JM Smucker Co

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SJM : NYSE : Consumer Goods
$118.85 -1.01 | -0.84%
Today's Range: 118.0943 - 119.69
Avg. Daily Volume: 889000.0
08/23/17 - 4:00 PM ET

Financial Analysis


SMUCKER (JM) CO's gross profit margin for the fourth quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. SMUCKER (JM) CO has very weak liquidity. Currently, the Quick Ratio is 0.33 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.25% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)1780.01807.6
EBITDA ($mil)361.6395.4
EBIT ($mil)257.4289.0
Net Income ($mil)110.4191.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)166.8109.8
Total Assets ($mil)15639.715984.1
Total Debt ($mil)5398.55430.0
Equity ($mil)6850.27008.5


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin39.141.34
EBITDA Margin20.3121.87
Operating Margin14.4615.99
Sales Turnover0.470.49
Return on Assets3.784.3
Return on Equity8.649.82
Debt Q4 FY16 Q4 FY15
Current Ratio0.91.3
Debt/Capital0.440.44
Interest Expense40.340.5
Interest Coverage6.397.14


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)113.44116.31
Div / share0.750.67
EPS0.961.61
Book value / share60.3960.26
Institutional Own % n/a n/a
Avg Daily Volume867816.01087639.0

Valuation


BUY. SMUCKER (JM) CO's P/E ratio indicates a discount compared to an average of 27.05 for the Food Products industry and a value on par with the S&P 500 average of 24.23. To use another comparison, its price-to-book ratio of 2.03 indicates a discount versus the S&P 500 average of 3.02 and a significant discount versus the industry average of 4.69. The price-to-sales ratio is below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, SMUCKER (JM) CO proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SJM 24.05 Peers 27.05   SJM 13.14 Peers 21.11

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SJM is trading at a discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

SJM is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SJM 14.59 Peers 21.81   SJM 0.43 Peers 2.39

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

SJM is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

SJM trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SJM 2.03 Peers 4.69   SJM -11.62 Peers 29.16

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

SJM is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, SJM is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SJM 1.88 Peers 2.23   SJM -5.42 Peers 0.39

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

SJM is trading at a discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

SJM significantly trails its peers on the basis of sales growth

 

 

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