Campbell Soup Company
Campbell Soup Company Fundamental Analysis
Campbell Soup Company (CPB) shows moderate financial fundamentals with a PE ratio of 11.87, profit margin of 5.48%, and ROE of 13.98%. The company generates $10.0B in annual revenue with moderate year-over-year growth of 6.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CPB's fundamental strength across five key dimensions:
Efficiency Score
WeakCPB struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCPB trades at attractive valuation levels.
Growth Score
ModerateCPB shows steady but slowing expansion.
Financial Health Score
ModerateCPB shows balanced financial health with some risks.
Profitability Score
WeakCPB struggles to sustain strong margins.
Key Financial Metrics
Is CPB Expensive or Cheap?
P/E Ratio
CPB trades at 11.87 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CPB's PEG of -2.56 indicates potential undervaluation.
Price to Book
The market values Campbell Soup Company at 1.63 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.01 times EBITDA. This is generally considered low.
How Well Does CPB Make Money?
Net Profit Margin
For every $100 in sales, Campbell Soup Company keeps $5.48 as profit after all expenses.
Operating Margin
Core operations generate 12.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.98 in profit for every $100 of shareholder equity.
ROA
Campbell Soup Company generates $3.58 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Campbell Soup Company produces operating cash flow of $1.13B, showing steady but balanced cash generation.
Free Cash Flow
Campbell Soup Company produces free cash flow of $919.41M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.08 in free cash annually.
FCF Yield
CPB converts 14.16% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.63
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.65
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.77
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.01
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How CPB Stacks Against Its Sector Peers
| Metric | CPB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.87 | 22.53 | Better (Cheaper) |
| ROE | 13.98% | 1238.00% | Weak |
| Net Margin | 5.48% | -6235.00% (disorted) | Weak |
| Debt/Equity | 1.77 | 1.25 | Weak (High Leverage) |
| Current Ratio | 1.01 | 2.41 | Neutral |
| ROA | 3.58% | -157319.00% (disorted) | Weak |
CPB outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Campbell Soup Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
19.56%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
-62.53%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
-17.90%
Industry Style: Defensive, Dividend, Low Volatility
Declining