JM SMUCKER CO/THE (SJM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SJM - US8326964058 - Common Stock
99.67 USD
+0.45 (+0.45%)
99.68 USD
+0.01 (+0.01%)
Overall SJM gets a fundamental rating of 4 out of 10. We evaluated SJM against 87 industry peers in the Food Products industry. While SJM is still in line with the averages on profitability rating, there are concerns on its financial health. SJM is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SJM had positive earnings in the past year.
SJM had a positive operating cash flow in the past year.
In multiple years SJM reported negative net income over the last 5 years.
In the past 5 years SJM always reported a positive cash flow from operatings.
1.2 Ratios
SJM's Return On Assets of -6.77% is on the low side compared to the rest of the industry. SJM is outperformed by 67.82% of its industry peers.
SJM's Return On Equity of -19.70% is on the low side compared to the rest of the industry. SJM is outperformed by 67.82% of its industry peers.
SJM has a better Return On Invested Capital (6.49%) than 72.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SJM is significantly below the industry average of 28.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.77% | ||
| ROE | -19.7% | ||
| ROIC | 6.49% |
ROA(3y)-1.32%
ROA(5y)1.07%
ROE(3y)-3.94%
ROE(5y)1.33%
ROIC(3y)7.05%
ROIC(5y)7.03%
1.3 Margins
SJM has a better Operating Margin (15.61%) than 91.95% of its industry peers.
SJM's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 35.14%, SJM is doing good in the industry, outperforming 79.31% of the companies in the same industry.
SJM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.61% | ||
| PM (TTM) | N/A | ||
| GM | 35.14% |
OM growth 3Y8.86%
OM growth 5Y2.85%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.83%
GM growth 5Y0.21%
2. Health
2.1 Basic Checks
SJM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
SJM has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SJM has less shares outstanding
The debt/assets ratio for SJM is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.32, we must say that SJM is in the distress zone and has some risk of bankruptcy.
SJM has a Altman-Z score of 1.32. This is in the lower half of the industry: SJM underperforms 64.37% of its industry peers.
The Debt to FCF ratio of SJM is 12.27, which is on the high side as it means it would take SJM, 12.27 years of fcf income to pay off all of its debts.
SJM has a better Debt to FCF ratio (12.27) than 62.07% of its industry peers.
A Debt/Equity ratio of 1.29 is on the high side and indicates that SJM has dependencies on debt financing.
The Debt to Equity ratio of SJM (1.29) is worse than 79.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 12.27 | ||
| Altman-Z | 1.32 |
ROIC/WACC0.95
WACC6.85%
2.3 Liquidity
A Current Ratio of 0.89 indicates that SJM may have some problems paying its short term obligations.
SJM has a Current ratio of 0.89. This is in the lower half of the industry: SJM underperforms 79.31% of its industry peers.
SJM has a Quick Ratio of 0.89. This is a bad value and indicates that SJM is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SJM (0.37) is worse than 86.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The earnings per share for SJM have decreased strongly by -13.73% in the last year.
The Earnings Per Share has been growing slightly by 2.93% on average over the past years.
SJM shows a decrease in Revenue. In the last year, the revenue decreased by -0.66%.
SJM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.27% yearly.
EPS 1Y (TTM)-13.73%
EPS 3Y4.41%
EPS 5Y2.93%
EPS Q2Q%-23.91%
Revenue 1Y (TTM)-0.66%
Revenue growth 3Y2.94%
Revenue growth 5Y2.27%
Sales Q2Q%2.59%
3.2 Future
Based on estimates for the next years, SJM will show a small growth in Earnings Per Share. The EPS will grow by 2.27% on average per year.
The Revenue is expected to grow by 1.82% on average over the next years.
EPS Next Y-10.24%
EPS Next 2Y-0.21%
EPS Next 3Y2.13%
EPS Next 5Y2.27%
Revenue Next Year3.33%
Revenue Next 2Y2.78%
Revenue Next 3Y2.43%
Revenue Next 5Y1.82%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.17, which indicates a very decent valuation of SJM.
Based on the Price/Earnings ratio, SJM is valued cheaper than 81.61% of the companies in the same industry.
When comparing the Price/Earnings ratio of SJM to the average of the S&P500 Index (26.57), we can say SJM is valued rather cheaply.
SJM is valuated reasonably with a Price/Forward Earnings ratio of 9.89.
Based on the Price/Forward Earnings ratio, SJM is valued cheaper than 90.80% of the companies in the same industry.
SJM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.17 | ||
| Fwd PE | 9.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SJM indicates a somewhat cheap valuation: SJM is cheaper than 63.22% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SJM is valued a bit cheaper than 71.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.73 | ||
| EV/EBITDA | 9.28 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.82
EPS Next 2Y-0.21%
EPS Next 3Y2.13%
5. Dividend
5.1 Amount
SJM has a Yearly Dividend Yield of 4.38%, which is a nice return.
Compared to an average industry Dividend Yield of 2.36, SJM pays a bit more dividend than its industry peers.
SJM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.38% |
5.2 History
The dividend of SJM has a limited annual growth rate of 4.24%.
SJM has paid a dividend for at least 10 years, which is a reliable track record.
SJM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.24%
Div Incr Years22
Div Non Decr Years22
5.3 Sustainability
The earnings of SJM are negative and hence is the payout ratio. SJM will probably not be able to sustain this dividend level.
