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Campbell Soup Co CPB

Morningstar Rating
$40.54 +0.36 (0.90%)
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Company Report

Campbell's Brand Investments Should Support an Edge Even Against a Gloomy Economic Backdrop

CEO Mark Clouse’s tenure has been fraught with change since joining Campbell Soup in January 2019. The company parted ways with its fresh business and the bulk of its international operations while working to steady its core meals, beverages, and snacking arms. The global pandemic and inflation have also had an impact. However, we don’t think recent performance (20% consumption growth on a three-year stack basis) is just a byproduct of stepped-up consumer stockups of essential fare since March 2020. Rather, we think Campbell’s prudent strategic focus has set it on a sound course, leveraging technology, data insights, and artificial intelligence to bring consumer-valued products to the shelf in a timely fashion while also reducing complexity, investing in automation, and optimizing its supply chain and manufacturing network.

Price vs Fair Value

CPB is trading at a 34% discount.
Price
$40.18
Fair Value
$78.00
Uncertainty
Medium
1-Star Price
$48.55
5-Star Price
$51.90
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Removing excess costs should afford Campbell the fuel to reinvest in its brands, nearly one dozen of which generate more than $100 million in sales each year.

Bears

Increased labor, logistics, packaging, and raw material costs could stifle Campbell's ability to drive much in the way of margin gains over the near term.

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Trading Information

Previous Close Price
$40.18
Day Range
$39.9140.54
52-Week Range
$37.9457.76
Bid/Ask
$40.54 / $40.55
Market Cap
$12.06 Bil
Volume/Avg
1.4 Mil / 2.9 Mil

Key Statistics

Price/Earnings (Normalized)
13.35
Price/Sales
1.29
Dividend Yield
3.68%
Dividend Yield (Forward)
3.68%
Total Yield
4.69%

Company Profile

With a history that dates back around 150 years, Campbell Soup is now a leading manufacturer and marketer of branded convenience food products, most notably soup. The firm's product assortment includes well-known brands like Campbell's, Pace, Prego, Swanson, V8, and Pepperidge Farm. Following the sale of its international snacking operations in calendar 2019, the firm derives nearly all of its sales from the United States. Campbell has made a handful of acquisitions to reshape its product mix in the past several years, including the tie-up with Snyder's-Lance in March 2018, which enhanced its exposure to the faster-growing on-trend snack food aisle, complementing its Pepperidge Farm lineup.
Sector
Consumer Defensive
Industry
Packaged Foods
Stock Style Box
Mid Value
Total Number of Employees
14,500

Competitors

Valuation

Metric
CPB
GIS
UL
Price/Earnings (Normalized)
13.3514.8717.40
Price/Book Value
3.273.615.74
Price/Sales
1.291.881.91
Price/Cash Flow
8.9012.4115.87
Price/Earnings
CPB
GIS
UL

Financial Strength

Metric
CPB
GIS
UL
Quick Ratio
0.320.320.57
Current Ratio
0.930.720.79
Interest Coverage
6.988.1712.41
Quick Ratio
CPB
GIS
UL

Profitability

Metric
CPB
GIS
UL
Return on Assets (Normalized)
7.50%8.19%8.29%
Return on Equity (Normalized)
25.59%24.81%34.21%
Return on Invested Capital (Normalized)
12.46%12.91%13.37%
Return on Assets
CPB
GIS
UL

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