JM SMUCKER CO/THE (SJM) Stock Fundamental Analysis
NYSE:SJM - New York Stock Exchange, Inc. - US8326964058 - Common Stock - Currency: USD
Taking everything into account, SJM scores 5 out of 10 in our fundamental rating. SJM was compared to 91 industry peers in the Food Products industry. While SJM belongs to the best of the industry regarding profitability, there are concerns on its financial health. SJM is not valued too expensively and it also shows a decent growth rate. Finally SJM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SJM was profitable.
SJM had a positive operating cash flow in the past year.
Of the past 5 years SJM 4 years were profitable.
SJM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.64%, SJM is in line with its industry, outperforming 45.88% of the companies in the same industry.
SJM has a Return On Equity (6.92%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 7.23%, SJM is in the better half of the industry, outperforming 68.24% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SJM is below the industry average of 9.02%.
The last Return On Invested Capital (7.23%) for SJM is above the 3 year average (6.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 6.92% | ||
| ROIC | 7.23% |
ROA(3y)2.33%
ROA(5y)3.38%
ROE(3y)5.38%
ROE(5y)7.27%
ROIC(3y)6.45%
ROIC(5y)6.66%
1.3 Margins
SJM has a better Profit Margin (5.98%) than 74.12% of its industry peers.
SJM's Profit Margin has improved in the last couple of years.
SJM has a Operating Margin of 18.57%. This is amongst the best in the industry. SJM outperforms 94.12% of its industry peers.
SJM's Operating Margin has improved in the last couple of years.
SJM's Gross Margin of 38.88% is amongst the best of the industry. SJM outperforms 90.59% of its industry peers.
In the last couple of years the Gross Margin of SJM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.57% | ||
| PM (TTM) | 5.98% | ||
| GM | 38.88% |
OM growth 3Y0.22%
OM growth 5Y3.52%
PM growth 3Y-5.87%
PM growth 5Y6.85%
GM growth 3Y-0.94%
GM growth 5Y0.49%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SJM is creating some value.
SJM has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SJM has been reduced compared to 5 years ago.
Compared to 1 year ago, SJM has a worse debt to assets ratio.
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 71.76% of its industry peers.
The Debt to FCF ratio of SJM is 9.06, which is on the high side as it means it would take SJM, 9.06 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SJM (9.06) is comparable to the rest of the industry.
SJM has a Debt/Equity ratio of 0.95. This is a neutral value indicating SJM is somewhat dependend on debt financing.
The Debt to Equity ratio of SJM (0.95) is worse than 77.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 9.06 | ||
| Altman-Z | 1.32 |
ROIC/WACC1.09
WACC6.63%
2.3 Liquidity
A Current Ratio of 0.58 indicates that SJM may have some problems paying its short term obligations.
SJM's Current ratio of 0.58 is on the low side compared to the rest of the industry. SJM is outperformed by 94.12% of its industry peers.
A Quick Ratio of 0.27 indicates that SJM may have some problems paying its short term obligations.
With a Quick ratio value of 0.27, SJM is not doing good in the industry: 92.94% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.15% over the past year.
SJM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.70% yearly.
Looking at the last year, SJM shows a small growth in Revenue. The Revenue has grown by 7.76% in the last year.
Measured over the past years, SJM shows a small growth in Revenue. The Revenue has been growing by 0.85% on average per year.
EPS 1Y (TTM)7.15%
EPS 3Y2.99%
EPS 5Y3.7%
EPS Q2Q%6.56%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y0.73%
Revenue growth 5Y0.85%
Sales Q2Q%17.16%
3.2 Future
The Earnings Per Share is expected to grow by 3.10% on average over the next years.
The Revenue is expected to grow by 2.87% on average over the next years.
EPS Next Y0.43%
EPS Next 2Y3.28%
EPS Next 3Y4.39%
EPS Next 5Y3.1%
Revenue Next Year7.64%
Revenue Next 2Y4.37%
Revenue Next 3Y3.52%
Revenue Next 5Y2.87%
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 stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.64 indicates a reasonable valuation of SJM.
Based on the Price/Earnings ratio, SJM is valued cheaply inside the industry as 83.53% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SJM to the average of the S&P500 Index (29.63), we can say SJM is valued rather cheaply.
The Price/Forward Earnings ratio is 10.38, which indicates a very decent 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 90.59% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SJM to the average of the S&P500 Index (22.68), we can say SJM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.64 | ||
| Fwd PE | 10.38 |
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 65.88% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SJM indicates a somewhat cheap valuation: SJM is cheaper than 74.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.82 | ||
| EV/EBITDA | 8.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SJM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)24.72
PEG (5Y)2.88
EPS Next 2Y3.28%
EPS Next 3Y4.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.11%, SJM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.94, SJM pays a better dividend. On top of this SJM pays more dividend than 85.88% of the companies listed in the same industry.
SJM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
5.2 History
The dividend of SJM has a limited annual growth rate of 4.66%.
