CAMPBELL SOUP CO's gross profit margin for the fourth quarter of its fiscal year 2014 has decreased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. CAMPBELL SOUP CO has very weak liquidity. Currently, the Quick Ratio is 0.30 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 32.70% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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|Income Statement||Q4 FY14||Q4 FY13|
|Net Sales ($mil)||1852.0||1723.0|
|Net Income ($mil)||137.0||-158.0|
|Balance Sheet||Q4 FY14||Q4 FY13|
|Cash & Equiv. ($mil)||232.0||333.0|
|Total Assets ($mil)||8113.0||8323.0|
|Total Debt ($mil)||4015.0||4453.0|
|Profitability||Q4 FY14||Q4 FY13|
|Gross Profit Margin||38.82||41.9|
|Return on Assets||10.08||5.5|
|Return on Equity||45.63||56.61|
|Debt||Q4 FY14||Q4 FY13|
|Share Data||Q4 FY14||Q4 FY13|
|Shares outstanding (mil)||313.0||312.0|
|Div / share||0.31||0.29|
|Book value / share||5.16||3.9|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1041316.0||1015075.0|
BUY. CAMPBELL SOUP CO's P/E ratio indicates a discount compared to an average of 24.93 for the Food Products industry and a value on par with the S&P 500 average of 19.91. For additional comparison, its price-to-book ratio of 8.67 indicates a significant premium versus the S&P 500 average of 2.75 and a significant premium versus the industry average of 5.82. The price-to-sales ratio is below both the S&P 500 average and the industry average, indicating a discount. The valuation analysis reveals that, CAMPBELL SOUP CO seems to be trading at a discount to investment alternatives within the industry.
|CPB 19.27||Peers 24.93||CPB 15.57||Peers 15.23|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
CPB is trading at a discount to its peers.
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
CPB is trading at a valuation on par to its peers.
|CPB 17.20||Peers 21.05||CPB 3.21||Peers 4.20|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
CPB is trading at a discount to its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
CPB trades at a discount to its peers.
|CPB 8.67||Peers 5.82||CPB 7.40||Peers 18.89|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
CPB is trading at a significant premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, CPB is expected to significantly trail its peers on the basis of its earnings growth rate.
|CPB 1.69||Peers 1.76||CPB 2.68||Peers 2.10|
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
CPB is trading at a valuation on par with its industry on this measurement.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
CPB has a sales growth rate that significantly exceeds its peers.
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