Campbell Soup (CPB) Stock Analysis: undervalued According to Simply Wall St

Here’s a breakdown of the analysis presented, focused on Campbell Soup (CPB) stock:

Key Findings:

* DCF Valuation: A Discounted Cash Flow (DCF) model estimates Campbell’s intrinsic value at $59.68 per share. This is based on projected future cash flows,with free cash flow reaching $763.5 million in 2028 and extrapolating to $896.2 million in 2035.
* Undervaluation: Given a recent share price of $27.98, the DCF model suggests the stock is 53.1% undervalued.

* P/E Ratio Analysis: Campbell’s currently trades at a P/E ratio of 14.4x.
* This is lower than the food industry average of 21.2x and the peer group average of 15.8x.
* Simply Wall St’s proprietary “Fair Ratio” for Campbell’s is 19.1x.As the current P/E is considerably below this fair ratio, the stock appears undervalued based on this metric as well.
* Overall Assessment: The analysis concludes that Campbell’s stock is UNDEVALUED based on both the DCF model and P/E ratio comparison.

Key Data Points:

* Last Twelve Month Free Cash Flow: $658.3 million
* Projected Free Cash Flow (2028): $763.5 million
* Projected Free Cash Flow (2026): $848.2 million
* Projected Free Cash Flow (2035): $896.2 million

Source: Simply Wall St

calls to action (from the article):

* Track the stock in a watchlist: https://simplywall.st/features/stock-watchlist

* Add to a portfolio: https://simplywall.st/portfolio/demo

* Explore 868 more undervalued stocks: https://simplywall.st/discover/investing-ideas/168/undervalued-stocks-based-on-cash-flows

* Review the full Company Report (Valuation section) : https://www.simplywall.st//company/id/b9a9b32a-2584-4709-a4a3-d825b2a7a6f7/valuation

Meaningful Note: This analysis is provided by Simply Wall St and relies on their models and assumptions. Investors should conduct their own due diligence before making any investment decisions.

Is Campbell’s recent share price slide a signal of a long-term opportunity for investors?

Is Campbell’s (CPB) Share Price Slide Creating A Long Term opportunity For Investors?

Campbell Soup company (CPB) has experienced a notable dip in its share price recently, prompting investors to question whether this represents a temporary setback or a genuine long-term investment opportunity. Understanding teh factors driving this decline, and assessing the company’s fundamentals, is crucial for making an informed decision. This article dives deep into the current situation, exploring the challenges and potential rewards associated with investing in Campbell’s at this juncture.

Recent Performance & Key Drivers of the decline

Over the past year, Campbell’s stock has underperformed the broader market. several factors contribute to this.

* Inflationary Pressures: Like many consumer staples companies, Campbell’s has faced rising costs for ingredients, packaging, and transportation. While the company has attempted to pass these costs onto consumers through price increases, this has impacted sales volume in certain segments.

* Changing Consumer Habits: A shift towards healthier eating and increased demand for private label brands are impacting established food manufacturers. Consumers are increasingly scrutinizing ingredient lists and seeking value, possibly at the expense of brand loyalty.

* Supply Chain Disruptions: Ongoing, albeit easing, supply chain issues continue to create uncertainty and impact production efficiency. This has led to occasional product shortages and increased operational costs.

* Weak Q2 2026 Earnings Report: Campbell’s recent quarterly earnings report revealed slower-than-expected growth in key segments, further fueling investor concerns. Specifically, sales in the Meals & Beverages division, a significant revenue contributor, were below analyst expectations.

A Deep Dive into Campbell’s Financial Health

Despite the recent challenges, Campbell’s maintains a relatively strong financial position.

* Solid Balance Sheet: The company boasts a healthy balance sheet with manageable debt levels. This provides financial flexibility to navigate economic headwinds and invest in future growth initiatives.

* Consistent Dividend Payouts: Campbell’s has a long history of paying dividends, and currently offers a dividend yield that is attractive compared to its peers. This makes it a potentially appealing option for income-seeking investors. As of january 31, 2026, the dividend yield stands at 3.8%.

* Strong Brand Portfolio: Campbell’s owns a portfolio of well-recognized and trusted brands, including Campbell’s Soup, Pepperidge Farm, Goldfish, and Snyder’s of Hanover. These brands have significant brand equity and a loyal customer base.

* Focus on Innovation: The company is actively investing in innovation to develop new products and adapt to changing consumer preferences. Recent launches include plant-based soups and healthier snack options.

Evaluating the Long-Term opportunity

The current share price slide could present a compelling long-term opportunity for investors who believe in Campbell’s ability to adapt and thrive. Here’s a breakdown of potential scenarios:

Bull Case: If Campbell’s successfully navigates inflationary pressures, effectively innovates to meet evolving consumer demands, and optimizes its supply chain, the stock could experience significant upside. A return to consistent revenue growth and margin expansion could drive the share price higher.

Base Case: Campbell’s manages to maintain its market share and profitability, but growth remains moderate. The stock may experience modest gains over the long term, primarily driven by dividend payouts.

Bear Case: If the company fails to address the challenges outlined above, and consumer preferences continue to shift away from its core products, the share price could remain stagnant or even decline further. Increased competition from private label brands and emerging food companies could exacerbate these issues.

Campbell’s Strategic Initiatives: A Closer Look

Campbell’s is actively pursuing several strategic initiatives to address its challenges and position itself for future growth.

1. Cost Optimization Programs: The company is implementing cost-saving measures across its operations to mitigate the impact of inflation. This includes streamlining manufacturing processes, optimizing logistics, and reducing administrative expenses.
2. Portfolio Change: Campbell’s is focusing on its core brands and divesting non-core assets. This allows the company to allocate resources to areas with the highest growth potential. The 2024 sale of its international soup and simple meals business is a prime example.
3. Digital Transformation: Investing in e-commerce and digital marketing to reach a wider audience and enhance customer engagement. This includes expanding its online presence and leveraging data analytics to personalize marketing campaigns.
4. Sustainable practices: Increasingly, consumers favor companies with strong environmental, social, and governance (ESG) practices.Campbell’s is investing in sustainable sourcing, packaging, and manufacturing processes to appeal to this growing segment of the market.

Comparing Campbell’s to its Peers

When evaluating Campbell’s,it’s helpful to compare it to its competitors,such as General Mills (GIS) and Kellogg (K). While all three companies face similar challenges, Campbell’s valuation appears more attractive at its current price.

| Company | Current P/