NYSE:SJM

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Undervalued with solid track record and pays a dividend.


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

1.6%

SJM

0.2%

US Food

2.5%

US Market


1 Year Return

0.3%

SJM

5.6%

US Food

15.9%

US Market

Return vs Industry: SJM underperformed the US Food industry which returned 3.8% over the past year.

Return vs Market: SJM underperformed the US Market which returned 14.9% over the past year.


Shareholder returns

SJMIndustryMarket
7 Day1.6%0.2%2.5%
30 Day5.7%6.4%5.8%
90 Day-2.8%10.9%18.2%
1 Year3.5%0.3%8.3%5.6%18.4%15.9%
3 Year-0.4%-8.9%4.3%-4.3%39.9%30.9%
5 Year16.5%1.9%14.5%-0.8%72.9%54.2%

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?

33.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SJM ($110.97) is trading below our estimate of fair value ($166.7)

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 (16.2x) compared to the US Food industry average (23.8x).

PE vs Market: SJM is good value based on its PE Ratio (16.2x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: SJM is poor value based on its PEG Ratio (2x)


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 (1.9x).


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?

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SJM's forecast earnings growth (8.3% per year) is above the savings rate (2.2%).

Earnings vs Market: SJM's earnings (8.3% per year) are forecast to grow slower than the US market (22.3% per year).

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

Revenue vs Market: SJM's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: SJM's revenue is forecast to decline over the next 3 years (-0.3% 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 (10.3%).


Next Steps

Past Performance

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

10.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SJM has high quality earnings.

Growing Profit Margin: SJM's current net profit margins (10%) are higher than last year (6.6%).


Past Earnings Growth Analysis

Earnings Trend: SJM's earnings have grown by 10.3% per year over the past 5 years.

Accelerating Growth: SJM's earnings growth over the past year (51.5%) exceeds its 5-year average (10.3% per year).

Earnings vs Industry: SJM earnings growth over the past year (51.5%) exceeded the Food industry -4%.


Return on Equity

High ROE: SJM's Return on Equity (9.5%) 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 ($2.0B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: SJM's short term assets ($2.0B) do not cover its long term liabilities ($7.2B).


Debt to Equity History and Analysis

Debt Level: SJM's debt to equity ratio (68.6%) is considered high.

Reducing Debt: SJM's debt to equity ratio has reduced from 87% to 68.6% 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 (6.8x coverage).


Balance Sheet


Next Steps

Dividend

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

3.24%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: SJM's dividend (3.24%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: SJM's dividend (3.24%) is low compared to the top 25% of dividend payers in the US market (4.51%).


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 (51.5%), 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 (45.7% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Mark Smucker (50 yo)

4.25yrs

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 ($USD10.73M) is about average for companies of similar size in the US market ($USD11.35M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Richard Smucker
Executive Chairman4.25yrsUS$4.60m2.03%
$ 256.8m
Mark Smucker
CEO, President & Director4.25yrsUS$10.73m0.18%
$ 23.3m
John Brase
Chief Operating Officer0.33yrUS$4.15m0.028%
$ 3.6m
Jeannette Knudsen
Chief Legal & Compliance Officer and Secretary0.75yrUS$1.84m0.027%
$ 3.4m
Mark Belgya
Vice Chair0.25yrUS$4.87m0.041%
$ 5.2m
Tucker Marshall
Chief Financial Officer0.25yrno data0.0055%
$ 699.0k
Jill Penrose
Chief People & Administrative Officer0.75yrno datano data
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 Officer0.75yrno data0.012%
$ 1.5m
Robert Ferguson
Senior VP and GM of Pet Food & Pet Snacks Business0.17yrno datano data
Amy Held
Chief Strategy & International Officer2.42yrsno datano data

0.8yrs

Average Tenure

50yo

Average Age

Experienced Management: SJM's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Richard Smucker
Executive Chairman4.25yrsUS$4.60m2.03%
$ 256.8m
Mark Smucker
CEO, President & Director4.25yrsUS$10.73m0.18%
$ 23.3m
Kathryn Dindo
Independent Director24.5yrsUS$260.00kno data
Timothy Smucker
Chairman Emeritus4.25yrsUS$331.91k1.52%
$ 193.0m
Alex Shumate
Lead Independent Directorno dataUS$285.00kno data
Nancy Russell
Independent Director14yrsUS$250.00k0.00035%
$ 44.3k
Gary Oatey
Independent Director17.58yrsUS$250.00k0.0053%
$ 666.0k
Sandra Pianalto
Independent Director6yrsUS$257.50k0.00022%
$ 27.9k
Paul Dolan
Independent Director14.33yrsUS$265.00kno data
Jay Henderson
Independent Director4yrsUS$270.00k0.0026%
$ 333.0k
Kirk Perry
Independent Director3yrsUS$250.00kno data
Dawn Willoughby
Independent Director3yrsUS$255.00kno data

6.0yrs

Average Tenure

64.5yo

Average Age

Experienced Board: SJM's board of directors are considered experienced (6 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$12.663b
  • Shares outstanding: 114.11m
  • Website: https://www.jmsmucker.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SJMNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1968
JM2DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968
0L7FLSE (London Stock Exchange)YesCommon SharesGBUSDJan 1968
SJM *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1968
S1JM34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/04 00:23
End of Day Share Price2020/08/03 00:00
Earnings2020/04/30
Annual Earnings2020/04/30


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.