The Campbell's Company: M&A Further Delays Balance Sheet Repair
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Seeking Profits5.1K FollowersFollow5ShareSavePlay(8min)CommentsSummaryThe 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's dividend yield is secure at 5.2%, but with flat sales, falling EPS, and leverage unlikely to reach 3x before 2029, shares remain a value trap. JHVEPhoto/iStock Editorial via Getty Images Shares of The Campbell's Company (CPB) have been a very poor performer over the past year, losing about a third of their value. The company has struggled with weak snacks sales and a debt-heavy balanceThis article was written bySeeking Profits5.1K FollowersFollowOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You