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SJM

J. M. SmuckerNYSE:SJM Stock Report

Last Price

US$143.22

Market Cap

US$15.5b

7D

-1.3%

1Y

25.4%

Updated

22 Jan, 2022

Data

Company Financials +
SJM fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance2/6
Financial Health4/6
Dividends5/6

SJM Stock Overview

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

J. M. Smucker Competitors

Mondelez International

NasdaqGS:MDLZ

US$95.4b

General Mills

NYSE:GIS

US$41.6b

Hershey

NYSE:HSY

US$41.3b

Tyson Foods

NYSE:TSN

US$32.7b

Price History & Performance

Summary of all time highs, changes and price drops for J. M. Smucker
Historical stock prices
Current Share PriceUS$143.22
52 Week HighUS$145.82
52 Week LowUS$111.59
Beta0.33
1 Month Change7.69%
3 Month Change16.47%
1 Year Change25.37%
3 Year Change41.19%
5 Year Change5.63%
Change since IPO674.16%

Recent News & Updates

Jan 04
J. M. Smucker (NYSE:SJM) Has A Somewhat Strained Balance Sheet

J. M. Smucker (NYSE:SJM) Has A Somewhat Strained Balance Sheet

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Jan 01

J. M. Smucker: Wait For A Pullback

J. M. Smucker has timeless brands under its umbrella. Its financial performance is subpar compared to its peers. Since October 2020, many consumer staples stocks, including J. M. Smucker, have had a good run. Offers a good dividend, but the company needs to reduce its debt further. Wait for a pullback before buying.

Shareholder Returns

SJMUS FoodUS Market
7D-1.3%-2.0%-6.1%
1Y25.4%12.5%4.2%

Return vs Industry: SJM exceeded the US Food industry which returned 12.5% over the past year.

Return vs Market: SJM exceeded the US Market which returned 4.2% over the past year.

Price Volatility

Is SJM's price volatile compared to industry and market?
SJM volatility
SJM Average Weekly Movement3.2%
Food Industry Average Movement5.2%
Market Average Movement6.7%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.4%

Stable Share Price: SJM is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SJM's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18977,100Mark Smuckerhttps://www.jmsmucker.com

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.

J. M. Smucker Fundamentals Summary

How do J. M. Smucker's earnings and revenue compare to its market cap?
SJM fundamental statistics
Market CapUS$15.52b
Earnings (TTM)US$768.40m
Revenue (TTM)US$7.90b

20.2x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SJM income statement (TTM)
RevenueUS$7.90b
Cost of RevenueUS$4.99b
Gross ProfitUS$2.91b
ExpensesUS$2.14b
EarningsUS$768.40m

Last Reported Earnings

Oct 31, 2021

Next Earnings Date

Mar 01, 2022

Earnings per share (EPS)7.09
Gross Margin36.81%
Net Profit Margin9.72%
Debt/Equity Ratio55.9%

How did SJM perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

54%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SJM ($143.22) is trading below our estimate of fair value ($295.18)

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 (20.2x) compared to the US Food industry average (21.6x).

PE vs Market: SJM is poor value based on its PE Ratio (20.2x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: SJM is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: SJM is good value based on its PB Ratio (1.9x) compared to the US Food industry average (2.2x).


Future Growth

How is J. M. Smucker forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

4.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SJM's forecast earnings growth (4.7% per year) is above the savings rate (2%).

Earnings vs Market: SJM's earnings (4.7% per year) are forecast to grow slower than the US market (12.9% per year).

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

Revenue vs Market: SJM's revenue (0.8% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: SJM's revenue (0.8% 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 (11.6%).


Past Performance

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

0.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SJM has high quality earnings.

Growing Profit Margin: SJM's current net profit margins (9.7%) are lower than last year (10.9%).


Past Earnings Growth Analysis

Earnings Trend: SJM's earnings have grown by 0.3% 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 (-12.8%) over the past year, making it difficult to compare to the Food industry average (18.7%).


Return on Equity

High ROE: SJM's Return on Equity (9.3%) is considered low.


Financial Health

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


Financial Position Analysis

Short Term Liabilities: SJM's short term assets ($2.0B) exceed its short term liabilities ($1.9B).

Long Term Liabilities: SJM's short term assets ($2.0B) do not cover its long term liabilities ($6.1B).


Debt to Equity History and Analysis

Debt Level: SJM's net debt to equity ratio (54%) is considered high.

Reducing Debt: SJM's debt to equity ratio has reduced from 74.5% to 55.9% over the past 5 years.

Debt Coverage: SJM's debt is well covered by operating cash flow (23.3%).

Interest Coverage: SJM's interest payments on its debt are well covered by EBIT (7.2x coverage).


Balance Sheet


Dividend

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

2.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SJM's dividend (2.76%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: SJM's dividend (2.76%) is low compared to the top 25% of dividend payers in the US market (3.61%).


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 (53.9%), 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 (43.8% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Mark Smucker (51 yo)

6.75yrs

Tenure

US$12,450,437

Compensation

Mr. Mark T. Smucker is an 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 Off...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD12.45M) is about average for companies of similar size in the US market ($USD11.47M).

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


Leadership Team

Experienced Management: SJM's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: SJM's board of directors are considered experienced (7.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SJM insiders have only sold shares 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 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
  • Implied Market Cap: US$15.520b
  • Shares outstanding: 108.36m
  • Website: https://www.jmsmucker.com

Number of Employees


Location

  • The J. M. Smucker Company
  • One Strawberry Lane
  • Orrville
  • Ohio
  • 44667-0280
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/22 23:31
End of Day Share Price2022/01/21 00:00
Earnings2021/10/31
Annual Earnings2021/04/30


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.