Campbell Soup Co. (CPB) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

The Vita Coco Co., Inc.

General Mills, Inc.

The Simply Good Foods Co.

Archer-Daniels-Midland Co.

Campbell Soup Co.

B&G Foods, Inc.

The Kraft Heinz Co.

The Hain Celestial Group, Inc.

Beyond Meat, Inc.

The Real Good Food Co., Inc.

Why is Campbell Soup Co. ?

Poor long term growth as Operating profit has grown by an annual rate 0.52% of over the last 5 years

Flat results in Jul 25

OPERATING CASH FLOW(Y) Lowest at USD 1,131 MM
INTEREST(9M) At USD 257 MM has Grown at 29.8%
INTEREST COVERAGE RATIO(Q) Lowest at 324.71

With ROCE of 13.35%, it has a very expensive valuation with a 1.67 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -34.46%, its profits have risen by 4.1% ; the PEG ratio of the company is 3.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -34.46% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Campbell Soup Co. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Campbell Soup Co.

-35.52%

-1.10

27.12%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.36%

EBIT Growth (5y)

0.52%

EBIT to Interest (avg)

5.76

Debt to EBITDA (avg)

3.39

Net Debt to Equity (avg)

1.76

Sales to Capital Employed (avg)

0.97

Tax Ratio

25.08%

Dividend Payout Ratio

78.31%

Pledged Shares

Institutional Holding

68.74%

ROCE (avg)

14.17%

ROE (avg)

23.78%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.84

EV to EBIT

12.50

EV to EBITDA

9.55

EV to Capital Employed

1.67

EV to Sales

1.74

PEG Ratio

3.26

Dividend Yield

308.83%

ROCE (Latest)

13.35%

ROE (Latest)

21.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.65% (YoY

DIVIDEND PER SHARE(HY)

Highest at USD 0

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 1,131 MM

INTEREST(9M)

At USD 257 MM has Grown at 29.8%

INTEREST COVERAGE RATIO(Q)

Lowest at 324.71

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0 times

OPERATING PROFIT(Q)

Lowest at USD 276 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.89 %

NET PROFIT(Q)

Lowest at USD 150.52 MM

Here's what is working for Campbell Soup Co.

Dividend per share

Highest at USD 0

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -0.65% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Campbell Soup Co.

Interest Coverage Ratio

Lowest at 324.71

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At USD 257 MM has Grown at 29.8%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Cash Flow

Lowest at USD 1,131 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Operating Profit

Lowest at USD 276 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 11.89 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at USD 150.52 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Inventory Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio