JM SMUCKER CO/THE (SJM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SJM - US8326964058 - Common Stock
95.91 USD
+1.35 (+1.43%)
95.91 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to SJM. SJM was compared to 87 industry peers in the Food Products industry. SJM has a medium profitability rating, but doesn't score so well on its financial health evaluation. SJM is valued correctly, but it does not seem to be growing. 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
Looking at the Return On Assets, with a value of -6.77%, SJM is doing worse than 67.82% of the companies in the same industry.
SJM has a worse Return On Equity (-19.70%) than 66.67% of its industry peers.
SJM's Return On Invested Capital of 6.49% is fine compared to the rest of the industry. SJM outperforms 72.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SJM is significantly below the industry average of 28.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.77% | ||
| ROE | -19.7% | ||
| 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 (15.61%) than 91.95% of its industry peers.
In the last couple of years the Operating Margin of SJM has grown nicely.
The Gross Margin of SJM (35.14%) is better than 79.31% 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 | 15.61% | ||
| PM (TTM) | N/A | ||
| GM | 35.14% |
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.
SJM has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SJM has less shares outstanding
The debt/assets ratio for SJM is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.29, we must say that SJM is in the distress zone and has some risk of bankruptcy.
SJM has a worse Altman-Z score (1.29) than 63.22% of its industry peers.
SJM has a debt to FCF ratio of 12.27. This is a negative value and a sign of low solvency as SJM would need 12.27 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 12.27, SJM is in the better half of the industry, outperforming 60.92% of the companies in the same industry.
A Debt/Equity ratio of 1.29 is on the high side and indicates that SJM has dependencies on debt financing.
SJM has a Debt to Equity ratio of 1.29. This is in the lower half of the industry: SJM underperforms 77.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 12.27 | ||
| Altman-Z | 1.29 |
ROIC/WACC0.97
WACC6.72%
2.3 Liquidity
SJM has a Current Ratio of 0.89. 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 Current ratio of 0.89. This is in the lower half of the industry: SJM underperforms 78.16% of its industry peers.
A Quick Ratio of 0.37 indicates that SJM may have some problems paying its short term obligations.
SJM's Quick ratio of 0.37 is on the low side compared to the rest of the industry. SJM is outperformed by 83.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The earnings per share for SJM have decreased strongly by -13.73% in the last year.
The Earnings Per Share has been growing slightly by 2.93% on average over the past years.
The Revenue has decreased by -0.66% in the past year.
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)-13.73%
EPS 3Y4.41%
EPS 5Y2.93%
EPS Q2Q%-23.91%
Revenue 1Y (TTM)-0.66%
Revenue growth 3Y2.94%
Revenue growth 5Y2.27%
Sales Q2Q%2.59%
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 2.27% on average per year.
Based on estimates for the next years, SJM will show a small growth in Revenue. The Revenue will grow by 1.82% on average per year.
EPS Next Y-10.25%
EPS Next 2Y-0.75%
EPS Next 3Y1.97%
EPS Next 5Y2.27%
Revenue Next Year3.33%
Revenue Next 2Y2.76%
Revenue Next 3Y2.42%
Revenue Next 5Y1.82%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.75, which indicates a very decent valuation of SJM.
SJM's Price/Earnings ratio is rather cheap when compared to the industry. SJM is cheaper than 82.76% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.17. SJM is valued rather cheaply when compared to this.
SJM is valuated reasonably with a Price/Forward Earnings ratio of 9.62.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SJM indicates a rather cheap valuation: SJM is cheaper than 89.66% 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 (23.79), we can say SJM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.75 | ||
| Fwd PE | 9.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SJM is valued a bit cheaper than 64.37% of the companies 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 70.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.1 | ||
| EV/EBITDA | 9.02 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.67
EPS Next 2Y-0.75%
EPS Next 3Y1.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.50%, SJM is a good candidate for dividend investing.
SJM's Dividend Yield is rather good when compared to the industry average which is at 2.41. SJM pays more dividend than 81.61% of the companies in the same industry.
