Awarener easy mode Awarener analytic mode

Fundamental analysis: Campbell Soup Company (CPB)

Awarener score: 6.8

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Very good) and growth (Very poor), and the company's inclination to return cash to the stockholders (Very good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.0

  • Business has been shrinking at a fast pace. It's been substantially worse when measured against peer companies.
  • Campbell Soup Company business trend stability is very good. The higher the stability, the lower the risk. It looks slightly worse than rivals.

Margins score: 6.8

  • CPB profit margins -on goods and services sold- are usually hardly sufficient. They stand somewhat better than rival companies.
  • Business profit on sales tends to be very good. It's great when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually good. They remain excellent in relation to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be good in relation to total revenues. They're still better than most similar companies.
  • Profits -before income taxes- are usually good considering total sales, and remain encouraging in relation to rivals.
  • Total net profit tends to be good when confronted to sales. Company stands more than average in relation to comparable firms.

Growth score: 7.3

  • Campbell Soup Company profit -on goods and services sold- has been shrinking. It's been in a very weak position compared to competitors.
  • In recent years, earnings growth -on operations- have been almost stagnant, which has been somewhat worse than comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a very good pace, which compares more than average in relation to peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at an excellent tempo. It turns to be excellent in relation to similar stocks.
  • In past years, profits -before income taxes- grew at an excellent speed. It was well ranked against rivals.
  • In the previous years, growth trend on total net profit has been extremely high, and great when measured against peer companies.
  • Earnings per share have grown at an extremely fast rhythm in past years. It's been excellent in relation to industry peers.

Miscellaneous score: 5.3

  • CPB had to pay some income taxes in relation to profits made in the past years. It's been slightly better than peers.
  • Research and development expenses hardly consume a portion of revenues. It's encouraging in relation to competitors.
  • Business has seen substantial shrinking, despite research and development efforts. It stands in a weak position compared to rival companies.

Profitability score: 9.5

  • Campbell Soup Company usually gets excellent returns on the resources it controls. It proves more than average in relation to peer firms.
  • The company normally gets excellent proceeds -on the resources directly invested in the business-. They remain excellent in relation to similar companies.
  • Profitability -in relation to owned resources- is usually paramount. It ranks top tier when measured against competitors.
  • In the past, got huge returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's great when measured against comparable enterprises.

Usage of Funds score: 5.4

  • CPB usually uses a large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is large. It stands great when measured against rival firms.
  • The company is usually replacing most of the property, plant, and equipment that gets old, and saving a little funds for something else, which is weak when measured against industry peers.
  • In the past twelve months it paid good dividends, considering the current stock price. It came somewhat better than competitors.
  • In recent years, has slightly cut back dividend payments. The company has behaved in a weak position compared to similar firms.
  • The company usually uses a portion of genuine funds generated to pay dividends. Dividend payments should be safe, unless business prospects are challenged. Sustainability looks slightly better than comparable companies.
  • The company usually neither enlarges nor reduces the pool of investors, resulting in approximately the same mouths feeding on the pie of profits. It remains a slight improvement compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
  • The company uses a moderate portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn very sour. It still looks similar to competitors.

Balance Sheet score: 3.9

  • Campbell Soup Company intangible assets (like brands and goodwill) represent a huge portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be last-in-rank when measured against peer companies.
  • The company has lower short-term resources than short-term obligations. Unless it's part of the business model, there might be liquidity concerns. It turns to be a disappointment compared to similar firms.
  • A significant part of resources controlled were provided for with financial debt. Creditors have almost as many claims on the company as shareholders. It remains slightly worse than rival firms.
  • Most controlled resources might be only slowly turned into cash and equivalents, which is risky. It looks substantially worse when measured against rivals.
  • For every dollar of short-term obligations, the company has few cents of cash and short-term receivables. It's a disappointment compared to peer firms.
  • For every dollar of short-term obligations, the company has extremely few cents of cash and equivalents, which is worse than most similar enterprises.
  • Usually, sales are on a month credit. It still ranks similar to peers.
  • Normally has approximately three months of sales worth in inventory. It comes up as close to average when compared to competitors.
  • On average, it takes higher than four months from the purchase to charging customers. It happens to be slightly better than peers.
  • Pays suppliers mostly in cash. It ranks last-in-rank when measured against industry peers.
  • The company pays its suppliers four months or more before charging its customers, so there's significant money invested in working capital. It's in a weak position compared to similar companies.
  • Net interest expenses consume a minor portion of usual business earnings, and are largely bearable. It stands slightly better than rival firms.
  • Business earnings have usually been quite good when measured against loans taken. Cutting back reinvesting in the business, it could take around three years to repay the obligations with current profitability. It ranks encouraging in relation to comparable enterprises.
  • Fixed assets turnover remains undisclosed. It looks we cannot relate it to similar firms.
  • Resource exploitation is quite good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still somewhat worse than peer companies.

Valuation score: 5.5

  • Campbell Soup Company looks expensive in relation to profits and financial position. It happens to be similar to competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
  • In the past twelve months, the company generated some slightly better free funds in relation to the stock price, which stands well ranked against similar companies.
  • The company usually generates more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be interesting. It's still more than average in relation to industry firms.
  • In the past twelve months, the company has slightly rewarded investors, considering both dividends and share on the pie of earnings. It came up a slight improvement compared to peer ventures.
  • The company is indebted, it should focus on loan repayment. It looks slightly better than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is somewhat high. Improvement expectations are already in the stock price, which presents some risks. It ranks similar to peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a roughly two to one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks in a weak position compared to rival firms.
  • The relation between the stock price and accounting book value is really high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains worse than most peer firms.
  • In the past twelve months, the operating business earned some money when compared to the current stock price and financial position. It happens to be more than average in relation to industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a very good earnings power ability when measured against the current stock price and financial position. It's still in good shape compared to peer companies.

Total score: 6.1


CPB logos

Company at a glance: Campbell Soup Company (CPB)

Sector, industry: Consumer Defensive, Packaged Foods

Market Cap: 15.17 billions

Revenues TTM: 8.90 billions

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.

Awarener score: 6.8

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Very good) and growth (Very poor), and the company's inclination to return cash to the stockholders (Very good).