Campbell Soup Company (CPB)

FairStock Score: 54/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a disciplined value investor, I look first for a durable business bought at a sensible price. Campbell's owns recognizable brands such as Campbell's soups, Swanson broth, Pacific Foods, and Prego sauces, which gives it habitual demand and some shelf presence. That is a narrow edge, not a wide moat. The numbers show erosion: in fiscal 2026, the year ended 2026-08-02, revenue was $9.7B, net income $403.0M, and diluted EPS $1.31, down from fiscal 2025, the year ended 2025-08-03, when revenue was $10.3B, net income $602.0M, and diluted EPS $2.01. The computed Lynch category is SLOW GROWER — Shrinking, with profit down 16.7% a year over five years and revenue growth of 2.8%. Still, the latest comparable quarter is brighter: in fiscal Q3 2026, the quarter ended 2026-05-03, net income was $124.0M versus $66.0M in fiscal Q3 2025, the quarter ended 2025-04-27, though revenue slipped to $2.4B from $2.5B. Cash generation is the strongest attraction: trailing free cash flow of $671.0M gives an 11.9% FCF yield on a $5.7B market cap, and the dividend yield is 4.84%. At the 2026-10-13 close of $18.95, FairStock calculates a P/E of 14.47, P/B of 1.47, EV/EBITDA of 7.99, Graham Number of $19.96, and only a 5.06% margin of safety. But financial health is poor: debt-to-equity 1.72, Altman Z-Score 0.93, Piotroski F-Score 2/9, ROE 10.05%, and ROCE 4.95%. So the price is not demanding, but the business has not proved it can grow. I would want evidence of stable revenue, debt reduction, and durable margins before calling it a true value.

In plain English: Campbell's makes soups, broths, pasta sauces, and snacks. The business looks weak because sales and full-year profit have fallen, and it carries a lot of debt. The stock price looks roughly fair to a little cheap compared with its profits and cash generation, but that may be because the business is shrinking.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-05-03) · fiscal Q2 2026 10-Q (period ended 2026-02-01) · fiscal Q1 2026 10-Q (period ended 2025-11-02) · fiscal Q3 2025 10-Q (period ended 2025-04-27) · FY2026 10-K (period ended 2026-08-02) · FY2025 10-K (period ended 2025-08-03) · FY2024 10-K (period ended 2024-07-28)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer