Campbell Soup Company (CPB) | Investment Case

1. Company Snapshot

1.a. Company Description

Campbell Soup Company, together with its subsidiaries, manufactures and markets food and beverage products the United States and internationally.The company operates through Meals & Beverages and Snacks segments.The Meals & Beverages segment engages in the retail and foodservice businesses in the United States and Canada.

This segment provides Campbell's condensed and ready-to-serve soups; Swanson broth and stocks; Pacific Foods broth, soups, and non-dairy beverages; Prego pasta sauces; Pace Mexican sauces; Campbell's gravies, pasta, beans, and dinner sauces; Swanson canned poultry; Plum baby food and snacks; V8 juices and beverages; and Campbell's tomato juice.The Snacks segment retails Pepperidge Farm cookies, crackers, fresh bakery, and frozen products; Milano cookies and Goldfish crackers; and Snyder's of Hanover pretzels, Lance sandwich crackers, Cape Cod and Kettle Brand potato chips, Late July snacks, Snack Factory Pretzel Crisps, Pop Secret popcorn, Emerald nuts, and other snacking products.This segment is also involved in the retail business in Latin America.

It sells its products through retail food chains, mass discounters and merchandisers, club stores, convenience stores, drug stores, and dollar stores, as well as e-commerce and other retail, commercial, and non-commercial establishments, and independent contractor distributors.The company was founded in 1869 and is headquartered in Camden, New Jersey.

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1.b. Last Insights on CPB

Campbell Soup Company's recent performance was negatively impacted by weak organic sales growth, declining 3% year-over-year. The company's Q4 earnings beat estimates, but were overshadowed by softness in its Snacks business and pressure from inflation. Tariffs and rising competition from store brands also pose near-term challenges. Despite these headwinds, the company maintains strong cash flow and a secure dividend. The appointment of a new CFO, Todd Cunfer, may bring fresh perspectives to the company.

1.c. Company Highlights

Last Price	29.6
Change Percentage	0.82%
Open	29.27
Previous Close	29.36
Market Cap ( Millions)	8821
Volume	7588455
Year High	43.85
Year Low	29.15
M A 50	30.77
M A 200	33.86

FCF Yield	8.13%
Dividend Yield	5.27%
ROE	15.51%
Debt / Equity	184.83%
Net Debt / EBIDTA	454.43%
Price To Book	2.26
Price Earnings Ratio	14.65
Price To FCF	12.3
Price To sales	0.86
EV / EBITDA	10.21

2. Campbell Soup's Fiscal 2025 Earnings: A Mixed Bag

Campbell Soup Company's fourth quarter fiscal 2025 earnings report showed a mixed performance, with organic net sales declining 3% primarily due to reversed favorable shipments from the previous quarter. However, overall Q4 results were slightly ahead of expectations, with net sales up 1% and adjusted EBIT and adjusted EPS down 2% year-over-year. For the full fiscal year 2025, net sales grew 6% fueled by the Sovos Brands acquisition, while adjusted EBIT increased 2%. The company's actual EPS came out at $0.62, beating estimates of $0.57.

Publication Date: Sep -05

                                    📋 Highlights
                                    Q4 Organic Net Sales Decline::
                                                Dropped 3% due to shipment timing shifts but net sales rose 1% overall, with adjusted EBIT and EPS down 2%.
Full-Year 2025 Growth::
                                                Net sales grew 6% driven by Sovos Brands acquisition, while adjusted EBIT increased 2% despite snacking category pressure.
Meals & Beverages Resilience::
                                                Broth consumption rose 7% (millennial/boomer demand) and condensed soups gained share, offsetting 3% organic sales decline.
2026 Guidance Challenges::
                                                Adjusted EPS expected to fall 12–18% due to tariffs (67% impact) and cost pressures, with net sales down 2–0%.
Cost-Savings & Innovation Push::
                                                $375M productivity target by 2028, including $70M savings in 2026, plus new product launches (e.g., Milano White Chocolate up 27%).

                                

Segment Performance

The Meals and Beverages segment saw organic net sales decrease 3% due to shipment timing shifts, but consumption grew 1% year-over-year, driven by Rao's return to high single-digit growth. The Snacks segment experienced an organic net sales decline of 2% due to lower volume and mix, but showed sequential improvement. Share gains were seen in cookies, baked goods, and pretzels, with Goldfish experiencing sequential improvements in both dollar consumption and share performance.

Outlook and Guidance

Looking ahead, Campbell Soup Company issued fiscal 2026 guidance that reflects anticipated tariff impacts. The company expects a 2% to flat net sales decrease, with organic net sales expected to be down 1% to up 1%. Adjusted EBIT is projected to decline 9% to 13%, and adjusted EPS is expected to be down 12% to 18%. The company is intensifying cost savings initiatives, increasing the target to $375 million by the end of Fiscal 2028.

Valuation and Metrics

With a P/E Ratio of 16.85, P/B Ratio of 2.6, and Dividend Yield of 4.53%, Campbell Soup Company's valuation metrics indicate a relatively stable stock. The company's ROIC of 11.59% and ROE of 15.51% suggest a decent return on investment. However, the Net Debt / EBITDA ratio of 4.32 may raise concerns about the company's debt levels. Analysts estimate next year's revenue growth at -2.8%, which may impact the stock's performance.

Growth Strategy

Campbell Soup Company is focusing on mitigating tariff impacts, stabilizing the snacking business, and executing its strategic priorities. The company is working on brand activation, innovation, and price pack optimization to drive growth. The growth strategy for the Rao's brand involves continued marketing investments and expanding household penetration, with expected mid to high single-digit growth. As the company navigates the challenges ahead, its ability to execute on its strategic priorities will be crucial to its success.

