Campbell's fourth-quarter organic sales fell 1% on lower volumes. Adjusted operating margin sank 250 basis points to 11.3%, as a 530-basis-point hit from inflation offset a 380-basis-point benefit from cost savings. The firm cut its dividend by more than 30%, sending shares down around 7%.
Removing excess costs should afford Campbell's the ability to reinvest in its brands, about a dozen of which, generate more than $100 million in sales each year.
Another step-up in labor, logistics, packaging, and raw material costs (which could be exacerbated by tariffs and the conflict in the Middle East) may dent Campbell's ability to drive meaningful margin gains.
|
Metric
|
CPB
|
GIS
|
UL
|
|---|---|---|---|
Price/Earnings (Normalized) | 14.88 | 9.20 | 17.58 |
Price/Book Value | 1.51 | 2.27 | 6.94 |
Price/Sales | 0.60 | 0.93 | 2.43 |
Price/Cash Flow | 4.87 | 5.95 | 19.21 |
|
Metric
|
CPB
|
GIS
|
UL
|
|---|---|---|---|
Quick Ratio | 0.29 | 0.32 | 0.57 |
Current Ratio | 0.82 | 0.70 | 0.74 |
Interest Coverage | 2.57 | −0.28 | — |
|
Metric
|
CPB
|
GIS
|
UL
|
|---|---|---|---|
Return on Assets (Normalized) | 4.28% | 5.83% | — |
Return on Equity (Normalized) | 16.51% | 21.45% | — |
Return on Invested Capital (Normalized) | 8.11% | 10.10% | — |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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NSRGY
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DANOY
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KHC
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GIS
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SJM
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United States