Stock Analysis & Valuation Campbell Soup Company (CSC.DE)

• Previous Close: €23.57
• Sector Valuation Confidence Level: Low

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method		n/a
Graham Formula	18.00	-24

Strategic Investment Analysis

Company Overview

Campbell Soup Company (CSC.DE) is a leading global manufacturer and marketer of convenience food products, including soups, simple meals, snacks, and healthy beverages. Headquartered in Camden, New Jersey, the company operates through two key segments: Americas Simple Meals and Beverages, and Global Biscuits and Snacks. With iconic brands like Campbell's, Swanson, Prego, Pace, V8, and Pepperidge Farm, the company serves both retail and foodservice channels. As part of the Consumer Defensive sector, Campbell Soup benefits from stable demand for its staple food products, even during economic downturns. The company's diversified product portfolio and strong brand recognition position it well in the competitive food distribution industry. With a market capitalization of over €11 billion and operations spanning multiple geographies, Campbell Soup remains a significant player in the packaged food market, leveraging innovation and strategic acquisitions to drive growth.

Investment Summary

Campbell Soup presents a stable investment opportunity within the Consumer Defensive sector, supported by its strong brand portfolio and consistent demand for its products. The company's low beta (0.186) indicates lower volatility compared to the broader market, appealing to risk-averse investors. With €9.6 billion in revenue and €567 million net income, the company demonstrates solid profitability, though its high total debt (€7.5 billion) warrants attention. The dividend yield (approximately 3.5% based on current data) adds to its attractiveness for income-focused investors. However, investors should monitor the company's ability to innovate in the face of changing consumer preferences toward healthier options and its capacity to manage debt levels while maintaining profitability.

Competitive Analysis

Campbell Soup maintains a competitive position in the food industry through its well-established brands and diversified product portfolio. The company's strength lies in its Americas Simple Meals and Beverages segment, where it holds dominant market shares in categories like canned soups and broths. Its Global Biscuits and Snacks segment competes in more fragmented markets but benefits from strong brand recognition through Pepperidge Farm. Campbell's competitive advantages include extensive distribution networks, economies of scale in production, and significant shelf space in retail outlets. However, the company faces intensifying competition from private label products and smaller, health-focused brands that cater to evolving consumer preferences. While Campbell has made efforts to expand into healthier categories (e.g., through its Plum organics acquisition), it still lags behind some competitors in the natural/organic space. The company's heavy reliance on North American markets (particularly the U.S.) presents both stability and concentration risk compared to more globally diversified peers. Its manufacturing efficiency and supply chain capabilities provide cost advantages, but rising input costs and private label competition continue to pressure margins.

Major Competitors

• Kraft Heinz Company (KHC): Kraft Heinz is a larger competitor with a more diversified global portfolio across multiple food categories. While stronger in condiments and sauces, it competes directly with Campbell in soups and simple meals. Kraft Heinz benefits from greater international presence but has faced challenges with brand innovation and integration post-merger. Its scale provides cost advantages but the company has struggled with profitability in recent years compared to Campbell's more stable performance.
• General Mills (GIS): General Mills competes with Campbell in several categories including soups (Progresso brand) and snacks. The company has been more successful in diversifying into healthier options and has stronger cereal and yogurt businesses. General Mills has better international penetration, particularly in Europe, but lacks Campbell's dominance in the core U.S. soup market. Its innovation pipeline has been stronger recently, particularly in organic/natural segments.
• The Hershey Company (HSY): Hershey primarily competes with Campbell in the snacks segment (through Pepperidge Farm competition). While focused mainly on confectionery, Hershey has been expanding into adjacent snack categories. The company has superior brand strength in chocolate but less diversification across food categories compared to Campbell. Hershey demonstrates stronger margins but faces different commodity price risks (particularly cocoa).
• Mondelez International (MDLZ): Mondelez is a global snacking powerhouse that competes directly with Campbell's Pepperidge Farm business. With brands like Oreo and Ritz, Mondelez has greater international scale and presence in biscuits/crackers. The company has been more aggressive in acquisitions and emerging market expansion. However, Mondelez lacks Campbell's presence in shelf-stable meals and soups, making its product portfolio more concentrated in sweet and savory snacks.
• Conagra Brands (CPB): Conagra competes with Campbell in canned meals and shelf-stable foods (e.g., Chef Boyardee vs. Campbell's soups). The company has been transforming its portfolio toward frozen foods, where Campbell has less presence. Conagra shows similar challenges with debt levels and need for innovation but has been more active in portfolio restructuring. Its frozen business provides differentiation from Campbell's primarily shelf-stable focus.