SJM has been paying a dividend for at least 10 years, so it has a reliable track record.
SJM has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.66%
Div Incr Years22
Div Non Decr Years22
5.3 Sustainability
SJM pays out 85.39% of its income as dividend. This is not a sustainable payout ratio.
SJM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP85.39%
EPS Next 2Y3.28%
EPS Next 3Y4.39%
110.01
+2.71 (+2.53%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners83.38%
Inst Owner Change1.94%
Ins Owners2.87%
Ins Owner Change-0.03%
Market Cap11.71B
Analysts67.62
Price Target127.79 (16.16%)
Short Float %4.21%
Short Ratio4.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
Yearly Dividend4.16
Dividend Growth(5Y)4.66%
DP85.39%
Div Incr Years22
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.07%
Min EPS beat(2)8.9%
Max EPS beat(2)11.25%
EPS beat(4)4
Avg EPS beat(4)10.33%
Min EPS beat(4)8.12%
Max EPS beat(4)13.07%
EPS beat(8)8
Avg EPS beat(8)8.19%
EPS beat(12)12
Avg EPS beat(12)10.98%
EPS beat(16)16
Avg EPS beat(16)10.81%
Revenue beat(2)0
Avg Revenue beat(2)-1.08%
Min Revenue beat(2)-1.39%
Max Revenue beat(2)-0.78%
Revenue beat(4)0
Avg Revenue beat(4)-1.33%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)-0.57%
Revenue beat(8)1
Avg Revenue beat(8)-1.11%
Revenue beat(12)3
Avg Revenue beat(12)-0.67%
Revenue beat(16)7
Avg Revenue beat(16)0.14%
PT rev (1m)-1.13%
PT rev (3m)0.29%
EPS NQ rev (1m)-2.36%
EPS NQ rev (3m)-8.96%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)-1.62%
Revenue NQ rev (3m)-2.51%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.64 | ||
| Fwd PE | 10.38 | ||
| P/S | 1.33 | ||
| P/FCF | 12.82 | ||
| P/OCF | 8.29 | ||
| P/B | 1.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.93 |
EPS(TTM)10.34
EY9.4%
EPS(NY)10.6
Fwd EY9.64%
FCF(TTM)8.58
FCFY7.8%
OCF(TTM)13.27
OCFY12.06%
SpS82.98
BVpS71.73
TBVpS-61.48
PEG (NY)24.72
PEG (5Y)2.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 6.92% | ||
| ROCE | 9.97% | ||
| ROIC | 7.23% | ||
| ROICexc | 7.25% | ||
| ROICexgc | 45.03% | ||
| OM | 18.57% | ||
| PM (TTM) | 5.98% | ||
| GM | 38.88% | ||
| FCFM | 10.34% |
ROA(3y)2.33%
ROA(5y)3.38%
ROE(3y)5.38%
ROE(5y)7.27%
ROIC(3y)6.45%
ROIC(5y)6.66%
ROICexc(3y)6.7%
ROICexc(5y)6.89%
ROICexgc(3y)42.3%
ROICexgc(5y)52.26%
ROCE(3y)8.77%
ROCE(5y)9.04%
ROICexcg growth 3Y-19.11%
ROICexcg growth 5Y-0.68%
ROICexc growth 3Y-7.38%
ROICexc growth 5Y1.36%
OM growth 3Y0.22%
OM growth 5Y3.52%
PM growth 3Y-5.87%
PM growth 5Y6.85%
GM growth 3Y-0.94%
GM growth 5Y0.49%
F-Score7
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 9.06 | ||
| Debt/EBITDA | 3.39 | ||
| Cap/Depr | 98.61% | ||
| Cap/Sales | 5.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.8% | ||
| Profit Quality | 173.04% | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 1.32 |
F-Score7
WACC6.63%
ROIC/WACC1.09
Cap/Depr(3y)112.62%
Cap/Depr(5y)93.19%
Cap/Sales(3y)6%
Cap/Sales(5y)5.05%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.15%
EPS 3Y2.99%
EPS 5Y3.7%
EPS Q2Q%6.56%
EPS Next Y0.43%
EPS Next 2Y3.28%
EPS Next 3Y4.39%
EPS Next 5Y3.1%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y0.73%
Revenue growth 5Y0.85%
Sales Q2Q%17.16%
Revenue Next Year7.64%
Revenue Next 2Y4.37%
Revenue Next 3Y3.52%
Revenue Next 5Y2.87%
EBIT growth 1Y23.2%
EBIT growth 3Y0.95%
EBIT growth 5Y4.41%
EBIT Next Year31.9%
EBIT Next 3Y12.4%
EBIT Next 5Y6.53%
FCF growth 1Y76.11%
FCF growth 3Y-20.06%
FCF growth 5Y-3.83%
OCF growth 1Y41.25%
OCF growth 3Y-7.73%
OCF growth 5Y1.5%