JM SMUCKER CO/THE (SJM) Stock Fundamental Analysis
NYSE:SJM - New York Stock Exchange, Inc. - US8326964058 - Common Stock
We assign a fundamental rating of 5 out of 10 to SJM. SJM was compared to 91 industry peers in the Food Products industry. SJM scores excellent on profitability, but there are concerns on its financial health. SJM has a decent growth rate and is not valued too expensively. Finally SJM also has an excellent dividend rating.
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.
SJM had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SJM had a positive operating cash flow.
1.2 Ratios
SJM has a Return On Assets of 2.64%. This is comparable to the rest of the industry: SJM outperforms 48.84% of its industry peers.
SJM has a Return On Equity (6.92%) which is in line with its industry peers.
SJM has a better Return On Invested Capital (7.23%) than 69.77% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
With a decent Profit Margin value of 5.98%, SJM is doing good in the industry, outperforming 75.58% of the companies in the same industry.
In the last couple of years the Profit Margin of SJM has grown nicely.
The Operating Margin of SJM (18.57%) is better than 94.19% of its industry peers.
SJM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 38.88%, SJM belongs to the top of the industry, outperforming 91.86% 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 | 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
SJM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for SJM has been increased compared to 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
Based on the Altman-Z score of 1.30, we must say that SJM is in the distress zone and has some risk of bankruptcy.
SJM has a worse Altman-Z score (1.30) than 70.93% of its industry peers.
SJM has a debt to FCF ratio of 9.06. This is a negative value and a sign of low solvency as SJM would need 9.06 years to pay back of all of its debts.
SJM's Debt to FCF ratio of 9.06 is in line compared to the rest of the industry. SJM outperforms 51.16% of its industry peers.
SJM has a Debt/Equity ratio of 0.95. This is a neutral value indicating SJM is somewhat dependend on debt financing.
SJM's Debt to Equity ratio of 0.95 is on the low side compared to the rest of the industry. SJM is outperformed by 76.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 9.06 | ||
| Altman-Z | 1.3 |
ROIC/WACC1.1
WACC6.6%
2.3 Liquidity
SJM has a Current Ratio of 0.58. 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 Current ratio of SJM (0.58) is worse than 93.02% of its industry peers.
A Quick Ratio of 0.27 indicates that SJM may have some problems paying its short term obligations.
The Quick ratio of SJM (0.27) is worse than 91.86% of its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 3.70% on average over the past years.
SJM shows a small growth in Revenue. In the last year, the Revenue has grown by 7.76%.
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
Based on estimates for the next years, SJM will show a small growth in Earnings Per Share. The EPS will grow by 3.10% on average per year.
SJM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.87% yearly.
EPS Next Y0.5%
EPS Next 2Y3.52%
EPS Next 3Y4.62%
EPS Next 5Y3.1%
Revenue Next Year7.65%
Revenue Next 2Y4.42%
Revenue Next 3Y3.54%
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
SJM is valuated reasonably with a Price/Earnings ratio of 10.00.
Based on the Price/Earnings ratio, SJM is valued cheaper than 84.88% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, SJM is valued rather cheaply.
The Price/Forward Earnings ratio is 9.71, which indicates a very decent valuation of SJM.
Based on the Price/Forward Earnings ratio, SJM is valued cheaper than 90.70% of the companies in the same industry.
SJM is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10 | ||
| Fwd PE | 9.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SJM is valued a bit cheaper than 69.77% of the companies in the same industry.
69.77% of the companies in the same industry are more expensive than SJM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.05 | ||
| EV/EBITDA | 8.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of SJM may justify a higher PE ratio.
PEG (NY)20.01
PEG (5Y)2.71
EPS Next 2Y3.52%
EPS Next 3Y4.62%
5. Dividend
5.1 Amount
SJM has a Yearly Dividend Yield of 4.21%, which is a nice return.
SJM's Dividend Yield is rather good when compared to the industry average which is at 3.86. SJM pays more dividend than 87.21% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, SJM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
5.2 History
The dividend of SJM has a limited annual growth rate of 4.66%.
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)4.66%
Div Incr Years22
Div Non Decr Years22
5.3 Sustainability
85.39% of the earnings are spent on dividend by SJM. 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 2Y3.52%
EPS Next 3Y4.62%
JM SMUCKER CO/THE
NYSE:SJM (1/21/2025, 8:26:49 PM)
After market: 103.44 0 (0%)103.44
+1.3 (+1.27%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners83.38%
Inst Owner Change0.03%
Ins Owners2.87%
Ins Owner Change-0.03%
Market Cap11.01B
Analysts68.57
Price Target129.25 (24.95%)
Short Float %3.94%
Short Ratio3.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
Yearly Dividend4.16
Dividend Growth(5Y)4.66%
DP85.39%
Div Incr Years22
Div Non Decr Years22
Ex-DateN/A
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)-0.78%
PT rev (3m)1.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.76%
EPS NY rev (1m)0%
EPS NY rev (3m)0.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.91%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10 | ||
| Fwd PE | 9.71 | ||
| P/S | 1.25 | ||
| P/FCF | 12.05 | ||
| P/OCF | 7.8 | ||
| P/B | 1.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.74 |
EPS(TTM)10.34
EY10%
EPS(NY)10.65
Fwd EY10.3%
FCF(TTM)8.58
FCFY8.3%
OCF(TTM)13.27
OCFY12.82%
SpS82.98
BVpS71.73
TBVpS-61.48
PEG (NY)20.01
PEG (5Y)2.71
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 | 1.3 |
F-Score7
WACC6.6%
ROIC/WACC1.1
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 Y0.5%
EPS Next 2Y3.52%
EPS Next 3Y4.62%
EPS Next 5Y3.1%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y0.73%
Revenue growth 5Y0.85%
Sales Q2Q%17.16%
Revenue Next Year7.65%
Revenue Next 2Y4.42%
Revenue Next 3Y3.54%
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%