JM SMUCKER CO/THE (SJM) Stock Fundamental Analysis
NYSE:SJM - New York Stock Exchange, Inc. - US8326964058 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to SJM. SJM was compared to 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
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
With a Return On Assets value of -1.38%, SJM is not doing good in the industry: 64.44% of the companies in the same industry are doing better.
With a Return On Equity value of -3.69%, SJM is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
The Return On Invested Capital of SJM (8.20%) is better than 77.78% 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 8.67%.
The last Return On Invested Capital (8.20%) for SJM is above the 3 year average (6.45%), which is a sign of increasing profitability.
| 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.
Looking at the Operating Margin, with a value of 19.50%, SJM belongs to the top 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.
Looking at the Gross Margin, with a value of 39.71%, SJM belongs to the top 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
SJM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
SJM has more shares outstanding than it did 1 year ago.
SJM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SJM is higher compared to a year ago.
2.2 Solvency
SJM has an Altman-Z score of 1.43. This is a bad value and indicates that SJM is not financially healthy and even has some risk of bankruptcy.
SJM has a Altman-Z score of 1.43. This is in the lower half of the industry: SJM underperforms 63.33% of its industry peers.
SJM has a debt to FCF ratio of 9.64. This is a negative value and a sign of low solvency as SJM would need 9.64 years to pay back of all of its debts.
SJM has a Debt to FCF ratio (9.64) which is in line with its industry peers.
SJM has a Debt/Equity ratio of 0.99. This is a neutral value indicating SJM is somewhat dependend on debt financing.
SJM has a worse Debt to Equity ratio (0.99) than 74.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 9.64 | ||
| Altman-Z | 1.43 |
ROIC/WACC1.23
WACC6.68%
2.3 Liquidity
A Current Ratio of 0.60 indicates that SJM may have some problems paying its short term obligations.
The Current ratio of SJM (0.60) is worse than 87.78% of its industry peers.
A Quick Ratio of 0.27 indicates that SJM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.27, SJM is doing worse than 90.00% of the companies in the same industry.
| 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%.
The Earnings Per Share has been growing slightly by 3.70% on average over the past years.
Looking at the last year, SJM shows a small growth in Revenue. The Revenue has grown by 7.07% in the last year.
SJM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.85% yearly.
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
SJM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.56% yearly.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.98, 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.
SJM is valuated cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.01, which indicates a very decent valuation of SJM.
SJM's Price/Forward Earnings ratio is rather cheap when compared to the industry. SJM is cheaper than 85.56% of the companies in the same industry.
SJM is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.98 | ||
| Fwd PE | 11.01 |
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 66.67% of the companies listed in the same industry.
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 | 15.01 | ||
| EV/EBITDA | 8.76 |
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.
SJM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.23
PEG (5Y)2.97
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.
SJM's Dividend Yield is rather good when compared to the industry average which is at 4.58. SJM pays more dividend than 81.11% of the companies 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.
The dividend of SJM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-177.75%
EPS Next 2Y2.49%
EPS Next 3Y3.94%
114.95
+1.51 (+1.33%)
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 Cap12.23B
Analysts68.33
Price Target123.58 (7.51%)
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 | 10.98 | ||
| Fwd PE | 11.01 | ||
| P/S | 1.39 | ||
| P/FCF | 15.01 | ||
| P/OCF | 9.83 | ||
| P/B | 1.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.76 |
EPS(TTM)10.47
EY9.11%
EPS(NY)10.44
Fwd EY9.08%
FCF(TTM)7.66
FCFY6.66%
OCF(TTM)11.7
OCFY10.17%
SpS82.58
BVpS64.91
TBVpS-58.01
PEG (NY)5.23
PEG (5Y)2.97
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 | 1.43 |
F-Score6
WACC6.68%
ROIC/WACC1.23
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%