THE CAMPBELL'S COMPANY (CPB) Stock Fundamental Analysis
NASDAQ:CPB - Nasdaq - US1344291091 - Common Stock - Currency: USD
Taking everything into account, CPB scores 4 out of 10 in our fundamental rating. CPB was compared to 91 industry peers in the Food Products industry. CPB has a medium profitability rating, but doesn't score so well on its financial health evaluation. CPB is not valued too expensively and it also shows a decent growth rate. 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.
In the past 5 years CPB has always been profitable.
In the past 5 years CPB always reported a positive cash flow from operatings.
1.2 Ratios
CPB has a Return On Assets of 3.72%. This is comparable to the rest of the industry: CPB outperforms 57.65% of its industry peers.
CPB has a Return On Equity of 14.94%. This is in the better half of the industry: CPB outperforms 78.82% of its industry peers.
CPB has a Return On Invested Capital of 7.44%. This is in the better half of the industry: CPB outperforms 71.76% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CPB is in line with the industry average of 9.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 14.94% | ||
| ROIC | 7.44% |
ROA(3y)5.73%
ROA(5y)7.78%
ROE(3y)20.37%
ROE(5y)31.28%
ROIC(3y)9.24%
ROIC(5y)9.93%
1.3 Margins
The Profit Margin of CPB (5.88%) is better than 72.94% of its industry peers.
In the last couple of years the Profit Margin of CPB has grown nicely.
CPB's Operating Margin of 13.36% is fine compared to the rest of the industry. CPB outperforms 80.00% of its industry peers.
CPB's Operating Margin has declined in the last couple of years.
CPB has a Gross Margin of 31.10%. This is in the better half of the industry: CPB outperforms 69.41% of its industry peers.
CPB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.36% | ||
| PM (TTM) | 5.88% | ||
| GM | 31.1% |
OM growth 3Y-9.83%
OM growth 5Y-3.15%
PM growth 3Y-20.75%
PM growth 5Y17.72%
GM growth 3Y-2.15%
GM growth 5Y-1.48%
2. Health
2.1 Basic Checks
CPB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CPB has about the same amout of shares outstanding than it did 1 year ago.
CPB has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CPB is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.84 indicates that CPB is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.84, CPB perfoms like the industry average, outperforming 44.71% of the companies in the same industry.
The Debt to FCF ratio of CPB is 10.75, which is on the high side as it means it would take CPB, 10.75 years of fcf income to pay off all of its debts.
CPB has a Debt to FCF ratio of 10.75. This is comparable to the rest of the industry: CPB outperforms 49.41% of its industry peers.
CPB has a Debt/Equity ratio of 1.89. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.89, CPB is not doing good in the industry: 88.24% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.89 | ||
| Debt/FCF | 10.75 | ||
| Altman-Z | 1.84 |
ROIC/WACC1.08
WACC6.89%
2.3 Liquidity
A Current Ratio of 0.61 indicates that CPB may have some problems paying its short term obligations.
CPB has a Current ratio of 0.61. This is amonst the worse of the industry: CPB underperforms 91.76% of its industry peers.
A Quick Ratio of 0.22 indicates that CPB may have some problems paying its short term obligations.
The Quick ratio of CPB (0.22) is worse than 94.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
CPB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.23%.
CPB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.35% yearly.
Looking at the last year, CPB shows a small growth in Revenue. The Revenue has grown by 2.98% in the last year.
Measured over the past years, CPB shows a small growth in Revenue. The Revenue has been growing by 3.52% on average per year.
EPS 1Y (TTM)6.23%
EPS 3Y1.22%
EPS 5Y3.35%
EPS Q2Q%-2.2%
Revenue 1Y (TTM)2.98%
Revenue growth 3Y4.37%
Revenue growth 5Y3.52%
Sales Q2Q%10.09%
3.2 Future
The Earnings Per Share is expected to grow by 6.34% on average over the next years.
The Revenue is expected to grow by 3.14% on average over the next years.
EPS Next Y2.55%
EPS Next 2Y4.35%
EPS Next 3Y5.52%
EPS Next 5Y6.34%
Revenue Next Year8.67%
Revenue Next 2Y4.28%
Revenue Next 3Y3.53%
Revenue Next 5Y3.14%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CPB is valuated correctly with a Price/Earnings ratio of 13.22.
Based on the Price/Earnings ratio, CPB is valued a bit cheaper than 75.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of CPB to the average of the S&P500 Index (29.63), we can say CPB is valued rather cheaply.
A Price/Forward Earnings ratio of 12.06 indicates a correct valuation of CPB.
Based on the Price/Forward Earnings ratio, CPB is valued cheaper than 82.35% of the companies in the same industry.
CPB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.22 | ||
| Fwd PE | 12.06 |
4.2 Price Multiples
CPB's Enterprise Value to EBITDA is on the same level as the industry average.
CPB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CPB is cheaper than 63.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.11 | ||
| EV/EBITDA | 10.25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CPB does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of CPB may justify a higher PE ratio.
PEG (NY)5.19
PEG (5Y)3.94
EPS Next 2Y4.35%
EPS Next 3Y5.52%
5. Dividend
5.1 Amount
CPB has a Yearly Dividend Yield of 4.04%, which is a nice return.
