NYSE:SJM

Stock Analysis Report

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Executive Summary

The J. M. Smucker Company manufactures and markets branded food and beverage products worldwide.


Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

How has J. M. Smucker's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SJM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.8%

SJM

-1.1%

US Food

1.0%

US Market


1 Year Return

-12.2%

SJM

-0.7%

US Food

4.1%

US Market

Return vs Industry: SJM underperformed the US Food industry which returned -0.7% over the past year.

Return vs Market: SJM underperformed the US Market which returned 4.1% over the past year.


Shareholder returns

SJMIndustryMarket
7 Day-1.8%-1.1%1.0%
30 Day-7.8%-0.5%5.4%
90 Day-0.6%-4.6%-5.7%
1 Year-9.4%-12.2%1.8%-0.7%6.5%4.1%
3 Year-7.1%-15.0%-8.4%-15.8%28.3%19.8%
5 Year4.7%-8.4%22.5%8.0%52.2%35.0%

Price Volatility Vs. Market

How volatile is J. M. Smucker's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is J. M. Smucker undervalued compared to its fair value and its price relative to the market?

38.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SJM ($108.56) is trading below our estimate of fair value ($176.85)

Significantly Below Fair Value: SJM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SJM is good value based on its PE Ratio (19.8x) compared to the Food industry average (20.7x).

PE vs Market: SJM is poor value based on its PE Ratio (19.8x) compared to the US market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: SJM is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: SJM is good value based on its PB Ratio (1.5x) compared to the US Food industry average (2x).


Next Steps

Future Growth

How is J. M. Smucker forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SJM's forecast earnings growth (12.2% per year) is above the savings rate (2.2%).

Earnings vs Market: SJM's earnings (12.2% per year) are forecast to grow slower than the US market (21.6% per year).

High Growth Earnings: SJM's earnings are forecast to grow, but not significantly.

Revenue vs Market: SJM's revenue (0.3% per year) is forecast to grow slower than the US market (8.9% per year).

High Growth Revenue: SJM's revenue (0.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SJM's Return on Equity is forecast to be low in 3 years time (10.9%).


Next Steps

Past Performance

How has J. M. Smucker performed over the past 5 years?

11.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SJM has high quality earnings.

Growing Profit Margin: SJM's current net profit margins (8.2%) are higher than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: SJM's earnings have grown by 11.1% per year over the past 5 years.

Accelerating Growth: SJM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SJM had negative earnings growth (-0.7%) over the past year, making it difficult to compare to the Food industry average (-1%).


Return on Equity

High ROE: SJM's Return on Equity (7.6%) is considered low.


Next Steps

Financial Health

How is J. M. Smucker's financial position?


Financial Position Analysis

Short Term Liabilities: SJM's short term assets ($1.6B) do not cover its short term liabilities ($2.1B).

Long Term Liabilities: SJM's short term assets ($1.6B) do not cover its long term liabilities ($6.4B).


Debt to Equity History and Analysis

Debt Level: SJM's debt to equity ratio (68.1%) is considered high.

Reducing Debt: SJM's debt to equity ratio has increased from 42.4% to 68.1% over the past 5 years.

Debt Coverage: SJM's debt is well covered by operating cash flow (22.3%).

Interest Coverage: SJM's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet


Next Steps

Dividend

What is J. M. Smucker's current dividend yield, its reliability and sustainability?

3.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SJM's dividend (3.24%) is higher than the bottom 25% of dividend payers in the US market (1.75%).

