Campbell Soup (CPB) AI Stock Analysis

• Market Cap: $10.15B
• Dividend Yield: 4.53%
• Average Volume (3M): 6.41M
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.12
• Revenue Growth: 6.40%
• EPS Growth: 6.17%
• Country: US
• Employees: 14,400
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Packaged Foods
• EPS (TTM): 0.62
• Shares Outstanding: 298,129,970
• 10 Day Avg. Volume: 9,479,912
• 30 Day Avg. Volume: 6,412,360
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 1.60
• Enterprise Value/Gross Profit: 5.24
• Enterprise Value/Ebitda: 10.52
• 1Y Price Target: $33.29
• Price Target Upside: -2.17% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 16

• Rating: 69 Neutral
• Price Target: $36.00 ▲(5.79% Upside)

Campbell Soup's overall stock score reflects strong revenue growth and a stable EBIT margin, but is tempered by declining profit margins and high leverage. The technical analysis shows mixed signals, with short-term bullish momentum but longer-term bearish trends. Valuation is fair, with an attractive dividend yield. The earnings call highlighted both positive brand performance and significant challenges, particularly from tariffs and declining organic sales.

Positive Factors

Consumer Trends

The Meals and Beverage segment is well-aligned with consumer trends, particularly with the growing interest in cooking from scratch and protein-rich soups.

Cost Savings

Management raised its expected productivity savings by 50% from $250m to $375m, showing a strong commitment to efficiency improvements.

Earnings

CPB shares were up following a solid 4Q EPS beat and FY26 guidance that was ahead of investor expectations.

Negative Factors

Organic Sales Decline

Campbell reported a decline in organic sales driven by a decrease in underlying volume/mix.

Tariffs Impact

Tariffs and other cost headwinds are expected to negatively impact margins in FY26, raising COGS by an extra 4%.

Volume Pressure

The rally in the stock is viewed as premature given the risk to FY26 guidance from continued volume pressure in Snacks and lack of pricing power across Meals.

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 shows strong revenue growth and operational efficiency, but faces challenges with declining net margins and high financial leverage. Cash flow generation is robust, yet translating net income into free cash flow remains a concern. Managing leverage and improving profitability margins are crucial for financial health.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.25B	10.25B	9.64B	9.36B	8.56B	8.48B
Gross Profit	3.13B	3.12B	2.97B	2.92B	2.63B	2.81B
EBITDA	1.56B	1.56B	1.41B	1.70B	1.50B	1.86B
Net Income	602.00M	602.00M	567.00M	858.00M	757.00M	1.00B
Balance Sheet
Total Assets	14.90B	14.90B	15.23B	12.06B	11.89B	11.73B
Cash, Cash Equivalents and Short-Term Investments	132.00M	132.00M	108.00M	189.00M	109.00M	69.00M
Total Debt	6.86B	6.86B	7.54B	4.97B	5.05B	5.29B
Total Liabilities	10.99B	10.99B	11.44B	8.39B	8.56B	8.58B
Stockholders Equity	3.90B	3.90B	3.79B	3.66B	3.33B	3.15B
Cash Flow
Free Cash Flow	705.00M	705.00M	668.00M	773.00M	939.00M	760.00M
Operating Cash Flow	1.14B	1.13B	1.19B	1.14B	1.18B	1.03B
Investing Cash Flow	-187.00M	-187.00M	-3.13B	-340.00M	-230.00M	-158.00M
Financing Cash Flow	-931.00M	-919.00M	1.86B	-723.00M	-910.00M	-1.67B

Campbell Soup Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.03
• 50DMA: Positive
• 100DMA: Positive
• 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 34.03 is above the 20-day moving average (MA) of 32.46, above the 50-day MA of 31.94, and below the 200-day MA of 36.31, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 60.21 is Neutral, neither overbought nor oversold. The STOCH value of 85.22 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	79 Outperform	$10.52B	8.53	33.13%	―	2.06%	63.27%
GIS	73 Outperform	$27.04B	12.34	24.57%	4.76%	-1.87%	-5.16%
CAG	72 Outperform	$9.21B	8.03	13.27%	7.26%	-3.64%	231.77%
CPB	69 Neutral	$10.15B	16.93	15.64%	4.53%	6.40%	6.17%
LW	69 Neutral	$8.08B	23.17	20.26%	2.53%	-0.25%	-49.73%
Sector *	63 Neutral	$20.52B	14.80	-2.68%	3.09%	1.95%	-4.76%
SJM	55 Neutral	$12.00B	22.22	-21.32%	3.86%	2.54%	-293.39%

Campbell Soup Corporate Events

Campbell Soup Appoints New Senior VP and Controller

On September 2, 2025, Campbell Soup Company announced that Stanley Polomski, its Senior Vice President & Controller, will transition to a new role as Senior Vice President, Business Process Optimization, effective September 22, 2025. Subsequently, on September 3, 2025, the company appointed Kelly L. Palumbo as the new Senior Vice President, Controller and Chief Accounting Officer, effective the same date. Ms. Palumbo, who brings extensive experience from her previous roles at Charles River Laboratories International, Inc. and Johnson & Johnson, will receive a comprehensive compensation package, including a base salary, bonuses, and stock units. This leadership change is expected to impact the company’s financial operations and strategic direction.

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.

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.