CPB's Dividend Yield is rather good when compared to the industry average which is at 3.94. CPB pays more dividend than 83.53% of the companies in the same industry.
CPB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.04% |
5.2 History
The dividend of CPB has a limited annual growth rate of 1.22%.
CPB has been paying a dividend for at least 10 years, so it has 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)1.22%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
CPB pays out 78.48% 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.
DP78.48%
EPS Next 2Y4.35%
EPS Next 3Y5.52%
40.59
+1.25 (+3.18%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners56.84%
Inst Owner Change6.81%
Ins Owners18.38%
Ins Owner Change6.87%
Market Cap12.10B
Analysts66.4
Price Target48.8 (20.23%)
Short Float %8.48%
Short Ratio5.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.04% |
Yearly Dividend1.49
Dividend Growth(5Y)1.22%
DP78.48%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.48%
Min EPS beat(2)0.83%
Max EPS beat(2)6.14%
EPS beat(4)4
Avg EPS beat(4)3.29%
Min EPS beat(4)0.83%
Max EPS beat(4)6.14%
EPS beat(8)7
Avg EPS beat(8)4.86%
EPS beat(12)9
Avg EPS beat(12)4.9%
EPS beat(16)11
Avg EPS beat(16)4.34%
Revenue beat(2)0
Avg Revenue beat(2)-1.05%
Min Revenue beat(2)-1.76%
Max Revenue beat(2)-0.34%
Revenue beat(4)0
Avg Revenue beat(4)-0.82%
Min Revenue beat(4)-1.76%
Max Revenue beat(4)-0.2%
Revenue beat(8)2
Avg Revenue beat(8)-0.02%
Revenue beat(12)3
Avg Revenue beat(12)-0.28%
Revenue beat(16)4
Avg Revenue beat(16)-0.3%
PT rev (1m)-1.62%
PT rev (3m)-6.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.26%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-1.71%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.22 | ||
| Fwd PE | 12.06 | ||
| P/S | 1.26 | ||
| P/FCF | 18.11 | ||
| P/OCF | 10.21 | ||
| P/B | 3.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.25 |
EPS(TTM)3.07
EY7.56%
EPS(NY)3.36
Fwd EY8.29%
FCF(TTM)2.24
FCFY5.52%
OCF(TTM)3.98
OCFY9.79%
SpS32.32
BVpS12.73
TBVpS-20.12
PEG (NY)5.19
PEG (5Y)3.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 14.94% | ||
| ROCE | 11.04% | ||
| ROIC | 7.44% | ||
| ROICexc | 7.5% | ||
| ROICexgc | 30.78% | ||
| OM | 13.36% | ||
| PM (TTM) | 5.88% | ||
| GM | 31.1% | ||
| FCFM | 6.93% |
ROA(3y)5.73%
ROA(5y)7.78%
ROE(3y)20.37%
ROE(5y)31.28%
ROIC(3y)9.24%
ROIC(5y)9.93%
ROICexc(3y)9.37%
ROICexc(5y)10.22%
ROICexgc(3y)38.55%
ROICexgc(5y)44.5%
ROCE(3y)12.83%
ROCE(5y)13.65%
ROICexcg growth 3Y-11.01%
ROICexcg growth 5Y0.34%
ROICexc growth 3Y-13.98%
ROICexc growth 5Y-3.68%
OM growth 3Y-9.83%
OM growth 5Y-3.15%
PM growth 3Y-20.75%
PM growth 5Y17.72%
GM growth 3Y-2.15%
GM growth 5Y-1.48%
F-Score4
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.89 | ||
| Debt/FCF | 10.75 | ||
| Debt/EBITDA | 4.22 | ||
| Cap/Depr | 125.79% | ||
| Cap/Sales | 5.37% | ||
| Interest Coverage | 6.63 | ||
| Cash Conversion | 69.79% | ||
| Profit Quality | 117.81% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.22 | ||
| Altman-Z | 1.84 |
F-Score4
WACC6.89%
ROIC/WACC1.08
Cap/Depr(3y)97.74%
Cap/Depr(5y)94.22%
Cap/Sales(3y)4.05%
Cap/Sales(5y)3.77%
Profit Quality(3y)110.65%
Profit Quality(5y)95.04%
High Growth Momentum
Growth
EPS 1Y (TTM)6.23%
EPS 3Y1.22%
EPS 5Y3.35%
EPS Q2Q%-2.2%
EPS Next Y2.55%
EPS Next 2Y4.35%
EPS Next 3Y5.52%
EPS Next 5Y6.34%
Revenue 1Y (TTM)2.98%
Revenue growth 3Y4.37%
Revenue growth 5Y3.52%
Sales Q2Q%10.09%
Revenue Next Year8.67%
Revenue Next 2Y4.28%
Revenue Next 3Y3.53%
Revenue Next 5Y3.14%
EBIT growth 1Y-7.81%
EBIT growth 3Y-5.89%
EBIT growth 5Y0.25%
EBIT Next Year39.55%
EBIT Next 3Y14.25%
EBIT Next 5Y10.05%
FCF growth 1Y-13.58%
FCF growth 3Y-4.21%
FCF growth 5Y-8.01%
OCF growth 1Y3.67%
OCF growth 3Y4.61%
OCF growth 5Y-3.25%