Campbell Soup Co

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CPB : NYSE : Consumer Goods
$59.11 | %
Today's Range: 59.0 - 59.69
Avg. Daily Volume: 1759200.0
02/24/17 - 4:00 PM ET

Financial Analysis


CAMPBELL SOUP CO's gross profit margin for the second 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.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.07% from the same quarter last year.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)2171.02201.0
EBITDA ($mil)504.0512.0
EBIT ($mil)427.0434.0
Net Income ($mil)101.0265.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)309.0306.0
Total Assets ($mil)7570.08079.0
Total Debt ($mil)3478.03844.0
Equity ($mil)1479.01526.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin41.5540.75
EBITDA Margin23.2123.26
Operating Margin19.6719.72
Sales Turnover1.050.99
Return on Assets6.568.1
Return on Equity33.642.92
Debt Q2 FY17 Q2 FY16
Current Ratio0.780.83
Debt/Capital0.70.72
Interest Expense0.028.0
Interest Coverage0.015.5


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)307.0309.0
Div / share0.350.31
EPS0.330.85
Book value / share4.824.94
Institutional Own % n/a n/a
Avg Daily Volume1749344.02230266.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 31.68 for the Food Products industry and a significant premium compared to the S&P 500 average of 26.53. For additional comparison, its price-to-book ratio of 12.26 indicates a significant premium versus the S&P 500 average of 2.96 and a significant premium versus the industry average of 5.30. The current price-to-sales ratio is above the S&P 500 average, but below the industry average. 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 36.91 Peers 31.68   CPB 12.92 Peers 17.99

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 18.28 Peers 21.31   CPB 0.53 Peers 1.40

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

CPB is trading at a valuation on par with 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 12.26 Peers 5.30   CPB -23.45 Peers 1470.68

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 2.29 Peers 2.43   CPB -0.84 Peers 8.90

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.

 

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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