J&J Snack Foods (NasdaqGS:JJSF) - Share price, News & Analysis

JJSF fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	3/6
Past Performance	4/6
Financial Health	6/6
Dividends	4/6

JJSF Stock Overview

J&J Snack Foods Corp. manufactures, markets, and distributes nutritional snack foods and beverages to the food service and retail supermarket industries in the United States, Mexico, and Canada.

Rewards

Earnings are forecast to grow 36.35% per year

Earnings grew by 3371.5% over the past year

Risk Analysis

Dividend of 1.81% is not well covered by earnings

J&J Snack Foods Competitors

Price History & Performance

Summary of all time highs, changes and price drops for J&J Snack Foods
Historical stock prices
Current Share Price	US$139.66
52 Week High	US$180.00
52 Week Low	US$117.45
Beta	0.57
1 Month Change	9.35%
3 Month Change	-8.33%
1 Year Change	-20.24%
3 Year Change	-13.23%
5 Year Change	5.75%
Change since IPO	2,277.19%

Recent News & Updates

Jun 07

J&J Snack Foods (NASDAQ:JJSF) Has Re-Affirmed Its Dividend Of US$0.63

The board of J&J Snack Foods Corp. ( NASDAQ:JJSF ) has announced that it will pay a dividend on the 11th of July, with...

May 26

J&J Snack Foods: The Soft Pretzel King Is Expensive

JJSF is a $2.5b consumer staples company that is the market leader in soft pretzels. It has grown dividends for 18 consecutive years. However, it is trading at 35x PE with a 2% dividend yield. With stagnating revenues and decreasing margins, forward returns do not seem attractive. Investors should expect multiple compression, especially if the company cannot grow or raise prices to combat continued inflationary pressures.

May 24

J&J Snack Foods' (NASDAQ:JJSF) Dividend Will Be US$0.63

The board of J&J Snack Foods Corp. ( NASDAQ:JJSF ) has announced that it will pay a dividend on the 11th of July, with...

Shareholder Returns

	JJSF	US Food	US Market
7D	5.5%	4.6%	6.6%
1Y	-20.2%	-1.8%	-18.4%

Return vs Industry: JJSF underperformed the US Food industry which returned -1.8% over the past year.

Return vs Market: JJSF underperformed the US Market which returned -18.4% over the past year.

Price Volatility

Is JJSF's price volatile compared to industry and market?
JJSF volatility
JJSF Average Weekly Movement	5.0%
Food Industry Average Movement	7.1%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.2%

Stable Share Price: JJSF is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: JJSF's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1971	4,300	Dan Fachner	https://www.jjsnack.com

J&J Snack Foods Corp. manufactures, markets, and distributes nutritional snack foods and beverages to the food service and retail supermarket industries in the United States, Mexico, and Canada. It operates in three segments: Food Service, Retail Supermarkets, and Frozen Beverages. The company offers soft pretzels under the SUPERPRETZEL, PRETZEL FILLERS, PRETZELFILS, GOURMET TWISTS, MR.

J&J Snack Foods Fundamentals Summary

How do J&J Snack Foods's earnings and revenue compare to its market cap?
JJSF fundamental statistics
Market Cap	US$2.68b
Earnings (TTM)	US$62.13m
Revenue (TTM)	US$1.25b

43.1x

P/E Ratio

2.1x

P/S Ratio

Is JJSF overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
JJSF income statement (TTM)
Revenue	US$1.25b
Cost of Revenue	US$914.78m
Gross Profit	US$332.63m
Other Expenses	US$270.50m
Earnings	US$62.13m

Last Reported Earnings

Mar 26, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.24
Gross Margin	26.67%
Net Profit Margin	4.98%
Debt/Equity Ratio	0%

How did JJSF perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

78%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is JJSF undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for JJSF?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for JJSF. This is calculated by dividing JJSF's market cap by their current preferred multiple.
What is JJSF's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$2.68b

JJSF key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2x
Enterprise Value/EBITDA	18.9x
PEG Ratio	1.2x

Price to Earnings Ratio vs Peers

How does JJSF's PE Ratio compare to its peers?

JJSF PE Ratio vs Peers

The above table shows the PE ratio for JJSF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	58.9x

Forward PE

Price-To-Earnings vs Peers: JJSF is good value based on its Price-To-Earnings Ratio (43.1x) compared to the peer average (58.9x).

Price to Earnings Ratio vs Industry

How does JJSF's PE Ratio compare vs other companies in the U.S. Food Industry?

Price-To-Earnings vs Industry: JJSF is expensive based on its Price-To-Earnings Ratio (43.1x) compared to the US Food industry average (17.8x)

Price to Earnings Ratio vs Fair Ratio

What is JJSF's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

JJSF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	43.1x
Fair PE Ratio	32.3x

Price-To-Earnings vs Fair Ratio: JJSF is expensive based on its Price-To-Earnings Ratio (43.1x) compared to the estimated Fair Price-To-Earnings Ratio (32.3x).

Share Price vs Fair Value

What is the Fair Price of JJSF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: JJSF ($139.66) is trading above our estimate of fair value ($72.07)

Significantly Below Fair Value: JJSF is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: JJSF is poor value based on its PEG Ratio (1.2x)

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Future Growth

How is J&J Snack Foods forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

36.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: JJSF's forecast earnings growth (36.3% per year) is above the savings rate (1.9%).

Earnings vs Market: JJSF's earnings (36.3% per year) are forecast to grow faster than the US market (13.9% per year).

High Growth Earnings: JJSF's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: JJSF's revenue (5.9% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: JJSF's revenue (5.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if JJSF's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has J&J Snack Foods performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-18.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: JJSF has high quality earnings.

Growing Profit Margin: JJSF's current net profit margins (5%) are higher than last year (0.2%).

Past Earnings Growth Analysis

Earnings Trend: JJSF's earnings have declined by 18.2% per year over the past 5 years.

Accelerating Growth: JJSF's earnings growth over the past year (3371.5%) exceeds its 5-year average (-18.2% per year).

Earnings vs Industry: JJSF earnings growth over the past year (3371.5%) exceeded the Food industry 13.1%.

Return on Equity

High ROE: JJSF's Return on Equity (7.3%) is considered low.

Discover strong past performing companies

Financial Health

How is J&J Snack Foods's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: JJSF's short term assets ($584.3M) exceed its short term liabilities ($165.7M).

Long Term Liabilities: JJSF's short term assets ($584.3M) exceed its long term liabilities ($107.6M).

Debt to Equity History and Analysis

Debt Level: JJSF is debt free.

Reducing Debt: JJSF has not had any debt for past 5 years.

Debt Coverage: JJSF has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: JJSF has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is J&J Snack Foods's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.81%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: JJSF's dividend (1.81%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: JJSF's dividend (1.81%) is low compared to the top 25% of dividend payers in the US market (4.24%).

Stability and Growth of Payments

Stable Dividend: JJSF's dividends per share have been stable in the past 10 years.

Growing Dividend: JJSF's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (77.8%), JJSF's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: JJSF is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure

CEO

Dan Fachner (61 yo)

2.08yrs

Tenure

US$1,493,218

Compensation

Mr. Daniel Fachner, also known as Dan, has been the President of J & J Snack Foods Corp. since May 4, 2020 and serves as its Chief Executive Officer since May 11, 2021 and serves as its Director since May...

CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD1.49M) is below average for companies of similar size in the US market ($USD6.88M).

Compensation vs Earnings: Dan's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: JJSF's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.

Board Members

Experienced Board: JJSF's board of directors are considered experienced (8.8 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/26
Annual Earnings	2021/09/25