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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Archer-Daniels-Midland Co.

The Vita Coco Co., Inc.

General Mills, Inc.

Campbell Soup Co.

The Simply Good Foods Co.

The Kraft Heinz Co.

The Hain Celestial Group, Inc.

B&G Foods, 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 -33.88%, 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 -33.88% 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 hold?

Overall Portfolio exposure to Campbell Soup Co. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Campbell Soup Co. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Campbell Soup Co.

-33.64%

-1.19

27.71%

S&P 500

25.41%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.28%

EBIT Growth (5y)

-2.36%

EBIT to Interest (avg)

5.76

Debt to EBITDA (avg)

3.39

Net Debt to Equity (avg)

1.76

Sales to Capital Employed (avg)

0.93

Tax Ratio

25.08%

Dividend Payout Ratio

76.74%

Pledged Shares

Institutional Holding

71.14%

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

1.75

EV to EBIT

10.55

EV to EBITDA

7.97

EV to Capital Employed

1.29

EV to Sales

1.35

PEG Ratio

Dividend Yield

374.38%

ROCE (Latest)

12.19%

ROE (Latest)

18.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

OBV

No Trend

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

DEBT-EQUITY RATIO (HY)

Lowest at 171.9 %

DEBTORS TURNOVER RATIO(HY)

Highest at 16.28 times

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 1,110 MM

NET PROFIT(HY)

At USD 319.46 MM has Grown at -25.95%

INTEREST COVERAGE RATIO(Q)

Lowest at 440.24

RAW MATERIAL COST(Y)

Grown by 7.38% (YoY

OPERATING PROFIT(Q)

Lowest at USD 361 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.52 %

Here's what is working for Campbell Soup Co.

Debt-Equity Ratio

Lowest at 171.9 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 16.28 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Interest Coverage Ratio

Lowest at 440.24

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At USD 319.46 MM has Grown at -25.95%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 1,110 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 361 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 10.52 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 7.38% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales