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 90 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 not valued too expensively and it also shows a decent growth rate.
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 worse Return On Assets (-1.38%) than 64.44% of its industry peers.
SJM has a Return On Equity of -3.69%. This is in the lower half of the industry: SJM underperforms 63.33% of its industry peers.
The Return On Invested Capital of SJM (8.20%) is better than 78.89% 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 8.63%.
The 3 year average ROIC (6.45%) for SJM is below the current ROIC(8.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.38% | ||
| ROE | -3.69% | ||
| ROIC | 8.2% |
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
In the last couple of years the Profit Margin of SJM has grown nicely.
With an excellent Operating Margin value of 19.50%, SJM belongs to the best of the industry, outperforming 95.56% 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 39.71%, SJM belongs to the best of the industry, outperforming 91.11% 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 | 19.5% | ||
| PM (TTM) | N/A | ||
| GM | 39.71% |
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.
The number of shares outstanding for SJM has been increased compared to 1 year ago.
Compared to 5 years ago, SJM has less shares outstanding
Compared to 1 year ago, SJM has a worse debt to assets ratio.
2.2 Solvency
SJM has an Altman-Z score of 1.42. This is a bad value and indicates that SJM is not financially healthy and even has some risk of bankruptcy.
SJM's Altman-Z score of 1.42 is on the low side compared to the rest of the industry. SJM is outperformed by 63.33% of its industry peers.
The Debt to FCF ratio of SJM is 9.64, which is on the high side as it means it would take SJM, 9.64 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 9.64, SJM perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
A Debt/Equity ratio of 0.99 indicates that SJM is somewhat dependend on debt financing.
The Debt to Equity ratio of SJM (0.99) is worse than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 9.64 | ||
| Altman-Z | 1.42 |
ROIC/WACC1.22
WACC6.7%
2.3 Liquidity
SJM has a Current Ratio of 0.60. This is a bad value and indicates that SJM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.60, SJM is not doing good in the industry: 87.78% of the companies in the same industry are doing better.
SJM has a Quick Ratio of 0.60. This is a bad value and indicates that SJM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.27, SJM is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
SJM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.54%.
SJM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.70% yearly.
SJM shows a small growth in Revenue. In the last year, the Revenue has grown by 7.07%.
Measured over the past years, SJM shows a small growth in Revenue. The Revenue has been growing by 0.85% on average per year.
EPS 1Y (TTM)5.54%
EPS 3Y2.99%
EPS 5Y3.7%
EPS Q2Q%5.24%
Revenue 1Y (TTM)7.07%
Revenue growth 3Y0.73%
Revenue growth 5Y0.85%
Sales Q2Q%-1.94%
3.2 Future
The Earnings Per Share is expected to grow by 2.56% on average over the next years.
The Revenue is expected to grow by 2.43% on average over the next years.
EPS Next Y2.1%
EPS Next 2Y2.49%
EPS Next 3Y3.94%
EPS Next 5Y2.56%
Revenue Next Year6.66%
Revenue Next 2Y4.24%
Revenue Next 3Y3.44%
Revenue Next 5Y2.43%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.76, the valuation of SJM can be described as reasonable.
SJM's Price/Earnings ratio is rather cheap when compared to the industry. SJM is cheaper than 81.11% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.82, SJM is valued rather cheaply.
The Price/Forward Earnings ratio is 10.79, which indicates a very decent valuation of SJM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SJM indicates a rather cheap valuation: SJM is cheaper than 85.56% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SJM to the average of the S&P500 Index (21.76), we can say SJM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.76 | ||
| Fwd PE | 10.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SJM is valued a bit cheaper than the industry average as 67.78% of the companies are valued more expensively.
SJM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SJM is cheaper than 71.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.7 | ||
| EV/EBITDA | 8.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SJM does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of SJM may justify a higher PE ratio.
