JM SMUCKER CO/THE (SJM) Stock Fundamental Analysis
NYSE:SJM - New York Stock Exchange, Inc. - US8326964058 - Common Stock - Currency: USD
SJM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 91 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 has a valuation in line with the averages, 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.
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 has a Return On Assets of -7.01%. This is in the lower half of the industry: SJM underperforms 71.43% of its industry peers.
The Return On Equity of SJM (-20.23%) is worse than 70.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.99%, SJM is in the better half of the industry, outperforming 78.02% 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 28.39%.
The last Return On Invested Capital (7.99%) for SJM is above the 3 year average (7.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.01% | ||
| ROE | -20.23% | ||
| ROIC | 7.99% |
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
The Operating Margin of SJM (19.06%) is better than 95.60% of its industry peers.
SJM's Operating Margin has improved in the last couple of years.
SJM's Gross Margin of 38.89% is amongst the best of the industry. SJM outperforms 87.91% 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 | 19.06% | ||
| PM (TTM) | N/A | ||
| GM | 38.89% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SJM is destroying value.
SJM has more shares outstanding than it did 1 year ago.
SJM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SJM has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.35, we must say that SJM is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SJM (1.35) is worse than 61.54% of its industry peers.
SJM has a debt to FCF ratio of 9.42. This is a negative value and a sign of low solvency as SJM would need 9.42 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 9.42, SJM is doing good in the industry, outperforming 63.74% of the companies in the same industry.
A Debt/Equity ratio of 1.26 is on the high side and indicates that SJM has dependencies on debt financing.
SJM's Debt to Equity ratio of 1.26 is on the low side compared to the rest of the industry. SJM is outperformed by 75.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 9.42 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.92
WACC8.67%
2.3 Liquidity
SJM has a Current 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 Current ratio (0.81) than 76.92% of its industry peers.
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 Quick ratio of 0.35. This is amonst the worse of the industry: SJM underperforms 83.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.81% over the past year.
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 6.69% in the last year.
SJM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.27% yearly.
EPS 1Y (TTM)1.81%
EPS 3Y4.41%
EPS 5Y2.93%
EPS Q2Q%-13.16%
Revenue 1Y (TTM)6.69%
Revenue growth 3Y2.94%
Revenue growth 5Y2.27%
Sales Q2Q%-2.81%
3.2 Future
The Earnings Per Share is expected to grow by 0.64% 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 1.70% on average per year.
EPS Next Y-9.76%
EPS Next 2Y-1.19%
EPS Next 3Y1.06%
EPS Next 5Y0.64%
Revenue Next Year2.3%
Revenue Next 2Y2.24%
Revenue Next 3Y2.06%
Revenue Next 5Y1.7%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.70 indicates a reasonable valuation of SJM.
SJM's Price/Earnings ratio is rather cheap when compared to the industry. SJM is cheaper than 82.42% of the companies in the same industry.
SJM is valuated cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
SJM is valuated reasonably with a Price/Forward Earnings ratio of 10.75.
SJM's Price/Forward Earnings ratio is rather cheap when compared to the industry. SJM is cheaper than 85.71% of the companies 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 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.7 | ||
| Fwd PE | 10.75 |
4.2 Price Multiples
69.23% of the companies in the same industry are more expensive than SJM, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SJM indicates a somewhat cheap valuation: SJM is cheaper than 78.02% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.8 | ||
| EV/EBITDA | 7.92 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.31
EPS Next 2Y-1.19%
EPS Next 3Y1.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.49%, SJM is a good candidate for dividend investing.
SJM's Dividend Yield is rather good when compared to the industry average which is at 4.75. SJM pays more dividend than 84.62% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, SJM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
5.2 History
The dividend of SJM has a limited annual growth rate of 4.24%.
SJM has paid a dividend for at least 10 years, which is 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.
