JM SMUCKER CO/THE (SJM)
US8326964058 - Common Stock
Overall SJM gets a fundamental rating of 4 out of 10. We evaluated SJM against 91 industry peers in the Food Products industry. SJM has an excellent profitability rating, but there are concerns on its financial health. SJM has a decent growth rate and is not valued too expensively.
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.
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
The Return On Assets of SJM (2.64%) is comparable to the rest of the industry.
SJM has a Return On Equity (6.92%) which is comparable to the rest of the industry.
The Return On Invested Capital of SJM (7.23%) is better than 72.53% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SJM is below the industry average of 8.82%.
The last Return On Invested Capital (7.23%) for SJM is above the 3 year average (6.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 6.92% | ||
| ROIC | 7.23% |
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
The Profit Margin of SJM (5.98%) is better than 76.92% of its industry peers.
SJM's Profit Margin has improved in the last couple of years.
SJM has a Operating Margin of 18.57%. This is amongst the best in the industry. SJM outperforms 94.51% 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 38.88%, SJM belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
SJM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.57% | ||
| PM (TTM) | 5.98% | ||
| GM | 38.88% |
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) 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.
Compared to 1 year ago, SJM has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.34, we must say that SJM is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.34, SJM is not doing good in the industry: 68.13% of the companies in the same industry are doing better.
The Debt to FCF ratio of SJM is 9.06, which is on the high side as it means it would take SJM, 9.06 years of fcf income to pay off all of its debts.
SJM's Debt to FCF ratio of 9.06 is in line compared to the rest of the industry. SJM outperforms 54.95% of its industry peers.
A Debt/Equity ratio of 0.95 indicates that SJM is somewhat dependend on debt financing.
The Debt to Equity ratio of SJM (0.95) is worse than 74.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 9.06 | ||
| Altman-Z | 1.34 |
ROIC/WACC1.09
WACC6.64%
2.3 Liquidity
A Current Ratio of 0.58 indicates that SJM may have some problems paying its short term obligations.
The Current ratio of SJM (0.58) is worse than 91.21% of its industry peers.
SJM has a Quick Ratio of 0.58. 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 (0.27) than 91.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.15% over the past year.
Measured over the past 5 years, SJM shows a small growth in Earnings Per Share. The EPS has been growing by 3.70% on average per year.
The Revenue has been growing slightly by 7.76% in the past year.
The Revenue has been growing slightly by 0.85% on average over the past years.
EPS 1Y (TTM)7.15%
EPS 3Y2.99%
EPS 5Y3.7%
EPS Q2Q%6.56%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y0.73%
Revenue growth 5Y0.85%
Sales Q2Q%17.16%
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 3.35% on average per year.
Based on estimates for the next years, SJM will show a small growth in Revenue. The Revenue will grow by 2.99% on average per year.
EPS Next Y0.5%
EPS Next 2Y3.52%
EPS Next 3Y4.62%
EPS Next 5Y3.35%
Revenue Next Year7.72%
Revenue Next 2Y4.46%
Revenue Next 3Y3.54%
Revenue Next 5Y2.99%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.63, the valuation of SJM can be described as reasonable.
Based on the Price/Earnings ratio, SJM is valued cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. SJM is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.32 indicates a reasonable valuation of SJM.
Based on the Price/Forward Earnings ratio, SJM is valued cheaper than 92.31% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SJM to the average of the S&P500 Index (23.73), we can say SJM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.63 | ||
| Fwd PE | 10.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SJM is valued a bit cheaper than 71.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SJM is valued a bit cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.8 | ||
| EV/EBITDA | 9.06 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of SJM may justify a higher PE ratio.
PEG (NY)21.26
PEG (5Y)2.87
EPS Next 2Y3.52%
EPS Next 3Y4.62%
5. Dividend
5.1 Amount
SJM has a Yearly Dividend Yield of 3.96%.
Compared to an average industry Dividend Yield of 3.83, SJM pays a better dividend. On top of this SJM pays more dividend than 86.81% 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.66%
Div Incr Years22
Div Non Decr Years22
5.3 Sustainability
85.39% of the earnings are spent on dividend by SJM. This is not a sustainable payout ratio.
