JM SMUCKER CO/THE (SJM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SJM - US8326964058 - Common Stock
103.525 USD
-1.72 (-1.64%)
Overall SJM gets a fundamental rating of 3 out of 10. We evaluated SJM against 87 industry peers in the Food Products industry. SJM has a medium profitability rating, but doesn't score so well on its financial health evaluation. SJM has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally SJM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year SJM was profitable.
- In the past year SJM had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: SJM reported negative net income in multiple years.
- Each year in the past 5 years SJM had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of SJM (-6.77%) is worse than 68.97% 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 Return On Invested Capital of 6.49%. This is in the better half of the industry: SJM outperforms 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 27.79%.
| 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 Operating Margin of 15.61%. This is amongst the best in the industry. SJM outperforms 91.95% of its industry peers.
- In the last couple of years the Operating Margin of SJM has grown nicely.
- SJM has a better Gross Margin (35.14%) than 80.46% of its industry peers.
- 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.
- SJM has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, SJM has a worse debt to assets ratio.
2.2 Solvency
- SJM has an Altman-Z score of 1.35. This is a bad value and indicates that SJM is not financially healthy and even has some risk of bankruptcy.
- SJM has a worse Altman-Z score (1.35) than 65.52% of its industry peers.
- SJM has a debt to FCF ratio of 12.27. This is a negative value and a sign of low solvency as SJM would need 12.27 years to pay back of all of its debts.
- SJM has a Debt to FCF ratio (12.27) which is in line with its industry peers.
- SJM has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
- SJM has a worse Debt to Equity ratio (1.29) than 78.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 12.27 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.95
WACC6.83%
2.3 Liquidity
- A Current Ratio of 0.89 indicates that SJM may have some problems paying its short term obligations.
- With a Current ratio value of 0.89, SJM is not doing good in the industry: 79.31% of the companies in the same industry are doing better.
- 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.
- Looking at the Quick ratio, with a value of 0.37, SJM is doing worse than 85.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
- SJM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.73%.
- The Earnings Per Share has been growing slightly by 2.93% on average over the past years.
- Looking at the last year, SJM shows a decrease in Revenue. The Revenue has decreased by -0.66% in the last year.
- 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
- The Earnings Per Share is expected to grow by 1.12% on average over the next years.
- SJM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.12% yearly.
EPS Next Y-10.22%
EPS Next 2Y-0.79%
EPS Next 3Y1.94%
EPS Next 5Y1.12%
Revenue Next Year3.38%
Revenue Next 2Y2.76%
Revenue Next 3Y2.41%
Revenue Next 5Y2.12%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 11.61, the valuation of SJM can be described as very reasonable.
- 81.61% of the companies in the same industry are more expensive than SJM, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, SJM is valued rather cheaply.
- A Price/Forward Earnings ratio of 10.39 indicates a reasonable valuation of SJM.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SJM indicates a rather cheap valuation: SJM is cheaper than 87.36% of the companies listed 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 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.61 | ||
| Fwd PE | 10.39 |
4.2 Price Multiples
- SJM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SJM is cheaper than 62.07% of the companies in the same industry.
- SJM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SJM is cheaper than 70.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.38 | ||
| EV/EBITDA | 9.62 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.96
EPS Next 2Y-0.79%
EPS Next 3Y1.94%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.31%, SJM is a good candidate for dividend investing.
- SJM's Dividend Yield is rather good when compared to the industry average which is at 2.29. SJM pays more dividend than 81.61% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, SJM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
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 their dividend for at least 10 years, which is a reliable track record.
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-0.79%
EPS Next 3Y1.94%
JM SMUCKER CO/THE / SJM FAQ
What is the fundamental rating for SJM stock?
ChartMill assigns a fundamental rating of 3 / 10 to SJM.
What is the valuation status for SJM stock?
ChartMill assigns a valuation rating of 6 / 10 to JM SMUCKER CO/THE (SJM). This can be considered as Fairly Valued.
How profitable is JM SMUCKER CO/THE (SJM) stock?
JM SMUCKER CO/THE (SJM) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for SJM stock?
The Price/Earnings (PE) ratio for JM SMUCKER CO/THE (SJM) is 11.61 and the Price/Book (PB) ratio is 1.82.
Can you provide the dividend sustainability for SJM stock?
The dividend rating of JM SMUCKER CO/THE (SJM) is 7 / 10 and the dividend payout ratio is -38.54%.