JM SMUCKER CO/THE (SJM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SJM - US8326964058 - Common Stock
97.81 USD
-0.61 (-0.62%)
97.81 USD
0 (0%)
SJM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 87 industry peers in the Food Products industry. There are concerns on the financial health of SJM while its profitability can be described as average. 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
SJM had positive earnings in the past year.
SJM had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SJM reported negative net income in multiple years.
In the past 5 years SJM always reported a positive cash flow from operatings.
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 66.67% of its industry peers.
SJM's Return On Equity of -19.70% is on the low side compared to the rest of the industry. SJM is outperformed by 66.67% of its industry peers.
With a decent Return On Invested Capital value of 6.49%, SJM is doing good in the industry, outperforming 72.41% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SJM is significantly below the industry average of 28.50%.
| 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 91.95% of its industry peers.
In the last couple of years the Operating Margin of SJM has grown nicely.
With an excellent Gross Margin value of 35.14%, SJM belongs to the best of the industry, outperforming 80.46% 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 | 15.61% | ||
| 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.
The number of shares outstanding for SJM has been increased compared to 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
SJM has an Altman-Z score of 1.31. This is a bad value and indicates that SJM is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.31, SJM is not doing good in the industry: 63.22% of the companies in the same industry are doing better.
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.
Looking at the Debt to FCF ratio, with a value of 12.27, SJM is in the better half of the industry, outperforming 60.92% of the companies in the same industry.
SJM has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SJM (1.29) is worse than 77.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 12.27 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.97
WACC6.72%
2.3 Liquidity
A Current Ratio of 0.89 indicates that SJM may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.89, SJM is doing worse than 78.16% of the companies in the same industry.
A Quick Ratio of 0.37 indicates that SJM may have some problems paying its short term obligations.
With a Quick ratio value of 0.37, SJM is not doing good in the industry: 83.91% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
SJM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.73%.
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.
Looking at the last year, SJM shows a decrease in Revenue. The Revenue has decreased by -0.66% 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)-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
Based on estimates for the next years, SJM will show a small growth in Earnings Per Share. The EPS will grow by 2.27% on average per year.
The Revenue is expected to grow by 1.82% on average over the next years.
EPS Next Y-10.25%
EPS Next 2Y-0.75%
EPS Next 3Y1.97%
EPS Next 5Y2.27%
Revenue Next Year3.33%
Revenue Next 2Y2.76%
Revenue Next 3Y2.42%
Revenue Next 5Y1.82%
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
With a Price/Earnings ratio of 10.97, the valuation of SJM can be described as very reasonable.
Based on the Price/Earnings ratio, SJM is valued cheaply inside the industry as 81.61% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.51. SJM is valued rather cheaply when compared to this.
SJM is valuated reasonably with a Price/Forward Earnings ratio of 9.81.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SJM indicates a rather cheap valuation: SJM is cheaper than 88.51% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.13. SJM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 9.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SJM is valued a bit cheaper than 63.22% of the companies in the same industry.
70.11% 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 | 16.42 | ||
| EV/EBITDA | 9.2 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.74
EPS Next 2Y-0.75%
EPS Next 3Y1.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.43%, SJM is a good candidate for dividend investing.
SJM's Dividend Yield is rather good when compared to the industry average which is at 2.42. SJM pays more dividend than 80.46% of the companies in the same industry.
SJM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
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.
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-0.75%
EPS Next 3Y1.97%
97.81
-0.61 (-0.62%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners90.56%
Inst Owner Change0.38%
Ins Owners2.2%
Ins Owner Change-1.19%
Market Cap10.44B
Revenue(TTM)8.77B
Net Income(TTM)-1.19B
Analysts71.3
Price Target118.48 (21.13%)
Short Float %6.81%
Short Ratio4.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
Yearly Dividend4.28
Dividend Growth(5Y)4.24%
DP-38.54%
Div Incr Years22
Div Non Decr Years22
Ex-DateN/A
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)-0.79%
Min Revenue beat(2)-1.06%
Max Revenue beat(2)-0.51%
Revenue beat(4)0
Avg Revenue beat(4)-1.8%
Min Revenue beat(4)-2.86%
Max Revenue beat(4)-0.51%
Revenue beat(8)0
Avg Revenue beat(8)-1.56%
Revenue beat(12)1
Avg Revenue beat(12)-1.34%
Revenue beat(16)3
Avg Revenue beat(16)-0.95%
PT rev (1m)-0.33%
PT rev (3m)0.27%
EPS NQ rev (1m)-7.13%
EPS NQ rev (3m)-7.21%
EPS NY rev (1m)-0.95%
EPS NY rev (3m)-0.88%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 9.81 | ||
| P/S | 1.19 | ||
| P/FCF | 16.42 | ||
| P/OCF | 10.77 | ||
| P/B | 1.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.2 |
EPS(TTM)8.92
EY9.12%
EPS(NY)9.97
Fwd EY10.19%
FCF(TTM)5.96
FCFY6.09%
OCF(TTM)9.08
OCFY9.29%
SpS82.23
BVpS56.8
TBVpS-55.24
PEG (NY)N/A
PEG (5Y)3.74
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 | 1.31 |
F-Score5
WACC6.72%
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)-13.73%
EPS 3Y4.41%
EPS 5Y2.93%
EPS Q2Q%-23.91%
EPS Next Y-10.25%
EPS Next 2Y-0.75%
EPS Next 3Y1.97%
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 2Y2.76%
Revenue Next 3Y2.42%
Revenue Next 5Y1.82%
EBIT growth 1Y-16.52%
EBIT growth 3Y12.06%
EBIT growth 5Y5.19%
EBIT Next Year9.97%
EBIT Next 3Y6.33%
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 4 / 10 to SJM.
What is the valuation status for SJM stock?
ChartMill assigns a valuation rating of 6 / 10 to JM SMUCKER CO/THE (SJM). This can be considered as Fairly Valued.
How profitable is JM SMUCKER CO/THE (SJM) stock?
JM SMUCKER CO/THE (SJM) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for SJM stock?
The Price/Earnings (PE) ratio for JM SMUCKER CO/THE (SJM) is 10.97 and the Price/Book (PB) ratio is 1.72.
Can you provide the dividend sustainability for SJM stock?
The dividend rating of JM SMUCKER CO/THE (SJM) is 7 / 10 and the dividend payout ratio is -38.54%.