JM SMUCKER CO/THE (SJM) Stock Fundamental Analysis
USA - NYSE:SJM - US8326964058 - Common Stock
106.68 USD
+1.49 (+1.42%)
106.68 USD
0 (0%)
Taking everything into account, SJM scores 3 out of 10 in our fundamental rating. SJM was compared to 89 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year SJM was profitable.
In the past year SJM had a positive cash flow from operations.
In multiple years SJM reported negative net income over the last 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 -8.23%, SJM is not doing good in the industry: 74.16% of the companies in the same industry are doing better.
SJM has a Return On Equity of -24.63%. This is in the lower half of the industry: SJM underperforms 70.79% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.49%, SJM is in the better half of the industry, outperforming 66.29% 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 28.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.23% | ||
| ROE | -24.63% | ||
| 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
Looking at the Operating Margin, with a value of 15.71%, SJM belongs to the top of the industry, outperforming 88.76% of the companies in the same industry.
In the last couple of years the Operating Margin of SJM has grown nicely.
SJM has a better Gross Margin (35.36%) than 82.02% 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 | 15.71% | ||
| PM (TTM) | N/A | ||
| GM | 35.36% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SJM is creating some value.
Compared to 1 year ago, SJM has more shares outstanding
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 1.31. This is a bad value and indicates that SJM is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.31, SJM is doing worse than 64.04% of the companies in the same industry.
SJM has a debt to FCF ratio of 11.90. This is a negative value and a sign of low solvency as SJM would need 11.90 years to pay back of all of its debts.
SJM has a Debt to FCF ratio of 11.90. This is comparable to the rest of the industry: SJM outperforms 59.55% of its industry peers.
A Debt/Equity ratio of 1.35 is on the high side and indicates that SJM has dependencies on debt financing.
The Debt to Equity ratio of SJM (1.35) is worse than 78.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 11.9 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.97
WACC6.68%
2.3 Liquidity
A Current Ratio of 0.81 indicates that SJM may have some problems paying its short term obligations.
With a Current ratio value of 0.81, SJM is not doing good in the industry: 80.90% of the companies in the same industry are doing better.
SJM has a Quick Ratio of 0.81. This is a bad value and indicates that SJM is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SJM (0.34) is worse than 87.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
SJM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.80%.
Measured over the past 5 years, SJM shows a small growth in Earnings Per Share. The EPS has been growing by 2.93% on average per year.
SJM shows a small growth in Revenue. In the last year, the Revenue has grown by 2.54%.
The Revenue has been growing slightly by 2.27% on average over the past years.
EPS 1Y (TTM)-5.8%
EPS 3Y4.41%
EPS 5Y2.93%
EPS Q2Q%-22.13%
Revenue 1Y (TTM)2.54%
Revenue growth 3Y2.94%
Revenue growth 5Y2.27%
Sales Q2Q%-0.56%
3.2 Future
The Earnings Per Share is expected to grow by 0.92% on average over the next years.
SJM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.94% yearly.
EPS Next Y-8.5%
EPS Next 2Y-0.75%
EPS Next 3Y1.52%
EPS Next 5Y0.92%
Revenue Next Year3.47%
Revenue Next 2Y2.84%
Revenue Next 3Y2.43%
Revenue Next 5Y1.94%
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
Based on the Price/Earnings ratio of 11.14, the valuation of SJM can be described as reasonable.
Based on the Price/Earnings ratio, SJM is valued a bit cheaper than 78.65% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, SJM is valued rather cheaply.
The Price/Forward Earnings ratio is 10.70, which indicates a very decent valuation of SJM.
Based on the Price/Forward Earnings ratio, SJM is valued cheaply inside the industry as 84.27% of the companies are valued more expensively.
SJM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.14 | ||
| Fwd PE | 10.7 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SJM is on the same level as its industry peers.
SJM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SJM is cheaper than 73.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.92 | ||
| EV/EBITDA | 9.8 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.8
EPS Next 2Y-0.75%
EPS Next 3Y1.52%
5. Dividend
5.1 Amount
SJM has a Yearly Dividend Yield of 3.97%.
