JM Smucker Co
SJM: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$988.00 | Gkcx | Xsgl |
Limited Margin Expansion Potential Hinders Smucker's Ability to Hit High-Single-Digit EPS Growth
Business Strategy and Outlook
Smucker has the leading brand in some categories, but we don’t think it enjoys pricing power or entrenched retailer relationships to create an economic moat. Its long-term strategy is to turn low-single-digit sales growth into mid-single-digit adjusted operating income growth, leading to high-single-digit adjusted EPS growth—but we expect mid-single-digit growth as likely.