Campbell Soup Current Ratio vs. Price To Book
| CPB Stock | USD 45.89 0.36 0.79% |
Current Ratio | First Reported 2010-12-31 | Previous Quarter 0.68018018 | Current Value 0.95 | Quarterly Volatility 0.14601766 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.44 | 0.3068 |
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| Net Profit Margin | 0.0657 | 0.0884 |
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| Operating Profit Margin | 0.12 | 0.1395 |
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| Pretax Profit Margin | 0.096 | 0.1139 |
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| Return On Assets | 0.0726 | 0.0637 |
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| Return On Equity | 0.34 | 0.2271 |
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For Campbell Soup profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Campbell Soup to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Campbell Soup utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Campbell Soup's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Campbell Soup over time as well as its relative position and ranking within its peers.
Campbell |
Is Campbell Soup's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Campbell Soup. If investors know Campbell will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Campbell Soup listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.12) | Dividend Share 1.48 | Earnings Share 2.55 | Revenue Per Share 31.059 | Quarterly Revenue Growth (0.01) |
The market value of Campbell Soup is measured differently than its book value, which is the value of Campbell that is recorded on the company's balance sheet. Investors also form their own opinion of Campbell Soup's value that differs from its market value or its book value, called intrinsic value, which is Campbell Soup's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Campbell Soup's market value can be influenced by many factors that don't directly affect Campbell Soup's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Campbell Soup's value and its price as these two are different measures arrived at by different means. Investors typically determine if Campbell Soup is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Campbell Soup's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Campbell Soup Price To Book vs. Current Ratio Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Campbell Soup's current stock value. Our valuation model uses many indicators to compare Campbell Soup value to that of its competitors to determine the firm's financial worth. Campbell Soup is rated fifth in current ratio category among related companies. It is number one stock in price to book category among related companies fabricating about 4.82 of Price To Book per Current Ratio. At present, Campbell Soup's Current Ratio is projected to increase slightly based on the last few years of reporting.Comparative valuation analysis is a catch-all model that can be used if you cannot value Campbell Soup by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Campbell Soup's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Campbell Soup's earnings, one of the primary drivers of an investment's value.Campbell Price To Book vs. Current Ratio
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Campbell Soup |
| = | 0.68 X |
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Campbell Soup |
| = | 3.28 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Campbell Price To Book Comparison
Campbell Soup is currently under evaluation in price to book category among related companies.
Campbell Soup Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Campbell Soup, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Campbell Soup will eventually generate negative long term returns. The profitability progress is the general direction of Campbell Soup's change in net profit over the period of time. It can combine multiple indicators of Campbell Soup, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -3.5 M | -3.6 M | |
| Operating Income | 1.5 B | 1.2 B | |
| Income Before Tax | 1.3 B | 974.2 M | |
| Total Other Income Expense Net | -43.2 M | -45.4 M | |
| Net Income | 986.7 M | 731.9 M | |
| Income Tax Expense | 310.5 M | 311.6 M | |
| Net Income Applicable To Common Shares | 986.7 M | 797.8 M | |
| Net Income From Continuing Ops | 772.2 M | 566.1 M | |
| Non Operating Income Net Other | 900 K | 855 K | |
| Interest Income | 211.6 M | 145.7 M | |
| Net Interest Income | -165.6 M | -173.9 M | |
| Change To Netincome | 139.2 M | 154.4 M | |
| Net Income Per Share | 2.51 | 1.31 | |
| Income Quality | 1.56 | 1.48 | |
| Net Income Per E B T | 0.78 | 0.52 |
Campbell Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Campbell Soup. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Campbell Soup position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Campbell Soup's important profitability drivers and their relationship over time.
Use Campbell Soup in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Campbell Soup position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Campbell Soup will appreciate offsetting losses from the drop in the long position's value.Campbell Soup Pair Trading
Campbell Soup Pair Trading Analysis
The ability to find closely correlated positions to Campbell Soup could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Campbell Soup when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Campbell Soup - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Campbell Soup to buy it.
The correlation of Campbell Soup is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Campbell Soup moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Campbell Soup moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Campbell Soup can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Campbell Soup position
In addition to having Campbell Soup in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Market Neutral Funds Thematic Idea Now
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Funds or Etfs that invest in both long and short positions of different entities to enhance returns from broad market movements over time. The Market Neutral Funds theme has 46 constituents at this time.
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Check out Trending Equities. For information on how to trade Campbell Stock refer to our How to Trade Campbell Stock guide.You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Complementary Tools for Campbell Stock analysis
When running Campbell Soup's price analysis, check to measure Campbell Soup's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Campbell Soup is operating at the current time. Most of Campbell Soup's value examination focuses on studying past and present price action to predict the probability of Campbell Soup's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Campbell Soup's price. Additionally, you may evaluate how the addition of Campbell Soup to your portfolios can decrease your overall portfolio volatility.
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To fully project Campbell Soup's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Campbell Soup at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Campbell Soup's income statement, its balance sheet, and the statement of cash flows.