JM SMUCKER CO/THE (SJM) Stock Fundamental Analysis
USA - NYSE:SJM - US8326964058 - Common Stock
105.36 USD
+0.06 (+0.06%)
105.64 USD
+0.28 (+0.27%)
Taking everything into account, SJM scores 3 out of 10 in our fundamental rating. SJM was compared to 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 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SJM had positive earnings in the past year.
In the past year SJM had a positive cash flow from operations.
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
The Return On Assets of SJM (-8.23%) is worse than 73.56% of its industry peers.
Looking at the Return On Equity, with a value of -24.63%, SJM is doing worse than 70.11% of the companies in the same industry.
SJM's Return On Invested Capital of 6.49% is fine compared to the rest of the industry. SJM outperforms 68.97% 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 28.34%.
| 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 better Operating Margin (15.71%) than 88.51% of its industry peers.
In the last couple of years the Operating Margin of SJM has grown nicely.
SJM has a better Gross Margin (35.36%) than 80.46% 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SJM is still 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
Based on the Altman-Z score of 1.31, we must say that SJM is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.31, SJM is not doing good in the industry: 64.37% of the companies in the same industry are doing better.
SJM has a debt to FCF ratio of 11.90. This is a negative value and a sign of low solvency as SJM would need 11.90 years to pay back of all of its debts.
The Debt to FCF ratio of SJM (11.90) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.35 is on the high side and indicates that SJM has dependencies on debt financing.
SJM has a worse Debt to Equity ratio (1.35) than 80.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 11.9 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.98
WACC6.64%
2.3 Liquidity
A Current Ratio of 0.81 indicates that SJM may have some problems paying its short term obligations.
With a Current ratio value of 0.81, SJM is not doing good in the industry: 81.61% of the companies in the same industry are doing better.
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 87.36% 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.
SJM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.93% yearly.
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
The Earnings Per Share is expected to grow by 1.07% on average over the next years.
The Revenue is expected to grow by 1.83% on average over the next years.
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 3Y2.39%
Revenue Next 5Y1.83%
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
A Price/Earnings ratio of 11.00 indicates a reasonable valuation of SJM.
Based on the Price/Earnings ratio, SJM is valued cheaply inside the industry as 80.46% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.69, SJM is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.64, the valuation of SJM can be described as very reasonable.
SJM's Price/Forward Earnings ratio is rather cheap when compared to the industry. SJM is cheaper than 88.51% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.18, SJM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11 | ||
| Fwd PE | 10.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SJM indicates a somewhat cheap valuation: SJM is cheaper than 60.92% of the companies listed in the same industry.
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 | 16.72 | ||
| EV/EBITDA | 9.72 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.76
EPS Next 2Y-1.09%
EPS Next 3Y1.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.24%, SJM is a good candidate for dividend investing.
SJM's Dividend Yield is a higher than the industry average which is at 5.09.
SJM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
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 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.
The dividend of SJM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-31.36%
EPS Next 2Y-1.09%
EPS Next 3Y1.46%
105.36
+0.06 (+0.06%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners88.9%
Inst Owner Change1.22%
Ins Owners2.27%
Ins Owner Change0.84%
Market Cap11.24B
Analysts71.3
Price Target118.17 (12.16%)
Short Float %4.73%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
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)0.01%
PT rev (3m)3.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.81%
EPS NY rev (1m)-1.05%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11 | ||
| Fwd PE | 10.64 | ||
| P/S | 1.29 | ||
| P/FCF | 16.72 | ||
| P/OCF | 10.95 | ||
| P/B | 1.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.72 |
EPS(TTM)9.58
EY9.09%
EPS(NY)9.9
Fwd EY9.4%
FCF(TTM)6.3
FCFY5.98%
OCF(TTM)9.63
OCFY9.14%
SpS81.68
BVpS55.54
TBVpS-56.99
PEG (NY)N/A
PEG (5Y)3.76
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%
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-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 | 1.31 |
F-Score5
WACC6.64%
ROIC/WACC0.98
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 3Y2.39%
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%