SJM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-38.54%
EPS Next 2Y-0.21%
EPS Next 3Y2.13%
99.67
+0.45 (+0.45%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners90.56%
Inst Owner Change0.38%
Ins Owners2.2%
Ins Owner Change-1.19%
Market Cap10.63B
Revenue(TTM)8.77B
Net Income(TTM)-1.19B
Analysts71.3
Price TargetN/A
Short Float %6.94%
Short Ratio4.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.38% |
Yearly Dividend4.28
Dividend Growth(5Y)4.24%
DP-38.54%
Div Incr Years22
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.86%
Min EPS beat(2)-2.68%
Max EPS beat(2)-1.05%
EPS beat(4)2
Avg EPS beat(4)1.88%
Min EPS beat(4)-2.68%
Max EPS beat(4)9.25%
EPS beat(8)6
Avg EPS beat(8)6.11%
EPS beat(12)10
Avg EPS beat(12)6.08%
EPS beat(16)14
Avg EPS beat(16)8.7%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.06%
Max Revenue beat(2)-0.51%
Revenue beat(4)0
Avg Revenue beat(4)-1.8%
Min Revenue beat(4)-2.86%
Max Revenue beat(4)-0.51%
Revenue beat(8)0
Avg Revenue beat(8)-1.56%
Revenue beat(12)1
Avg Revenue beat(12)-1.34%
Revenue beat(16)3
Avg Revenue beat(16)-0.95%
PT rev (1m)-0.33%
PT rev (3m)0.27%
EPS NQ rev (1m)-7.18%
EPS NQ rev (3m)-7.21%
EPS NY rev (1m)-0.93%
EPS NY rev (3m)-1.9%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.17 | ||
| Fwd PE | 9.89 | ||
| P/S | 1.21 | ||
| P/FCF | 16.73 | ||
| P/OCF | 10.97 | ||
| P/B | 1.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.28 |
EPS(TTM)8.92
EY8.95%
EPS(NY)10.08
Fwd EY10.11%
FCF(TTM)5.96
FCFY5.98%
OCF(TTM)9.08
OCFY9.11%
SpS82.23
BVpS56.8
TBVpS-55.24
PEG (NY)N/A
PEG (5Y)3.82
Graham Number106.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.77% | ||
| ROE | -19.7% | ||
| ROCE | 9.13% | ||
| ROIC | 6.49% | ||
| ROICexc | 6.52% | ||
| ROICexgc | 27.39% | ||
| OM | 15.61% | ||
| PM (TTM) | N/A | ||
| GM | 35.14% | ||
| FCFM | 7.24% |
ROA(3y)-1.32%
ROA(5y)1.07%
ROE(3y)-3.94%
ROE(5y)1.33%
ROIC(3y)7.05%
ROIC(5y)7.03%
ROICexc(3y)7.29%
ROICexc(5y)7.22%
ROICexgc(3y)42.35%
ROICexgc(5y)51.81%
ROCE(3y)9.69%
ROCE(5y)9.6%
ROICexgc growth 3Y0.14%
ROICexgc growth 5Y-1.19%
ROICexc growth 3Y8.65%
ROICexc growth 5Y4.85%
OM growth 3Y8.86%
OM growth 5Y2.85%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.83%
GM growth 5Y0.21%
F-Score5
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 12.27 | ||
| Debt/EBITDA | 4.12 | ||
| Cap/Depr | 63.68% | ||
| Cap/Sales | 3.8% | ||
| Interest Coverage | 3.33 | ||
| Cash Conversion | 51.19% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 1.32 |
F-Score5
WACC6.85%
ROIC/WACC0.95
Cap/Depr(3y)108.43%
Cap/Depr(5y)96.8%
Cap/Sales(3y)5.76%
Cap/Sales(5y)5.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-13.73%
EPS 3Y4.41%
EPS 5Y2.93%
EPS Q2Q%-23.91%
EPS Next Y-10.24%
EPS Next 2Y-0.21%
EPS Next 3Y2.13%
EPS Next 5Y2.27%
Revenue 1Y (TTM)-0.66%
Revenue growth 3Y2.94%
Revenue growth 5Y2.27%
Sales Q2Q%2.59%
Revenue Next Year3.33%
Revenue Next 2Y2.78%
Revenue Next 3Y2.43%
Revenue Next 5Y1.82%
EBIT growth 1Y-16.52%
EBIT growth 3Y12.06%
EBIT growth 5Y5.19%
EBIT Next Year9.86%
EBIT Next 3Y6.64%
EBIT Next 5Y3.46%
FCF growth 1Y-24.09%
FCF growth 3Y4.34%
FCF growth 5Y-3.69%
OCF growth 1Y-31.9%
OCF growth 3Y2.13%
OCF growth 5Y-0.72%
JM SMUCKER CO/THE / SJM FAQ
What is the fundamental rating for SJM stock?
ChartMill assigns a fundamental rating of 4 / 10 to SJM.
What is the valuation status of JM SMUCKER CO/THE (SJM) stock?
ChartMill assigns a valuation rating of 6 / 10 to JM SMUCKER CO/THE (SJM). This can be considered as Fairly Valued.
Can you provide the profitability details for JM SMUCKER CO/THE?
JM SMUCKER CO/THE (SJM) has a profitability rating of 4 / 10.
What are the PE and PB ratios of JM SMUCKER CO/THE (SJM) stock?
The Price/Earnings (PE) ratio for JM SMUCKER CO/THE (SJM) is 11.17 and the Price/Book (PB) ratio is 1.75.
How financially healthy is JM SMUCKER CO/THE?
The financial health rating of JM SMUCKER CO/THE (SJM) is 2 / 10.