Campbell Soup (CPB) AI Stock Analysis

• Market Cap: $9.69B
• Dividend Yield: 4.74%
• Average Volume (3M): 5.66M
• Price to Earnings (P/E): 21.5
• Beta (1Y): 0.11
• Revenue Growth: 8.65%
• EPS Growth: -38.57%
• Country: US
• Employees: 14,400
• Sector: Consumer Defensive
• Sector Strength: 58
• Industry: Packaged Foods
• EPS (TTM): 0.73
• Shares Outstanding: 298,129,970
• 10 Day Avg. Volume: 4,291,249
• 30 Day Avg. Volume: 5,664,575
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.85
• Enterprise Value/Revenue: 1.76
• Enterprise Value/Gross Profit: 5.82
• Enterprise Value/Ebitda: 13.04
• 1Y Price Target: $33.63
• Price Target Upside: 3.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 18

• Rating: 64 Neutral
• Price Target: $34.00 ▲(4.58% Upside)

Campbell Soup's overall stock score reflects strong revenue growth and operational efficiency, but is tempered by declining net margins, high leverage, and mixed earnings call guidance. The valuation is moderate, with a high dividend yield providing some support. Technical indicators suggest limited bullish momentum.

Positive Factors

Consumer Trends

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.

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's estimate and the consensus estimate.

Negative Factors

Input Costs

Rising input costs and shifting consumer preferences may pose a risk to profits for Campbell's Soup.

Snacks Segment Performance

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

Tariffs

Higher EU tariffs on Rao's sauces increase costs, contributing to a negative impact on CPB's earnings.

Campbell Soup Business Overview & Revenue Model

Company Description

Campbell Soup Company, commonly known as Campbell's, is a global food company based in Camden, New Jersey. Established in 1869, the company is primarily known for its soups, but its product offerings also include sauces, beverages, snacks, and packaged meals. Campbell's operates through several segments, including Meals & Beverages, Snacks, and International, catering to a diverse customer base across retail, food service, and international markets. The brand is recognized for its iconic tomato soup and a range of other well-known products, including Pepperidge Farm and V8.

How the Company Makes Money

Campbell Soup Company generates revenue primarily through the sale of its food products across various segments. The company's main revenue streams include retail sales of soups, sauces, and snacks through supermarkets and grocery stores, as well as food service sales to restaurants and catering businesses. Additionally, Campbell's benefits from international sales, reaching consumers in markets outside the United States. The company has strategic partnerships with retailers and food distributors that enhance its market reach and distribution capabilities. Furthermore, Campbell's invests in product innovation and marketing to drive consumer demand and brand loyalty, which are critical for sustaining its earnings.

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: 32.51
• 50DMA: Positive
• 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 Positive. The current price of 32.51 is above the 20-day moving average (MA) of 32.39, above the 50-day MA of 31.92, and below the 200-day MA of 37.14, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 53.37 is Neutral, neither overbought nor oversold. The STOCH value of 64.48 is Neutral, 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	81 Outperform	$11.40B	9.23	33.13%	―	2.06%	63.27%
CAG	72 Outperform	$9.15B	7.98	13.27%	7.30%	-3.64%	231.77%
GIS	69 Neutral	$26.93B	12.12	24.57%	4.85%	-1.87%	-5.16%
CPB	64 Neutral	$9.69B	21.48	11.67%	4.74%	8.65%	-38.57%
Sector *	63 Neutral	$20.74B	14.39	-8.06%	3.17%	2.73%	-9.96%
SJM	60 Neutral	$11.82B	22.22	-17.87%	3.92%	6.69%	-261.87%
KHC	57 Neutral	$32.75B	12.81	-11.68%	5.78%	-3.83%	-384.08%

Campbell Soup Corporate Events

Campbell Soup Extends Credit Agreement Maturity Date

On August 5, 2025, Campbell Soup Company extended the maturity date of its $1.85 billion Five-Year Credit Agreement by one year, now set to mature on April 16, 2030. This extension maintains all other terms of the agreement and reflects ongoing relationships with lenders providing various financial services, which may impact the company’s financial operations and stakeholder interests.

The most recent analyst rating on (CPB) stock is a Sell with a $45.00 price target. To see the full list of analyst forecasts on Campbell Soup stock, see the CPB Stock Forecast page.

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.