CAMPBELL'S Co (NASDAQ: CPB)

Sector: Consumer Defensive Industry: Packaged Foods CIK: 0000016732
Market Cap 8.27 Bn
P/B 2.09
P/E 14.31
P/S 0.81
ROIC (Qtr) 7.64
Div Yield % 7.02
Rev 1y % (Qtr) -3.43
Total Debt (Qtr) 6.97 Bn
Debt/Equity (Qtr) 1.76
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About

Campbell Soup Company (CPB) is a prominent player in the food and beverage industry, with a rich history that dates back to 1869. The company's headquarters are located in Camden, New Jersey, and it operates in the highly competitive food and beverage sector, maintaining a presence in the United States, Canada, and Latin America. Campbell Soup Company's main business activities revolve around the production and marketing of high-quality, branded food and beverage products. The company's offerings are divided into two primary segments: Meals & Beverages...

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Investment thesis

Bull case

  • Operating cash flow of 1.13B provides strong 22.16x coverage of stock compensation 51M, indicating sustainable incentive practices.
  • Robust free cash flow of 687M exceeds capital expenditure of 443M by 1.55x, indicating strong organic growth funding capability.
  • Tangible assets of 5.84B provide robust 7.42x coverage of other current liabilities 788M, indicating strong asset backing.
  • Retained earnings of 4.77B provide strong 6.05x coverage of other current liabilities 788M, indicating earnings quality.
  • Strong free cash flow of 687M provides 4.38x coverage of acquisition spending 157M, indicating disciplined M&A strategy.

Bear case

  • Operating cash flow of 1.13B barely covers its investment activities of (277M), with a coverage ratio of -4.08, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 168M against inventory of 1.50B, the 0.11 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of 1.13B provides thin coverage of dividend payments of (463M) with a -2.44 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (277M) provide weak support for R&D spending of 98M, which is -2.83x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 168M provide limited coverage of acquisition spending of 157M, which is 1.07x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.

Product and Service Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Packaged Foods
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 KHC Kraft Heinz Co 28.20 Bn -4.82 1.13 21.22 Bn
2 GIS General Mills Inc 26.99 Bn 20.72 1.54 13.73 Bn
3 JBS Jbs N.V. 17.81 Bn 10.08 0.23 23.92 Bn
4 MKC Mccormick & Co Inc 16.10 Bn 44.21 3.77 4.00 Bn
5 HRL Hormel Foods Corp /De/ 12.37 Bn 18.03 1.34 2.86 Bn
6 SJM J M SMUCKER Co 11.08 Bn 19.60 1.97 7.91 Bn
7 PPC Pilgrims Pride Corp 10.32 Bn 9.54 0.56 3.29 Bn
8 MICC Magnum Ice Cream Co N.V. 9.71 Bn 28.17 1.04 4.02 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.99 1.47
EV to Cash from Ops. EV/CFO 13.27 29.75
EV to Debt EV to Debt 2.15 27.85
EV to EBIT EV/EBIT 13.55 86.88
EV to EBITDA EV/EBITDA 9.89 -156.20
EV to Free Cash Flow [EV/FCF] EV/FCF 21.83 -5.67
EV to Market Cap EV to Market Cap 1.81 1.15
EV to Revenue EV/Rev 1.48 7.32
Price to Book Value [P/B] P/B 2.09 8.48
Price to Earnings [P/E] P/E 14.31 14.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.25 4.58
Dividend Payout Ratio % Div Payout % (Qtr) 80.40 3.76
Dividend per Basic Share Div per Share (Qtr) 1.56 0.65
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 67.68 22.76
Interest Coverage Int. cover (Qtr) 3.27 6.64
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 8.47 -118.07
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -79.21 43.48
Dividend Growth (1y) % Div 1y % (Qtr) 5.41 0.66
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 8.58 -48.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 5.86 -152.35
EBIT Growth (1y) % EBIT 1y % (Qtr) 8.74 -50.79
EBT Growth (1y) % EBT 1y % (Qtr) 5.06 -54.94
EPS Growth (1y) % EPS 1y % (Qtr) 4.86 -28.10
FCF Growth (1y) % FCF 1y % (Qtr) -8.64 7.02
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -0.20 439.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.67 1.01
Cash Payout Ratio Cash Payout (Qtr) 0.29 0.12
Cash Ratio Cash Ratio (Qtr) 0.05 0.86
Current Ratio Curr Ratio (Qtr) 0.82 2.60
Debt to Equity Ratio Debt/Equity (Qtr) 1.76 2.21
Interest Cover Ratio Int Coverage (Qtr) 3.27 6.64
Times Interest Earned Times Interest Earned (Qtr) 3.27 6.64
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 15.10 -919.13
EBIT Margin % EBIT Margin % (Qtr) 10.90 -1,474.87
EBT Margin % EBT Margin % (Qtr) 7.56 -1,537.76
Gross Margin % Gross Margin % (Qtr) 30.00 26.98
Net Profit Margin % Net Margin % (Qtr) 5.70 -1,538.60