27.01 USD
+0.22 (+0.82%)
Taking everything into account, CPB scores 5 out of 10 in our fundamental rating. CPB was compared to 87 industry peers in the Food Products industry. There are concerns on the financial health of CPB while its profitability can be described as average. CPB is valued quite cheap, but it does not seem to be growing. Finally 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.
- CPB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CPB has a Return On Assets of 3.81%. This is in the better half of the industry: CPB outperforms 66.67% of its industry peers.
- CPB's Return On Equity of 14.61% is amongst the best of 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 better Profit Margin (5.69%) than 74.71% of its industry peers.
- CPB's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 13.42%, CPB belongs to the top of the industry, outperforming 85.06% of the companies in the same industry.
- In the last couple of years the Operating Margin of CPB has declined.
- The Gross Margin of CPB (30.27%) is better than 68.97% of its industry peers.
- 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.
- 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.
- 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.
- The Altman-Z score of CPB (1.79) is comparable to the rest of the 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 comparable to the rest of the industry.
- CPB has a Debt/Equity ratio of 1.75. This is a high value indicating a heavy dependency on external financing.
- CPB has a worse Debt to Equity ratio (1.75) than 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.
- CPB has a worse Current ratio (0.82) than 80.46% of its industry peers.
- CPB has a Quick Ratio of 0.82. 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 Quick ratio, with a value of 0.34, CPB is doing worse than 87.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
- The earnings per share for CPB have decreased by -6.84% in the last year.
- The Earnings Per Share has been growing slightly by 0.13% on average over the past years.
- Looking at the last year, CPB shows a small growth in Revenue. The Revenue has grown by 2.71% in the last year.
- CPB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.36% yearly.
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
- The Earnings Per Share is expected to grow by 3.58% on average over the next years.
- CPB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.29% yearly.
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
- A Price/Earnings ratio of 9.44 indicates a reasonable valuation of CPB.
- Compared to the rest of the industry, the Price/Earnings ratio of CPB indicates a rather cheap valuation: CPB is cheaper than 87.36% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. CPB is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 10.29, which indicates a very decent valuation of CPB.
- CPB's Price/Forward Earnings ratio is rather cheap when compared to the industry. CPB is cheaper than 88.51% of the companies in the same industry.
- CPB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.44 | ||
| Fwd PE | 10.29 |
4.2 Price Multiples
- 72.41% of the companies in the same industry are more expensive than CPB, based on the Enterprise Value to EBITDA ratio.
- 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 | 11.7 | ||
| 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)70.07
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.
- Compared to an average industry Dividend Yield of 2.29, CPB pays a better dividend. On top of this CPB pays more dividend than 87.36% 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 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 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
- 80.10% 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.
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.