THE CAMPBELL'S COMPANY (CPB) Stock Fundamental Analysis
USA - NASDAQ:CPB - US1344291091 - Common Stock
31.05 USD
-0.33 (-1.05%)
31.12 USD
+0.07 (+0.23%)
Overall CPB gets a fundamental rating of 5 out of 10. We evaluated CPB against 87 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 valued correctly, but it does not seem to be growing. CPB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CPB had positive earnings in the past year.
CPB had a positive operating cash flow in the past year.
CPB had positive earnings in each of the past 5 years.
Each year in the past 5 years CPB had a positive operating cash flow.
1.2 Ratios
CPB has a better Return On Assets (4.04%) than 67.82% of its industry peers.
The Return On Equity of CPB (15.43%) is better than 85.06% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.43%, CPB belongs to the top of the industry, outperforming 81.61% of the companies in the same industry.
CPB had an Average Return On Invested Capital over the past 3 years of 8.78%. This is significantly below the industry average of 28.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.04% | ||
| ROE | 15.43% | ||
| ROIC | 8.43% |
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 5.87%. This is in the better half of the industry: CPB outperforms 74.71% of its industry peers.
In the last couple of years the Profit Margin of CPB has declined.
The Operating Margin of CPB (13.90%) is better than 81.61% of its industry peers.
In the last couple of years the Operating Margin of CPB has declined.
CPB's Gross Margin of 30.73% is fine compared to the rest of the industry. CPB outperforms 70.11% of its industry peers.
In the last couple of years the Gross Margin of CPB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.9% | ||
| PM (TTM) | 5.87% | ||
| GM | 30.73% |
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
CPB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CPB has about the same amount of shares outstanding.
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
An Altman-Z score of 1.90 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 1.90, CPB perfoms like the industry average, outperforming 47.13% of the companies in the same industry.
CPB has a debt to FCF ratio of 9.73. This is a negative value and a sign of low solvency as CPB would need 9.73 years to pay back of all of its debts.
CPB has a Debt to FCF ratio of 9.73. This is in the better half of the industry: CPB outperforms 60.92% of its industry peers.
CPB has a Debt/Equity ratio of 1.75. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CPB (1.75) is worse than 85.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 9.73 | ||
| Altman-Z | 1.9 |
ROIC/WACC1.31
WACC6.42%
2.3 Liquidity
CPB has a Current Ratio of 0.77. This is a bad value and indicates that CPB is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.77, CPB is doing worse than 82.76% of the companies in the same industry.
A Quick Ratio of 0.28 indicates that CPB may have some problems paying its short term obligations.
CPB has a worse Quick ratio (0.28) than 91.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
The earnings per share for CPB have decreased by -3.56% in the last year.
Measured over the past 5 years, CPB shows a small growth in Earnings Per Share. The EPS has been growing by 0.13% on average per year.
CPB shows a small growth in Revenue. In the last year, the Revenue has grown by 6.40%.
The Revenue has been growing slightly by 3.36% on average over the past years.
EPS 1Y (TTM)-3.56%
EPS 3Y1.62%
EPS 5Y0.13%
EPS Q2Q%-1.59%
Revenue 1Y (TTM)6.4%
Revenue growth 3Y6.19%
Revenue growth 5Y3.36%
Sales Q2Q%1.22%
3.2 Future
The Earnings Per Share is expected to grow by 5.30% on average over the next years.
The Revenue is expected to grow by 1.37% on average over the next years.
EPS Next Y-16.06%
EPS Next 2Y-5.39%
EPS Next 3Y-2.21%
EPS Next 5Y5.3%
Revenue Next Year-3.21%
Revenue Next 2Y-1.05%
Revenue Next 3Y-0.09%
Revenue Next 5Y1.37%
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
With a Price/Earnings ratio of 10.42, the valuation of CPB can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CPB indicates a rather cheap valuation: CPB is cheaper than 82.76% of the companies listed in the same industry.
CPB is valuated cheaply when we compare the Price/Earnings ratio to 27.67, which is the current average of the S&P500 Index.
CPB is valuated correctly with a Price/Forward Earnings ratio of 12.41.
CPB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CPB is cheaper than 79.31% of the companies in the same industry.
CPB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.33, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.42 | ||
| Fwd PE | 12.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CPB is valued a bit cheaper than the industry average as 71.26% of the companies are valued more expensively.
77.01% 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 | 13.11 | ||
| EV/EBITDA | 8.25 |
4.3 Compensation for Growth
CPB has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as CPB's earnings are expected to decrease with -2.21% in the coming years.
PEG (NY)N/A
PEG (5Y)77.31
EPS Next 2Y-5.39%
EPS Next 3Y-2.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.08%, CPB is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.09, CPB pays a better dividend. On top of this CPB pays more dividend than 83.91% of the companies listed in the same industry.
CPB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
5.2 History
The dividend of CPB has a limited annual growth rate of 1.74%.
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)1.74%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
CPB pays out 76.25% of its income as dividend. This is not a sustainable payout ratio.
The dividend of CPB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP76.25%
EPS Next 2Y-5.39%
EPS Next 3Y-2.21%
31.05
-0.33 (-1.05%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners64.82%
Inst Owner Change-0.02%
Ins Owners18.27%
Ins Owner Change0.63%
Market Cap9.24B
Revenue(TTM)10.25B
Net Income(TTM)602.00M
Analysts55.86
Price Target35.61 (14.69%)
Short Float %15.58%
Short Ratio4.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
Yearly Dividend1.54
Dividend Growth(5Y)1.74%
DP76.25%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.79%
Min EPS beat(2)9.42%
Max EPS beat(2)10.16%
EPS beat(4)4
Avg EPS beat(4)5.44%
Min EPS beat(4)0.9%
Max EPS beat(4)10.16%
EPS beat(8)8
Avg EPS beat(8)4.36%
EPS beat(12)11
Avg EPS beat(12)5.05%
EPS beat(16)13
Avg EPS beat(16)5.03%
Revenue beat(2)1
Avg Revenue beat(2)-0.31%
Min Revenue beat(2)-1.44%
Max Revenue beat(2)0.81%
Revenue beat(4)1
Avg Revenue beat(4)-1.37%
Min Revenue beat(4)-2.89%
Max Revenue beat(4)0.81%
Revenue beat(8)1
Avg Revenue beat(8)-1.09%
Revenue beat(12)3
Avg Revenue beat(12)-0.47%
Revenue beat(16)4
Avg Revenue beat(16)-0.55%
PT rev (1m)-0.15%
PT rev (3m)-4.13%
EPS NQ rev (1m)-1.43%
EPS NQ rev (3m)-11.75%
EPS NY rev (1m)-6.71%
EPS NY rev (3m)-13.26%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-2.46%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.42 | ||
| Fwd PE | 12.41 | ||
| P/S | 0.9 | ||
| P/FCF | 13.11 | ||
| P/OCF | 8.17 | ||
| P/B | 2.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.25 |
EPS(TTM)2.98
EY9.6%
EPS(NY)2.5
Fwd EY8.06%
FCF(TTM)2.37
FCFY7.63%
OCF(TTM)3.8
OCFY12.24%
SpS34.44
BVpS13.11
TBVpS-18.29
PEG (NY)N/A
PEG (5Y)77.31
Graham Number29.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.04% | ||
| ROE | 15.43% | ||
| ROCE | 11.88% | ||
| ROIC | 8.43% | ||
| ROICexc | 8.52% | ||
| ROICexgc | 33.09% | ||
| OM | 13.9% | ||
| PM (TTM) | 5.87% | ||
| GM | 30.73% | ||
| FCFM | 6.88% |
ROA(3y)4.96%
ROA(5y)5.96%
ROE(3y)17.94%
ROE(5y)21.66%
ROIC(3y)8.78%
ROIC(5y)9.55%
ROICexc(3y)8.9%
ROICexc(5y)9.66%
ROICexgc(3y)34.15%
ROICexgc(5y)38.39%
ROCE(3y)12.37%
ROCE(5y)13.19%
ROICexgc growth 3Y-10.38%
ROICexgc growth 5Y-12.07%
ROICexc growth 3Y-4.69%
ROICexc growth 5Y-5.25%
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%
F-Score7
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 9.73 | ||
| Debt/EBITDA | 3.67 | ||
| Cap/Depr | 98.16% | ||
| Cap/Sales | 4.15% | ||
| Interest Coverage | 4.32 | ||
| Cash Conversion | 60.84% | ||
| Profit Quality | 117.11% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.28 | ||
| Altman-Z | 1.9 |
F-Score7
WACC6.42%
ROIC/WACC1.31
Cap/Depr(3y)106.52%
Cap/Depr(5y)95.62%
Cap/Sales(3y)4.49%
Cap/Sales(5y)3.91%
Profit Quality(3y)108.34%
Profit Quality(5y)104.98%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.56%
EPS 3Y1.62%
EPS 5Y0.13%
EPS Q2Q%-1.59%
EPS Next Y-16.06%
EPS Next 2Y-5.39%
EPS Next 3Y-2.21%
EPS Next 5Y5.3%
Revenue 1Y (TTM)6.4%
Revenue growth 3Y6.19%
Revenue growth 5Y3.36%
Sales Q2Q%1.22%
Revenue Next Year-3.21%
Revenue Next 2Y-1.05%
Revenue Next 3Y-0.09%
Revenue Next 5Y1.37%
EBIT growth 1Y10.72%
EBIT growth 3Y6.07%
EBIT growth 5Y1.51%
EBIT Next Year18.45%
EBIT Next 3Y8.74%
EBIT Next 5Y8.41%
FCF growth 1Y5.54%
FCF growth 3Y-9.11%
FCF growth 5Y-8.46%
OCF growth 1Y-4.56%
OCF growth 3Y-1.43%
OCF growth 5Y-4.12%