Morningstar

JM Smucker Co SJM

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Stock XNYS Rating as of
$117.39 +0.11 (0.09%)
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As of Delayed Price Post-Trading: $117.70 +0.31

Company Report

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We Don't See Enough Brand Strength for Smucker to Reach High-Single-Digit Adjusted EPS Growth Target

Kristoffer Inton

Smucker has the leading brand in some categories, especially its Uncrustables brand, but we don’t think it enjoys enough 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.

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Price vs Fair Value

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SJM is trading at a 725% premium.
Price
$117.28
Fair Value
$788.00
Uncertainty
Medium
1-Star Price
$845.30
5-Star Price
$69.80
Economic Moat
Mhxb
Capital Allocation
Rwvv

Bulls Say, Bears Say

Bulls

Even after paring back its pet exposure, Smucker has retained ownership of its strongest pet brands, which could allow it to benefit from the continued trend of increased pet ownership and spending.

Bears

Paying a full price for Hostess Brands has increased the difficulty for Smucker to create value from the acquisition while also significantly adding to its debt load.

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News

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Trading Information

Previous Close Price
$117.28
Day Range
$115.94–117.49
52-Week Range
$105.69–134.62
Bid/Ask
$116.84 / $117.50
Market Cap
$12.49 Bil
Volume/Avg
733,326 / 1.1 Mil

Key Statistics

Price/Earnings (Normalized)
11.53
Price/Sales
1.45
Dividend Yield (Trailing)
3.63%
Dividend Yield (Forward)
3.68%
Total Yield
3.66%

Company Profile

J.M. Smucker is a packaged food company that primarily sells through the US retail channel (78% of fiscal 2024 revenue came through its retail pet foods, coffee, and frozen handheld/spreads segments), with the remaining share consisting of Hostess and international (primarily Canada). Retail coffee is its largest category (33% of sales) with brands Folgers and Dunkin’. Pet foods (22% of sales) holds leading brands like Milk-Bone and Meow Mix. Of its remaining, approximately 22% comes from consumer foods, primarily peanut butter and jelly, through brands Jif and Smucker’s. The company acquired Hostess Brands in fiscal 2024 to boost its snack and convenience store presence.
Sector
Consumer Defensive
Industry
Packaged Foods
Stock Style Box
Mid Value
Total Number of Employees
9,000
Website
https://www.jmsmucker.com

Competitors

Valuation

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Metric
SJM
KHC
CAG
Price/Earnings (Normalized)
 11.5311.5111.56
Price/Book Value
 1.610.841.61
Price/Sales
 1.451.591.18
Price/Cash Flow
 9.658.836.90
Price/Earnings
SJM
KHC
CAG

Financial Strength

Metric
SJM
KHC
CAG
Quick Ratio
 0.210.410.29
Current Ratio
 0.551.010.94
Interest Coverage
 4.023.992.26
Quick Ratio
SJM
KHC
CAG

Profitability

Metric
SJM
KHC
CAG
Return on Assets (Normalized)
 5.71%4.09%5.61%
Return on Equity (Normalized)
 14.42%7.46%13.77%
Return on Invested Capital (Normalized)
 8.73%6.13%9.16%
Return on Assets
SJM
KHC
CAG

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