Campbell Soup carries approximately $7.54 billion in debt, with a debt-to-equity ratio of 1.52. While this level of leverage is manageable within its industry, it’s worth keeping an eye on. The stock is currently trading at around $33.44 per share, which many analysts see as undervalued given its modest growth outlook. If the company can maintain stability and improve its margins, there could be potential for upside. However, investors should consider the debt load and slow growth projections before jumping in.
Key Takeaways
Campbell Soup (CPB) shares have declined about 1% as investors weigh the company's valuation metrics amid ongoing market turbulence. With a price-to-earnings ratio of 19.80X and a return on assets of roughly 6%, the stock appears fairly valued, though the 37.86% probability of bankruptcy suggests some underlying risk that could impact future returns.
We determine the current worth of Campbell Soup using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Campbell Soup based exclusively on its
fundamental and basic
technical indicators. By analyzing Campbell Soup's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Campbell Soup's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Campbell Soup. We calculate exposure to Campbell Soup's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Campbell Soup's related companies.
Campbell Soup Investment Alerts
Campbell investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Campbell Soup performance across your portfolios.Please check all
investment alerts for Campbell
Campbell Soup Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Campbell value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Campbell Soup competition to find
correlations between indicators driving the intrinsic value of Campbell.
Campbell Soup Gross Profit
Campbell Soup Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Campbell Soup previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Campbell Soup Gross Profit growth over the last 10 years. Please check Campbell Soup's
gross profit and other
fundamental indicators for more details.
Going after Campbell Financials
Campbell Soup reported the last year's revenue of 9.64
B. Total Income to common stockholders was 567
M with profit before taxes, overhead, and interest of 3.13
B.
Margins Breakdown
Campbell profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Campbell Soup itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Campbell Soup profit margins.
0.12
Operating Profit Margin
| Pretax Profit Margin | 0.1 |
| Operating Profit Margin | 0.12 |
| Net Profit Margin | 0.0693 |
| Gross Profit Margin | 0.44 |
Campbell Soup Dividend Yield is somewhat stable at the moment.
Moreover, Campbell Soup PTB Ratio is decreasing over the last 5 years. The previous year's value of Campbell Soup PTB Ratio was 7.18. A penny saved is a penny earned, and in Campbell Soup's case, careful valuation reveals a stock trading at a forward PE of around 11.71, suggesting it may be undervalued compared to its trailing PE of 21.31. Despite a modest revenue growth of 4.5% and a current ratio of 0.68X, the company's low beta of 0.083 indicates it’s relatively insulated from market swings, which could appeal to conservative investors. However, with total debt at 7.54 billion and a profit margin of just 0.04%, the company’s financial flexibility warrants close monitoring. The stock’s potential upside of approximately 2.51 points from a target price of 34.80, against a current valuation of 16.45 billion, suggests some room for growth, but market volatility and risk-adjusted performance metrics advise caution..
Our Campbell analysis suggests possible reversion in September
Campbell Soup's stock shows an estimated upside of about 2.5%, suggesting some potential for upward movement. Our analysis indicates that a pullback might occur this September, possibly bringing the stock closer to more attractive levels. This could be a good time for investors to keep an eye out for a bounce or a better entry point as the stock stabilizes. Notably, Campbell Soup displays very low volatility, with a skewness of 0.83 and kurtosis of 1.01. Monitoring volatility trends can help investors better time their moves, especially during different market conditions.
During downturns, increased volatility often impacts Campbell Soup’s stock more significantly, adding pressure on investors as shares decline. This may lead some to rebalance their portfolios by shifting into other assets to manage risk.While Campbell Soup experienced a modest 1 percent dip, the overall outlook remains cautiously optimistic. With an analyst consensus leaning toward a "Buy" and a target price averaging around $34.80, there’s potential for upside, especially considering the possible increase to $34.09. However, the stock’s valuation hovers near the lower end of estimates, with a market value close to
$31.97 and some analysts suggesting a downside risk as low as $31.24. For investors comfortable with a steady, dividend-paying name, Campbell Soup could still offer value, but it’s wise to keep an eye on the upcoming earnings and broader market conditions before making a move..
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Campbell Soup. Please refer to our
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