Campbell Soup Co.

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CPB : NYSE : Consumer Non-Durables
$46.17 -1.53 | -3.21%
Today's Range: 45.4699 - 46.68
Avg. Daily Volume: 2736600.0
02/16/18 - 4:00 PM ET

Financial Analysis


CAMPBELL SOUP CO's gross profit margin for the first quarter of its fiscal year 2018 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. CAMPBELL SOUP CO has very weak liquidity. Currently, the Quick Ratio is 0.36 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 5.78% 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 Q1 FY18 Q1 FY17
Net Sales ($mil)2161.02202.0
EBITDA ($mil)522.0544.0
EBIT ($mil)440.0467.0
Net Income ($mil)275.0292.0


Balance Sheet Q1 FY18 Q1 FY17
Cash & Equiv. ($mil)163.0290.0
Total Assets ($mil)7746.08039.0
Total Debt ($mil)3461.03588.0
Equity ($mil)1681.01589.0


Profitability Q1 FY18 Q1 FY17
Gross Profit Margin42.0241.69
EBITDA Margin24.1524.7
Operating Margin20.3621.21
Sales Turnover1.010.99
Return on Assets11.238.22
Return on Equity51.7541.59
Debt Q1 FY18 Q1 FY17
Current Ratio0.770.78
Debt/Capital0.670.69
Interest Expense31.029.0
Interest Coverage14.1916.1


Share Data Q1 FY18 Q1 FY17
Shares outstanding (mil)301.0307.0
Div / share0.350.35
EPS0.910.94
Book value / share5.585.18
Institutional Own % n/a n/a
Avg Daily Volume2846759.02702899.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 23.60 for the Food Products industry and a discount compared to the S&P 500 average of 25.51. For additional comparison, its price-to-book ratio of 8.54 indicates a significant premium versus the S&P 500 average of 3.26 and a significant premium versus the industry average of 4.38. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CPB 16.68 Peers 23.60   CPB 11.37 Peers 21.51

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

CPB is trading at a significant discount to its peers.

 

Discount. 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 significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CPB 15.39 Peers 18.89   CPB 6.89 Peers 1.11

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.

 

Premium. 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 significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CPB 8.54 Peers 4.38   CPB 34.90 Peers 53.25

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CPB 1.83 Peers 2.07   CPB -1.40 Peers 6.74

Discount. 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 discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

CPB significantly trails its peers on the basis of sales growth

 

 

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