NYSE:SJM

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$14.1b

Last Updated

2021/06/20 15:26 UTC

Data Sources

Company Financials +

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 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.


Market Performance


7 Day Return

-4.4%

SJM

-4.7%

US Food

-1.9%

US Market


1 Year Return

19.6%

SJM

15.6%

US Food

38.2%

US Market

Return vs Industry: SJM exceeded the US Food industry which returned 15.6% over the past year.

Return vs Market: SJM underperformed the US Market which returned 38.2% over the past year.


Shareholder returns

SJMIndustryMarket
7 Day-4.4%-4.7%-1.9%
30 Day-3.8%-3.3%1.1%
90 Day2.4%1.2%4.3%
1 Year23.2%19.6%18.4%15.6%40.4%38.2%
3 Year35.1%23.3%27.4%17.1%57.5%47.8%
5 Year3.2%-10.3%20.7%4.1%127.2%101.7%

Long-Term 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?

30.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SJM ($130.3) is trading below our estimate of fair value ($186.49)

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 (16.7x) compared to the US Food industry average (21.9x).

PE vs Market: SJM is good value based on its PE Ratio (16.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: SJM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SJM is good value based on its PB Ratio (1.7x) compared to the US Food industry average (2.3x).


Future Growth

How is J. M. Smucker forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SJM's earnings are forecast to decline over the next 3 years (-4.8% per year).

Earnings vs Market: SJM's earnings are forecast to decline over the next 3 years (-4.8% per year).

High Growth Earnings: SJM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SJM's revenue is expected to decline over the next 3 years (-0.02% per year).

High Growth Revenue: SJM's revenue is forecast to decline over the next 3 years (-0.02% 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 (11.8%).


Past Performance

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

2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SJM has high quality earnings.

Growing Profit Margin: SJM's current net profit margins (11%) are higher than last year (10%).


Past Earnings Growth Analysis

Earnings Trend: SJM's earnings have grown by 2.2% per year over the past 5 years.

Accelerating Growth: SJM's earnings growth over the past year (12.4%) exceeds its 5-year average (2.2% per year).

Earnings vs Industry: SJM earnings growth over the past year (12.4%) underperformed the Food industry 23.6%.


Return on Equity

High ROE: SJM's Return on Equity (10.8%) is considered low.


Financial Health

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


Financial Position Analysis

Short Term Liabilities: SJM's short term assets ($1.9B) do not cover its short term liabilities ($2.9B).

Long Term Liabilities: SJM's short term assets ($1.9B) do not cover its long term liabilities ($5.3B).


Debt to Equity History and Analysis

Debt Level: SJM's debt to equity ratio (58.5%) is considered high.

Reducing Debt: SJM's debt to equity ratio has reduced from 77.5% to 58.5% over the past 5 years.

Debt Coverage: SJM's debt is well covered by operating cash flow (32.9%).

Interest Coverage: SJM's interest payments on its debt are well covered by EBIT (7.8x 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 (1.31%).

High Dividend: SJM's dividend (2.76%) is low compared to the top 25% of dividend payers in the US market (3.49%).


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 reasonably low payout ratio (46.2%), SJM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SJM's dividends in 3 years are forecast to be well covered by earnings (40.4% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Mark Smucker (50 yo)

5.08yrs

Tenure

US$10,728,961

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 ($USD10.73M) is about average for companies of similar size in the US market ($USD11.31M).

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


Leadership Team

Experienced Management: SJM's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: SJM's board of directors are considered experienced (5.1 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 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$14.117b
  • Shares outstanding: 108.34m
  • Website: https://www.jmsmucker.com

Number of Employees


Location

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

Listings


Biography

The J. M. Smucker Company manufactures and markets food and beverage products worldwide. It operates through three segments: U.S. Retail Pet Foods, U.S. Retail Coffee, and U.S. Retail Consumer Foods. The c...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/20 15:26
End of Day Share Price2021/06/18 00:00
Earnings2021/04/30
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.