Campbell Soup Co

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CPB : NYSE : Consumer Goods
$53.58 | %
Today's Range: 53.52 - 54.16
Avg. Daily Volume: 1564200.0
06/23/17 - 4:02 PM ET

Financial Analysis


CAMPBELL SOUP CO's gross profit margin for the third quarter of its fiscal year 2017 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 0.40 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 decreased by 11.63% 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 Q3 FY17 Q3 FY16
Net Sales ($mil)1853.01870.0
EBITDA ($mil)389.0336.0
EBIT ($mil)309.0260.0
Net Income ($mil)176.0185.0


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)313.0383.0
Total Assets ($mil)7451.08081.0
Total Debt ($mil)3392.03686.0
Equity ($mil)1481.01676.0


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin40.9139.36
EBITDA Margin20.9917.96
Operating Margin16.6813.9
Sales Turnover1.060.99
Return on Assets6.548.17
Return on Equity32.9539.43
Debt Q3 FY17 Q3 FY16
Current Ratio0.760.86
Debt/Capital0.70.69
Interest Expense29.029.0
Interest Coverage10.668.97


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)304.0309.0
Div / share0.350.31
EPS0.580.59
Book value / share4.875.42
Institutional Own % n/a n/a
Avg Daily Volume1561823.01653634.0

Valuation


BUY. CAMPBELL SOUP CO's P/E ratio indicates a premium compared to an average of 30.60 for the Food Products industry and a premium compared to the S&P 500 average of 25.75. For additional comparison, its price-to-book ratio of 11.07 indicates a significant premium versus the S&P 500 average of 3.09 and a significant premium versus the industry average of 4.78. The current price-to-sales ratio is similar to the S&P 500 average, but it is below the industry average, indicating a discount. After reviewing these and other key valuation criteria, CAMPBELL SOUP CO proves to trade at a premium 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 33.93 Peers 30.60   CPB 12.70 Peers 18.20

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

CPB is trading at a premium 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 16.83 Peers 20.27   CPB 0.49 Peers 2.42

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 significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CPB 11.07 Peers 4.78   CPB -24.65 Peers 62.55

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 2.07 Peers 2.31   CPB -0.68 Peers 3.47

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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