SPDR S&P 500 ETF (SPY)

Campbell Soup Business Overview & Revenue Model

Company DescriptionCampbell 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 MoneyCampbell 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 Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Breaks down revenue across various business segments, revealing which products or services are performing well and contributing most to Campbell Soup's top line.
Chart InsightsCampbell Soup's Meals and Beverages segment shows strong growth, driven by consumer trends favoring home cooking, with a notable 6% increase in organic net sales. This contrasts with the Snacks segment, which is struggling due to competitive pressures and a 5% decline in organic net sales. The company's earnings guidance is cautious, reflecting challenges from tariffs and a slower recovery in the Snacks business, impacting overall financial performance. Investors should monitor the macro environment and competitive landscape as these factors could influence future results.
Data provided by:Main Street Data

Campbell Soup Earnings Call Summary

Earnings Call Date:Jun 02, 2025
(Q3-2025)
|
% Change Since: -2.86%|
Next Earnings Date:Aug 28, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong performance from the Meals and Beverages division driven by consumer trends favoring home cooking, while the Snacks division underperformed due to competitive pressures and category softness. The company's financial outlook is affected by tariffs and a lowered full-year earnings guidance.
Q3-2025 Updates
Positive Updates
Meals and Beverages Division Outperformance
Organic net sales in the Meals and Beverages division increased by 6%, driven by volume and mix growth of 7%. The division outperformed category consumption, especially in condensed cooking soups, broth, and Italian sauces, contributing to strong overall company performance.
Stable Performance of Leadership Brands
The sixteen leadership brands, representing 90% of total net sales, remained stable in the third quarter with more than half holding or gaining share. Meals and Beverages leadership brand consumption increased by 2%.
Cost Savings and Efficiency Improvements
The company delivered approximately $110 million of total savings under the $250 million cost savings program, reflecting productivity improvements and cost savings initiatives.
Positive Consumer Trends for Home Cooking
Consumers' growing preference for home-cooked meals led to increased consumption in the Meals and Beverages segment, contributing to the division's strong performance.
Negative Updates
Snacks Segment Underperformance
Organic net sales in the Snacks division declined by 5% due to lower volume and mix, with overall snack's leadership brand consumption declining by 3%. The segment faced heightened competitive pressures and category softness.
Lowered Full-Year Earnings Guidance
Adjusted earnings are expected to be at the low end of the guidance range due to the slower than anticipated recovery in the Snacks business.
Impact of Tariffs on Financial Performance
The company has estimated a net incremental headwind of tariff-related costs to be up to $0.03 to $0.05 per share for fiscal 2025 adjusted EPS, impacting the financial outlook.
Decreased Adjusted EPS
Adjusted EPS was down 3% from the prior year, impacted by lower base business performance and higher levels of debt and interest rates.
Company Guidance
In the Campbell Soup Company's third-quarter fiscal 2025 earnings call, the company provided guidance indicating that it expects adjusted earnings for the full fiscal year to be at the low end of the guidance range due to the slower than anticipated recovery in the snacks business. Organic net sales grew by 1%, driven by a strong performance in the meals and beverages segment, which saw a 6% increase in organic net sales, primarily due to volume and mix growth. The snacks segment, however, experienced a 5% decline in organic net sales. The company highlighted consumer trends such as increased at-home cooking and the growing preference for value-added and indulgent snacks. Campbell Soup also noted the dynamic macro environment, including potential impacts from tariffs, which are estimated to pose a headwind of $0.03 to $0.05 per share to fiscal 2025 adjusted EPS. The guidance excludes any impact from new tariffs and remains cautious given the uncertain trade environment.

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
75
Positive
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
65
Positive
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
70
Positive
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.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue9.64B9.36B8.56B8.48B8.69B
Gross Profit2.97B2.92B2.63B2.81B3.00B
EBITDA1.41B1.70B1.50B1.86B1.44B
Net Income567.00M858.00M757.00M1.00B1.63B
Balance Sheet
Total Assets15.23B12.06B11.89B11.73B12.37B
Cash, Cash Equivalents and Short-Term Investments108.00M189.00M109.00M69.00M859.00M
Total Debt7.54B4.97B5.05B5.29B6.45B
Total Liabilities11.44B8.39B8.56B8.58B9.80B
Stockholders Equity3.79B3.66B3.33B3.15B2.56B
Cash Flow
Free Cash Flow668.00M773.00M939.00M760.00M1.10B
Operating Cash Flow1.19B1.14B1.18B1.03B1.40B
Investing Cash Flow-3.13B-340.00M-230.00M-158.00M2.27B
Financing Cash Flow1.86B-723.00M-910.00M-1.67B-2.99B

Campbell Soup Technical Analysis

Technical Analysis Sentiment
Positive
Last Price32.66
Price Trends
50DMA
32.41
Positive
100DMA
34.87
Negative
200DMA
38.18
Negative
Market Momentum
MACD
0.04
Negative
RSI
56.94
Neutral
STOCH
81.75
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 Risk Analysis

Campbell Soup disclosed 21 risk factors in its most recent earnings report. Campbell Soup reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Campbell Soup Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$11.35B9.4336.53%2.35%145.82%
74
Outperform
$33.94B13.005.36%5.58%-4.25%-4.04%
70
Outperform
$9.17B8.0013.27%7.29%-3.64%231.77%
66
Neutral
$9.74B21.5811.67%4.72%8.65%-38.57%
63
Neutral
$27.70B12.4624.57%4.72%-1.87%-5.16%
56
Neutral
$11.63B22.22-17.87%3.96%6.69%-261.87%
51
Neutral
AU$2.24B-0.35-12.78%10.63%8.02%-57.98%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CPB
Campbell Soup
32.66
-12.53
-27.73%
CAG
Conagra Brands
19.21
-9.43
-32.93%
GIS
General Mills
49.85
-14.46
-22.48%
SJM
JM Smucker
109.02
-4.52
-3.98%
PPC
Pilgrim's Pride
47.85
11.31
30.95%
KHC
Kraft Heinz
28.68
-3.05
-9.61%

Campbell Soup Corporate Events

Executive/Board Changes
Campbell Soup Appoints Mary Malone to Board
Neutral
Jul 18, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 26, 2025