Campbell Soup Company
Exchange: NASDAQSector: Consumer DefensiveIndustry: Packaged Foods
For more than 150 years, Campbell has been connecting people through food they love. Generations of consumers have trusted Campbell to provide delicious and affordable food and beverages. Headquartered in Camden, N.J. since 1869, Campbell generated fiscal 2022 net sales of $8.6 billion. Our portfolio includes iconic brands such as Campbell’s, Cape Cod, Goldfish, Kettle Brand, Lance, Late July, Milano, Pace, Pacific Foods, Pepperidge Farm, Prego, Snyder’s of Hanover, Swanson and V8. Campbell has a heritage of giving back and acting as a good steward of the environment. The company is a member of the Standard & Poor’s 500 as well as the FTSE4Good and Bloomberg Gender-Equality Indices.
Did you know?
Trading 89% below its estimated fair value of $41.51.
Current Price
$22.01
+0.09%GoodMoat Value
$41.51
88.6% undervaluedProfile
Valuation (TTM)
Market Cap$6.56B
P/E11.93
EV$12.77B
P/B1.68
Shares Out298.13M
P/Sales0.65
Revenue$10.04B
EV/EBITDA8.94
Campbell Soup Company (CPB) Stock Analysis
GoodMoat Analysis
Campbell Soup is a legacy packaged food company with a strong brand moat, trading at a significant discount to its estimated fair value. However, its low moat score, weak quality indicators, and negative growth present a classic 'value trap' profile that requires careful scrutiny.
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Campbell Soup Company is a major player in the consumer defensive sector, producing and marketing packaged foods like soups, snacks, and simple meals. Its primary competitive advantage is its powerful brand, which holds deep cultural relevance in North America. Applying the GoodMoat framework, this likely translates to a Moat Score of 1 or 2, meeting only the 'Brand & Culture' criterion and possibly 'Niche Dominance' in condensed soup. This score of less than 5 fails the initial Moat & Quality Gate in the Decision Framework, indicating the business lacks a broad, durable competitive advantage.
Financially, the company shows mixed quality signals. Its ROE of 14.1% is below the high-quality threshold of 15-20%, and its debt/equity ratio of 1.76 is elevated. Revenue growth is negative at -3.4% YoY, and operating margin is 11.0%. While the 7.4% dividend yield and 11.4% FCF yield are attractive, the overall profile does not meet the 'High Quality' standard of 7+ Strong ratings. The stock is priced at a P/E of 11.3, which appears cheap, and the GoodMoat Target of $41.51 suggests a margin of safety exceeding 40%, classifying it as deeply undervalued. This creates a tension: the valuation is highly favourable, but the underlying business strength is unfavourable. A value investor must decide if the price discount is sufficient to compensate for the lack of moat and growth, a scenario that aligns with the 'WITH CAUTION' outcome in the Decision Framework.
Analysis based on data as of 2024-05-15.
Market Cap$6.56B
Current Price$22.01
P/E Ratio11.93
Forward P/E—
PEG Ratio-0.77
EPS$2.01
Book Value$13.09
P/B Ratio1.68
CPB Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -5.9% FCF growth (CAGR)
Cash vs Debt
Net Debt: 6.7B
Revenue
8.1B
FY19
8.7B
FY20
8.5B
FY21
8.6B
FY22
9.4B
FY23
9.6B
FY24
10.3B
FY25
Net Income
211M
FY19
1.6B
FY20
1.0B
FY21
757M
FY22
858M
FY23
567M
FY24
602M
FY25
CPB 52-Week Range
$20.45
$36.74
50-Day MA: $24.87200-Day MA: $28.45
Did you know?
Earnings per share grew at a -5.9% CAGR.
Campbell Soup Company (CPB) Financial Summary
Campbell Soup Company (CPB) is a Consumer Defensive company in the Packaged Foods industry, listed on NASDAQ. The stock currently trades at $22.01 with a market capitalization of $6.56B.
Key valuation metrics include a P/E ratio of 11.93, price-to-book ratio of 1.68, and EPS of $2.01. The company reports a profit margin of 5.5% and return on equity of 14.1%.
CPB Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $6.56B |
| P/E Ratio | 11.93 |
| EPS | $2.01 |
| P/B Ratio | 1.68 |
| P/S Ratio | 0.65 |
| EV/EBITDA | 8.94 |
| Dividend Yield | 6.99% |
| Profit Margin | 5.5% |
| Return on Equity | 14.1% |
| Debt/Equity | 1.76 |
CPB Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $8.11B | $211.00M |
| FY20 | $8.69B | $1.63B |
| FY21 | $8.48B | $1.00B |
| FY22 | $8.56B | $757.00M |
| FY23 | $9.36B | $858.00M |
| FY24 | $9.64B | $567.00M |
| FY25 | $10.25B | $602.00M |
Campbell Soup Company (CPB) Valuation
Based on GoodMoat's DCF model, Campbell Soup Company has a fair value estimate of $41.51. At the current price of $22.01, the stock appears 47.0% undervalued relative to our intrinsic value estimate.
CPB Quality Indicators
Campbell Soup Company maintains a profit margin of 5.5% and an operating margin of 11.0%. Return on equity stands at 14.1%. The current ratio is 0.77. Debt-to-equity ratio is 1.76.
About Campbell Soup Company
For more than 150 years, Campbell has been connecting people through food they love. Generations of consumers have trusted Campbell to provide delicious and affordable food and beverages. Headquartered in Camden, N.J. since 1869, Campbell generated fiscal 2022 net sales of $8.6 billion. Our portfolio includes iconic brands such as Campbell’s, Cape Cod, Goldfish, Kettle Brand, Lance, Late July, Milano, Pace, Pacific Foods, Pepperidge Farm, Prego, Snyder’s of Hanover, Swanson and V8. Campbell has a heritage of giving back and acting as a good steward of the environment. The company is a member of the Standard & Poor’s 500 as well as the FTSE4Good and Bloomberg Gender-Equality Indices.
CPB Free Cash Flow
Campbell Soup Company generated $705.00M in trailing twelve-month free cash flow, representing an FCF yield of 10.74%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
CPB Shares Outstanding
Campbell Soup Company has 0.30 billion shares outstanding at a share price of $22.01, giving it a market capitalization of $6.56B.
CPB Recent Insider Trades
Recent insider transactions at Campbell Soup Company include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Sanzio Anthony (EVP, Chief Comms Officer) | SELL | 2,700 | $71578.35 |
| Brawley Charles A. III (EVP, Gen Counsel, and Corp Sec) | SELL | 11,550 | $325074.75 |