JM SMUCKER CO/THE (SJM)

US8326964058 - Common Stock

124.29  -1.79 (-1.42%)

After market: 122.74 -1.55 (-1.25%)

Fundamental Rating

5

SJM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 91 industry peers in the Food Products industry. Both the profitability and the financial health of SJM get a neutral evaluation. Nothing too spectacular is happening here. SJM is not valued too expensively and it also shows a decent growth rate.



5

1. Profitability

1.1 Basic Checks

SJM had positive earnings in the past year.
In the past year SJM had a positive cash flow from operations.
SJM had positive earnings in 4 of the past 5 years.
In the past 5 years SJM always reported a positive cash flow from operatings.

1.2 Ratios

The Return On Assets of SJM (-0.07%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of -0.19%, SJM is in line with its industry, outperforming 43.33% of the companies in the same industry.
SJM's Return On Invested Capital of 6.12% is fine compared to the rest of the industry. SJM outperforms 67.78% 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 7.75%.
Industry RankSector Rank
ROA -0.07%
ROE -0.19%
ROIC 6.12%
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

With an excellent Operating Margin value of 16.25%, SJM belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
SJM's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 35.75%, SJM belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
In the last couple of years the Gross Margin of SJM has declined.
Industry RankSector Rank
OM 16.25%
PM (TTM) N/A
GM 35.75%
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%

5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SJM is destroying value.
SJM has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SJM has been reduced compared to 5 years ago.
Compared to 1 year ago, SJM has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 1.85 indicates that SJM is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.85, SJM is in line with its industry, outperforming 44.44% of the companies in the same industry.
The Debt to FCF ratio of SJM is 9.29, which is on the high side as it means it would take SJM, 9.29 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.29, SJM is in line with its industry, outperforming 58.89% of the companies in the same industry.
SJM has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SJM (1.10) is worse than 73.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.1
Debt/FCF 9.29
Altman-Z 1.85
ROIC/WACC0.8
WACC7.65%

2.3 Liquidity

SJM has a Current Ratio of 3.20. This indicates that SJM is financially healthy and has no problem in meeting its short term obligations.
SJM has a Current ratio of 3.20. This is amongst the best in the industry. SJM outperforms 84.44% of its industry peers.
A Quick Ratio of 2.61 indicates that SJM has no problem at all paying its short term obligations.
SJM has a Quick ratio of 2.61. This is amongst the best in the industry. SJM outperforms 90.00% of its industry peers.
Industry RankSector Rank
Current Ratio 3.2
Quick Ratio 2.61

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 11.82% over the past year.
The Earnings Per Share has been growing slightly by 2.05% on average over the past years.
SJM shows a small growth in Revenue. In the last year, the Revenue has grown by 0.32%.
Measured over the past years, SJM shows a small growth in Revenue. The Revenue has been growing by 3.00% on average per year.
EPS 1Y (TTM)11.82%
EPS 3Y0.61%
EPS 5Y2.05%
EPS growth Q2Q7.92%
Revenue 1Y (TTM)0.32%
Revenue growth 3Y3.02%
Revenue growth 5Y3%
Revenue growth Q2Q-12.09%

3.2 Future

SJM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.41% yearly.
SJM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.98% yearly.
EPS Next Y7.79%
EPS Next 2Y7.49%
EPS Next 3Y7.09%
EPS Next 5Y7.41%
Revenue Next Year-2.8%
Revenue Next 2Y3.32%
Revenue Next 3Y2.85%
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.
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.

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 12.88, the valuation of SJM can be described as correct.
80.00% of the companies in the same industry are more expensive than SJM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SJM to the average of the S&P500 Index (26.32), we can say SJM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.06, the valuation of SJM can be described as correct.
SJM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SJM is cheaper than 80.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.63. SJM is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 12.88
Fwd PE 12.06

4.2 Price Multiples

74.44% of the companies in the same industry are more expensive than SJM, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SJM indicates a somewhat cheap valuation: SJM is cheaper than 75.56% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 15.76
EV/EBITDA 9.68

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)1.65
PEG (5Y)6.29
EPS Next 2Y7.49%
EPS Next 3Y7.09%

6

5. Dividend

5.1 Amount

SJM has a Yearly Dividend Yield of 3.41%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.53, SJM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.48, SJM pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.41%

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.
The dividend of SJM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-3232.33%
EPS Next 2Y7.49%
EPS Next 3Y7.09%

JM SMUCKER CO/THE

NYSE:SJM (2/22/2024, 6:11:12 PM)

After market: 122.74 -1.55 (-1.25%)

124.29

-1.79 (-1.42%)

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 Cap13.19B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.41%
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)
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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)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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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 RankSector Rank
PE 12.88
Fwd PE 12.06
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)1.65
PEG (5Y)6.29
Profitability
Industry RankSector Rank
ROA -0.07%
ROE -0.19%
ROCE
ROIC
ROICexc
ROICexgc
OM 16.25%
PM (TTM) N/A
GM 35.75%
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 Turnover0.45
Health
Industry RankSector Rank
Debt/Equity 1.1
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 3.2
Quick Ratio 2.61
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)11.82%
EPS 3Y0.61%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.79%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.32%
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