3. NewsRoom

Unlocking Q1 Potential of Campbell (CPB): Exploring Wall Street Estimates for Key Metrics

Dec -04

Source: zacks.com

Here's how much Campbell's soup stock is down since scandal

Dec -03

Source: finbold.com

Campbell's soup to pay dividends in January 2026: Here's how much 100 CPB shares will earn

Nov -30

Source: finbold.com

First Look: CME outage, Black Friday shifts, AI job impact

Nov -28

Source: gurufocus.com

Here's What's Really in a Can of Campbell's Chicken Soup

Nov -27

Source: wsj.com

Market Today: Stocks Rally, Tesla Robotaxi and Nvidia Scrutiny

Nov -26

Source: gurufocus.com

Campbell's Says Executive Accused of Racist and Disparaging Comments Has Left Company

Nov -26

Source: barrons.com

CPB Investor News: Rosen Law Firm Announces Investigation of Breaches of Fiduciary Duties by the Directors and Officers of Campbell's Co.

Nov -26

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.99%)

6. Segments

Meals & Beverages

Expected Growth: 3.8%

Campbell Soup Company's Meals & Beverages segment growth of 3.8% is driven by increasing demand for convenient and healthy meal options, particularly among millennials and Gen Z consumers. Additionally, the company's focus on e-commerce and digital marketing, as well as its efforts to revamp its product portfolio with innovative and premium offerings, are contributing to the segment's growth.

Snacks

Expected Growth: 4.2%

Campbell Soup Company's snack segment growth of 4.2% is driven by increasing demand for convenient and healthy food options, successful product innovations, and strategic acquisitions. Additionally, the company's focus on e-commerce and digital marketing has expanded its customer reach, contributing to the growth. Furthermore, the company's efforts to improve operational efficiency and reduce costs have also supported the segment's growth.

7. Detailed Products

Campbell's Condensed Soups

A range of condensed soups made with high-quality ingredients and no artificial flavors or preservatives

Prego Pasta Sauces

A line of pasta sauces made with vine-ripened tomatoes and no high-fructose corn syrup

V8 Juices

A range of 100% vegetable juices with no added sugars or preservatives

Pepperidge Farm Baked Goods

A line of fresh-baked breads, cookies, and pastries made with high-quality ingredients

Goldfish Crackers

A range of whole-grain crackers in various flavors, perfect for snacking on the go

Swanson Broths

A line of high-quality broths made with real meat and vegetables

Franz Bakery Products

A range of fresh-baked breads, buns, and pastries made with high-quality ingredients

Arnott's Biscuits

A line of premium biscuits made with high-quality ingredients and no artificial flavors or preservatives

8. Campbell Soup Company's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Campbell Soup Company is medium due to the presence of alternative food products such as fresh vegetables and fruits, and other packaged food brands.

Bargaining Power Of Customers

The bargaining power of customers is high due to the presence of many retailers and wholesalers who can negotiate prices and terms with Campbell Soup Company.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the company's large scale of operations and its ability to negotiate prices with suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the packaged food industry, including the need for significant capital investment and regulatory compliance.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of many established players in the packaged food industry, leading to intense competition for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	56.14%
Debt Cost	5.04%
Equity Weight	43.86%
Equity Cost	5.04%
WACC	5.04%
Leverage	128.01%

11. Quality Control: Campbell Soup Company passed 4 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Conagra Brands

A-Score: 6.0/10

Value: 7.9

Growth: 4.6

Quality: 4.8

Yield: 9.0

Momentum: 0.5

Volatility: 9.0

1-Year Total Return ->

Post Holdings

A-Score: 5.2/10

Value: 6.6

Growth: 7.6

Quality: 4.0

Yield: 0.0

Momentum: 3.5

Volatility: 9.7

1-Year Total Return ->

J&J Snack Foods

A-Score: 5.1/10

Value: 5.1

Growth: 5.0

Quality: 5.8

Yield: 6.0

Momentum: 0.5

Volatility: 8.3

1-Year Total Return ->

Smucker

A-Score: 5.0/10

Value: 7.3

Growth: 2.7

Quality: 3.0

Yield: 7.0

Momentum: 2.5

Volatility: 7.7

1-Year Total Return ->

Campbell Soup

A-Score: 4.9/10

Value: 5.9

Growth: 3.3

Quality: 4.7

Yield: 7.0

Momentum: 0.5

Volatility: 8.0

1-Year Total Return ->

Central Garden & Pet

A-Score: 4.4/10

Value: 7.4

Growth: 4.8

Quality: 5.0

Yield: 0.0

Momentum: 3.5

Volatility: 6.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-3.99%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.04%

Campbell Soup Company - US1344291091

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CPB

1.c. Company Highlights

Less Volatile

Average Yield

Stable Momentum

Earnings Beats

Fairly Valued

Revenues Beats

Expensive

Revenues Miss

Strong Momentum

Average Growth

Higher Yield

Average Quality

Medium Volatility

Weak Momentum

2. Campbell Soup's Fiscal 2025 Earnings: A Mixed Bag

Segment Performance

Outlook and Guidance

Valuation and Metrics

Growth Strategy

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.99%)

6. Segments

Meals & Beverages

Expected Growth: 3.8%

Snacks

Expected Growth: 4.2%

7. Detailed Products

Campbell's Condensed Soups

Prego Pasta Sauces

V8 Juices

Pepperidge Farm Baked Goods

Goldfish Crackers

Swanson Broths

Franz Bakery Products

Arnott's Biscuits

8. Campbell Soup Company's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Campbell Soup Company passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

29.6$

Current Price

29.6$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA