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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 tariff pressures, higher marketing costs, and a 3% decrease in net sales. The company's Q1 2026 earnings call highlighted challenges, including an 11% decrease in adjusted EBIT and a 13% decrease in adjusted EPS. Additionally, several research firms, including Stephens, lowered their price targets for the stock. Insider sales, such as EVP Charles Brawley III selling 11,550 shares, may have also contributed to the stock's decline.

1.c. Company Highlights

2. Campbell's Q1 Fiscal 2026 Earnings: A Mixed Bag

Campbell's Company reported its first quarter fiscal 2026 earnings, with net sales decreasing 3% to $2.7 billion, driven by unfavorable volume and mix partially offset by net price realization. Adjusted EBIT declined 11% year-over-year to $383 million, primarily due to lower adjusted gross profit. The adjusted gross profit margin decreased 150 basis points to 29.9%, driven by cost headwinds, including cost inflation and supply chain costs. The company's EPS came in at $0.77, beating estimates of $0.735.

Publication Date: Dec -20

📋 Highlights
  • Adjusted EBIT Decline: Adjusted EBIT dropped 11% YoY to $383 million, driven by lower adjusted gross profit (-150 bps margin decline).
  • La Regina Acquisition: Secured 49% stake in La Regina, projected to add mid-to-high single-digit growth and boost gross margin significantly.
  • Cost Savings Progress: Achieved $15M incremental savings in Q1, totaling $160M toward the $225M fiscal 2028 target.
  • Tariff Impact: Tariffs projected to affect 4% of cost of product sold, with supply chain offsetting 70% of $500+ bps inflation-driven cost pressures.
  • Snacks Portfolio Growth: Peppered Pond Cookies, Snack Factory, and Late July gained share, despite 1% sales decline due to volume drops.

Segment Performance

In Meals and Beverages, organic net sales decreased 2%, with unfavorable volume and mix offset by favorable net price realization. The soup portfolio slightly lagged the category on share, while broth consumption grew for the ninth straight quarter. In Snacks, organic net sales declined 1%, driven by volume declines, partially offset by positive net price realization. The company held or gained share in about half of its portfolio, with solid performance in Peppered Pond Cookies, Snack Factory, and Late July.

Strategic Moves

The company acquired a 49% interest in La Regina, a producer of Rao's tomato-based pasta sauces, solidifying its partnership with the Romano family to fuel Rao's momentum. This acquisition is expected to add to the company's margin and flexibility, with a call option to consolidate 100% of the P&L. Campbell's CEO highlighted the importance of elevating the focus on consumer needs across the organization, with a focus on premiumization, labor exploration, health and wellness, and cooking and comfort.

Margin Pressures and Cost Savings

Margins have been impacted by high inflation, with over 500 basis points of total cost pressures, including 200 basis points from tariffs. The supply chain team has offset 70% of these costs. Gross margins are expected to remain under pressure in Q2, but will improve in the second half of the year as tariff impacts lap and cost improvement opportunities materialize. The company made progress towards its fiscal 2028 cost savings target, delivering approximately $15 million in new savings, bringing total cost savings achieved to $160 million.

Valuation and Outlook

With a P/E Ratio of 22.14 and an EV/EBITDA of 10.71, the company's valuation appears reasonable. The Dividend Yield of 5.46% is also attractive. Analysts estimate next year's revenue growth at -3.4%. Campbell's reaffirmed its full-year fiscal 2026 guidance ranges, expecting a significant impact from tariffs, with gross tariffs projected to be approximately 4% of cost of product sold. The company continues to focus on brand activation and innovation, particularly in meals and beverages, and is prioritizing reinvestment back into the business to drive incremental growth.

3. NewsRoom

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Add These Core Stocks to Your Buy List in 2026

Jan -27

Source: youtube.com

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Campbell's: Margins Under Pressure, But There's Upside At Today's Depressed Multiple

Jan -22

Source: seekingalpha.com

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Campbell's: Buy This 6% Yield While Market Ignores Value

Jan -15

Source: seekingalpha.com

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Rep. Gilbert Ray Cisneros, Jr. Sells Costco Wholesale Corporation (NASDAQ:COST) Stock

Jan -15

Source: defenseworld.net

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Rep. Gilbert Ray Cisneros, Jr. Sells Off Shares of Xiaomi Co. (OTCMKTS:XIACF)

Jan -15

Source: defenseworld.net

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Tencent (OTC:TCTZF) Stock Unloaded Rep. Gilbert Ray Cisneros, Jr.

Jan -15

Source: defenseworld.net

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Cameco (NYSE:CCJ) Stock Unloaded Rep. Gilbert Ray Cisneros, Jr.

Jan -15

Source: defenseworld.net

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Rep. Gilbert Ray Cisneros, Jr. Sells Off Shares of Robinhood Markets, Inc. (NASDAQ:HOOD)

Jan -15

Source: defenseworld.net

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

Strength

Weaknesses

Opportunities

Threats

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

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Conagra Brands

A-Score: 6.5/10

Value: 6.4

Growth: 4.4

Quality: 4.6

Yield: 9.0

Momentum: 5.5

Volatility: 9.0

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Campbell Soup

A-Score: 5.8/10

Value: 6.0

Growth: 3.3

Quality: 4.3

Yield: 7.0

Momentum: 6.0

Volatility: 8.0

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Smucker

A-Score: 5.1/10

Value: 7.4

Growth: 2.7

Quality: 3.0

Yield: 7.0

Momentum: 2.0

Volatility: 8.3

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J&J Snack Foods

A-Score: 5.0/10

Value: 4.4

Growth: 5.9

Quality: 5.6

Yield: 5.0

Momentum: 0.5

Volatility: 8.3

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Post Holdings

A-Score: 4.6/10

Value: 6.2

Growth: 4.9

Quality: 3.9

Yield: 0.0

Momentum: 3.5

Volatility: 9.0

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Central Garden & Pet

A-Score: 4.3/10

Value: 7.6

Growth: 5.1

Quality: 5.2

Yield: 0.0

Momentum: 2.0

Volatility: 6.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

26.9$

Current Price

26.9$

Potential

-0.00%

Expected Cash-Flows