JM SMUCKER CO/THE (SJM)
US8326964058 - Common Stock
SJM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 90 industry peers in the Food Products industry. SJM scores excellent on profitability, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on SJM. 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.
SJM had positive earnings in 4 of the past 5 years.
SJM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SJM has a better Return On Assets (3.67%) than 60.67% of its industry peers.
SJM's Return On Equity of 9.62% is fine compared to the rest of the industry. SJM outperforms 61.80% of its industry peers.
The Return On Invested Capital of SJM (6.54%) is better than 66.29% of its industry peers.
SJM had an Average Return On Invested Capital over the past 3 years of 6.45%. This is below the industry average of 8.93%.
The last Return On Invested Capital (6.54%) for SJM is above the 3 year average (6.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 9.62% | ||
| ROIC | 6.54% |
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
SJM's Profit Margin of 8.79% is amongst the best of the industry. SJM outperforms 80.90% of its industry peers.
In the last couple of years the Profit Margin of SJM has grown nicely.
Looking at the Operating Margin, with a value of 17.81%, SJM belongs to the top of the industry, outperforming 93.26% of the companies in the same industry.
In the last couple of years the Operating Margin of SJM has grown nicely.
With an excellent Gross Margin value of 38.43%, SJM belongs to the best of the industry, outperforming 88.76% 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 | 17.81% | ||
| PM (TTM) | 8.79% | ||
| GM | 38.43% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SJM is destroying value.
SJM has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SJM has less shares outstanding
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 68.54% of its industry peers.
SJM has a debt to FCF ratio of 13.59. This is a negative value and a sign of low solvency as SJM would need 13.59 years to pay back of all of its debts.
SJM has a Debt to FCF ratio (13.59) which is in line with its industry peers.
SJM has a Debt/Equity ratio of 0.96. This is a neutral value indicating SJM is somewhat dependend on debt financing.
SJM has a worse Debt to Equity ratio (0.96) than 73.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 13.59 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.99
WACC6.63%
2.3 Liquidity
SJM has a Current Ratio of 0.55. 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's Current ratio of 0.55 is on the low side compared to the rest of the industry. SJM is outperformed by 92.13% of its industry peers.
SJM has a Quick Ratio of 0.55. 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 Quick ratio of 0.25. This is amonst the worse of the industry: SJM underperforms 93.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.51% over the past year.
SJM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.70% yearly.
The Revenue has been growing slightly by 0.44% in the past year.
The Revenue has been growing slightly by 0.85% on average over the past years.
EPS 1Y (TTM)7.51%
EPS 3Y2.99%
EPS 5Y3.7%
EPS Q2Q%10.41%
Revenue 1Y (TTM)0.44%
Revenue growth 3Y0.73%
Revenue growth 5Y0.85%
Sales Q2Q%17.72%
3.2 Future
The Earnings Per Share is expected to grow by 4.08% on average over the next years.
Based on estimates for the next years, SJM will show a small growth in Revenue. The Revenue will grow by 2.76% on average per year.
EPS Next Y-0.46%
EPS Next 2Y3.46%
EPS Next 3Y4.6%
EPS Next 5Y4.08%
Revenue Next Year8.24%
Revenue Next 2Y5.02%
Revenue Next 3Y3.92%
Revenue Next 5Y2.76%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
Based on the Price/Earnings ratio of 11.14, the valuation of SJM can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of SJM indicates a rather cheap valuation: SJM is cheaper than 85.39% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, SJM is valued rather cheaply.
A Price/Forward Earnings ratio of 10.65 indicates a reasonable valuation of SJM.
Based on the Price/Forward Earnings ratio, SJM is valued cheaper than 87.64% of the companies in the same industry.
SJM is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.14 | ||
| Fwd PE | 10.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SJM is valued a bit cheaper than the industry average as 67.42% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SJM is valued a bit cheaper than the industry average as 64.04% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.31 | ||
| EV/EBITDA | 10.02 |
4.3 Compensation for Growth
SJM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.01
EPS Next 2Y3.46%
EPS Next 3Y4.6%
5. Dividend
5.1 Amount
SJM has a Yearly Dividend Yield of 3.90%. Purely for dividend investing, there may be better candidates out there.
SJM's Dividend Yield is rather good when compared to the industry average which is at 3.80. SJM pays more dividend than 86.52% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, SJM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
5.2 History
The dividend of SJM has a limited annual growth rate of 4.66%.
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)4.66%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
59.48% of the earnings are spent on dividend by SJM. This is a bit on the high side, but may be sustainable.
The dividend of SJM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP59.48%
EPS Next 2Y3.46%
EPS Next 3Y4.6%
JM SMUCKER CO/THE
NYSE:SJM (11/22/2024, 5:05:00 PM)
After market: 113.26 -0.04 (-0.04%)113.3
-0.59 (-0.52%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.06B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.14 | ||
| Fwd PE | 10.65 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)3.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 9.62% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.81% | ||
| PM (TTM) | 8.79% | ||
| GM | 38.43% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.25 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)7.51%
EPS 3Y2.99%
EPS 5Y
EPS Q2Q%
EPS Next Y-0.46%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.44%
Revenue growth 3Y0.73%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y