Today JM Smucker (SJM) Hits New Lifetime High

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

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 $55.1 million.
  • SJM has traded 5,187 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. The company operates through three segments: U.S. Retail Coffee; U.S. Retail Consumer Foods; and International, Foodservice, and Natural Foods. The stock currently has a dividend yield of 2.2%. SJM has a PE ratio of 22. Currently there are 4 analysts that rate JM Smucker a buy, 1 analyst rates it a sell, and 7 rate it a hold.

The average volume for JM Smucker has been 669,900 shares per day over the past 30 days. JM Smucker has a market cap of $12.1 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.98 and a short float of 4.3% with 8.82 days to cover. Shares are up 17.5% year-to-date as of the close of trading on Monday.

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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 solid stock price performance, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The current debt-to-equity ratio, 0.42, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that SJM's debt-to-equity ratio is low, the quick ratio, which is currently 0.68, displays a potential problem in covering short-term cash needs.
  • Net operating cash flow has slightly increased to $427.70 million or 1.56% when compared to the same quarter last year. Despite an increase in cash flow, SMUCKER (JM) CO's cash flow growth rate is still lower than the industry average growth rate of 21.40%.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 10.8%. Since the same quarter one year prior, revenues slightly dropped by 1.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • 38.97% is the gross profit margin for SMUCKER (JM) CO which we consider to be strong. Regardless of SJM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SJM's net profit margin of 11.17% compares favorably to the industry average.

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