PEG (NY)5.13
PEG (5Y)2.91
EPS Next 2Y2.49%
EPS Next 3Y3.94%
5. Dividend
5.1 Amount
SJM has a Yearly Dividend Yield of 3.83%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.59, SJM pays a better dividend. On top of this SJM pays more dividend than 81.11% 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 | 3.83% |
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 Years22
Div Non Decr Years22
5.3 Sustainability
SJM has negative earnings and hence a negative payout ratio. The dividend may be in danger.
SJM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-177.75%
EPS Next 2Y2.49%
EPS Next 3Y3.94%
112.64
+0.65 (+0.58%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners84.59%
Inst Owner Change4.37%
Ins Owners2.86%
Ins Owner Change0.73%
Market Cap11.99B
Analysts68.33
Price Target123.58 (9.71%)
Short Float %4.95%
Short Ratio3.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
Yearly Dividend4.16
Dividend Growth(5Y)4.66%
DP-177.75%
Div Incr Years22
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.07%
Min EPS beat(2)8.9%
Max EPS beat(2)9.25%
EPS beat(4)4
Avg EPS beat(4)10.62%
Min EPS beat(4)8.9%
Max EPS beat(4)13.07%
EPS beat(8)8
Avg EPS beat(8)8.96%
EPS beat(12)12
Avg EPS beat(12)10.88%
EPS beat(16)16
Avg EPS beat(16)10.73%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-2.76%
Max Revenue beat(2)-0.78%
Revenue beat(4)0
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-2.76%
Max Revenue beat(4)-0.78%
Revenue beat(8)1
Avg Revenue beat(8)-1.3%
Revenue beat(12)3
Avg Revenue beat(12)-0.87%
Revenue beat(16)6
Avg Revenue beat(16)-0.19%
PT rev (1m)1.56%
PT rev (3m)-3.3%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)-3.41%
EPS NY rev (1m)0.01%
EPS NY rev (3m)1.66%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-1.52%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.76 | ||
| Fwd PE | 10.79 | ||
| P/S | 1.36 | ||
| P/FCF | 14.7 | ||
| P/OCF | 9.63 | ||
| P/B | 1.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.69 |
EPS(TTM)10.47
EY9.3%
EPS(NY)10.44
Fwd EY9.27%
FCF(TTM)7.66
FCFY6.8%
OCF(TTM)11.7
OCFY10.38%
SpS82.58
BVpS64.91
TBVpS-58.01
PEG (NY)5.13
PEG (5Y)2.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.38% | ||
| ROE | -3.69% | ||
| ROCE | 11.32% | ||
| ROIC | 8.2% | ||
| ROICexc | 8.23% | ||
| ROICexgc | 51.8% | ||
| OM | 19.5% | ||
| PM (TTM) | N/A | ||
| GM | 39.71% | ||
| FCFM | 9.28% |
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-Score6
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 9.64 | ||
| Debt/EBITDA | 3.09 | ||
| Cap/Depr | 85.18% | ||
| Cap/Sales | 4.89% | ||
| Interest Coverage | 4.1 | ||
| Cash Conversion | 56.12% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 1.42 |
F-Score6
WACC6.7%
ROIC/WACC1.22
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)5.54%
EPS 3Y2.99%
EPS 5Y3.7%
EPS Q2Q%5.24%
EPS Next Y2.1%
EPS Next 2Y2.49%
EPS Next 3Y3.94%
EPS Next 5Y2.56%
Revenue 1Y (TTM)7.07%
Revenue growth 3Y0.73%
Revenue growth 5Y0.85%
Sales Q2Q%-1.94%
Revenue Next Year6.66%
Revenue Next 2Y4.24%
Revenue Next 3Y3.44%
Revenue Next 5Y2.43%
EBIT growth 1Y21.66%
EBIT growth 3Y0.95%
EBIT growth 5Y4.41%
EBIT Next Year33.92%
EBIT Next 3Y11.36%
EBIT Next 5Y6.24%
FCF growth 1Y27.57%
FCF growth 3Y-20.06%
FCF growth 5Y-3.83%
OCF growth 1Y8.77%
OCF growth 3Y-7.73%
OCF growth 5Y1.5%