Campbell Story

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CPB -- USA Stock  

USD 46.81  1.63  3.61%

As many millenniums are trying to avoid consumer defensive space, it makes sense to go over Campbell Soup a little further and try to understand its current market patterns. We will evaluate why recent Campbell Soup price moves suggest a bounce in October. Is the entity valuation sustainable? Here I will cover a perspective on valuation of Campbell to give you a better outlook on taking a position in this stock.
Published over three weeks ago
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Is Campbell Soup growth trend slowing down?
Campbell Soup has 6.95 B in debt with debt to equity (D/E) ratio of 2.69, meaning that Campbell Soup heavily relies on borrowing funds for operations. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Campbell Soup has an asset utilization ratio of 106.67 percent. This suggests that the company is making $1.07 for each dollar of assets. An increasing asset utilization means that Campbell Soup is more efficient with each dollar of assets it utilizes for everyday operations.
We determine the current worth of Campbell Soup using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Campbell Soup based exclusively on its fundamental and basic technical indicators. By analyzing Campbell Soup's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Campbell Soup's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Campbell Soup. We calculate exposure to Campbell Soup's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Campbell Soup's related companies.

Campbell Soup Investment Alerts

Campbell investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Campbell Soup performance across your portfolios.Please check all investment alerts for Campbell

Campbell Soup Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Campbell value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Campbell Soup competition to find correlations between indicators driving the intrinsic value of Campbell.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Campbell Soup, but it might be worth checking our own buy vs. sell analysis

Discretionary transaction by Xavier Boza of 1857 shares of Campbell Soup subject to Rule 16b-3

Legal trades by Campbell Soup insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Campbell insider trading alert for transaction of phantom stock by Xavier Boza, Executive Vice President, on 12th of August 2020. This event was filed by Campbell Soup Co with SEC on 2020-08-12. Annual statement of changes in beneficial ownership - SEC Form 5. Xavier Boza currently serves as chief human resource officer, senior vice president of Campbell Soup [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Campbell Soup Further

The modest gains experienced by current holders of Campbell Soup could raise concerns from investors as the firm closed today at a share price of 51.35 on 2,764,345 in volume. The company directors and management have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in August. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.24. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.

Margins Breakdown

Campbell profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Campbell Soup itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Campbell Soup profit margins.
Operating Margin17.47
EBITDA Margin0.16
Gross Margin0.35
Profit Margin0.0737

Campbell Soup Net Income Per Employee is somewhat stable at the moment. Campbell Soup Net Income Per Employee is decreasing over the last 5 years. The previous year's value of Campbell Soup Net Income Per Employee was 46,625.

Another 3 percent rise for Campbell Soup

Campbell Soup current downside deviation builds up over 1.73. As of the 3rd of September, Campbell Soup shows the Mean Deviation of 1.03, risk adjusted performance of 0.023, and Downside Deviation of 1.73. Campbell Soup technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We have analyzed nineteen technical drivers for Campbell Soup, which can be compared to its rivals. Please confirm Campbell Soup treynor ratio, and the relationship between the variance and potential upside to decide if Campbell Soup is priced correctly, providing market reflects its regular price of 52.45 per share. Given that Campbell Soup has jensen alpha of (0.022883), we suggest you to validate Campbell Soup's prevailing market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Campbell Soup

Whereas some other firms within the packaged foods industry are still a little expensive, even after the recent corrections, Campbell Soup may offer a potential longer-term growth to investors. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither purchase new shares of Campbell nor short your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Campbell Soup.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Campbell Soup. Please refer to our Terms of Use for any information regarding our disclosure principles.

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