CAMPBELL'S Co (CPB) stock analysis

P/E above its 5-year median

Campbell'S's P/E of 17.0 is above its own 5-year median of 16.7.

P/E below the industry

Campbell'S's P/E of 17.0 is below the Food and Kindred Products median of 21.0.

EV/EBITDA below its 5-year median

Campbell'S's EV/EBITDA of 10.6 is below its 5-year median of 11.1.

P/B above the industry

Campbell'S's price-to-book of 1.73 is above the Food and Kindred Products median of 1.73.

Trading below fair value

The share price of $22.31 is below our fair value estimate of $28.44.

Margin of safety over 20%

The price is 21.6% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 1.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -22.8% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -33.1% over the last twelve months, against a 5-year average of -16.7% a year.

Growing slower than the industry

Revenue grew -5.0% over the last twelve months; the Food and Kindred Products median is 1.4%.

Guidance lowered

Campbell'S lowered its full-year fiscal 2026 Adjusted EPS outlook on Mar 11, 2026.

Gross margin slipping

Gross margin was 28.1% over the last twelve months, against 30.4% a year earlier.

Return on equity under 15%

Return on equity was 10.4% over the last twelve months and averaged 17.8% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 6.1%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Campbell'S's return on equity of 10.4% is above the Food and Kindred Products median of -15.0%.

Earnings shrank over 5 years

Net income shrank 16.7% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 4.1% over the last twelve months, against a 5-year average of 6.8%.

Net margin above the industry

Campbell'S's net margin of 4.1% is above the Food and Kindred Products median of -4.1%.

High debt

Debt is 185% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 160% five years ago to 185%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 14.6% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 2.6 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.82 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.52; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Campbell'S paid dividends worth 6.4% of the share price over the last twelve months.

Yield above Treasuries

The 6.4% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Campbell'S yields 6.4%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Not covered by earnings

Dividends take 117% of net income, leaving little room.

Covered by free cash flow

Dividends take 69.3% of free cash flow.