General Mills slashed its full-year guidance, sending shockwaves throughout the packaged food industry. Campbell's is also facing earnings declines and margin pressure.
The Campbell's Company trades at a compelling 8.4x EV/EBITDA, near trough valuation, after a 30% share price decline. Despite margin compression and weak Q1 results, CPB offers a well-covered 6% dividend yield and stable cash flow with manageable 3.7x leverage. Industry-wide pressures and heavy competition have led to margin and sales challenges, but current pessimism appears fully priced into CPB shares.
The Campbell's Company is undervalued amid near-term headwinds, trading at a forward P/E of 11.0 and a 5.8% yield. CPB's resilient premium brands, supply chain integration of Rao's, and tariff mitigation strategies position it for long-term growth despite current margin pressures. The dividend remains well-covered at a 55% payout ratio, with management prudently maintaining the rate during cost inflation and acquisition-related leverage.
Dividend stocks have been under pressure in the past few years due to the broader economy's unpredictable swings.
Some two and a half weeks since the ‘3D printed meat' controversy involving the former vice president, Campbell's (NASDAQ: CPB) shares are sitting at their 16-year low.
Campbell's Company (CPB) offers a compelling 5%+ dividend yield, providing downside support amid margin compression and sales headwinds. CPB's dividend is well-covered by earnings, with no reduction expected; a rerating is likely once market confidence in the dividend solidifies. Despite elevated debt and margin pressure, CPB's forward EV/EBITDA of 9.4x appears justified, with fair value estimated at $35 per share.
The Campbell's Company remains a Sell, with shares down 15% since my last rating and ongoing margin and leverage concerns. CPB faces structural headwinds in snacks from GLP-1 drugs, persistent margin pressure, and inability to fully pass on input inflation. The recent La Regina acquisition signals management prioritizes supply chain control and growth over debt reduction or buybacks, delaying deleveraging.
CPB beats EPS estimates even as sales and margins slip, with cost pressures and a planned La Regina stake shaping its 2026 outlook.
The Campbell's Company (CPB) Q1 2026 Earnings Call Transcript
Campbell Soup Company (NYSE:CPB) reported a decline in first-quarter fiscal 2026 earnings on Tuesday, citing continued pressure from inflation, tariffs, and shifting consumer behavior. Adjusted earnings per share came in at $0.77, down 13% from $0.89 a year earlier, but slightly ahead of analysts' expectations of $0.74, according to FactSet data.
Although the revenue and EPS for Campbell (CPB) give a sense of how its business performed in the quarter ended October 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Campbell's (CPB) came out with quarterly earnings of $0.77 per share, beating the Zacks Consensus Estimate of $0.73 per share. This compares to earnings of $0.89 per share a year ago.