J & J SNACK FOODS CORP (JJSF) Stock Fundamental Analysis
NASDAQ:JJSF - Nasdaq - US4660321096 - Common Stock - Currency: USD
Overall JJSF gets a fundamental rating of 5 out of 10. We evaluated JJSF against 91 industry peers in the Food Products industry. JJSF has an excellent financial health rating, but there are some minor concerns on its profitability. JJSF is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
JJSF had positive earnings in the past year.
In the past year JJSF had a positive cash flow from operations.
Each year in the past 5 years JJSF has been profitable.
In the past 5 years JJSF always reported a positive cash flow from operatings.
1.2 Ratios
JJSF has a better Return On Assets (6.27%) than 71.76% of its industry peers.
With a decent Return On Equity value of 8.92%, JJSF is doing good in the industry, outperforming 61.18% of the companies in the same industry.
The Return On Invested Capital of JJSF (7.04%) is better than 65.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for JJSF is below the industry average of 9.02%.
The last Return On Invested Capital (7.04%) for JJSF is above the 3 year average (6.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.27% | ||
| ROE | 8.92% | ||
| ROIC | 7.04% |
ROA(3y)5.47%
ROA(5y)4.62%
ROE(3y)7.72%
ROE(5y)6.4%
ROIC(3y)6.34%
ROIC(5y)5.29%
1.3 Margins
Looking at the Profit Margin, with a value of 5.31%, JJSF is in the better half of the industry, outperforming 69.41% of the companies in the same industry.
JJSF's Profit Margin has declined in the last couple of years.
The Operating Margin of JJSF (7.18%) is better than 64.71% of its industry peers.
In the last couple of years the Operating Margin of JJSF has declined.
JJSF has a Gross Margin of 30.55%. This is in the better half of the industry: JJSF outperforms 68.24% of its industry peers.
JJSF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.18% | ||
| PM (TTM) | 5.31% | ||
| GM | 30.55% |
OM growth 3Y5.63%
OM growth 5Y-5.42%
PM growth 3Y4.2%
PM growth 5Y-7.21%
GM growth 3Y5.74%
GM growth 5Y0.89%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so JJSF is destroying value.
Compared to 1 year ago, JJSF has more shares outstanding
The number of shares outstanding for JJSF has been increased compared to 5 years ago.
Compared to 1 year ago, JJSF has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.33 indicates that JJSF is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.33, JJSF belongs to the top of the industry, outperforming 90.59% of the companies in the same industry.
JJSF has a debt to FCF ratio of 0.01. This is a very positive value and a sign of high solvency as it would only need 0.01 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.01, JJSF belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
JJSF has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.00, JJSF belongs to the best of the industry, outperforming 89.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 6.33 |
ROIC/WACC0.78
WACC9.06%
2.3 Liquidity
JJSF has a Current Ratio of 2.63. This indicates that JJSF is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.63, JJSF is doing good in the industry, outperforming 75.29% of the companies in the same industry.
A Quick Ratio of 1.59 indicates that JJSF should not have too much problems paying its short term obligations.
JJSF has a better Quick ratio (1.59) than 72.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.63 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.26% over the past year.
Measured over the past years, JJSF shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.04% on average per year.
The Revenue has been growing slightly by 2.13% in the past year.
The Revenue has been growing slightly by 5.83% on average over the past years.
EPS 1Y (TTM)3.26%
EPS 3Y19.29%
EPS 5Y-0.04%
EPS Q2Q%-36.54%
Revenue 1Y (TTM)2.13%
Revenue growth 3Y11.22%
Revenue growth 5Y5.83%
Sales Q2Q%4.1%
3.2 Future
Based on estimates for the next years, JJSF will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.73% on average per year.
The Revenue is expected to grow by 3.91% on average over the next years.
EPS Next Y-0.73%
EPS Next 2Y8.96%
EPS Next 3Y9.73%
EPS Next 5YN/A
Revenue Next Year3.36%
Revenue Next 2Y3.27%
Revenue Next 3Y3.91%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.22, JJSF can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as JJSF.
JJSF's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.63.
Based on the Price/Forward Earnings ratio of 22.04, the valuation of JJSF can be described as rather expensive.
62.35% of the companies in the same industry are more expensive than JJSF, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.68. JJSF is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.22 | ||
| Fwd PE | 22.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of JJSF is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of JJSF is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.11 | ||
| EV/EBITDA | 13.18 |
4.3 Compensation for Growth
The decent profitability rating of JJSF may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.96%
EPS Next 3Y9.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.52%, JJSF has a reasonable but not impressive dividend return.
The stock price of JJSF dropped by -24.46% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.94, JJSF pays a bit more dividend than its industry peers.
JJSF's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
5.2 History
On average, the dividend of JJSF grows each year by 8.63%, which is quite nice.
JJSF has paid a dividend for at least 10 years, which is a reliable track record.
