JM SMUCKER CO/THE (SJM) Stock Fundamental Analysis
NYSE:SJM - US8326964058 - Common Stock
106.72 USD
+1.05 (+0.99%)
106.72 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to SJM. SJM was compared to 90 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 on the other hand it scores bad on growth. Finally 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.
In the past 5 years SJM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SJM (-7.01%) is worse than 71.11% of its industry peers.
SJM's Return On Equity of -20.23% is on the low side compared to the rest of the industry. SJM is outperformed by 71.11% of its industry peers.
The Return On Invested Capital of SJM (7.99%) is better than 74.44% of its industry peers.
SJM had an Average Return On Invested Capital over the past 3 years of 7.05%. This is significantly below the industry average of 27.81%.
The 3 year average ROIC (7.05%) for SJM is below the current ROIC(7.99%), indicating increased profibility in the last year.
| 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
SJM has a Operating Margin of 19.06%. This is amongst the best in the industry. SJM outperforms 94.44% of its industry peers.
In the last couple of years the Operating Margin of SJM has grown nicely.
The Gross Margin of SJM (38.89%) is better than 88.89% of its industry peers.
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.
Compared to 1 year ago, SJM has more shares outstanding
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 1.41, we must say that SJM is in the distress zone and has some risk of bankruptcy.
SJM has a worse Altman-Z score (1.41) than 64.44% 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.
Looking at the Debt to FCF ratio, with a value of 9.42, SJM is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
SJM has a Debt/Equity ratio of 1.26. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.26, SJM is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 9.42 | ||
| Altman-Z | 1.41 |
ROIC/WACC1.18
WACC6.78%
2.3 Liquidity
A Current Ratio of 0.81 indicates that SJM may have some problems paying its short term obligations.
SJM has a Current ratio of 0.81. This is amonst the worse of the industry: SJM underperforms 80.00% of its industry peers.
A Quick Ratio of 0.35 indicates that SJM may have some problems paying its short term obligations.
With a Quick ratio value of 0.35, SJM is not doing good in the industry: 86.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The earnings per share for SJM have decreased by -5.80% in the last year.
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.
Looking at the last year, SJM shows a small growth in Revenue. The Revenue has grown by 6.69% in the last year.
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)6.69%
Revenue growth 3Y2.94%
Revenue growth 5Y2.27%
Sales Q2Q%-0.56%
3.2 Future
The Earnings Per Share is expected to grow by 0.64% on average over the next years.
Based on estimates for the next years, SJM will show a small growth in Revenue. The Revenue will grow by 1.70% on average per year.
EPS Next Y-8.5%
EPS Next 2Y-0.75%
EPS Next 3Y1.42%
EPS Next 5Y0.64%
Revenue Next Year2.51%
Revenue Next 2Y2.31%
Revenue Next 3Y2.16%
Revenue Next 5Y1.7%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
SJM is valuated reasonably with a Price/Earnings ratio of 11.14.
Compared to the rest of the industry, the Price/Earnings ratio of SJM indicates a somewhat cheap valuation: SJM is cheaper than 80.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.17. SJM is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.71, the valuation of SJM can be described as reasonable.
Based on the Price/Forward Earnings ratio, SJM is valued cheaper than 85.56% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.78, SJM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.14 | ||
| Fwd PE | 10.71 |
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 67.78% of the companies listed in the same industry.
76.67% 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 | 13.94 | ||
| EV/EBITDA | 8.48 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.8
EPS Next 2Y-0.75%
EPS Next 3Y1.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.16%, SJM is a good candidate for dividend investing.
SJM's Dividend Yield is rather good when compared to the industry average which is at 4.61. SJM pays more dividend than 83.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, SJM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
5.2 History
The dividend of SJM has a limited annual growth rate of 4.24%.
SJM has been paying a dividend for at least 10 years, so it has 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.
SJM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-37%
EPS Next 2Y-0.75%
EPS Next 3Y1.42%
106.72
+1.05 (+0.99%)
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 Change1.79%
Market Cap11.38B
Analysts70.83
Price Target117.46 (10.06%)
Short Float %4.73%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
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)3.02%
PT rev (3m)-4.95%
EPS NQ rev (1m)3%
EPS NQ rev (3m)-19.92%
EPS NY rev (1m)1.23%
EPS NY rev (3m)-11.31%
Revenue NQ rev (1m)0.76%
Revenue NQ rev (3m)-1.12%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.14 | ||
| Fwd PE | 10.71 | ||
| P/S | 1.3 | ||
| P/FCF | 13.94 | ||
| P/OCF | 9.41 | ||
| P/B | 1.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.48 |
EPS(TTM)9.58
EY8.98%
EPS(NY)9.97
Fwd EY9.34%
FCF(TTM)7.65
FCFY7.17%
OCF(TTM)11.35
OCFY10.63%
SpS81.8
BVpS57.02
TBVpS-56
PEG (NY)N/A
PEG (5Y)3.8
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 | 1.41 |
F-Score6
WACC6.78%
ROIC/WACC1.18
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 3Y1.42%
EPS Next 5Y0.64%
Revenue 1Y (TTM)6.69%
Revenue growth 3Y2.94%
Revenue growth 5Y2.27%
Sales Q2Q%-0.56%
Revenue Next Year2.51%
Revenue Next 2Y2.31%
Revenue Next 3Y2.16%
Revenue Next 5Y1.7%
EBIT growth 1Y14.44%
EBIT growth 3Y12.06%
EBIT growth 5Y5.19%
EBIT Next Year10.08%
EBIT Next 3Y6.96%
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%