SJM's Dividend Yield is a higher than the industry average which is at 5.03.
Compared to an average S&P500 Dividend Yield of 2.38, SJM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
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.
The dividend of SJM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-31.36%
EPS Next 2Y-0.75%
EPS Next 3Y1.52%
106.68
+1.49 (+1.42%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners88.83%
Inst Owner Change1.72%
Ins Owners2.27%
Ins Owner Change1.86%
Market Cap11.38B
Analysts72.5
Price Target118.16 (10.76%)
Short Float %4.47%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
Yearly Dividend4.28
Dividend Growth(5Y)4.24%
DP-31.36%
Div Incr Years22
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.35%
Min EPS beat(2)-2.68%
Max EPS beat(2)1.98%
EPS beat(4)3
Avg EPS beat(4)4.36%
Min EPS beat(4)-2.68%
Max EPS beat(4)9.25%
EPS beat(8)7
Avg EPS beat(8)6.72%
EPS beat(12)11
Avg EPS beat(12)6.87%
EPS beat(16)15
Avg EPS beat(16)9.87%
Revenue beat(2)0
Avg Revenue beat(2)-1.96%
Min Revenue beat(2)-2.86%
Max Revenue beat(2)-1.06%
Revenue beat(4)0
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-2.86%
Max Revenue beat(4)-0.78%
Revenue beat(8)0
Avg Revenue beat(8)-1.67%
Revenue beat(12)2
Avg Revenue beat(12)-1.27%
Revenue beat(16)4
Avg Revenue beat(16)-0.67%
PT rev (1m)3.75%
PT rev (3m)-4.72%
EPS NQ rev (1m)-11.57%
EPS NQ rev (3m)-23.44%
EPS NY rev (1m)1.23%
EPS NY rev (3m)-11.31%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)1.39%
Revenue NY rev (1m)1.18%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.14 | ||
| Fwd PE | 10.7 | ||
| P/S | 1.31 | ||
| P/FCF | 16.92 | ||
| P/OCF | 11.08 | ||
| P/B | 1.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.8 |
EPS(TTM)9.58
EY8.98%
EPS(NY)9.97
Fwd EY9.34%
FCF(TTM)6.3
FCFY5.91%
OCF(TTM)9.63
OCFY9.02%
SpS81.68
BVpS55.54
TBVpS-56.99
PEG (NY)N/A
PEG (5Y)3.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.23% | ||
| ROE | -24.63% | ||
| ROCE | 9.26% | ||
| ROIC | 6.49% | ||
| ROICexc | 6.51% | ||
| ROICexgc | 27.67% | ||
| OM | 15.71% | ||
| PM (TTM) | N/A | ||
| GM | 35.36% | ||
| FCFM | 7.72% |
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-Score5
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 11.9 | ||
| Debt/EBITDA | 4.26 | ||
| Cap/Depr | 69.67% | ||
| Cap/Sales | 4.07% | ||
| Interest Coverage | 3.36 | ||
| Cash Conversion | 54.7% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z | 1.31 |
F-Score5
WACC6.68%
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)-5.8%
EPS 3Y4.41%
EPS 5Y2.93%
EPS Q2Q%-22.13%
EPS Next Y-8.5%
EPS Next 2Y-0.75%
EPS Next 3Y1.52%
EPS Next 5Y0.92%
Revenue 1Y (TTM)2.54%
Revenue growth 3Y2.94%
Revenue growth 5Y2.27%
Sales Q2Q%-0.56%
Revenue Next Year3.47%
Revenue Next 2Y2.84%
Revenue Next 3Y2.43%
Revenue Next 5Y1.94%
EBIT growth 1Y-9.56%
EBIT growth 3Y12.06%
EBIT growth 5Y5.19%
EBIT Next Year10.08%
EBIT Next 3Y5.51%
EBIT Next 5Y1.83%
FCF growth 1Y-26.25%
FCF growth 3Y4.34%
FCF growth 5Y-3.69%
OCF growth 1Y-29.24%
OCF growth 3Y2.13%
OCF growth 5Y-0.72%