The J.M. Smucker Company
Find Ratings ReportsSMUCKER (JM) CO's gross profit margin for the third quarter of its fiscal year 2023 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. SMUCKER (JM) CO has very weak liquidity. Currently, the Quick Ratio is 0.34 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 decreased by 9.29% 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 | Q3 FY23 | Q3 FY22 |
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Net Sales ($mil) | 2229.2 | 2216.3 |
EBITDA ($mil) | 524.5 | 435.7 |
EBIT ($mil) | 401.3 | 320.3 |
Net Income ($mil) | 120.4 | 208.5 |
Balance Sheet | Q3 FY23 | Q3 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 55.0 | 137.6 |
Total Assets ($mil) | 20247.2 | 16017.5 |
Total Debt ($mil) | 8740.2 | 4407.9 |
Equity ($mil) | 7560.1 | 8335.0 |
Profitability | Q3 FY23 | Q3 FY22 |
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Gross Profit Margin | 40.31 | 36.85 |
EBITDA Margin | 23.52 | 19.65 |
Operating Margin | 18.0 | 14.45 |
Sales Turnover | 0.41 | 0.52 |
Return on Assets | -0.5 | 4.44 |
Return on Equity | -1.35 | 8.54 |
Debt | Q3 FY23 | Q3 FY22 |
---|---|---|
Current Ratio | 0.78 | 1.16 |
Debt/Capital | 0.54 | 0.35 |
Interest Expense | 99.8 | 37.9 |
Interest Coverage | 4.02 | 8.45 |
Share Data | Q3 FY23 | Q3 FY22 |
---|---|---|
Shares outstanding (mil) | 106.18 | 106.63 |
Div / share | 1.06 | 1.02 |
EPS | 1.13 | 1.95 |
Book value / share | 71.2 | 78.16 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1276687.0 | 1476636.0 |
HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. Conducting a second comparison, its price-to-book ratio of 1.71 indicates a significant discount versus the S&P 500 average of 4.68 and a discount versus the subsector average of 3.20. The current price-to-sales ratio is well below the S&P 500 average and is also below the subsector average, indicating a discount. After reviewing these and other key valuation criteria, SMUCKER (JM) CO proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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SJM NM | Peers 18.98 | SJM 10.19 | Peers 15.41 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. SJM's P/E is negative making this valuation measure meaningless. |
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. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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SJM 11.88 | Peers 17.75 | SJM NA | Peers 2.43 | |||||||||||||||||||||
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. |
Neutral. 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. Ratio not available. |
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Price/Book |
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Earnings Growth |
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SJM 1.71 | Peers 3.20 | SJM -113.10 | Peers 16.04 | |||||||||||||||||||||
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. |
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Price/Sales |
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Sales Growth |
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SJM 1.57 | Peers 1.93 | SJM -1.45 | Peers 6.04 | |||||||||||||||||||||
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 subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. SJM significantly trails its peers on the basis of sales growth. |
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