JM SMUCKER CO/THE (SJM) Stock Fundamental Analysis
NYSE:SJM - New York Stock Exchange, Inc. - US8326964058 - Common Stock - Currency: USD
Overall SJM gets a fundamental rating of 4 out of 10. We evaluated SJM against 91 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 has a valuation in line with the averages, but it does not seem to be growing. SJM also has an excellent dividend rating.
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.
The reported net income has been mixed in the past 5 years: SJM reported negative net income in multiple years.
In the past 5 years SJM always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -7.01%, SJM is doing worse than 71.43% of the companies in the same industry.
SJM's Return On Equity of -20.23% is on the low side compared to the rest of the industry. SJM is outperformed by 71.43% of its industry peers.
SJM has a better Return On Invested Capital (7.99%) than 74.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SJM is significantly below the industry average of 28.10%.
The last Return On Invested Capital (7.99%) for SJM is above the 3 year average (7.05%), which is a sign of increasing profitability.
| 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
With an excellent Operating Margin value of 19.06%, SJM belongs to the best of the industry, outperforming 95.60% of the companies in the same industry.
SJM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 38.89%, SJM belongs to the top of the industry, outperforming 87.91% 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SJM 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.
The debt/assets ratio for SJM is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.40, we must say that SJM is in the distress zone and has some risk of bankruptcy.
SJM's Altman-Z score of 1.40 is on the low side compared to the rest of the industry. SJM is outperformed by 61.54% of its industry peers.
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 63.74% of its industry peers.
A Debt/Equity ratio of 1.26 is on the high side and indicates that SJM has dependencies on debt financing.
SJM's Debt to Equity ratio of 1.26 is on the low side compared to the rest of the industry. SJM is outperformed by 75.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 9.42 | ||
| Altman-Z | 1.4 |
ROIC/WACC1.16
WACC6.87%
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 78.02% of its industry peers.
A Quick Ratio of 0.35 indicates that SJM may have some problems paying its short term obligations.
The Quick ratio of SJM (0.35) is worse than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.81% over the past year.
The Earnings Per Share has been growing slightly by 2.93% on average over the past years.
The Revenue has been growing slightly by 6.69% 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)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
SJM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.64% yearly.
SJM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.70% yearly.
EPS Next Y-9.61%
EPS Next 2Y-1.11%
EPS Next 3Y1.18%
EPS Next 5Y0.64%
Revenue Next Year2.34%
Revenue Next 2Y2.29%
Revenue Next 3Y2.12%
Revenue Next 5Y1.7%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.29 indicates a reasonable valuation of SJM.
Based on the Price/Earnings ratio, SJM is valued a bit cheaper than 79.12% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.51, SJM is valued rather cheaply.
SJM is valuated reasonably with a Price/Forward Earnings ratio of 11.39.
81.32% of the companies in the same industry are more expensive than SJM, based on the Price/Forward Earnings ratio.
SJM is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.29 | ||
| Fwd PE | 11.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SJM is valued a bit cheaper than the industry average as 67.03% of the companies are valued more expensively.
76.92% 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 | 13.61 | ||
| EV/EBITDA | 8.38 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.51
EPS Next 2Y-1.11%
EPS Next 3Y1.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.13%, SJM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.72, SJM pays a better dividend. On top of this SJM pays more dividend than 83.52% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, SJM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.13% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of SJM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-37%
EPS Next 2Y-1.11%
EPS Next 3Y1.18%
NYSE:SJM (7/15/2025, 12:52:33 PM)
104.16
-0.55 (-0.53%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners88.11%
Inst Owner Change-0.01%
Ins Owners2.9%
Ins Owner Change1.79%
Market Cap11.11B
Analysts68.7
Price Target115.54 (10.93%)
Short Float %4.29%
Short Ratio2.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.13% |
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)-6.84%
PT rev (3m)-5.05%
EPS NQ rev (1m)-21.12%
EPS NQ rev (3m)-22.4%
EPS NY rev (1m)-12.39%
EPS NY rev (3m)-12.4%
Revenue NQ rev (1m)-1.63%
Revenue NQ rev (3m)-1.81%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.29 | ||
| Fwd PE | 11.39 | ||
| P/S | 1.27 | ||
| P/FCF | 13.61 | ||
| P/OCF | 9.18 | ||
| P/B | 1.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.38 |
EPS(TTM)10.12
EY9.72%
EPS(NY)9.15
Fwd EY8.78%
FCF(TTM)7.65
FCFY7.35%
OCF(TTM)11.35
OCFY10.89%
SpS81.8
BVpS57.02
TBVpS-56
PEG (NY)N/A
PEG (5Y)3.51
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 | 1.4 |
F-Score6
WACC6.87%
ROIC/WACC1.16
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 Year2.34%
Revenue Next 2Y2.29%
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%