Last Updated: 09 Nov 2024
Executive Summary
Campbell Soup Company (CPB) is a well-established food and snack company with a solid financial foundation. The company's recent financial performance has been mixed, with revenue growth offset by margin pressure. Despite these challenges, CPB remains a dividend-paying stock with a moderate valuation.
Company Overview
Campbell Soup Company is a leading manufacturer and marketer of food and beverage products, including soups, sauces, snacks, and beverages. The company operates in North America, Europe, and Asia Pacific. CPB's brands include Campbell's, Pepperidge Farm, V8, and Snyder's-Lance.
Fundamental Analysis
Revenue: Revenue grew by 0.109% year-over-year to $9.64 billion in the latest 12 months.
Earnings: Diluted EPS declined by 0.17% year-over-year to $1.89.
Margins: Profit margin remained stable at 5.88%, while operating margin declined to 11.9%.
Valuation: CPB trades at a trailing PE of 23.87 and a forward PE of 14.29. The price-to-sales ratio is 1.428, and the price-to-book ratio is 3.627.
Technical Analysis
Trend: CPB has been in a downtrend since reaching a 52-week high of $52.81 in March 2023.
Moving Averages: The stock is currently trading below its 50-day and 200-day moving averages, indicating a bearish trend.
Support and Resistance: Support levels are located at $44.50 and $42.50, while resistance levels are at $47.50 and $50.00.
Short Term Outlook
In the short term, CPB is likely to remain under pressure due to the ongoing margin challenges. The stock may test the support level at $44.50. A break below this level could lead to further declines.
Long Term Outlook
In the long term, CPB's strong brand portfolio and global presence provide a solid foundation for growth. The company's focus on innovation and cost-cutting initiatives should support future profitability. However, the competitive nature of the food industry and the potential for economic headwinds remain risks to consider.
Analyst Recommendations
Analysts have mixed views on CPB. Of the 20 analysts covering the stock, 1 rates it a strong buy, 4 rate it a buy, 12 rate it a hold, 3 rate it a sell, and 0 rate it a strong sell. The average analyst target price is $51.43.