High Dividend: SJM's dividend (3.24%) is low compared to the top 25% of dividend payers in the US market (4.73%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.7%), SJM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SJM's dividends in 3 years are forecast to be well covered by earnings (49.4% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Mark Smucker (49yo)

4yrs

Tenure

US$8,056,890

Compensation

Mr. Mark T. Smucker serves as Independent Director of Kimberly-Clark Corp. since September 18, 2019. Mr. Smucker has been the President of The J. M. Smucker Company since April 2015 and its Chief Executive ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD8.06M) is below average for companies of similar size in the US market ($USD11.86M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Smucker
Executive Chairman4yrsUS$4.94m1.6% $198.0m
Mark Smucker
CEO, President & Director4yrsUS$8.06m0.17% $20.6m
Jeannette Knudsen
Chief Legal & Compliance Officer and Secretary9.75yrsUS$1.69m0.029% $3.6m
Tucker Marshall
Chief Financial Officerno datano data0.0057% $705.7k
John Brase
Chief Operating Officer0.083yrno data0.029% $3.5m
Jill Penrose
Chief People and Administrative Officer0.50yrno data0.021% $2.6m
Aaron Broholm
Vice President of Investor Relationsno datano datano data
Ray Hancart
Director of Communications & Media Relationsno datano datano data
Geoff Tanner
Chief Marketing & Commercial Officer0.50yrno data0.012% $1.5m
Amy Held
Chief Strategy and International Officer2.17yrsno data0.024% $2.9m

1.3yrs

Average Tenure

49yo

Average Age

Experienced Management: SJM's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Richard Smucker
Executive Chairman4yrsUS$4.94m1.6% $198.0m
Mark Smucker
CEO, President & Director4yrsUS$8.06m0.17% $20.6m
Kathryn Dindo
Independent Director24.25yrsUS$242.50kno data
Timothy Smucker
Chairman Emeritus4yrsUS$311.76k1.1% $136.1m
Mark Belgya
Vice Chair4yrsUS$3.46m0.053% $6.5m
Alex Shumate
Independent Director11.33yrsUS$247.50kno data
Nancy Russell
Independent Director13.75yrsUS$235.00k0.00034% $42.1k
Gary Oatey
Independent Director17.33yrsUS$235.00k0.0053% $651.2k
Paul Dolan
Independent Director14.08yrsUS$250.00kno data
Jay Henderson
Independent Director3.75yrsUS$255.00k0.0026% $325.6k

11.3yrs

Average Tenure

66yo

Average Age

Experienced Board: SJM's board of directors are seasoned and experienced ( 11.3 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.


Top Shareholders

Company Information

The J. M. Smucker Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The J. M. Smucker Company
  • Ticker: SJM
  • Exchange: NYSE
  • Founded: 1897
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$12.380b
  • Shares outstanding: 114.04m
  • Website: https://www.jmsmucker.com

Number of Employees


Location

  • The J. M. Smucker Company
  • One Strawberry Lane
  • Orrville
  • Ohio
  • 44667
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SJMNYSE (New York Stock Exchange)YesCommon SharesUSUSDAug 2000
JM2DB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2000
0L7FLSE (London Stock Exchange)YesCommon SharesGBUSDAug 2000
SJM *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNAug 2000
S1JM34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

The J. M. Smucker Company manufactures and markets branded food and beverage products worldwide. It operates in four segments: U.S. Retail Coffee, U.S. Retail Consumer Foods, U.S. Retail Pet Foods, and International and Away From Home. The company offers mainstream roast, ground, single serve, and premium coffee; peanut butter and specialty spreads; fruit spreads, shortening and oils, and frozen sandwiches; pet food and pet snacks; and foodservice hot beverage, foodservice portion control, and flour products, as well as dog and cat food, frozen handheld products, juices and beverages, and baking ingredient. It provides its products under the Folgers, Café Bustelo, Dunkin’ Donuts, 1850, Jif, Smucker’s, Crisco, Smucker’s Uncrustables, Meow Mix, Kibbles ‘n Bits, 9Lives, Nature’s Recipe, Milk-Bone, Pup-Peroni, Rachael Ray Nutrish, Natural Balance, Robin Hood, and Five Roses brands. The company sells its products through direct sales and brokers to food retailers and wholesalers, club stores, pet specialty stores, discount and dollar stores, drug stores, military commissaries, mass merchandisers, natural foods stores and distributors, and online retailers; and through retail channels, and foodservice distributors and operators. The J. M. Smucker Company was founded in 1897 and is headquartered in Orrville, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 02:04
End of Day Share Price2020/05/22 00:00
Earnings2020/01/31
Annual Earnings2019/04/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.