Food and Kindred Products · SIC 2000

CAMPBELL'S Co

CPB

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Latest revenue

$2.56B

as of 2026-02-01

Latest net income

$145.0M

as of 2026-02-01

Net margin

5.7%

as of 2026-02-01

Community sentiment

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CPB vs S&P 500 · rebased to 100

-17.0% / yr 36.7 pts / yr vs S&P 500(S&P 500 +19.7% / yr) 52.2% total
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Market data

Price feed temporarily unavailable for CPB.

What this company does

AI

Campbell's makes packaged foods, selling soups, sauces, broths, and snacks under brands like Campbell's, Pace, Prego, Pepperidge Farm, Goldfish, and Snyder's-Lance. Revenue comes almost entirely from selling these shelf-stable meals and salty snacks through grocery retailers across North America. Sales fell roughly 4% year-over-year to $2.56 billion for the quarter and earnings dropped to $0.48 per diluted share, signaling continued volume pressure on legacy center-store brands as the company carries $7.1 billion in total debt.

Generated from CPB's filing dated 2025-09-18

Key risks

AI
  • Revenue declining: Q2 net sales fell 4.5% YoY to $2.56B; six-month sales down 4% to $5.24B amid weak consumer demand.
  • Margin compression: Q2 EBIT dropped 16% to $273M and EPS fell to $0.48 from $0.58, with COGS running 72% of sales.
  • High leverage: Long-term debt rose to $6.65B (vs $6.10B) against just $4.0B equity; interest expense of $163M consumed 27% of EBIT.

Generated from CPB's filing dated 2025-09-18

7.0
of 10

ActaClear Score

Above avg
#3 of 21 in Food and Kindred Products
+0.0 · 5d
Profitability·25%
8.0
Growth·15%
6.5
Value·20%
7.5
Quality·20%
6.0
Momentum·20%
6.5

Computed from 5 years of SEC fundamentals + latest market data, ranked within Food and Kindred Products (21 peers). 10 = best in industry, 5 = median, 0 = worst. Refreshed Jun 10, 2026.

0.82
Price / FV

Fair value · DCF

Undervalued
~22% upside at this growth
3.4% / yr
-5%30%
Terminal growthWACC 7.3% · 10y forecast
Market-implied growth at today's price: 2.1% / yrfor 10 years, holding WACC 7.3% and terminal 2.5%.
Current price
$21.67
DCF fair value
$26.34
FCF base (last FY)
$602.00M
Net debt
$5.96B
Methodology + caveats (click to expand)

Method. 10-year forecast of free cash flow, discounted at the company's WACC, with a Gordon-growth terminal at year 10. FCF is proxied by last fiscal-year net income (proper FCF needs CFO − CapEx by year, which we don't store yet). Beta defaults to 1.0 when not reported.

Why DCF is fragile. Treat the output as a thinking aid, not a verdict. Honest weaknesses of any DCF:

  • Growth is the dominant assumption. No one can foresee 10 years of growth — small changes in the slider can double or halve fair value. The reverse-DCF readout above tells you what the market is implicitly assuming; ask yourself whether that's realistic before trusting either number.
  • Terminal value dominates. In most DCFs, 60-80% of the answer comes from the terminal-value calculation — i.e., everything AFTER year 10. A 0.5pp change in terminal growth, or in WACC, can swing fair value by 20-30%.
  • WACC is itself a guess. We use a textbook CAPM cost of equity (Rf 4.3%, MRP 5.5%, β from the quote) plus a 6% pretax cost of debt — none of these are the company's actual marginal financing cost.
  • No moat / disruption modelling. The model assumes the company keeps earning whatever it earns today, compounding cleanly. Competitive shifts, regulatory action, and technology disruption can invalidate the forecast overnight.
  • Net income ≠ free cash flow. For capex-heavy names (semis, telcos) net income overstates distributable cash. For low-capex names (software) it understates. Both reduce the precision of the FV figure.
  • Reflexivity. A high stock price often becomes a self-fulfilling prophecy via better hiring, financing, and customer trust. DCF can't see this.

Take the DCF, the reverse-DCF implied growth, the historical multiples, and the community sentiment together. When they agree, conviction. When they disagree, the disagreement is the most informative thing on the page.

Historical multiples

How does CPB's current valuation compare to its own past?

Current P/E
10.7×
Own 5y average
19.0×
Own 5y median
17.7×
vs. own average
-43%
Industry 5y avg P/E
28.2×
Median P/E across the top 20 peers in Food and Kindred Products by market cap, then averaged across 6 years.
vs. industry
-62%
PEG (this co.)
3.19
5y revenue CAGR
3.4%
Industry PEG
4.78
Industry 5y avg growth
5.9%
Solid: this company. Dotted: industry median.
Dashed flat: own 5y avg.
Coloured dot at right: current P/E.

P/E uses year-end weekly close ÷ (net income ÷ shares outstanding today). Held shares constant at today's count, which understates the per-share earnings improvement from buybacks over the period. PEG uses 5y revenue CAGR as a proxy for EPS growth — close, but not identical (margin expansion or dilution can drive a wedge). Best read as a comparator across companies and industries, not as a precise replica of historical multiples.