JM SMUCKER CO/THE (SJM)
US8326964058 - Common Stock
SJM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 92 industry peers in the Food Products industry. While SJM belongs to the best of the industry regarding profitability, there are concerns on its financial health. SJM is not valued too expensively and it also shows a decent growth rate. 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.
Of the past 5 years SJM 4 years were profitable.
In the past 5 years SJM always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.68%, SJM is doing good in the industry, outperforming 60.44% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.69%, SJM is in the better half of the industry, outperforming 62.64% of the companies in the same industry.
SJM has a better Return On Invested Capital (6.35%) than 68.13% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SJM is below the industry average of 8.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 9.69% | ||
| ROIC | 6.35% |
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
SJM has a Profit Margin of 9.12%. This is amongst the best in the industry. SJM outperforms 82.42% of its industry peers.
In the last couple of years the Profit Margin of SJM has grown nicely.
SJM has a better Operating Margin (17.77%) than 93.41% of its industry peers.
In the last couple of years the Operating Margin of SJM has grown nicely.
With an excellent Gross Margin value of 38.13%, SJM belongs to the best of the industry, outperforming 93.41% 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 | 17.77% | ||
| PM (TTM) | 9.12% | ||
| GM | 38.13% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SJM is destroying value.
Compared to 1 year ago, SJM has more shares outstanding
The number of shares outstanding for SJM has been reduced compared to 5 years ago.
SJM has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.27, we must say that SJM is in the distress zone and has some risk of bankruptcy.
SJM's Altman-Z score of 1.27 is on the low side compared to the rest of the industry. SJM is outperformed by 68.13% of its industry peers.
SJM has a debt to FCF ratio of 13.03. This is a negative value and a sign of low solvency as SJM would need 13.03 years to pay back of all of its debts.
The Debt to FCF ratio of SJM (13.03) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.96 indicates that SJM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.96, SJM is doing worse than 65.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 13.03 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.96
WACC6.6%
2.3 Liquidity
A Current Ratio of 0.52 indicates that SJM may have some problems paying its short term obligations.
SJM's Current ratio of 0.52 is on the low side compared to the rest of the industry. SJM is outperformed by 93.41% of its industry peers.
A Quick Ratio of 0.25 indicates that SJM may have some problems paying its short term obligations.
SJM has a worse Quick ratio (0.25) than 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
SJM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.43%, which is quite good.
SJM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.70% yearly.
Looking at the last year, SJM shows a decrease in Revenue. The Revenue has decreased by -4.11% in the last year.
The Revenue has been growing slightly by 0.85% on average over the past years.
EPS 1Y (TTM)11.43%
EPS 3Y2.99%
EPS 5Y3.7%
EPS Q2Q%0.76%
Revenue 1Y (TTM)-4.11%
Revenue growth 3Y0.73%
Revenue growth 5Y0.85%
Sales Q2Q%-1.3%
3.2 Future
SJM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.08% yearly.
The Revenue is expected to grow by 2.76% on average over the next years.
EPS Next Y1.87%
EPS Next 2Y5.17%
EPS Next 3Y5.15%
EPS Next 5Y4.08%
Revenue Next Year9.33%
Revenue Next 2Y5.55%
Revenue Next 3Y4.44%
Revenue Next 5Y2.76%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
With a Price/Earnings ratio of 11.89, the valuation of SJM can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of SJM indicates a rather cheap valuation: SJM is cheaper than 83.52% of the companies listed in the same industry.
SJM is valuated cheaply when we compare the Price/Earnings ratio to 24.41, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.67 indicates a reasonable valuation of SJM.
SJM's Price/Forward Earnings ratio is rather cheap when compared to the industry. SJM is cheaper than 83.52% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SJM to the average of the S&P500 Index (20.59), we can say SJM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 11.67 |
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 69.23% of the companies listed in the same industry.
64.84% of the companies in the same industry are more expensive than SJM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.57 | ||
| EV/EBITDA | 10.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of SJM may justify a higher PE ratio.
PEG (NY)6.36
PEG (5Y)3.22
EPS Next 2Y5.17%
EPS Next 3Y5.15%
5. Dividend
5.1 Amount
SJM has a Yearly Dividend Yield of 3.59%.
SJM's Dividend Yield is rather good when compared to the industry average which is at 3.74. SJM pays more dividend than 82.42% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, SJM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.59% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.66%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
SJM pays out 58.67% of its income as dividend. This is a bit on the high side, but may be sustainable.
SJM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP58.67%
EPS Next 2Y5.17%
EPS Next 3Y5.15%
JM SMUCKER CO/THE
NYSE:SJM (7/26/2024, 7:04:00 PM)
After market: 118.19 0 (0%)118.19
+2.13 (+1.84%)
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 Cap12.58B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.59% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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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 | 11.89 | ||
| Fwd PE | 11.67 | ||
| 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)6.36
PEG (5Y)3.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 9.69% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.77% | ||
| PM (TTM) | 9.12% | ||
| GM | 38.13% | ||
| 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 Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.25 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)11.43%
EPS 3Y2.99%
EPS 5Y
EPS Q2Q%
EPS Next Y1.87%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.11%
Revenue growth 3Y0.73%
Revenue growth 5Y
Sales 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