NYSE:CPB
$33.48
(2/9 1:46PM)
+2.4%
| Open | $32.94 |
Mkt Cap | $11.2 Billion |
| High | $33.62 |
52Wk High | $35.80 |
| Low | $32.87 |
52Wk Low | $24.63 |
| Volume | 1.5 Million |
Avg Vol 10D | 2.3 Million |
Ockham's Rating/Recommendation Summary
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CPB Revenue
As a value investing shop, we are interested in seeing how CPB's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 2.00x and the low end of the range at 1.49x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for CPB of 1.48x is well below its normal historic Price to Sales levels. At a price of $32.47, CPB is 16% below where we would expect to see it. Clearly, this stock looks undervalued compared to historical levels, at least on a Price to Sales basis. This will positively affect our analysis because it is rare to find a stock this far below historical norms, and we would expect some price appreciation to bring this metric back towards a more normal range.
CPB Cash Earnings
Looking at CPB specifically in their Cash Earnings capabilities, Ockham views CPB as below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for CPB to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 14.06 and a 10.41 low over the same period.
So what does a Cash Earnings ratio below the historical norm mean for CPB? Generally, CPB's investors have paid slightly higher stock prices for this level of Cash Earnings, which bodes well as a return to historical norms is statistically likely. However, it is never a guarantee that history gives us proper direction, particularly in fluctuating market cycles. So by utilizing a long term view and incorporating other areas of analysis (like Sales, Dividends, and management analysis), each investor can gain a more complete view of CPB. Remember, that the average Cash Earnings level for CPB has been 12.23, so the current Cash Earnings level of 10.72 is a positive in our view, but by no means is it overwhelming.
CPB Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.
When reviewing dividend yields for CPB, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. CPB’s estimated annual dividend is $1.10 resulting in a current dividend yield of 3.39%. The highest dividend yield from CPB over recent history was 4.47% while the lowest dividend yield was 1.78%. A current dividend yield of 8.48% above the historical median is favorable in our analysis of CPB.
News Developing on Mad Money for CPB
Campbell Soup Company is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Mad Money.
Campbell Soup Company receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. Due to deterioration in our valuation, we downgraded CPB as of Saturday, January 30, 2010. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; CPB has received less coverage from the financial media in business television and blogs.
“… CAMPBELL SOUP. > > you know, kind of okay. It's really been stuck at the same level. Used to be a big position. CAMPBELL'S, herhersheys and heinz. …”
CPB's Dividends Mentioned by Fast Money
If CPB's dividends are important to you, take a look at the news as they were the topic of conversation on Fast Money.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, CPB has been less covered in the news compared to the rest of our universe of stocks. We have recently (Saturday, January 30, 2010) downgraded this stock due to deteriorating fundamentals. The Ockham valuation currently has a Fairly Valued stance on CPB because it trades within the price range that we would expect given current market conditions and fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… CAMPBELL'S soup. Soup is good food. > > 3% dividend pb not a bad valuation. > > what about heinz? I think cam pel soup. > > soup is good food. > > …”
Slow Month for News Out of CPB But The Call Mentions Them
There has not been much to report from CPB in the last few weeks at least, but The Call talked about the stock recently.
We noticed recently that in comparison to all other stocks we analyze in the news; CPB has received less coverage from the financial media in business television and blogs. Due to deterioration in our valuation, we downgraded CPB as of Saturday, January 30, 2010. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. Campbell Soup Company receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals.
“… You go through the list as tax on foreign earnings, ge, caterpillar, CAMPBELL'S soup. Insurance companies and pharmaceutical companies and the bank tax. You may be right. …”
Notice a Discussion Covering CPB Appeared Recently in the Financial News
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Campbell Soup Company.
When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Campbell Soup Company has been talked about more than normal recently. The Motley Fool CAPS data suggests that investors believe Campbell Soup Company will beat the market in the foreseeable future. We consider CPB as Undervalued at the current price of $32.50. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… CAMPBELL'S soup. One of the best run companies been around over 100 years. I mean, make soups now with sea salt and really pretty healthy. > > best chicken noodle there is. ... …”
CPB News Mentioned on Fox Business Recently
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on CPB from Fox Business.
The Motley Fool CAPS data suggests that investors believe Campbell Soup Company will beat the market in the foreseeable future. When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Campbell Soup Company has been talked about more than normal recently. We consider CPB as Undervalued at the current price of $34.85. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… one of the world's biggest banks is below home depot, pepsico, CAMPBELL SOUP. > > brian: a lot of shares outstanding. > > and more coming. > > …”
More News Than Normal on CPB from Closing Bell
We are observing a lot of attention being paid to CPB in the news, so if you hold the stock you may want to take a look at what is going on.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Campbell Soup Company has actually sunk a bit in comparison to the others. At present, Ockham has a valuation stance of Undervalued on CPB, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue.
“… CAMPBELL SOUP, they raised their guidance for the current fiscal and then ldk solar, one of the stocks we've been talking about, certainly focused over the last hour or so, chines... …”
CPB Having an Active Day in News, Now on Closing Bell
Something important is going on with CPB today, as it is getting a lot of attention on business television and influential blogs.
Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. Based on our methodology, Campbell Soup Company should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; CPB has received less coverage from the financial media in business television and blogs.
“… CAMPBELL SOUP raised their guidance for the current fiscal year. The chinese company beat an also guiding above estimates. …”
Countdown to the Closing Bell: CPB is Among Most Active Stocks in the News Today
We are observing a lot of attention being paid to CPB in the news, so if you hold the stock you may want to take a look at what is going on.
Based on our methodology, Campbell Soup Company should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; CPB has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… CAMPBELL SOUP beating the street with their number. Another group to keep an eye on, the pc because gartner saying they raised the 2009 forecast for pc shipments. …”
Be Aware There is Lots of News Today On CPB and This Instance Comes from Street Signs
Something important is going on with CPB today, as it is getting a lot of attention on business television and influential blogs.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Campbell Soup Company has actually sunk a bit in comparison to the others. At present, Ockham has a valuation stance of Undervalued on CPB, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… Cigna is to the plus side as well as wellpoint and cover CAMPBELL'S soup, their soup . …”
Stocks to Watch: CPB Heavily Covered on The Call
CPB has been one of the most active stocks in the news today, so investors in it will want to pay attention to what is happening.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Campbell Soup Company has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. At present, Ockham has a valuation stance of Undervalued on CPB, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue.
“… You see hmo stocks moving higher as well today on the prospect, really, that the fight over health care reform continues we did have CAMPBELL'S soup as soup sales were down. …”