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CPB (The Campbell`s Co) Operating Margin % : 14.29% (As of Oct. 2024)


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What is The Campbell`s Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. The Campbell`s Co's Operating Income for the three months ended in Oct. 2024 was $396 Mil. The Campbell`s Co's Revenue for the three months ended in Oct. 2024 was $2,772 Mil. Therefore, The Campbell`s Co's Operating Margin % for the quarter that ended in Oct. 2024 was 14.29%.

Warning Sign:

The Campbell`s Co operating margin has been in a 5-year decline. The average rate of decline per year is -1.4%.

The historical rank and industry rank for The Campbell`s Co's Operating Margin % or its related term are showing as below:

CPB' s Operating Margin % Range Over the Past 10 Years
Min: 12.69   Med: 14.54   Max: 20.99
Current: 12.69


CPB's Operating Margin % is ranked better than
79.01% of 1887 companies
in the Consumer Packaged Goods industry
Industry Median: 5.32 vs CPB: 12.69

The Campbell`s Co's 5-Year Average Operating Margin % Growth Rate was -1.40% per year.

The Campbell`s Co's Operating Income for the three months ended in Oct. 2024 was $396 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Oct. 2024 was $1,255 Mil.


The Campbell`s Co Operating Margin % Historical Data

The historical data trend for The Campbell`s Co's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Campbell`s Co Operating Margin % Chart

The Campbell`s Co Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.89 14.98 13.41 14.02 12.72

The Campbell`s Co Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.58 13.36 11.52 11.25 14.29

Competitive Comparison of The Campbell`s Co's Operating Margin %

For the Packaged Foods subindustry, The Campbell`s Co's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Campbell`s Co's Operating Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, The Campbell`s Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where The Campbell`s Co's Operating Margin % falls into.



The Campbell`s Co Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

The Campbell`s Co's Operating Margin % for the fiscal year that ended in Jul. 2024 is calculated as

Operating Margin %=Operating Income (A: Jul. 2024 ) / Revenue (A: Jul. 2024 )
=1226 / 9636
=12.72 %

The Campbell`s Co's Operating Margin % for the quarter that ended in Oct. 2024 is calculated as

Operating Margin %=Operating Income (Q: Oct. 2024 ) / Revenue (Q: Oct. 2024 )
=396 / 2772
=14.29 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


The Campbell`s Co  (NAS:CPB) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


The Campbell`s Co Operating Margin % Related Terms

Thank you for viewing the detailed overview of The Campbell`s Co's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


The Campbell`s Co Business Description

Traded in Other Exchanges
Address
1 Campbell Place, Camden, NJ, USA, 08103-1799
Over the past 150-plus years, Campbell has evolved into a leading packaged food manufacturer in North America, with a portfolio that extends beyond its iconic red-and-white labeled canned soup. In fiscal 2024, snacks accounted for nearly half of its revenue, followed by soup (28%), other simple meals (17%), and beverages (7%). Outside its namesake, its brands include Pepperidge Farm, Goldfish, Snyder's of Hanover, Swanson, Pacific Foods, Prego, Pace, V8, and recently acquired Rao's (which closed in March 2024). Around 90% of its revenue results from the US and the remainder from Canada and Latin America.
Executives
Anthony Sanzio officer: Executive Vice President 1 CAMPBELL PLACE, CAMDEN NJ 08103
Stanley Polomski officer: Vice President and Controller ONE CAMPBELL PLACE, CAMDEN NJ 08103
Carrie L Anderson officer: Executive Vice President & CFO 3005 HIGHLAND PARKWAY, SUITE 200, DOWNERS GROVE IL 60515
Adam Grey Ciongoli officer: Senior Vice President ONE CAMPBELL PLACE, CAMDEN NJ 08103
Bennett Jr Dorrance director 1, CAMPBELL PLACE, CAMDEN NJ 08103
Craig Slavtcheff officer: Senior Vice President 1 CAMPBELL PLACE, CAMDEN NJ 08103
Daniel L Poland officer: EVP, Chief Supply Chain Off. 399 JEFFERSON ROAD, PARSIPPANY NJ 07054
May Diane Johnson officer: Executive VP & CHRO C/O KRAFT FOODS GROUP, INC., THREE LAKES DRIVE, NORTHFIELD IL 60093
Grant Hill director 121 ORANGE AVE, SUITE 1500, ORLANDO FL 32801
Valerie Oswalt officer: Executive Vice President 1 CAMPBELL PLACE, ATTN: LEGAL DEPARTMENT, CAMDEN NJ 08103
Mick J Beekhuizen officer: Senior Vice President & CFO C/O GOLDMAN, SACHS & CO., 85 BROAD STREET, NEW YORK NY 10004
Robert Furbee officer: Senior Vice President ONE CAMPBELL PLACE, CAMDEN NJ 08103
Randall W Larrimore director OLIN CORPORATION, 190 CARONDELET PLAZA, SUITE 1530, CLAYTON MO 63105
Christopher Foley officer: Senior Vice President CAMPBELL SOUP COMPANY, ONE CAMPBELL PLACE, CAMDEN NJ 08103
John P Bilbrey director