JM SMUCKER CO/THE (SJM) Stock Fundamental Analysis
USA - NYSE:SJM - US8326964058 - Common Stock
103.64 USD
0 (0%)
103.64 USD
0 (0%)
Overall SJM gets a fundamental rating of 3 out of 10. We evaluated SJM 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 has a valuation in line with the averages, but on the other hand it scores bad on growth. 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.
In multiple years SJM reported negative net income over the last 5 years.
In the past 5 years SJM always reported a positive cash flow from operatings.
1.2 Ratios
SJM's Return On Assets of -8.23% is on the low side compared to the rest of the industry. SJM is outperformed by 73.56% of its industry peers.
SJM has a worse Return On Equity (-24.63%) than 70.11% of its industry peers.
SJM has a better Return On Invested Capital (6.49%) than 70.11% 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 28.24%.
| 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 88.51% of its industry peers.
In the last couple of years the Operating Margin of SJM has grown nicely.
Looking at the Gross Margin, with a value of 35.36%, SJM belongs to the top of the industry, outperforming 81.61% of the companies in the same industry.
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 | 15.71% | ||
| 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
SJM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
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's Altman-Z score of 1.30 is on the low side compared to the rest of the industry. SJM is outperformed by 64.37% of its industry peers.
The Debt to FCF ratio of SJM is 11.90, which is on the high side as it means it would take SJM, 11.90 years of fcf income to pay off all of its debts.
SJM has a Debt to FCF ratio of 11.90. This is comparable to the rest of the industry: SJM outperforms 58.62% 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.
With a Debt to Equity ratio value of 1.35, SJM is not doing good in the industry: 80.46% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 11.9 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.97
WACC6.69%
2.3 Liquidity
A Current Ratio of 0.81 indicates that SJM may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.81, SJM is doing worse than 81.61% of the companies in the same industry.
SJM has a Quick Ratio of 0.81. 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 has a worse Quick ratio (0.34) than 86.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
The earnings per share for SJM have decreased by -5.80% in the last year.
Measured over the past 5 years, SJM shows a small growth in Earnings Per Share. The EPS has been growing by 2.93% on average per year.
SJM shows a small growth in Revenue. In the last year, the Revenue has grown by 2.54%.
The Revenue has been growing slightly by 2.27% on average over the past years.
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.
SJM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.83% yearly.
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
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.82, the valuation of SJM can be described as reasonable.
Based on the Price/Earnings ratio, SJM is valued a bit cheaper than the industry average as 78.16% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SJM to the average of the S&P500 Index (26.03), we can say SJM is valued rather cheaply.
The Price/Forward Earnings ratio is 10.47, 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 87.36% of the companies listed in the same industry.
SJM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 10.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SJM is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SJM indicates a somewhat cheap valuation: SJM is cheaper than 71.26% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.44 | ||
| EV/EBITDA | 9.62 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.69
EPS Next 2Y-1.09%
EPS Next 3Y1.46%
5. Dividend
5.1 Amount
SJM has a Yearly Dividend Yield of 4.30%, which is a nice return.
Compared to an average industry Dividend Yield of 5.24, SJM pays a better dividend. On top of this SJM pays more dividend than 80.46% 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
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
The earnings of SJM are negative and hence is the payout ratio. SJM will probably not be able to sustain this dividend level.
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%
103.64
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners88.9%
Inst Owner Change-0.93%
Ins Owners2.27%
Ins Owner Change-0.13%
Market Cap11.06B
Revenue(TTM)8.71B
Net Income(TTM)-1459600000
Analysts71.3
Price Target118.88 (14.7%)
Short Float %5.67%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
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)0.6%
PT rev (3m)4.26%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)-11.41%
EPS NY rev (1m)0%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 10.47 | ||
| P/S | 1.27 | ||
| P/FCF | 16.44 | ||
| P/OCF | 10.77 | ||
| P/B | 1.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.62 |
EPS(TTM)9.58
EY9.24%
EPS(NY)9.9
Fwd EY9.55%
FCF(TTM)6.3
FCFY6.08%
OCF(TTM)9.63
OCFY9.29%
SpS81.68
BVpS55.54
TBVpS-56.99
PEG (NY)N/A
PEG (5Y)3.69
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
WACC6.69%
ROIC/WACC0.97
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 3 / 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 10.82 and the Price/Book (PB) ratio is 1.87.
How financially healthy is JM SMUCKER CO/THE?
The financial health rating of JM SMUCKER CO/THE (SJM) is 1 / 10.