- Historically a stagnating business, CPB appears to be one of those reasonably risky turnarounds.
- New management appears to be prudent capital allocators and this is noticed from a much-improved balance sheet following the acquisition of Snyder's Lance in 2018.
- CPB is unlikely to become a dividend growth company in the near future, considering the very weak interest coverage ratio and the still improvable free cash flow margin.
- Inflationary concerns have brought some share price to levels not seen since mid-2019, having opened a window of opportunity for risk-tolerant long-term holders.
For further details see:
Campbell Soup Company: The Turnaround Is Still Cooking On Low Heat