📊 CPB Key Takeaways
Investment Thesis
Campbell's demonstrates solid operational performance with revenue growth of 6.4% YoY and strong free cash flow generation of $513M, but faces structural profitability challenges with thin margins (6.5% net margin) and elevated leverage (1.66x debt-to-equity). The company's financial health is adequate but not exceptional, with modest ROE of 8.5% and concerning liquidity metrics suggesting limited financial flexibility.
CPB Strengths
- Strong revenue growth of 6.4% YoY on a $5.2B base demonstrates market demand
- Robust free cash flow of $513M ($513M FCF on $740M operating cash flow) provides resources for debt service and shareholder returns
- Positive momentum in diluted EPS (+6.3% YoY) despite flat net income reflects share buyback activity
- Healthy operating cash flow conversion with FCF margin of 9.8%
CPB Risks
- Low gross margin of 14.3% and net margin of 6.5% indicate limited pricing power and high operating costs typical of commodity food processing
- Elevated leverage with $6.6B long-term debt and debt-to-equity ratio of 1.66x constrains financial flexibility and limits downside protection
- Weak liquidity position with current ratio of 1.01x and quick ratio of 0.51x suggests tight working capital management with limited cash reserves relative to near-term obligations
- Modest profitability returns with ROE of 8.5% and ROA of 2.2% indicate capital is not generating strong returns
- Interest coverage of 3.7x is adequate but leaves minimal margin for operational deterioration or rising interest rate environments
Key Metrics to Watch
- Gross margin trend - any further compression would signal pricing pressure or input cost inflation
- Debt-to-equity ratio and absolute debt levels - focus on deleveraging progress
- Free cash flow sustainability - ensure OCF conversion remains strong
- Current and quick ratios - monitor liquidity sufficiency relative to debt obligations
- Operating margin expansion potential - identify cost reduction opportunities
- Return on equity trajectory - assess whether capital deployment is improving profitability returns
CPB Financial Metrics
💡 AI Analyst Insight
CAMPBELL'S Co presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CPB Profitability Ratios
CPB vs Consumer Sector
How CAMPBELL'S Co compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CPB Balance Sheet & Liquidity
CPB 5-Year Financial Trend
5-Year Trend Summary: CAMPBELL'S Co's revenue has grown significantly by 18% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.85 reflects profitable operations.
CPB Growth Metrics (YoY)
CPB Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $2.6B | $145.0M | $0.48 |
| Q1 2026 | $2.7B | $194.0M | $0.65 |
| Q3 2025 | $2.4B | $66.0M | $0.22 |
| Q2 2025 | $2.5B | $173.0M | $0.58 |
| Q1 2025 | $2.5B | $218.0M | $0.72 |
| Q3 2024 | $2.2B | $133.0M | $0.44 |
| Q2 2024 | $2.5B | $203.0M | $0.68 |
| Q1 2024 | $2.5B | $234.0M | $0.78 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CPB Capital Allocation
CPB SEC Filings
Access official SEC EDGAR filings for CAMPBELL'S Co (CIK: 0000016732)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CPB
What is the AI rating for CPB?
CAMPBELL'S Co (CPB) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CPB's key strengths?
Strong revenue growth of 6.4% YoY on a $5.2B base demonstrates market demand. Robust free cash flow of $513M ($513M FCF on $740M operating cash flow) provides resources for debt service and shareholder returns.
What are the risks of investing in CPB?
Low gross margin of 14.3% and net margin of 6.5% indicate limited pricing power and high operating costs typical of commodity food processing. Elevated leverage with $6.6B long-term debt and debt-to-equity ratio of 1.66x constrains financial flexibility and limits downside protection.
What is CPB's revenue and growth?
CAMPBELL'S Co reported revenue of $5.2B.
Does CPB pay dividends?
CAMPBELL'S Co pays dividends, with $237.0M distributed to shareholders in the trailing twelve months.
Where can I find CPB SEC filings?
Official SEC filings for CAMPBELL'S Co (CIK: 0000016732) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CPB's EPS?
CAMPBELL'S Co has a diluted EPS of $1.13.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.