JM SMUCKER CO/THE (SJM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SJM - US8326964058 - Common Stock
98.69 USD
-1.68 (-1.67%)
99 USD
+0.31 (+0.31%)
Taking everything into account, SJM scores 4 out of 10 in our fundamental rating. SJM was compared to 87 industry peers in the Food Products industry. There are concerns on the financial health of SJM while its profitability can be described as average. SJM has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SJM had positive earnings in the past year.
In the past year SJM had a positive cash flow from operations.
In multiple years SJM reported negative net income over the last 5 years.
SJM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SJM (-6.77%) is worse than 67.82% of its industry peers.
With a Return On Equity value of -19.70%, SJM is not doing good in the industry: 67.82% of the companies in the same industry are doing better.
The Return On Invested Capital of SJM (6.49%) is better than 72.41% of its industry peers.
SJM had an Average Return On Invested Capital over the past 3 years of 7.05%. This is significantly below the industry average of 28.52%.
| 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.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SJM is still creating some value.
Compared to 1 year ago, SJM has more shares outstanding
The number of shares outstanding for SJM has been reduced compared to 5 years ago.
The debt/assets ratio for SJM is higher compared to a year ago.
2.2 Solvency
SJM has an Altman-Z score of 1.32. This is a bad value and indicates that SJM is not financially healthy and even 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's Debt to FCF ratio of 12.27 is fine compared to the rest of the industry. SJM outperforms 62.07% of its industry peers.
SJM has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.29, SJM is not doing good in the industry: 79.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 12.27 | ||
| Altman-Z | 1.32 |
ROIC/WACC0.95
WACC6.86%
2.3 Liquidity
SJM has a Current 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.
SJM's Current ratio of 0.89 is on the low side compared to the rest of the industry. SJM is outperformed by 79.31% of its industry peers.
A Quick Ratio of 0.37 indicates that SJM may have some problems paying its short term obligations.
With a Quick ratio value of 0.37, SJM is not doing good in the industry: 86.21% of the companies in the same industry are doing better.
| 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.
The Revenue has decreased by -0.66% in the past year.
Measured over the past years, SJM shows a small growth in Revenue. The Revenue has been growing by 2.27% on average per year.
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
SJM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.27% yearly.
Based on estimates for the next years, SJM will show a small growth in Revenue. The Revenue will grow by 1.82% on average per year.
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.
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
Based on the Price/Earnings ratio of 11.06, the valuation of SJM can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of SJM indicates a rather cheap valuation: SJM is cheaper than 81.61% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SJM to the average of the S&P500 Index (26.39), we can say SJM is valued rather cheaply.
SJM is valuated reasonably with a Price/Forward Earnings ratio of 9.79.
90.80% of the companies in the same industry are more expensive than SJM, based on the Price/Forward Earnings ratio.
SJM is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.06 | ||
| Fwd PE | 9.79 |
4.2 Price Multiples
63.22% of the companies in the same industry are more expensive than SJM, based on the Enterprise Value to EBITDA ratio.
SJM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SJM is cheaper than 71.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.57 | ||
| EV/EBITDA | 9.25 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.78
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 2.34, SJM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, SJM pays a better dividend.
| 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 been paying a dividend for at least 10 years, so it has 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
SJM has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of SJM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-38.54%
EPS Next 2Y-0.21%
EPS Next 3Y2.13%
98.69
-1.68 (-1.67%)
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 Cap10.53B
Revenue(TTM)8.77B
Net Income(TTM)-1.19B
Analysts71.3
Price Target118.48 (20.05%)
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 | 11.06 | ||
| Fwd PE | 9.79 | ||
| P/S | 1.2 | ||
| P/FCF | 16.57 | ||
| P/OCF | 10.86 | ||
| P/B | 1.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.25 |
EPS(TTM)8.92
EY9.04%
EPS(NY)10.08
Fwd EY10.21%
FCF(TTM)5.96
FCFY6.04%
OCF(TTM)9.08
OCFY9.2%
SpS82.23
BVpS56.8
TBVpS-55.24
PEG (NY)N/A
PEG (5Y)3.78
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
WACC6.86%
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 11.06 and the Price/Book (PB) ratio is 1.74.
How financially healthy is JM SMUCKER CO/THE?
The financial health rating of JM SMUCKER CO/THE (SJM) is 2 / 10.