Nasdaq:CPB
CAMPBELL'S Co
A global packaged food powerhouse delivering iconic soup brands and baby food while generating robust operating cash flow and consistent dividend returns.
Key Metrics
Investment Thesis
Bull Case
Investors may favor CPB due to its powerful brand moat that ensures steady demand during economic downturns, providing defensive characteristics in a volatile market. The company's strong cash flow generation supports consistent dividend payments and offers capacity for future strategic acquisitions or organic growth initiatives. A diversified global footprint reduces reliance on any single regional economy, enhancing long-term revenue stability.
Bear Case
Concerns exist regarding the secular trend of declining soup consumption in developed markets which could limit top-line growth potential over time. Heavy capital expenditures of $426M and significant debt issuances alongside repayments indicate ongoing financial restructuring that may temporarily constrain free cash flow available for dividends. Margin compression from inflationary pressures on raw materials and packaging could erode the profitability improvements seen in recent years.
About CAMPBELL'S Co
CAMPBELL'S Co. (CPB) is a global leader in packaged foods and beverages, specializing in iconic soup brands alongside pasta sauces, baby foods, and pet nutrition products served worldwide. The company leverages its extensive brand portfolio to drive revenue growth across North America, Europe, and Asia-Pacific markets. With strong cash flow generation and a diversified product mix, CPB maintains a resilient position in the competitive consumer staples sector.
Analysis
Management Discussion
In 2025, CAMPBELL'S reported revenue of $10.25B and net income of $602M, reflecting a resilient recovery from the prior year's lower earnings of $567M despite revenue growth from the previous $9.64B. The company generated strong operating cash flow of $1.13B, significantly higher than its net profit, indicating effective working capital management and quality earnings. However, significant cash outflows for debt repayment ($1.55B) and share repurchases suggest a continued focus on balance sheet strengthening and shareholder returns.
Industry Overview
The global packaged food industry is characterized by low growth rates but high stability, with consumers prioritizing value, health, and convenience in their purchasing decisions. Major competitors include private label manufacturers and international giants like Nestle and Unilever who compete aggressively on pricing and innovation. Success in this sector requires continuous product innovation to cater to evolving dietary trends while maintaining cost efficiency.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $9.36B | $9.64B | $10.25B |
| Cost of Revenue | $6.44B | $6.67B | $7.13B |
| Gross Profit | $2.92B | $2.97B | $3.12B |
| Operating Expenses | $1.60B | $1.97B | $2.00B |
| Operating Income | $1.31B | $1.00B | $1.12B |
| G&A | $654.0M | $737.0M | $674.0M |
| Marketing | $811.0M | $833.0M | $924.0M |
| Stock-Based Comp | $63.0M | $99.0M | $57.0M |
| D&A | $387.0M | $411.0M | $434.0M |
| Depreciation | $339.0M | $338.0M | $366.0M |
| Amortization | $48.0M | $73.0M | $68.0M |
| Other OpEx | $140.0M | $401.0M | $397.0M |
| Non-Operating Income | $-184.0M | $-243.0M | $-328.0M |
| Interest Expense | $188.0M | $249.0M | $345.0M |
| Interest Income | $4.0M | $6.0M | $17.0M |
| Pre-Tax Income | $1.13B | $757.0M | $796.0M |
| Income Tax | $270.0M | $190.0M | $194.0M |
| Continuing Ops | $858.0M | $567.0M | $602.0M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $858.0M | $567.0M | $602.0M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $858.0M | $567.0M | $602.0M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $2.06B | $2.19B | $2.23B |
| Cash & Equivalents | $189.0M | $108.0M | $132.0M |
| Accounts Receivable | $494.0M | $587.0M | $541.0M |
| Inventory | $1.29B | $1.39B | $1.42B |
| Other Current Assets | $87.0M | $109.0M | $135.0M |
| Long-Term Assets | $10.00B | $13.04B | $12.66B |
| PP&E (Net) | $2.40B | $2.70B | $2.77B |
| Intangibles | $3.14B | $4.72B | $4.36B |
| Goodwill | $3.96B | $5.08B | $4.99B |
| Operating Leases | $275.0M | $333.0M | $326.0M |
| Other LT Assets | $217.0M | $221.0M | $219.0M |
| Total Assets | $12.06B | $15.23B | $14.90B |
| Current Liabilities | $2.22B | $3.58B | $2.91B |
| Accounts Payable | $1.31B | $1.31B | $1.33B |
| Current Debt | $0 | $1.15B | $400.0M |
| Current Leases | $70.0M | $90.0M | $96.0M |
| Taxes Payable | $20.0M | $7.0M | $4.0M |
| Other Current Liab | $121.0M | $183.0M | $266.0M |
| Long-Term Liabilities | $6.17B | $7.86B | $8.09B |
| LT Operating Leases | $208.0M | $268.0M | $259.0M |
| Other LT Liab | $5.79B | $7.34B | $7.50B |
| Total Liabilities | $8.39B | $11.44B | $10.99B |
| Shareholders' Equity | $3.66B | $3.80B | $3.90B |
| Retained Earnings | $4.45B | $4.57B | $4.69B |
| AOCI | $-3.0M | $-17.0M | $-15.0M |
| Total L&E | $12.06B | $15.23B | $14.90B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $858.0M | $567.0M | $602.0M |
| Non-Cash Adjustments | $397.0M | $745.0M | $628.0M |
| Working Capital Changes | $-112.0M | $-127.0M | $-99.0M |
| Cash from Operations | $1.14B | $1.19B | $1.13B |
| Capital Expenditures | $370.0M | $517.0M | $426.0M |
| Cash from Investing | $-340.0M | $-3.13B | $-187.0M |
| Debt Issuances | $500.0M | $2.50B | $1.14B |
| Debt Repayments | $566.0M | $100.0M | $1.55B |
| Share Buybacks | $142.0M | $67.0M | $62.0M |
| Dividends Paid | $447.0M | $445.0M | $459.0M |
| Cash from Financing | $-723.0M | $1.86B | $-919.0M |
| FX Effect | $0 | $-1.0M | $-1.0M |
| Net Change in Cash | $80.0M | $-81.0M | $24.0M |
| Beginning Cash | $109.0M | $189.0M | $108.0M |
| Ending Cash | $189.0M | $108.0M | $132.0M |
Frequently Asked Questions
How does CAMPBELL'S Co make money?
The company's revenue is driven by its core Soup segment which includes condensed and ready-to-serve soups, a Pasta Sauces segment offering pasta sauce mixes and bottled sauces, and a Baby Foods segment providing nutritious meals for infants. Additional growth streams come from Pet Nutrition products and emerging categories like plant-based options and international market expansions.
What are the main risks for CPB?
Intense price competition from private label brands and discount retailers threatens average selling prices and margin expansion in the consumer staples market. Rising input costs for commodities like tomatoes, corn, and packaging materials could pressure gross margins if cost pass-through strategies fail. Shifts in consumer preferences toward healthier or plant-based diets pose a challenge to traditional soup and meat-based product sales.
What is CPB's competitive advantage?
CPB benefits from deeply ingrained brand equity with over 150 years of consumer trust in its soup lineup, creating high switching costs for shoppers. The company utilizes a highly efficient global supply chain that optimizes inventory turnover and minimizes food waste costs. Its diversified product portfolio across multiple categories mitigates the risk associated with reliance on a single product line.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.