JJSF has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.63%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
68.62% of the earnings are spent on dividend by JJSF. This is not a sustainable payout ratio.
The dividend of JJSF is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP68.62%
EPS Next 2Y8.96%
EPS Next 3Y9.73%
129.29
+5.33 (+4.3%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners80.15%
Inst Owner Change-92.24%
Ins Owners1.92%
Ins Owner Change0.18%
Market Cap2.52B
Analysts80
Price Target181.31 (40.24%)
Short Float %5.83%
Short Ratio7.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
Yearly Dividend2.94
Dividend Growth(5Y)8.63%
DP68.62%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-30.23%
Min EPS beat(2)-45.48%
Max EPS beat(2)-14.98%
EPS beat(4)1
Avg EPS beat(4)-7.22%
Min EPS beat(4)-45.48%
Max EPS beat(4)34.13%
EPS beat(8)2
Avg EPS beat(8)-6.32%
EPS beat(12)3
Avg EPS beat(12)-11.31%
EPS beat(16)5
Avg EPS beat(16)2.9%
Revenue beat(2)0
Avg Revenue beat(2)-2.18%
Min Revenue beat(2)-2.64%
Max Revenue beat(2)-1.71%
Revenue beat(4)1
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-2.86%
Max Revenue beat(4)3.4%
Revenue beat(8)2
Avg Revenue beat(8)-1.59%
Revenue beat(12)4
Avg Revenue beat(12)-1.75%
Revenue beat(16)8
Avg Revenue beat(16)-0.19%
PT rev (1m)-5.07%
PT rev (3m)-5.07%
EPS NQ rev (1m)-20.11%
EPS NQ rev (3m)3.37%
EPS NY rev (1m)-13.36%
EPS NY rev (3m)-21.48%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)4.81%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.22 | ||
| Fwd PE | 22.04 | ||
| P/S | 1.59 | ||
| P/FCF | 29.11 | ||
| P/OCF | 15.82 | ||
| P/B | 2.66 | ||
| P/tB | 4.33 | ||
| EV/EBITDA | 13.18 |
EPS(TTM)4.75
EY3.67%
EPS(NY)5.87
Fwd EY4.54%
FCF(TTM)4.44
FCFY3.44%
OCF(TTM)8.17
OCFY6.32%
SpS81.53
BVpS48.58
TBVpS29.83
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.27% | ||
| ROE | 8.92% | ||
| ROCE | 9.64% | ||
| ROIC | 7.04% | ||
| ROICexc | 7.51% | ||
| ROICexgc | 11.19% | ||
| OM | 7.18% | ||
| PM (TTM) | 5.31% | ||
| GM | 30.55% | ||
| FCFM | 5.45% |
ROA(3y)5.47%
ROA(5y)4.62%
ROE(3y)7.72%
ROE(5y)6.4%
ROIC(3y)6.34%
ROIC(5y)5.29%
ROICexc(3y)6.67%
ROICexc(5y)6.11%
ROICexgc(3y)10.24%
ROICexgc(5y)9.16%
ROCE(3y)8.67%
ROCE(5y)7.24%
ROICexcg growth 3Y0.07%
ROICexcg growth 5Y-7.81%
ROICexc growth 3Y-1.27%
ROICexc growth 5Y-10.06%
OM growth 3Y5.63%
OM growth 5Y-5.42%
PM growth 3Y4.2%
PM growth 5Y-7.21%
GM growth 3Y5.74%
GM growth 5Y0.89%
F-Score7
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 101.61% | ||
| Cap/Sales | 4.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.79% | ||
| Profit Quality | 102.56% | ||
| Current Ratio | 2.63 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z | 6.33 |
F-Score7
WACC9.06%
ROIC/WACC0.78
Cap/Depr(3y)144.73%
Cap/Depr(5y)130.35%
Cap/Sales(3y)5.9%
Cap/Sales(5y)5.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.26%
EPS 3Y19.29%
EPS 5Y-0.04%
EPS Q2Q%-36.54%
EPS Next Y-0.73%
EPS Next 2Y8.96%
EPS Next 3Y9.73%
EPS Next 5YN/A
Revenue 1Y (TTM)2.13%
Revenue growth 3Y11.22%
Revenue growth 5Y5.83%
Sales Q2Q%4.1%
Revenue Next Year3.36%
Revenue Next 2Y3.27%
Revenue Next 3Y3.91%
Revenue Next 5YN/A
EBIT growth 1Y2.27%
EBIT growth 3Y17.48%
EBIT growth 5Y0.09%
EBIT Next Year62.44%
EBIT Next 3Y23.47%
EBIT Next 5YN/A
FCF growth 1Y244.05%
FCF growth 3Y27.59%
FCF growth 5Y1.94%
OCF growth 1Y279.23%
OCF growth 3Y19.47%
OCF growth 5Y3.25%