SJM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-37%
EPS Next 2Y-1.19%
EPS Next 3Y1.06%
98.2
+2.57 (+2.69%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners88.11%
Inst Owner Change4.45%
Ins Owners2.9%
Ins Owner Change1.78%
Market Cap10.45B
Analysts68.33
Price Target115.54 (17.66%)
Short Float %5.11%
Short Ratio3.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
Yearly Dividend4.28
Dividend Growth(5Y)4.24%
DP-37%
Div Incr Years22
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.62%
Min EPS beat(2)1.98%
Max EPS beat(2)9.25%
EPS beat(4)4
Avg EPS beat(4)7.85%
Min EPS beat(4)1.98%
Max EPS beat(4)11.25%
EPS beat(8)8
Avg EPS beat(8)7.94%
EPS beat(12)12
Avg EPS beat(12)9.59%
EPS beat(16)16
Avg EPS beat(16)10.1%
Revenue beat(2)0
Avg Revenue beat(2)-2.81%
Min Revenue beat(2)-2.86%
Max Revenue beat(2)-2.76%
Revenue beat(4)0
Avg Revenue beat(4)-1.95%
Min Revenue beat(4)-2.86%
Max Revenue beat(4)-0.78%
Revenue beat(8)0
Avg Revenue beat(8)-1.88%
Revenue beat(12)2
Avg Revenue beat(12)-1.26%
Revenue beat(16)5
Avg Revenue beat(16)-0.45%
PT rev (1m)-6.5%
PT rev (3m)-4.83%
EPS NQ rev (1m)-1.62%
EPS NQ rev (3m)-1.62%
EPS NY rev (1m)-12.53%
EPS NY rev (3m)-12.54%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.7 | ||
| Fwd PE | 10.75 | ||
| P/S | 1.2 | ||
| P/FCF | 12.8 | ||
| P/OCF | 8.63 | ||
| P/B | 1.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.92 |
EPS(TTM)10.12
EY10.31%
EPS(NY)9.13
Fwd EY9.3%
FCF(TTM)7.67
FCFY7.81%
OCF(TTM)11.37
OCFY11.58%
SpS82
BVpS57.16
TBVpS-56.14
PEG (NY)N/A
PEG (5Y)3.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.01% | ||
| ROE | -20.23% | ||
| ROCE | 11.16% | ||
| ROIC | 7.99% | ||
| ROICexc | 8.02% | ||
| ROICexgc | 36.27% | ||
| OM | 19.06% | ||
| PM (TTM) | N/A | ||
| GM | 38.89% | ||
| FCFM | 9.36% |
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%
ROICexcg growth 3Y0.14%
ROICexcg 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-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 9.42 | ||
| Debt/EBITDA | 3.55 | ||
| Cap/Depr | 78.37% | ||
| Cap/Sales | 4.51% | ||
| Interest Coverage | 4.05 | ||
| Cash Conversion | 55.88% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 1.35 |
F-Score6
WACC8.67%
ROIC/WACC0.92
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)1.81%
EPS 3Y4.41%
EPS 5Y2.93%
EPS Q2Q%-13.16%
EPS Next Y-9.76%
EPS Next 2Y-1.19%
EPS Next 3Y1.06%
EPS Next 5Y0.64%
Revenue 1Y (TTM)6.69%
Revenue growth 3Y2.94%
Revenue growth 5Y2.27%
Sales Q2Q%-2.81%
Revenue Next Year2.3%
Revenue Next 2Y2.24%
Revenue Next 3Y2.06%
Revenue Next 5Y1.7%
EBIT growth 1Y14.44%
EBIT growth 3Y12.06%
EBIT growth 5Y5.19%
EBIT Next Year17.19%
EBIT Next 3Y6.1%
EBIT Next 5Y3.22%
FCF growth 1Y27.02%
FCF growth 3Y4.34%
FCF growth 5Y-3.69%
OCF growth 1Y-1.55%
OCF growth 3Y2.13%
OCF growth 5Y-0.72%