CPB

Fundamentals to Watch About Campbell Soup Company (CPB)

Now trading at a price of $54.98, Campbell Soup Company has moved -0.3% so far today. In contrast, the S&P 500 index moved -1.0%. Read below for a basic value analysis of Campbell Soup Company.

Campbell Soup Company shares moved 22.9% over the last 52 weeks, with a high of $57.78 and a low of $44.35. During this time, the stock outperformed the S&P 500 index by 31.0%. As of January 2022, the company's 50-day average price is $53.0. Campbell Soup Company, together with its subsidiaries, manufactures and markets food and beverage products in the United States and internationally. The large-cap Consumer Staples company has 14,700 full time employees and is based in Camden, NJ. Campbell Soup Company has returned a 2.7% dividend yield over the last 12 months.

The Company Has a Steady Stream of Positive Cash Flows:

2019-07-31 2020-07-31 2021-07-31 2022-07-31
Revenue (MM) $8,107 $8,691 $8,476 $8,562
Revenue Growth n/a 7.2% -2.47% 1.01%
Gross Margins 33.2% 34.5% 33.2% 30.7%
Gross Margins Growth n/a 3.92% -3.77% -7.53%
Operating Margins 13.6% 14.4% 15.4% 13.4%
Operating Margins Growth n/a 5.88% 6.94% -12.99%
Net Margins 2.6% 18.73% 11.82% 8.84%
Net Margins Growth n/a 620.38% -36.89% -25.21%
Earnings Per Share $0.7 $5.36 $3.29 $2.71
EPS Growth n/a 665.71% -38.62% -17.63%
Diluted Shares (MM) 302 304 305 299
Free Cash Flow (MM) $1,014 $1,097 $760 $939
FCF Growth n/a 8.19% -30.72% 23.55%
Capital Expenditures (MM) -$384 -$299 -$275 -$242
Net Debt / EBITDA 5.71 3.41 2.62 3.1

Campbell Soup Company Is Overpriced:

Compared to the Consumer Staples sector's average of 24.36, Campbell Soup Company has a trailing twelve month P/E ratio of 20.3 and, according to its EPS guidance of 3.14, an expected P/E ratio of 17.5.

The market is giving Campbell Soup Company a fair value in terms of its book value, since its P/B ratio of 4.6 is consistent with its sector average, which stands at 4.29. The company's shares are currently trading 92.2% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 3.02 * 12.037) = $28.6

Campbell Soup Company Is the Subject of Mixed Market Indicators:

16 analysts are following Campbell Soup Company and have set target prices ranging from $41.0 to $61.0 per share. On average, they have given the company a rating of hold. At the current price of $54.98, CPB is trading 3.97% away from its average analyst target price of $52.88 per share, implying an analyst consensus of little upside potential for the stock.

The company has an average amount of shares sold short since 7.2% of the company's shares are tied to short positions. Institutions own 54.7% of Campbell Soup Company's shares, while the insider ownership rate stands at 35.95%. The biggest shareholder is the Vanguard Group, Inc. with a 8% stake in the company worth approximately $1,311,352,545.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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