J&J Snack Foods Corp (NASDAQ: JJSF)

Sector: Consumer Defensive Industry: Packaged Foods CIK: 0000785956
Market Cap 1.65 Bn
P/B 1.81
P/E 26.96
P/S 1.06
ROIC (Qtr) 5.21
Div Yield % 3.71
Rev 1y % (Qtr) -5.19
Total Debt (Qtr) 161.37 Mn
Debt/Equity (Qtr) 0.18
Add ratio to table...

About

J&J Snack Foods Corp., often abbreviated as JJSF, is a prominent player in the snack food and frozen beverages industry within the United States. With a diverse product portfolio, the company operates in three primary segments: Food Service, Retail Supermarkets, and Frozen Beverages. JJSF's main offerings include soft pretzels, frozen novelties, churros, handheld products, and bakery products, which are marketed under various brand names such as SUPERPRETZEL, DIPPIN' DOTS, LUIGI'S, and ICEE. JJSF's Food Service segment caters to a variety of foodservice...

Read more

Investment thesis

Bull case

  • Strong operating cash flow of 165.93M provides robust 1.03x coverage of total debt 161.37M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 66.76M provide 2.97x coverage of short-term debt 22.52M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 165.93M provides exceptional 116.85x coverage of interest expenses 1.42M, showing strong debt service capability.
  • Operating cash flow of 165.93M provides strong 24.86x coverage of stock compensation 6.67M, indicating sustainable incentive practices.
  • Strong tangible asset base of 957M provides 5.93x coverage of total debt 161.37M, indicating robust asset backing and low credit risk.

Bear case

  • Operating cash flow of 165.93M barely covers its investment activities of (69.26M), with a coverage ratio of -2.40, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 165.93M provides thin coverage of dividend payments of (61.12M) with a -2.71 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 84.44M represents just -269.79x of debt issuance (313000), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High depreciation of 74.27M relative to operating cash flow of 165.93M, which is 0.45x suggests significant maintenance capital requirements affecting free cash flow.
  • Operating earnings of 82M show weak coverage of depreciation charges of 74.27M, with a 1.10 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Packaged Foods
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 KHC Kraft Heinz Co 28.20 Bn -4.82 1.13 21.22 Bn
2 GIS General Mills Inc 26.99 Bn 20.72 1.54 13.73 Bn
3 JBS Jbs N.V. 17.81 Bn 10.08 0.23 23.92 Bn
4 MKC Mccormick & Co Inc 16.10 Bn 44.21 3.77 4.00 Bn
5 HRL Hormel Foods Corp /De/ 12.37 Bn 18.03 1.34 2.86 Bn
6 SJM J M SMUCKER Co 11.08 Bn 19.60 1.97 7.91 Bn
7 PPC Pilgrims Pride Corp 10.32 Bn 9.54 0.56 3.29 Bn
8 MICC Magnum Ice Cream Co N.V. 9.71 Bn 28.17 1.04 4.02 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.30 1.47
EV to Cash from Ops. EV/CFO 10.31 29.75
EV to Debt EV to Debt 10.61 27.85
EV to EBIT EV/EBIT 20.87 86.88
EV to EBITDA EV/EBITDA 11.19 -156.20
EV to Free Cash Flow [EV/FCF] EV/FCF 20.27 -5.67
EV to Market Cap EV to Market Cap 1.03 1.15
EV to Revenue EV/Rev 1.09 7.32
Price to Book Value [P/B] P/B 1.81 8.48
Price to Earnings [P/E] P/E 26.96 14.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.00 4.58
Dividend Payout Ratio % Div Payout % (Qtr) 100.00 3.76
Dividend per Basic Share Div per Share (Qtr) 3.16 0.65
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 72.28 22.76
Interest Coverage Int. cover (Qtr) 57.74 6.64
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -13.24 -118.07
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -9.25 43.48
Dividend Growth (1y) % Div 1y % (Qtr) 4.29 0.66
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -26.99 -48.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -17.59 -152.35
EBIT Growth (1y) % EBIT 1y % (Qtr) -30.26 -50.79
EBT Growth (1y) % EBT 1y % (Qtr) -30.59 -54.94
EPS Growth (1y) % EPS 1y % (Qtr) -27.19 -28.10
FCF Growth (1y) % FCF 1y % (Qtr) -3.29 7.02
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -2.77 439.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.19 1.01
Cash Payout Ratio Cash Payout (Qtr) 0.25 0.12
Cash Ratio Cash Ratio (Qtr) 0.41 0.86
Current Ratio Curr Ratio (Qtr) 2.52 2.60
Debt to Equity Ratio Debt/Equity (Qtr) 0.18 2.21
Interest Cover Ratio Int Coverage (Qtr) 57.74 6.64
Times Interest Earned Times Interest Earned (Qtr) 57.74 6.64
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 10.00 -919.13
EBIT Margin % EBIT Margin % (Qtr) 5.24 -1,474.87
EBT Margin % EBT Margin % (Qtr) 5.15 -1,537.76
Gross Margin % Gross Margin % (Qtr) 30.20 26.98
Net Profit Margin % Net Margin % (Qtr) 3.90 -1,538.60