Campbell's Co (CPB) Stock Analysis
Verdict: AVOID
A 36% dividend cut and USD 500M cost restructuring reflect severe operational pressure in snacks and high leverage (Net Debt/EBITDA 5.33x).
Investment score: 35/100
Analysis as of
Is Campbell's Co stock worth reviewing? AI model thesis
The model views CPB as a value trap until cost reductions stabilize gross margins back above 30% and Net Debt/EBITDA falls below 3.5x.
7-factor investment score
- Valuation: 52/100 (weight 20%)
- Financial Health: 30/100 (weight 15%)
- Technical Momentum: 20/100 (weight 15%)
- Earnings Quality: 32/100 (weight 15%)
- Insider Sentiment: 45/100 (weight 10%)
- Analyst Consensus: 25/100 (weight 10%)
- Risk-Adjusted Return: 35/100 (weight 15%)
Campbell's Co opportunities and risks
What speaks for CPB
- USD 500M Cost-Savings Plan and Restructuring
What speaks against CPB
- Persistent Snack Segment Volume Erosion and Private Label Shift
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| CPB | 14.3x | 0.6x | 9.8x | 28.1% | 4.1% | 11.9% |
| MKC | 7.5x | 1.6x | 12.2x | 38.6% | 22.0% | 9.6% |
| HRL | 31.6x | 0.9x | 14.9x | 15.7% | 2.8% | 7.1% |
| SFD | 6.9x | 0.5x | 5.1x | 13.2% | 6.9% | 11.0% |
| PPC | 11.2x | 0.3x | 6.1x | 9.6% | 3.0% | 5.0% |
| CAG | n/a | 0.5x | n/a | 23.8% | -17.0% | 14.2% |
| Peer median | 7.5x | 0.5x | 6.1x | 15.7% | 3.0% | 9.6% |
Frequently asked questions about Campbell's Co (CPB)
Is CPB stock a good investment?
The cached TradeMates AI model rates Campbell's Co as AVOID with an investment score of 35/100. The model views CPB as a value trap until cost reductions stabilize gross margins back above 30% and Net Debt/EBITDA falls below 3.5x. This is algorithmic model output, not personal investment advice.
Is CPB stock a buy?
The TradeMates model verdict for CPB is AVOID with an investment score of 35/100. Treat this as a model signal to review, not a personal buy recommendation.