JM SMUCKER CO/THE (SJM) Stock Fundamental Analysis
NYSE:SJM - New York Stock Exchange, Inc. - US8326964058 - Common Stock - Currency: USD
Taking everything into account, SJM scores 4 out of 10 in our fundamental rating. SJM was compared to 91 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 valued correctly, but it does not seem to be growing. 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.
The reported net income has been mixed in the past 5 years: SJM reported negative net income in multiple years.
Each year in the past 5 years SJM had a positive operating cash flow.
1.2 Ratios
SJM's Return On Assets of -7.01% is on the low side compared to the rest of the industry. SJM is outperformed by 70.33% of its industry peers.
SJM has a worse Return On Equity (-20.23%) than 70.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.99%, SJM is in the better half of the industry, outperforming 74.73% of the companies in the same industry.
SJM had an Average Return On Invested Capital over the past 3 years of 7.05%. This is significantly below the industry average of 28.15%.
The 3 year average ROIC (7.05%) for SJM is below the current ROIC(7.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.01% | ||
| ROE | -20.23% | ||
| ROIC | 7.99% |
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's Operating Margin of 19.06% is amongst the best of the industry. SJM outperforms 95.60% of its industry peers.
SJM's Operating Margin has improved in the last couple of years.
The Gross Margin of SJM (38.89%) is better than 87.91% of its industry peers.
SJM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.06% | ||
| PM (TTM) | N/A | ||
| GM | 38.89% |
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
SJM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for SJM has been increased compared to 1 year ago.
SJM has less shares outstanding than it did 5 years ago.
SJM has a worse debt/assets ratio than last year.
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.
With a Altman-Z score value of 1.43, SJM is not doing good in the industry: 60.44% of the companies in the same industry are doing better.
SJM has a debt to FCF ratio of 9.42. This is a negative value and a sign of low solvency as SJM would need 9.42 years to pay back of all of its debts.
The Debt to FCF ratio of SJM (9.42) is better than 62.64% of its industry peers.
SJM has a Debt/Equity ratio of 1.26. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.26, SJM is not doing good in the industry: 78.02% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 9.42 | ||
| Altman-Z | 1.43 |
ROIC/WACC1.17
WACC6.82%
2.3 Liquidity
A Current Ratio of 0.81 indicates that SJM may have some problems paying its short term obligations.
SJM has a worse Current ratio (0.81) than 79.12% of its industry peers.
A Quick Ratio of 0.35 indicates that SJM may have some problems paying its short term obligations.
With a Quick ratio value of 0.35, SJM is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
SJM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.81%.
The Earnings Per Share has been growing slightly by 2.93% on average over the past years.
SJM shows a small growth in Revenue. In the last year, the Revenue has grown by 6.69%.
Measured over the past years, SJM shows a small growth in Revenue. The Revenue has been growing by 2.27% on average per year.
EPS 1Y (TTM)1.81%
EPS 3Y4.41%
EPS 5Y2.93%
EPS Q2Q%-13.16%
Revenue 1Y (TTM)6.69%
Revenue growth 3Y2.94%
Revenue growth 5Y2.27%
Sales Q2Q%-2.81%
3.2 Future
The Earnings Per Share is expected to grow by 0.64% on average over the next years.
The Revenue is expected to grow by 1.70% on average over the next years.
EPS Next Y-9.61%
EPS Next 2Y-1.11%
EPS Next 3Y1.18%
EPS Next 5Y0.64%
Revenue Next Year2.26%
Revenue Next 2Y2.23%
Revenue Next 3Y2.12%
Revenue Next 5Y1.7%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.94, which indicates a very decent valuation of SJM.
Based on the Price/Earnings ratio, SJM is valued cheaply inside the industry as 81.32% of the companies are valued more expensively.
SJM is valuated cheaply when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.10, the valuation of SJM can be described as correct.
SJM's Price/Forward Earnings ratio is rather cheap when compared to the industry. SJM is cheaper than 80.22% of the companies in the same industry.
SJM is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.94 | ||
| Fwd PE | 12.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SJM is valued a bit cheaper than the industry average as 64.84% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SJM is valued a bit cheaper than 75.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.46 | ||
| EV/EBITDA | 8.69 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.74
EPS Next 2Y-1.11%
EPS Next 3Y1.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.10%, SJM is a good candidate for dividend investing.