SJM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
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
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-38.54%
EPS Next 2Y-0.75%
EPS Next 3Y1.97%
95.91
+1.35 (+1.43%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners90.63%
Inst Owner Change0%
Ins Owners2.2%
Ins Owner Change-1.22%
Market Cap10.23B
Revenue(TTM)8.77B
Net Income(TTM)-1.19B
Analysts71.3
Price Target118.48 (23.53%)
Short Float %6.81%
Short Ratio4.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
Yearly Dividend4.28
Dividend Growth(5Y)4.24%
DP-38.54%
Div Incr Years22
Div Non Decr Years22
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.86%
Min EPS beat(2)-2.68%
Max EPS beat(2)-1.05%
EPS beat(4)2
Avg EPS beat(4)1.88%
Min EPS beat(4)-2.68%
Max EPS beat(4)9.25%
EPS beat(8)6
Avg EPS beat(8)6.11%
EPS beat(12)10
Avg EPS beat(12)6.08%
EPS beat(16)14
Avg EPS beat(16)8.7%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.06%
Max Revenue beat(2)-0.51%
Revenue beat(4)0
Avg Revenue beat(4)-1.8%
Min Revenue beat(4)-2.86%
Max Revenue beat(4)-0.51%
Revenue beat(8)0
Avg Revenue beat(8)-1.56%
Revenue beat(12)1
Avg Revenue beat(12)-1.34%
Revenue beat(16)3
Avg Revenue beat(16)-0.95%
PT rev (1m)-0.33%
PT rev (3m)0.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.21%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.75 | ||
| Fwd PE | 9.62 | ||
| P/S | 1.17 | ||
| P/FCF | 16.1 | ||
| P/OCF | 10.56 | ||
| P/B | 1.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.02 |
EPS(TTM)8.92
EY9.3%
EPS(NY)9.97
Fwd EY10.39%
FCF(TTM)5.96
FCFY6.21%
OCF(TTM)9.08
OCFY9.47%
SpS82.23
BVpS56.8
TBVpS-55.24
PEG (NY)N/A
PEG (5Y)3.67
Graham Number106.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.77% | ||
| ROE | -19.7% | ||
| ROCE | 9.13% | ||
| ROIC | 6.49% | ||
| ROICexc | 6.52% | ||
| ROICexgc | 27.39% | ||
| OM | 15.61% | ||
| PM (TTM) | N/A | ||
| GM | 35.14% | ||
| FCFM | 7.24% |
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%
ROICexgc growth 3Y0.14%
ROICexgc 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 Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 12.27 | ||
| Debt/EBITDA | 4.12 | ||
| Cap/Depr | 63.68% | ||
| Cap/Sales | 3.8% | ||
| Interest Coverage | 3.33 | ||
| Cash Conversion | 51.19% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 1.29 |
F-Score5
WACC6.72%
ROIC/WACC0.97
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)-13.73%
EPS 3Y4.41%
EPS 5Y2.93%
EPS Q2Q%-23.91%
EPS Next Y-10.25%
EPS Next 2Y-0.75%
EPS Next 3Y1.97%
EPS Next 5Y2.27%
Revenue 1Y (TTM)-0.66%
Revenue growth 3Y2.94%
Revenue growth 5Y2.27%
Sales Q2Q%2.59%
Revenue Next Year3.33%
Revenue Next 2Y2.76%
Revenue Next 3Y2.42%
Revenue Next 5Y1.82%
EBIT growth 1Y-16.52%
EBIT growth 3Y12.06%
EBIT growth 5Y5.19%
EBIT Next Year9.97%
EBIT Next 3Y6.33%
EBIT Next 5Y3.46%
FCF growth 1Y-24.09%
FCF growth 3Y4.34%
FCF growth 5Y-3.69%
OCF growth 1Y-31.9%
OCF growth 3Y2.13%
OCF growth 5Y-0.72%
JM SMUCKER CO/THE / SJM FAQ
What is the fundamental rating for SJM stock?
ChartMill assigns a fundamental rating of 4 / 10 to SJM.
What is the valuation status for SJM stock?
ChartMill assigns a valuation rating of 6 / 10 to JM SMUCKER CO/THE (SJM). This can be considered as Fairly Valued.
How profitable is JM SMUCKER CO/THE (SJM) stock?
JM SMUCKER CO/THE (SJM) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for SJM stock?
The Price/Earnings (PE) ratio for JM SMUCKER CO/THE (SJM) is 10.75 and the Price/Book (PB) ratio is 1.69.
Can you provide the dividend sustainability for SJM stock?
The dividend rating of JM SMUCKER CO/THE (SJM) is 7 / 10 and the dividend payout ratio is -38.54%.