JM SMUCKER CO/THE (SJM)
US8326964058 - Common Stock
SJM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 91 industry peers in the Food Products industry. While SJM is still in line with the averages on profitability rating, there are concerns on its financial health. SJM has a correct valuation and a medium growth rate. Finally 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
The Return On Assets of SJM (-0.50%) is comparable to the rest of the industry.
SJM has a Return On Equity of -1.34%. This is comparable to the rest of the industry: SJM outperforms 45.05% of its industry peers.
SJM's Return On Invested Capital of 5.79% is fine compared to the rest of the industry. SJM outperforms 62.64% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SJM is in line with the industry average of 7.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.5% | ||
| ROE | -1.34% | ||
| ROIC | 5.79% |
ROA(3y)2.89%
ROA(5y)3.26%
ROE(3y)5.74%
ROE(5y)6.62%
ROIC(3y)6.95%
ROIC(5y)6.59%
1.3 Margins
SJM has a Operating Margin of 17.16%. This is amongst the best in the industry. SJM outperforms 95.60% of its industry peers.
In the last couple of years the Operating Margin of SJM has declined.
SJM has a better Gross Margin (36.50%) than 89.01% of its industry peers.
SJM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.16% | ||
| PM (TTM) | N/A | ||
| GM | 36.5% |
OM growth 3Y-5.63%
OM growth 5Y-4.22%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.07%
GM growth 5Y-3.13%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SJM is destroying value.
Compared to 1 year ago, SJM has less shares outstanding
SJM has less shares outstanding than it did 5 years ago.
SJM has a worse debt/assets ratio than last year.
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.
With a Altman-Z score value of 1.30, SJM is not doing good in the industry: 65.93% of the companies in the same industry are doing better.
SJM has a debt to FCF ratio of 13.27. This is a negative value and a sign of low solvency as SJM would need 13.27 years to pay back of all of its debts.
The Debt to FCF ratio of SJM (13.27) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.13 is on the high side and indicates that SJM has dependencies on debt financing.
SJM has a worse Debt to Equity ratio (1.13) than 75.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 13.27 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.74
WACC7.78%
2.3 Liquidity
SJM has a Current Ratio of 0.78. 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 (0.78) than 83.52% of its industry peers.
A Quick Ratio of 0.38 indicates that SJM may have some problems paying its short term obligations.
SJM has a Quick ratio of 0.38. This is amonst the worse of the industry: SJM underperforms 90.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
SJM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.57%, which is quite good.
Measured over the past 5 years, SJM shows a small growth in Earnings Per Share. The EPS has been growing by 2.05% on average per year.
Looking at the last year, SJM shows a decrease in Revenue. The Revenue has decreased by -1.45% in the last year.
The Revenue has been growing slightly by 3.00% on average over the past years.
EPS 1Y (TTM)16.57%
EPS 3Y0.61%
EPS 5Y2.05%
EPS growth Q2Q12.22%
Revenue 1Y (TTM)-1.45%
Revenue growth 3Y3.02%
Revenue growth 5Y3%
Revenue growth Q2Q0.58%
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 7.41% on average per year.
The Revenue is expected to grow by 2.98% on average over the next years.
EPS Next Y8.77%
EPS Next 2Y7.49%
EPS Next 3Y7.24%
EPS Next 5Y7.41%
Revenue Next Year-2.87%
Revenue Next 2Y3.32%
Revenue Next 3Y2.92%
Revenue Next 5Y2.98%
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 accelerating.
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
SJM is valuated reasonably with a Price/Earnings ratio of 11.07.
Compared to the rest of the industry, the Price/Earnings ratio of SJM indicates a rather cheap valuation: SJM is cheaper than 89.01% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 24.83. SJM is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.65, the valuation of SJM can be described as very reasonable.
91.21% of the companies in the same industry are more expensive than SJM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SJM to the average of the S&P500 Index (21.32), we can say SJM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.07 | ||
| Fwd PE | 10.65 |
4.2 Price Multiples
SJM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SJM is cheaper than 68.13% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SJM is valued a bit cheaper than the industry average as 72.53% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.1 | ||
| EV/EBITDA | 10.94 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.26
PEG (5Y)5.4
EPS Next 2Y7.49%
EPS Next 3Y7.24%
5. Dividend
5.1 Amount
SJM has a Yearly Dividend Yield of 3.78%.
Compared to an average industry Dividend Yield of 3.56, 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
5.2 History
The dividend of SJM has a limited annual growth rate of 5.83%.
SJM has paid a dividend for at least 10 years, which is 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)5.83%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
SJM has negative earnings and hence a negative payout ratio. The dividend may be in danger.
SJM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-428.75%
EPS Next 2Y7.49%
EPS Next 3Y7.24%
JM SMUCKER CO/THE
NYSE:SJM (4/17/2024, 7:25:16 PM)
After market: 109.8 0 (0%)109.8
-0.18 (-0.16%)
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 Cap11.66B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 11.07 | ||
| 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)1.26
PEG (5Y)5.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.5% | ||
| ROE | -1.34% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.16% | ||
| PM (TTM) | N/A | ||
| GM | 36.5% | ||
| 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 Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.38 | ||
| 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)
Growth
EPS 1Y (TTM)16.57%
EPS 3Y0.61%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.77%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.45%
Revenue growth 3Y3.02%
Revenue growth 5Y
Revenue growth 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