Campbell Soup (CPB) AI Stock Analysis

• Market Cap: $9.32B
• Dividend Yield: 4.99%
• Average Volume (3M): 5.01M
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.11
• Revenue Growth: 8.65%
• EPS Growth: -38.57%
• Country: US
• Employees: 14,400
• Sector: Consumer Defensive
• Sector Strength: 57
• Industry: Packaged Foods
• EPS (TTM): 0.73
• Shares Outstanding: 298,129,970
• 10 Day Avg. Volume: 4,740,874
• 30 Day Avg. Volume: 5,005,658
• PEG Ratio: -1.59
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.75
• Enterprise Value/Market Cap: 1.74
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 5.26
• Enterprise Value/Ebitda: 2.86
• 1Y Price Target: $35.93
• Price Target Upside: 14.98% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 17

• Rating: 53 Neutral
• Price Target: $32.00 ▲(2.40%Upside)

Campbell Soup's overall stock score reflects a balance between strong cash flow management and revenue growth against a backdrop of high leverage and challenges in the Snacks segment. The bearish technical indicators and cautious earnings outlook further weigh down the score.

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.

Meals & Beverages Segment

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.

Soup Category Performance

Underlying soup volume/mix growth of ~2% excluding the pull forward of shipments was encouraging and suggests the category is well-aligned with current cooking from scratch trends.

Negative Factors

Snacks Segment Challenges

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

Tariff 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.

Valuation and Earnings Outlook

Compressed valuation is seen as balancing the challenges, thus maintaining an EW rating with a more cautious tilt.

Campbell Soup Business Overview & Revenue Model

Company Description

Campbell Soup Company (CPB) is a globally recognized American food company headquartered in Camden, New Jersey. Established in 1869, the company specializes in manufacturing and marketing a wide range of food products, including soups, simple meals, beverages, and snacks. Its brand portfolio features iconic names such as Campbell's, Pepperidge Farm, V8, and Prego, catering to diverse consumer tastes and preferences across the globe. Campbell's operations are primarily segmented into two divisions: Meals & Beverages and Snacks, each contributing significantly to its market presence and financial performance.

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
EBITDA	1.38B	1.41B	1.70B	1.50B	1.86B	1.44B
Net Income	454.00M	567.00M	858.00M	757.00M	1.00B	1.63B
Balance Sheet
Total Assets	0.00	15.23B	12.06B	11.89B	11.73B	12.37B
Cash, Cash Equivalents and Short-Term Investments	0.00	108.00M	189.00M	109.00M	69.00M	859.00M
Total Debt	6.90B	7.54B	4.97B	5.05B	5.29B	6.45B
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: 31.25
• 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 31.25 is below the 20-day moving average (MA) of 31.97, below the 50-day MA of 33.65, and below the 200-day MA of 39.41, indicating a bearish trend. The MACD of -0.84 indicates Negative momentum. The RSI at 38.88 is Neutral, neither overbought nor oversold. The STOCH value of 46.95 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
KHC	74 Outperform	$31.55B	12.09	5.36%	6.00%	-4.25%	-4.04%
PPC	73 Outperform	$10.88B	9.04	36.53%	―	2.35%	145.82%
CAG	67 Neutral	$10.02B	30.71	3.67%	6.67%	-3.15%	-65.38%
Sector *	65 Neutral	$27.34B	15.36	-4.01%	3.14%	1.00%	1.98%
GIS	63 Neutral	$28.83B	12.97	24.57%	4.51%	-1.87%	-5.16%
CPB	53 Neutral	$9.32B	20.65	11.67%	4.99%	8.65%	-38.57%
SJM	47 Neutral	$11.10B	22.22	-17.87%	4.15%	6.69%	-261.87%

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.