THE CAMPBELL'S COMPANY (CPB) Stock Fundamental Analysis
NASDAQ:CPB - Nasdaq - US1344291091 - Common Stock - Currency: USD
Overall CPB gets a fundamental rating of 5 out of 10. We evaluated CPB against 91 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 has a decent growth rate and is not valued too expensively. CPB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CPB had positive earnings in the past year.
In the past year CPB had a positive cash flow from operations.
Each year in the past 5 years CPB has 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 (3.06%) which is in line with its industry peers.
The Return On Equity of CPB (11.73%) is better than 73.63% of its industry peers.
CPB has a Return On Invested Capital of 8.15%. This is in the better half of the industry: CPB outperforms 79.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CPB is significantly below the industry average of 28.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.06% | ||
| ROE | 11.73% | ||
| ROIC | 8.15% |
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
Looking at the Profit Margin, with a value of 4.44%, CPB is in the better half of the industry, outperforming 65.93% of the companies in the same industry.
CPB's Profit Margin has improved in the last couple of years.
The Operating Margin of CPB (13.47%) is better than 81.32% of its industry peers.
In the last couple of years the Operating Margin of CPB has declined.
The Gross Margin of CPB (30.62%) is better than 71.43% of its industry peers.
In the last couple of years the Gross Margin of CPB has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.47% | ||
| PM (TTM) | 4.44% | ||
| GM | 30.62% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CPB is creating some value.
Compared to 1 year ago, CPB has about the same amount of shares outstanding.
CPB has less shares outstanding than it did 5 years ago.
CPB has a worse debt/assets ratio than last year.
2.2 Solvency
CPB has an Altman-Z score of 1.89. This is not the best score and indicates that CPB is in the grey zone with still only limited risk for bankruptcy at the moment.
CPB has a Altman-Z score of 1.89. This is comparable to the rest of the industry: CPB outperforms 46.15% of its industry peers.
The Debt to FCF ratio of CPB is 9.54, which is on the high side as it means it would take CPB, 9.54 years of fcf income to pay off all of its debts.
CPB has a Debt to FCF ratio of 9.54. This is in the better half of the industry: CPB outperforms 62.64% of its industry peers.
CPB has a Debt/Equity ratio of 1.77. This is a high value indicating a heavy dependency on external financing.
CPB has a Debt to Equity ratio of 1.77. This is amonst the worse of the industry: CPB underperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | 9.54 | ||
| Altman-Z | 1.89 |
ROIC/WACC0.92
WACC8.83%
2.3 Liquidity
A Current Ratio of 0.78 indicates that CPB may have some problems paying its short term obligations.
With a Current ratio value of 0.78, CPB is not doing good in the industry: 79.12% of the companies in the same industry are doing better.
CPB has a Quick Ratio of 0.78. This is a bad value and indicates that CPB is not financially healthy enough and could expect problems in meeting its short term obligations.
CPB has a worse Quick ratio (0.33) than 87.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.01% over the past year.
Measured over the past 5 years, CPB shows a small growth in Earnings Per Share. The EPS has been growing by 3.35% on average per year.
The Revenue has grown by 8.65% in the past year. This is quite good.
The Revenue has been growing slightly by 3.52% on average over the past years.
EPS 1Y (TTM)1.01%
EPS 3Y1.22%
EPS 5Y3.35%
EPS Q2Q%-2.67%
Revenue 1Y (TTM)8.65%
Revenue growth 3Y4.37%
Revenue growth 5Y3.52%
Sales Q2Q%4.47%
3.2 Future
The Earnings Per Share is expected to grow by 4.49% on average over the next years.
The Revenue is expected to grow by 2.45% on average over the next years.
EPS Next Y-4.33%
EPS Next 2Y-3.37%
EPS Next 3Y0.07%
EPS Next 5Y4.49%
Revenue Next Year6.33%
Revenue Next 2Y2.15%
Revenue Next 3Y1.94%
Revenue Next 5Y2.45%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.60, the valuation of CPB can be described as reasonable.
78.02% of the companies in the same industry are more expensive than CPB, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.21, CPB is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.98, the valuation of CPB can be described as very reasonable.
Based on the Price/Forward Earnings ratio, CPB is valued cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.70. CPB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.6 | ||
| Fwd PE | 10.98 |
4.2 Price Multiples
67.03% of the companies in the same industry are more expensive than CPB, based on the Enterprise Value to EBITDA ratio.