SJM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP85.39%
EPS Next 2Y3.52%
EPS Next 3Y4.62%
JM SMUCKER CO/THE
NYSE:SJM (12/20/2024, 8:04:00 PM)
After market: 109.89 0 (0%)109.89
+0.92 (+0.84%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners83.38%
Inst Owner Change-0.11%
Ins Owners2.87%
Ins Owner Change-0.02%
Market Cap11.69B
Analysts68.57
Price Target130.27 (18.55%)
Short Float %3.79%
Short Ratio3.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
Dividend Growth(5Y)4.66%
DP85.39%
Div Incr Years22
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.07%
Min EPS beat(2)8.9%
Max EPS beat(2)11.25%
EPS beat(4)4
Avg EPS beat(4)10.33%
Min EPS beat(4)8.12%
Max EPS beat(4)13.07%
EPS beat(8)8
Avg EPS beat(8)8.19%
EPS beat(12)12
Avg EPS beat(12)10.98%
EPS beat(16)16
Avg EPS beat(16)10.81%
Revenue beat(2)0
Avg Revenue beat(2)-1.08%
Min Revenue beat(2)-1.39%
Max Revenue beat(2)-0.78%
Revenue beat(4)0
Avg Revenue beat(4)-1.33%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)-0.57%
Revenue beat(8)1
Avg Revenue beat(8)-1.11%
Revenue beat(12)3
Avg Revenue beat(12)-0.67%
Revenue beat(16)7
Avg Revenue beat(16)0.14%
PT rev (1m)2.23%
PT rev (3m)0.08%
EPS NQ rev (1m)-6.76%
EPS NQ rev (3m)-6.76%
EPS NY rev (1m)0.97%
EPS NY rev (3m)0.89%
Revenue NQ rev (1m)-0.91%
Revenue NQ rev (3m)-0.91%
Revenue NY rev (1m)-0.48%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.63 | ||
| Fwd PE | 10.32 | ||
| P/S | 1.32 | ||
| P/FCF | 12.8 | ||
| P/OCF | 8.28 | ||
| P/B | 1.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.06 |
EPS(TTM)10.34
EY9.41%
EPS(NY)10.65
Fwd EY9.69%
FCF(TTM)8.58
FCFY7.81%
OCF(TTM)13.27
OCFY12.07%
SpS82.98
BVpS71.73
TBVpS-61.48
PEG (NY)21.26
PEG (5Y)2.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 6.92% | ||
| ROCE | 9.97% | ||
| ROIC | 7.23% | ||
| ROICexc | 7.25% | ||
| ROICexgc | 45.03% | ||
| OM | 18.57% | ||
| PM (TTM) | 5.98% | ||
| GM | 38.88% | ||
| FCFM | 10.34% |
ROA(3y)2.33%
ROA(5y)3.38%
ROE(3y)5.38%
ROE(5y)7.27%
ROIC(3y)6.45%
ROIC(5y)6.66%
ROICexc(3y)6.7%
ROICexc(5y)6.89%
ROICexgc(3y)42.3%
ROICexgc(5y)52.26%
ROCE(3y)8.77%
ROCE(5y)9.04%
ROICexcg growth 3Y-19.11%
ROICexcg growth 5Y-0.68%
ROICexc growth 3Y-7.38%
ROICexc growth 5Y1.36%
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%
F-Score7
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 9.06 | ||
| Debt/EBITDA | 3.39 | ||
| Cap/Depr | 98.61% | ||
| Cap/Sales | 5.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.8% | ||
| Profit Quality | 173.04% | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 1.34 |
F-Score7
WACC6.64%
ROIC/WACC1.09
Cap/Depr(3y)112.62%
Cap/Depr(5y)93.19%
Cap/Sales(3y)6%
Cap/Sales(5y)5.05%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.15%
EPS 3Y2.99%
EPS 5Y3.7%
EPS Q2Q%6.56%
EPS Next Y0.5%
EPS Next 2Y3.52%
EPS Next 3Y4.62%
EPS Next 5Y3.35%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y0.73%
Revenue growth 5Y0.85%
Sales Q2Q%17.16%
Revenue Next Year7.72%
Revenue Next 2Y4.46%
Revenue Next 3Y3.54%
Revenue Next 5Y2.99%
EBIT growth 1Y23.2%
EBIT growth 3Y0.95%
EBIT growth 5Y4.41%
EBIT Next Year31.4%
EBIT Next 3Y12.67%
EBIT Next 5Y6.65%
FCF growth 1Y76.11%
FCF growth 3Y-20.06%
FCF growth 5Y-3.83%
OCF growth 1Y41.25%
OCF growth 3Y-7.73%
OCF growth 5Y1.5%