NYSE:SJM

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer and fair 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


Market Performance


7 Day Return

2.4%

NYSE:SJM

-0.09%

US Food

-0.7%

US Market


1 Year Return

0.3%

NYSE:SJM

-1.5%

US Food

-0.5%

US Market

SJM outperformed the Food industry which returned -1.5% over the past year.

SJM matched the United States of America Market (-0.5%) over the past year.


Share holder returns

SJMIndustryMarket
7 Day2.4%-0.09%-0.7%
30 Day1.7%-0.3%-3.0%
90 Day-8.2%2.6%0.9%
1 Year3.4%0.3%1.2%-1.5%1.7%-0.5%
3 Year-19.2%-25.6%-7.6%-15.4%39.5%30.4%
5 Year29.5%14.0%42.8%25.9%54.1%37.0%

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 based on future cash flows and its price relative to the stock market?

24%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

J. M. Smucker's share price is below the future cash flow value, and at a moderate discount (> 20%).

J. M. Smucker's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

J. M. Smucker is good value based on earnings compared to the US Food industry average.

J. M. Smucker is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

J. M. Smucker is poor value based on expected growth next year.


Price Based on Value of Assets

J. M. Smucker is good value based on assets compared to the US Food industry average.


Next Steps

Future Growth

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

20.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

J. M. Smucker's revenue is expected to grow by 0.7% yearly, however this is not considered high growth (20% yearly).

J. M. Smucker's earnings are expected to grow significantly at over 20% yearly.

J. M. Smucker's revenue growth is positive but not above the United States of America market average.

J. M. Smucker's earnings growth is expected to exceed the United States of America market average.

J. M. Smucker's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

J. M. Smucker is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

17.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

J. M. Smucker's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

J. M. Smucker's 1-year earnings growth is negative, it can't be compared to the 5-year average.

J. M. Smucker's 1-year earnings growth is negative, it can't be compared to the US Food industry average.


Return on Equity

J. M. Smucker has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

J. M. Smucker used its assets less efficiently than the US Food industry average last year based on Return on Assets.


Return on Capital Employed

J. M. Smucker's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

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


Financial Position Analysis

J. M. Smucker's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

J. M. Smucker's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

J. M. Smucker's level of debt (74.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (44.2% vs 74.8% today).

Debt is not well covered by operating cash flow (19.1%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.5x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

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

3.15%

Expected Dividend Yield


Dividend Yield and Payments Analysis

J. M. Smucker's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

J. M. Smucker's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).


Next Steps

Management

What is the CEO of J. M. Smucker's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Mark Smucker (49yo)

3.3yrs

Tenure

US$8,056,890

Compensation

Mr. Mark T. Smucker has been the President of The J. M. Smucker Company since April 2015 and its Chief Executive Officer since May 1, 2016. Mr. Smucker was the President of Consumer & Natural Foods at The  ...


CEO Compensation Analysis

Mark's remuneration is about average for companies of similar size in United States of America.

Mark's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.3yrs

Average Tenure

52yo

Average Age

The tenure for the J. M. Smucker management team is about average.


Board Age and Tenure

11.8yrs

Average Tenure

68.5yo

Average Age

The average tenure for the J. M. Smucker board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

J. M. Smucker individual insiders have only sold shares in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

SellUS$38,02527 Jun 19
Joseph Stanziano
EntityIndividual
Shares319
Max PriceUS$119.20
BuyUS$5,23313 May 19
Nancy Russell
EntityIndividual
Role
Member of the Board of Directors
Director
Shares50
Max PriceUS$104.65
SellUS$198,72615 Mar 19
Jeannette Knudsen
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares1,932
Max PriceUS$102.86
SellUS$94,57102 Jan 19
David Lemmon
EntityIndividual
Role
Senior Key Executive
President of Pet Food & Pet Snacks
Shares1,017
Max PriceUS$92.99
BuyUS$46,10029 Dec 18
Kathryn Dindo
EntityIndividual
Role
Member of the Board of Directors
Director
Shares500
Max PriceUS$92.20
BuyUS$1,080,84320 Dec 18
Timothy Smucker
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares11,000
Max PriceUS$98.37
SellUS$166,10411 Sep 18
Jeannette Knudsen
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares1,500
Max PriceUS$110.74

Ownership Breakdown


Management Team

  • Richard Smucker (71yo)

    Executive Chairman

    • Tenure: 3.3yrs
    • Compensation: US$4.94m
  • Mark Belgya (58yo)

    Vice Chair & CFO

    • Tenure: 9.8yrs
    • Compensation: US$3.46m
  • Mark Smucker (49yo)

    CEO, President & Director

    • Tenure: 3.3yrs
    • Compensation: US$8.06m
  • Dave Lemmon (52yo)

    President of Pet Food & Pet Snacks

    • Tenure: 2.0yrs
    • Compensation: US$2.13m
  • Jeannette Knudsen (49yo)

    Senior VP

    • Tenure: 9.0yrs
    • Compensation: US$1.69m
  • Kevin Jackson (52yo)

    Senior Vice President of U.S. Retail Sales & Away From Home

    • Tenure: 1.8yrs
  • Jill Penrose (46yo)

    Senior Vice President of Human Resources & Corporate Communications

    • Tenure: 3.3yrs
  • Aaron Broholm

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Geoff Tanner

    Senior Vice President of Growth & Consumer Engagement

    • Tenure: 3.3yrs
  • Randal Day

    Senior Vice President of Operations

    • Tenure: 3.3yrs

Board Members

  • Kitty Dindo (70yo)

    Director

    • Tenure: 23.5yrs
    • Compensation: US$242.50k
  • Timothy Smucker (75yo)

    Chairman Emeritus

    • Tenure: 3.3yrs
    • Compensation: US$311.76k
  • Richard Smucker (71yo)

    Executive Chairman

    • Tenure: 3.3yrs
    • Compensation: US$4.94m
  • Elizabeth Long (68yo)

    Director

    • Tenure: 22.3yrs
    • Compensation: US$237.50k
  • Alex Shumate (69yo)

    Director

    • Tenure: 10.6yrs
    • Compensation: US$247.50k
  • Nancy Russell (62yo)

    Director

    • Tenure: 13.0yrs
    • Compensation: US$235.00k
  • Mark Smucker (49yo)

    CEO, President & Director

    • Tenure: 3.3yrs
    • Compensation: US$8.06m
  • Gary Oatey (70yo)

    Director

    • Tenure: 16.6yrs
    • Compensation: US$235.00k
  • Paul Dolan (61yo)

    Director

    • Tenure: 13.3yrs
    • Compensation: US$250.00k
  • Jay Henderson (63yo)

    Director

    • Tenure: 3.0yrs
    • Compensation: US$255.00k

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$13.258b
  • 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

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 Int ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 23:45
End of Day Share Price2019/08/19 00:00
Earnings2019/04/30
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.