SJM's Dividend Yield is rather good when compared to the industry average which is at 4.73. SJM pays more dividend than 80.22% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, SJM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
5.2 History
The dividend of SJM has a limited annual growth rate of 4.24%.
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)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.
SJM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-37%
EPS Next 2Y-1.11%
EPS Next 3Y1.18%
110.72
-0.23 (-0.21%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners88.11%
Inst Owner Change0.52%
Ins Owners2.9%
Ins Owner Change1.79%
Market Cap11.81B
Analysts68.7
Price Target114.02 (2.98%)
Short Float %4.63%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
Yearly Dividend4.28
Dividend Growth(5Y)4.24%
DP-37%
Div Incr Years22
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.62%
Min EPS beat(2)1.98%
Max EPS beat(2)9.25%
EPS beat(4)4
Avg EPS beat(4)7.85%
Min EPS beat(4)1.98%
Max EPS beat(4)11.25%
EPS beat(8)8
Avg EPS beat(8)7.94%
EPS beat(12)12
Avg EPS beat(12)9.59%
EPS beat(16)16
Avg EPS beat(16)10.1%
Revenue beat(2)0
Avg Revenue beat(2)-2.81%
Min Revenue beat(2)-2.86%
Max Revenue beat(2)-2.76%
Revenue beat(4)0
Avg Revenue beat(4)-1.95%
Min Revenue beat(4)-2.86%
Max Revenue beat(4)-0.78%
Revenue beat(8)0
Avg Revenue beat(8)-1.88%
Revenue beat(12)2
Avg Revenue beat(12)-1.26%
Revenue beat(16)5
Avg Revenue beat(16)-0.45%
PT rev (1m)-1.32%
PT rev (3m)-7.01%
EPS NQ rev (1m)2.16%
EPS NQ rev (3m)-20.93%
EPS NY rev (1m)0.16%
EPS NY rev (3m)-12.4%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)-1.4%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.94 | ||
| Fwd PE | 12.1 | ||
| P/S | 1.35 | ||
| P/FCF | 14.46 | ||
| P/OCF | 9.76 | ||
| P/B | 1.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.69 |
EPS(TTM)10.12
EY9.14%
EPS(NY)9.15
Fwd EY8.26%
FCF(TTM)7.65
FCFY6.91%
OCF(TTM)11.35
OCFY10.25%
SpS81.8
BVpS57.02
TBVpS-56
PEG (NY)N/A
PEG (5Y)3.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.01% | ||
| ROE | -20.23% | ||
| ROCE | 11.16% | ||
| ROIC | 7.99% | ||
| ROICexc | 8.02% | ||
| ROICexgc | 36.27% | ||
| OM | 19.06% | ||
| PM (TTM) | N/A | ||
| GM | 38.89% | ||
| FCFM | 9.36% |
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-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 9.42 | ||
| Debt/EBITDA | 3.55 | ||
| Cap/Depr | 78.37% | ||
| Cap/Sales | 4.51% | ||
| Interest Coverage | 4.05 | ||
| Cash Conversion | 55.88% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 1.43 |
F-Score6
WACC6.82%
ROIC/WACC1.17
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)1.81%
EPS 3Y4.41%
EPS 5Y2.93%
EPS Q2Q%-13.16%
EPS Next Y-9.61%
EPS Next 2Y-1.11%
EPS Next 3Y1.18%
EPS Next 5Y0.64%
Revenue 1Y (TTM)6.69%
Revenue growth 3Y2.94%
Revenue growth 5Y2.27%
Sales Q2Q%-2.81%
Revenue Next Year2.26%
Revenue Next 2Y2.23%
Revenue Next 3Y2.12%
Revenue Next 5Y1.7%
EBIT growth 1Y14.44%
EBIT growth 3Y12.06%
EBIT growth 5Y5.19%
EBIT Next Year17.19%
EBIT Next 3Y6.1%
EBIT Next 5Y3.22%
FCF growth 1Y27.02%
FCF growth 3Y4.34%
FCF growth 5Y-3.69%
OCF growth 1Y-1.55%
OCF growth 3Y2.13%
OCF growth 5Y-0.72%