Trade-Ideas LLC identified

JM Smucker

(

SJM

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified JM Smucker as such a stock due to the following factors:

  • SJM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $168.5 million.
  • SJM has traded 15,649 shares today.
  • SJM is trading at a new lifetime high.

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More details on SJM:

The J. M. Smucker Company manufactures and markets branded food products worldwide. It operates through four segments: U.S. Retail Coffee; U.S. Retail Consumer Foods; U.S. Retail Pet Foods; and International, Foodservice, and Natural Foods. The stock currently has a dividend yield of 2.2%. SJM has a PE ratio of 39. Currently there are 4 analysts that rate JM Smucker a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for JM Smucker has been 953,800 shares per day over the past 30 days. JM Smucker has a market cap of $14.8 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.62 and a short float of 3.5% with 2.72 days to cover. Shares are up 3.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates JM Smucker as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, good cash flow from operations, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 3.2%. Since the same quarter one year prior, revenues rose by 37.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • 41.64% is the gross profit margin for SMUCKER (JM) CO which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 9.38% is above that of the industry average.
  • Net operating cash flow has increased to $542.30 million or 26.79% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 11.95%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 15.2% when compared to the same quarter one year prior, going from $160.90 million to $185.30 million.
  • The debt-to-equity ratio is somewhat low, currently at 0.72, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Despite the fact that SJM's debt-to-equity ratio is low, the quick ratio, which is currently 0.64, displays a potential problem in covering short-term cash needs.

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