JM SMUCKER CO/THE (SJM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SJM - US8326964058 - Common Stock
100.11 USD
+0.5 (+0.5%)
100.11 USD
0 (0%)
SJM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals 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. 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.
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
SJM's Return On Assets of -6.77% is on the low side compared to the rest of the industry. SJM is outperformed by 70.11% of its industry peers.
SJM has a worse Return On Equity (-19.70%) than 70.11% of its industry peers.
The Return On Invested Capital of SJM (6.49%) is better than 68.97% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SJM is significantly below the industry average of 28.38%.
| 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 90.80% of its industry peers.
In the last couple of years the Operating Margin of SJM has grown nicely.
SJM has a Gross Margin of 35.14%. This is in the better half of the industry: SJM outperforms 79.31% 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 | 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
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.
SJM has less shares outstanding than it did 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.
Looking at the Altman-Z score, with a value of 1.32, SJM is doing worse than 65.52% of the companies in the same industry.
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 of 12.27. This is comparable to the rest of the industry: SJM outperforms 59.77% 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.
SJM has a worse Debt to Equity ratio (1.29) than 80.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 12.27 | ||
| Altman-Z | 1.32 |
ROIC/WACC0.93
WACC6.96%
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 amonst the worse of the industry: SJM underperforms 80.46% of its industry peers.
A Quick Ratio of 0.37 indicates that SJM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.37, SJM is doing worse than 86.21% of the companies in the same industry.
| 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
The Earnings Per Share is expected to grow by 2.27% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
SJM is valuated reasonably with a Price/Earnings ratio of 11.22.
SJM's Price/Earnings ratio is rather cheap when compared to the industry. SJM is cheaper than 81.61% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.46, SJM is valued rather cheaply.
SJM is valuated reasonably with a Price/Forward Earnings ratio of 9.93.
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.
When comparing the Price/Forward Earnings ratio of SJM to the average of the S&P500 Index (36.10), we can say SJM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.22 | ||
| Fwd PE | 9.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SJM is valued a bit cheaper than 64.37% 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 71.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.81 | ||
| EV/EBITDA | 9.3 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.83
EPS Next 2Y-0.21%
EPS Next 3Y2.13%
5. Dividend
5.1 Amount
SJM has a Yearly Dividend Yield of 4.36%, which is a nice return.
SJM's Dividend Yield is rather good when compared to the industry average which is at 5.07. SJM pays more dividend than 80.46% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, SJM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.36% |
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 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.
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%
100.11
+0.5 (+0.5%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners88.9%
Inst Owner Change0.35%
Ins Owners2.27%
Ins Owner Change-0.13%
Market Cap10.68B
Revenue(TTM)8.77B
Net Income(TTM)-1.19B
Analysts71.3
Price Target118.88 (18.75%)
Short Float %6.8%
Short Ratio4.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.36% |
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)-0.81%
Min Revenue beat(2)-1.06%
Max Revenue beat(2)-0.55%
Revenue beat(4)0
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-2.86%
Max Revenue beat(4)-0.55%
Revenue beat(8)0
Avg Revenue beat(8)-1.57%
Revenue beat(12)1
Avg Revenue beat(12)-1.34%
Revenue beat(16)3
Avg Revenue beat(16)-0.95%
PT rev (1m)0.59%
PT rev (3m)1.2%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)2.42%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-0.98%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.22 | ||
| Fwd PE | 9.93 | ||
| P/S | 1.22 | ||
| P/FCF | 16.81 | ||
| P/OCF | 11.02 | ||
| P/B | 1.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.3 |
EPS(TTM)8.92
EY8.91%
EPS(NY)10.08
Fwd EY10.07%
FCF(TTM)5.96
FCFY5.95%
OCF(TTM)9.08
OCFY9.07%
SpS82.23
BVpS56.8
TBVpS-55.24
PEG (NY)N/A
PEG (5Y)3.83
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
WACC6.96%
ROIC/WACC0.93
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 Year9.97%
EBIT Next 3Y5.99%
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 3 / 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 11.22 and the Price/Book (PB) ratio is 1.76.
How financially healthy is JM SMUCKER CO/THE?
The financial health rating of JM SMUCKER CO/THE (SJM) is 1 / 10.