26.79 USD
+0.24 (+0.9%)
26.79 USD
0 (0%)
CPB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 87 industry peers in the Food Products industry. While CPB is still in line with the averages on profitability rating, there are concerns on its financial health. CPB is valued quite cheap, but it does not seem to be growing. CPB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year CPB was profitable.
- CPB had a positive operating cash flow in the past year.
- CPB had positive earnings in each of the past 5 years.
- CPB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of CPB (3.81%) is better than 66.67% of its industry peers.
- CPB has a Return On Equity of 14.61%. This is amongst the best in the industry. CPB outperforms 87.36% of its industry peers.
- CPB's Return On Invested Capital of 7.96% is amongst the best of the industry. CPB outperforms 80.46% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CPB is significantly below the industry average of 27.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.81% | ||
| ROE | 14.61% | ||
| ROIC | 7.96% |
ROA(3y)4.96%
ROA(5y)5.96%
ROE(3y)17.94%
ROE(5y)21.66%
ROIC(3y)8.78%
ROIC(5y)9.55%
1.3 Margins
- CPB has a Profit Margin of 5.69%. This is in the better half of the industry: CPB outperforms 74.71% of its industry peers.
- CPB's Profit Margin has declined in the last couple of years.
- CPB's Operating Margin of 13.42% is amongst the best of the industry. CPB outperforms 85.06% of its industry peers.
- CPB's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 30.27%, CPB is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
- In the last couple of years the Gross Margin of CPB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.42% | ||
| PM (TTM) | 5.69% | ||
| GM | 30.27% |
OM growth 3Y-0.11%
OM growth 5Y-1.79%
PM growth 3Y-12.75%
PM growth 5Y-20.71%
GM growth 3Y-0.01%
GM growth 5Y-2.35%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CPB is still creating some value.
- CPB has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, CPB has less shares outstanding
- The debt/assets ratio for CPB has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.79, we must say that CPB is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.79, CPB perfoms like the industry average, outperforming 43.68% of the companies in the same industry.
- The Debt to FCF ratio of CPB is 10.15, which is on the high side as it means it would take CPB, 10.15 years of fcf income to pay off all of its debts.
- CPB has a Debt to FCF ratio (10.15) which is in line with its industry peers.
- CPB has a Debt/Equity ratio of 1.75. This is a high value indicating a heavy dependency on external financing.
- CPB has a Debt to Equity ratio of 1.75. This is amonst the worse of the industry: CPB underperforms 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 10.15 | ||
| Altman-Z | 1.79 |
ROIC/WACC1.19
WACC6.67%
2.3 Liquidity
- A Current Ratio of 0.82 indicates that CPB may have some problems paying its short term obligations.
- With a Current ratio value of 0.82, CPB is not doing good in the industry: 80.46% of the companies in the same industry are doing better.
- A Quick Ratio of 0.34 indicates that CPB may have some problems paying its short term obligations.
- CPB has a Quick ratio of 0.34. This is amonst the worse of the industry: CPB underperforms 87.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
- CPB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.84%.
- CPB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.13% yearly.
- CPB shows a small growth in Revenue. In the last year, the Revenue has grown by 2.71%.
- Measured over the past years, CPB shows a small growth in Revenue. The Revenue has been growing by 3.36% on average per year.
EPS 1Y (TTM)-6.84%
EPS 3Y1.62%
EPS 5Y0.13%
EPS Q2Q%-13.48%
Revenue 1Y (TTM)2.71%
Revenue growth 3Y6.19%
Revenue growth 5Y3.36%
Sales Q2Q%-3.43%
3.2 Future
- CPB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.58% yearly.
- The Revenue is expected to grow by 1.29% on average over the next years.
EPS Next Y-17.47%
EPS Next 2Y-6.17%
EPS Next 3Y-1.85%
EPS Next 5Y3.58%
Revenue Next Year-3.22%
Revenue Next 2Y-1.15%
Revenue Next 3Y-0.29%
Revenue Next 5Y1.29%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 9.37, the valuation of CPB can be described as very reasonable.
- 87.36% of the companies in the same industry are more expensive than CPB, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of CPB to the average of the S&P500 Index (27.21), we can say CPB is valued rather cheaply.
- A Price/Forward Earnings ratio of 10.21 indicates a reasonable valuation of CPB.
- Based on the Price/Forward Earnings ratio, CPB is valued cheaper than 88.51% of the companies in the same industry.
- CPB is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.37 | ||
| Fwd PE | 10.21 |
4.2 Price Multiples
- CPB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CPB is cheaper than 72.41% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, CPB is valued cheaply inside the industry as 83.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.61 | ||
| EV/EBITDA | 7.8 |
4.3 Compensation for Growth
- CPB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)69.5
EPS Next 2Y-6.17%
EPS Next 3Y-1.85%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.88%, CPB is a good candidate for dividend investing.
- CPB's Dividend Yield is rather good when compared to the industry average which is at 2.29. CPB pays more dividend than 87.36% of the companies in the same industry.
- CPB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
5.2 History
- The dividend of CPB has a limited annual growth rate of 1.74%.
- CPB has paid a dividend for at least 10 years, which is a reliable track record.
- CPB has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.74%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
- CPB pays out 80.10% of its income as dividend. This is not a sustainable payout ratio.
- CPB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP80.1%
EPS Next 2Y-6.17%
EPS Next 3Y-1.85%
THE CAMPBELL'S COMPANY / CPB FAQ
What is the fundamental rating for CPB stock?
ChartMill assigns a fundamental rating of 5 / 10 to CPB.
Can you provide the valuation status for THE CAMPBELL'S COMPANY?
ChartMill assigns a valuation rating of 7 / 10 to THE CAMPBELL'S COMPANY (CPB). This can be considered as Undervalued.
What is the profitability of CPB stock?
THE CAMPBELL'S COMPANY (CPB) has a profitability rating of 6 / 10.
Can you provide the financial health for CPB stock?
The financial health rating of THE CAMPBELL'S COMPANY (CPB) is 2 / 10.
Can you provide the expected EPS growth for CPB stock?
The Earnings per Share (EPS) of THE CAMPBELL'S COMPANY (CPB) is expected to decline by -17.47% in the next year.