JM SMUCKER CO/THE (SJM) Stock Fundamental Analysis
USA - NYSE:SJM - US8326964058 - Common Stock
104.84 USD
+0.07 (+0.07%)
104.5 USD
-0.34 (-0.32%)
We assign a fundamental rating of 4 out of 10 to SJM. SJM was compared to 86 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 it does not seem to be growing.
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.
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 -8.23%, SJM is doing worse than 73.26% of the companies in the same industry.
SJM has a Return On Equity of -24.63%. This is in the lower half of the industry: SJM underperforms 69.77% of its industry peers.
The Return On Invested Capital of SJM (6.49%) is better than 68.60% 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 28.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.23% | ||
| ROE | -24.63% | ||
| 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 15.71%. This is amongst the best in the industry. SJM outperforms 88.37% of its industry peers.
SJM's Operating Margin has improved in the last couple of years.
SJM has a Gross Margin of 35.36%. This is amongst the best in the industry. SJM outperforms 80.23% of its industry peers.
SJM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.71% | ||
| PM (TTM) | N/A | ||
| GM | 35.36% |
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.
Compared to 1 year ago, SJM has more shares outstanding
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
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.
The Altman-Z score of SJM (1.30) is worse than 63.95% of its industry peers.
SJM has a debt to FCF ratio of 11.90. This is a negative value and a sign of low solvency as SJM would need 11.90 years to pay back of all of its debts.
The Debt to FCF ratio of SJM (11.90) is better than 60.47% of its industry peers.
SJM has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
SJM has a Debt to Equity ratio of 1.35. This is amonst the worse of the industry: SJM underperforms 80.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 11.9 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.98
WACC6.63%
2.3 Liquidity
A Current Ratio of 0.81 indicates that SJM may have some problems paying its short term obligations.
The Current ratio of SJM (0.81) is worse than 81.40% of its industry peers.
A Quick Ratio of 0.34 indicates that SJM may have some problems paying its short term obligations.
SJM has a Quick ratio of 0.34. This is amonst the worse of the industry: SJM underperforms 87.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
SJM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.80%.
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 small growth in Revenue. The Revenue has grown by 2.54% in the last 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)-5.8%
EPS 3Y4.41%
EPS 5Y2.93%
EPS Q2Q%-22.13%
Revenue 1Y (TTM)2.54%
Revenue growth 3Y2.94%
Revenue growth 5Y2.27%
Sales Q2Q%-0.56%
3.2 Future
SJM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.07% yearly.
Based on estimates for the next years, SJM will show a small growth in Revenue. The Revenue will grow by 1.83% on average per year.
EPS Next Y-9.46%
EPS Next 2Y-1.09%
EPS Next 3Y1.46%
EPS Next 5Y1.07%
Revenue Next Year3.44%
Revenue Next 2Y2.82%
Revenue Next 3Y2.41%
Revenue Next 5Y1.83%
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
The Price/Earnings ratio is 10.94, which indicates a very decent valuation of SJM.
79.07% 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 26.83, SJM is valued rather cheaply.
The Price/Forward Earnings ratio is 10.59, which indicates a very decent valuation of SJM.
87.21% 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 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.94 | ||
| Fwd PE | 10.59 |
4.2 Price Multiples
SJM's Enterprise Value to EBITDA ratio is in line with the industry average.
SJM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SJM is cheaper than 72.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.63 | ||
| EV/EBITDA | 9.69 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.74
EPS Next 2Y-1.09%
EPS Next 3Y1.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.29%, SJM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.10, SJM pays a bit more dividend than its industry peers.
SJM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.29% |
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.
SJM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-31.36%
EPS Next 2Y-1.09%
EPS Next 3Y1.46%
104.84
+0.07 (+0.07%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners88.9%
Inst Owner Change1.25%
Ins Owners2.27%
Ins Owner Change0.84%
Market Cap11.19B
Revenue(TTM)8.71B
Net Income(TTM)-1459600000
Analysts71.3
Price Target118.17 (12.71%)
Short Float %5.67%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.29% |
Yearly Dividend4.28
Dividend Growth(5Y)4.24%
DP-31.36%
Div Incr Years22
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.35%
Min EPS beat(2)-2.68%
Max EPS beat(2)1.98%
EPS beat(4)3
Avg EPS beat(4)4.36%
Min EPS beat(4)-2.68%
Max EPS beat(4)9.25%
EPS beat(8)7
Avg EPS beat(8)6.72%
EPS beat(12)11
Avg EPS beat(12)6.87%
EPS beat(16)15
Avg EPS beat(16)9.87%
Revenue beat(2)0
Avg Revenue beat(2)-1.96%
Min Revenue beat(2)-2.86%
Max Revenue beat(2)-1.06%
Revenue beat(4)0
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-2.86%
Max Revenue beat(4)-0.78%
Revenue beat(8)0
Avg Revenue beat(8)-1.67%
Revenue beat(12)2
Avg Revenue beat(12)-1.27%
Revenue beat(16)4
Avg Revenue beat(16)-0.67%
PT rev (1m)0.01%
PT rev (3m)3.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.13%
EPS NY rev (1m)0%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.94 | ||
| Fwd PE | 10.59 | ||
| P/S | 1.28 | ||
| P/FCF | 16.63 | ||
| P/OCF | 10.89 | ||
| P/B | 1.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.69 |
EPS(TTM)9.58
EY9.14%
EPS(NY)9.9
Fwd EY9.44%
FCF(TTM)6.3
FCFY6.01%
OCF(TTM)9.63
OCFY9.18%
SpS81.68
BVpS55.54
TBVpS-56.99
PEG (NY)N/A
PEG (5Y)3.74
Graham Number109.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.23% | ||
| ROE | -24.63% | ||
| ROCE | 9.26% | ||
| ROIC | 6.49% | ||
| ROICexc | 6.51% | ||
| ROICexgc | 27.67% | ||
| OM | 15.71% | ||
| PM (TTM) | N/A | ||
| GM | 35.36% | ||
| FCFM | 7.72% |
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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 11.9 | ||
| Debt/EBITDA | 4.26 | ||
| Cap/Depr | 69.67% | ||
| Cap/Sales | 4.07% | ||
| Interest Coverage | 3.36 | ||
| Cash Conversion | 54.7% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z | 1.3 |
F-Score5
WACC6.63%
ROIC/WACC0.98
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)-5.8%
EPS 3Y4.41%
EPS 5Y2.93%
EPS Q2Q%-22.13%
EPS Next Y-9.46%
EPS Next 2Y-1.09%
EPS Next 3Y1.46%
EPS Next 5Y1.07%
Revenue 1Y (TTM)2.54%
Revenue growth 3Y2.94%
Revenue growth 5Y2.27%
Sales Q2Q%-0.56%
Revenue Next Year3.44%
Revenue Next 2Y2.82%
Revenue Next 3Y2.41%
Revenue Next 5Y1.83%
EBIT growth 1Y-9.56%
EBIT growth 3Y12.06%
EBIT growth 5Y5.19%
EBIT Next Year9.97%
EBIT Next 3Y7.2%
EBIT Next 5Y3.48%
FCF growth 1Y-26.25%
FCF growth 3Y4.34%
FCF growth 5Y-3.69%
OCF growth 1Y-29.24%
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 5 / 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 10.94 and the Price/Book (PB) ratio is 1.89.
How financially healthy is JM SMUCKER CO/THE?
The financial health rating of JM SMUCKER CO/THE (SJM) is 2 / 10.