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

-0.3%

SJM

-0.4%

US Food

1.0%

US Market


1 Year Return

3.0%

SJM

3.4%

US Food

6.7%

US Market

Return vs Industry: SJM underperformed the US Food industry which returned 3.4% over the past year.

Return vs Market: SJM underperformed the US Market which returned 6.7% over the past year.


Share holder returns

SJMIndustryMarket
7 Day-0.3%-0.4%1.0%
30 Day0.5%-1.6%-1.8%
90 Day-7.3%0.8%-1.8%
1 Year6.1%3.0%6.5%3.4%9.1%6.7%
3 Year-12.7%-19.6%-1.4%-10.1%46.1%36.6%
5 Year20.3%5.9%47.5%29.9%66.9%48.6%

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?

29%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: SJM ($107.02) is trading below our estimate of fair value ($150.41)

Significantly Undervalued: SJM is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: SJM is good value based on its PE Ratio (22.7x) compared to the Food industry average (25.4x).

PE vs Market: SJM is poor value based on its PE Ratio (22.7x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: SJM is poor value based on its PEG Ratio (1.2x)


Price Based on Value of Assets

PB vs Industry: SJM is good value based on its PB Ratio (1.5x) compared to the US Food industry average (2.1x).


Next Steps

Future Growth

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

18.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: SJM's forecast earnings growth (18.6% per year) is above the savings rate (2.7%).

Earnings vs Market: SJM's earnings (18.6% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: SJM's revenue (0.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SJM's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High 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?

15.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SJM's earnings have grown by 15.1% 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 (-60.1%) over the past year, making it difficult to compare to the Food industry average (-22.7%).


Return on Equity

High ROE: SJM's Return on Equity (6.7%) is considered low.


Return on Assets

ROA vs Industry: SJM's Return on Assets is below or equal to the Food industry average last year.


Return on Capital Employed

ROCE Improving: SJM's Return on Capital Employed has declined over the past 3 years.


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 ($2.3B)

Long Term Liabilities: SJM's short term assets ($1.6B) do not cover its long term liabilities ($6.5B)


Debt to Equity History and Analysis

Debt Level: SJM's debt to equity ratio (73.5%) is considered high

Reducing Debt: SJM's debt to equity ratio has increased from 46.3% to 73.5% over the past 5 years.

Debt Coverage: SJM's debt is not well covered by operating cash flow (19%).

Interest Coverage: SJM's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet

Inventory Level: SJM has a low level of unsold assets or inventory.

Debt Coverage by Assets: SJM's 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?

3.40%

Expected Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%1.5%markettop25%3.8%industryaverage2.1%forecastin3Years3.4%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: SJM's dividend (3.29%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: SJM's dividend (3.29%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 (72.8%), 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 (42.7% payout ratio).


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?

3.4yrs

Average management tenure


CEO

Mark Smucker (49yo)

3.4yrs

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 ($USD8.06M) is about average for companies of similar size in the US market ($USD11.20M).

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


Management Age and Tenure

3.4yrs

Average Tenure

52yo

Average Age

Experienced Management: SJM's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

10.8yrs

Average Tenure

66.5yo

Average Age

Experienced Board: SJM's board of directors are seasoned and experienced ( 10.8 years average tenure).


Insider Trading

Insider Buying: SJM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$103,26516 Sep 19
Kevin Jackson
EntityIndividual
Role
Senior Key Executive
Senior Vice President of U.S. Retail Sales & Away From Home
Shares950
Max PriceUS$108.70
BuyUS$103,42029 Aug 19
Geoff Tanner
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Growth & Consumer Engagement
Shares1,000
Max PriceUS$103.42
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

Ownership Breakdown


Management Team

  • Richard Smucker (71yo)

    Executive Chairman

    • Tenure: 3.4yrs
    • Compensation: US$4.94m
  • Mark Belgya (58yo)

    Vice Chair & CFO

    • Tenure: 10yrs
    • Compensation: US$3.46m
  • Mark Smucker (49yo)

    CEO, President & Director

    • Tenure: 3.4yrs
    • Compensation: US$8.06m
  • Dave Lemmon (52yo)

    President of Pet Food & Pet Snacks

    • Tenure: 2.2yrs
    • Compensation: US$2.13m
  • Jeannette Knudsen (49yo)

    Senior VP

    • Tenure: 9.2yrs
    • Compensation: US$1.69m
  • Kevin Jackson (52yo)

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

    • Tenure: 2yrs
  • Jill Penrose (46yo)

    Senior Vice President of Human Resources & Corporate Communications

    • Tenure: 3.4yrs
  • Aaron Broholm

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Geoff Tanner

    Senior Vice President of Growth & Consumer Engagement

    • Tenure: 3.4yrs
  • Randal Day

    Senior Vice President of Operations

    • Tenure: 3.4yrs

Board Members

  • Kitty Dindo (70yo)

    Director

    • Tenure: 23.7yrs
    • Compensation: US$242.50k
  • Timothy Smucker (75yo)

    Chairman Emeritus

    • Tenure: 3.4yrs
    • Compensation: US$311.76k
  • Richard Smucker (71yo)

    Executive Chairman

    • Tenure: 3.4yrs
    • Compensation: US$4.94m
  • Alex Shumate (69yo)

    Director

    • Tenure: 10.8yrs
    • Compensation: US$247.50k
  • Nancy Russell (62yo)

    Director

    • Tenure: 13.2yrs
    • Compensation: US$235.00k
  • Mark Smucker (49yo)

    CEO, President & Director

    • Tenure: 3.4yrs
    • Compensation: US$8.06m
  • Gary Oatey (70yo)

    Director

    • Tenure: 16.8yrs
    • Compensation: US$235.00k
  • Sandra Pianalto (64yo)

    Director

    • Tenure: 5.2yrs
    • Compensation: US$242.50k
  • Paul Dolan (61yo)

    Director

    • Tenure: 13.5yrs
    • Compensation: US$250.00k
  • Jay Henderson (63yo)

    Director

    • Tenure: 3.2yrs
    • 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$12.205b
  • Shares outstanding: 114.05m
  • 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 Analysis2019/10/14 01:22
End of Day Share Price2019/10/11 00:00
Earnings2019/07/31
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.

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