78.02% of the companies in the same industry are more expensive than CPB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.07 | ||
| EV/EBITDA | 8.32 |
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)3.16
EPS Next 2Y-3.37%
EPS Next 3Y0.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.04%, CPB is a good candidate for dividend investing.
CPB's Dividend Yield is rather good when compared to the industry average which is at 4.75. CPB pays more dividend than 86.81% of the companies in the same industry.
CPB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.04% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.22%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
100.00% of the earnings are spent on dividend by CPB. This is not a sustainable payout ratio.
CPB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP100%
EPS Next 2Y-3.37%
EPS Next 3Y0.07%
31.69
+1.04 (+3.39%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners59.38%
Inst Owner Change-0.56%
Ins Owners18.27%
Ins Owner Change0.25%
Market Cap9.45B
Analysts57.33
Price Target38.45 (21.33%)
Short Float %11.19%
Short Ratio5.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.04% |
Yearly Dividend1.49
Dividend Growth(5Y)1.22%
DP100%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.71%
Min EPS beat(2)1.26%
Max EPS beat(2)10.16%
EPS beat(4)4
Avg EPS beat(4)3.29%
Min EPS beat(4)0.83%
Max EPS beat(4)10.16%
EPS beat(8)7
Avg EPS beat(8)2.95%
EPS beat(12)10
Avg EPS beat(12)4.19%
EPS beat(16)13
Avg EPS beat(16)5.34%
Revenue beat(2)1
Avg Revenue beat(2)-1.04%
Min Revenue beat(2)-2.89%
Max Revenue beat(2)0.81%
Revenue beat(4)1
Avg Revenue beat(4)-1.45%
Min Revenue beat(4)-2.89%
Max Revenue beat(4)0.81%
Revenue beat(8)1
Avg Revenue beat(8)-0.98%
Revenue beat(12)3
Avg Revenue beat(12)-0.44%
Revenue beat(16)5
Avg Revenue beat(16)-0.3%
PT rev (1m)-10.67%
PT rev (3m)-12.7%
EPS NQ rev (1m)-19.2%
EPS NQ rev (3m)-19.51%
EPS NY rev (1m)-1.96%
EPS NY rev (3m)-2.13%
Revenue NQ rev (1m)-2.8%
Revenue NQ rev (3m)-3.12%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.6 | ||
| Fwd PE | 10.98 | ||
| P/S | 0.92 | ||
| P/FCF | 13.07 | ||
| P/OCF | 8.15 | ||
| P/B | 2.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.32 |
EPS(TTM)2.99
EY9.44%
EPS(NY)2.89
Fwd EY9.1%
FCF(TTM)2.42
FCFY7.65%
OCF(TTM)3.89
OCFY12.28%
SpS34.29
BVpS12.98
TBVpS-18.4
PEG (NY)N/A
PEG (5Y)3.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.06% | ||
| ROE | 11.73% | ||
| ROCE | 11.5% | ||
| ROIC | 8.15% | ||
| ROICexc | 8.25% | ||
| ROICexgc | 32.01% | ||
| OM | 13.47% | ||
| PM (TTM) | 4.44% | ||
| GM | 30.62% | ||
| FCFM | 7.07% |
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-Score6
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | 9.54 | ||
| Debt/EBITDA | 3.78 | ||
| Cap/Depr | 99.09% | ||
| Cap/Sales | 4.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.81% | ||
| Profit Quality | 159.25% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | 1.89 |
F-Score6
WACC8.83%
ROIC/WACC0.92
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)1.01%
EPS 3Y1.22%
EPS 5Y3.35%
EPS Q2Q%-2.67%
EPS Next Y-4.33%
EPS Next 2Y-3.37%
EPS Next 3Y0.07%
EPS Next 5Y4.49%
Revenue 1Y (TTM)8.65%
Revenue growth 3Y4.37%
Revenue growth 5Y3.52%
Sales Q2Q%4.47%
Revenue Next Year6.33%
Revenue Next 2Y2.15%
Revenue Next 3Y1.94%
Revenue Next 5Y2.45%
EBIT growth 1Y2.61%
EBIT growth 3Y-5.89%
EBIT growth 5Y0.25%
EBIT Next Year34.48%
EBIT Next 3Y11.88%
EBIT Next 5Y8.58%
FCF growth 1Y6.64%
FCF growth 3Y-4.21%
FCF growth 5Y-8.01%
OCF growth 1Y16.23%
OCF growth 3Y4.61%
OCF growth 5Y-3.25%