WEBULL

Assessing Campbell Soup (CPB) Valuation After Prolonged Share Price Weakness

Simply Wall St · 3d ago

Why Campbell's (CPB) is catching investors' attention now

Campbell's (CPB) has been under pressure, with the stock showing a 29% decline over the past year and weaker returns over the past 3 years and 5 years.

At a last close of $27.01, Campbell's sits below its indicated intrinsic value estimate, with the data here pointing to a 55% intrinsic discount that may interest value focused investors.

See our latest analysis for Campbell's.

That picture of a 10.1% 1 month share price decline, alongside a 28.7% 1 year total shareholder return loss and deeper 3 year and 5 year total shareholder return declines, suggests momentum has been fading even as the current share price sits well below the indicated intrinsic value estimate.

If Campbell's weakness has you reassessing your watchlist, it could be a good moment to broaden your search with fast growing stocks with high insider ownership for fresh ideas beyond large consumer staples names.

So with Campbell's trading at $27.01 and data here pointing to a 55% intrinsic discount plus a 19.6% gap to analyst targets, is this weakness a genuine entry point, or is the market already factoring in future growth?

Most Popular Narrative Narrative: 16.4% Undervalued

With Campbell's last closing at $27.01 against a narrative fair value of about $32.32, the current gap quickly raises questions about what assumptions sit underneath.

Ongoing execution of expanded cost savings initiatives and supply chain optimization, including the newly raised $375 million target, should progressively improve operational efficiency, bolster net margins, and generate incremental earnings growth over the next several years.

Read the complete narrative.

Want to see what kind of revenue path, margin profile, and future P/E multiple need to line up for that fair value to hold up? The narrative leans heavily on earnings compounding, tighter profitability, and a lower valuation multiple than many peers. Curious which combination of those assumptions carries the most weight in the model and how sensitive that US$32 handle might be to even small tweaks?

Result: Fair Value of $32.32 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the narrative could be knocked off course if persistent volume pressure in key categories, along with ongoing cost and tariff headwinds, squeezes margins harder than expected.

Find out about the key risks to this Campbell's narrative.

Build Your Own Campbell's Narrative

If this storyline does not quite fit your view, or you would rather stress test the numbers yourself, you can build a custom thesis in minutes with Do it your way.

A great starting point for your Campbell's research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Campbell's no longer feels like the only name on your radar, this is the moment to line up a few fresh contenders that really fit your goals.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.