J M SMUCKER Co (NYSE: SJM)

Sector: Consumer Defensive Industry: Packaged Foods CIK: 0000091419
Market Cap 11.08 Bn
P/B 2.20
P/E 19.60
P/S 1.97
ROIC (Qtr) -3.95
Div Yield % 3.22
Rev 1y % (Qtr) 2.59
Total Debt (Qtr) 7.91 Bn
Debt/Equity (Qtr) 1.31
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About

The J.M. Smucker Company, commonly known as Smucker's, operates in the food and beverage industry. Smucker's was established in 1897 and has its headquarters in Ohio. The company has a significant presence in the United States, Canada, and other countries. Smucker's is a diversified company with a portfolio of iconic brands, including Folgers, Jif, Smucker's, Meow Mix, Milk-Bone, and Hostess, among others. Smucker's generates revenue through the sale of its products in various channels, including retail, foodservice, and e-commerce. The company's...

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Investment thesis

Bull case

  • Robust free cash flow of 648.60M exceeds capital expenditure of 320.60M by 2.02x, indicating strong organic growth funding capability.
  • Operating cash flow of 969.20M provides strong 30.29x coverage of stock compensation 32M, indicating sustainable incentive practices.
  • Tangible assets of 5.67B provide robust 7.38x coverage of other current liabilities 768.50M, indicating strong asset backing.
  • Operating cash flow of 969.20M provides strong 3.02x coverage of capital expenditure 320.60M, enabling organic growth.
  • Strong tangible asset base of 5.67B provides 17.41x coverage of acquisition spending 326M, enabling strategic growth.

Bear case

  • Operating cash flow of 969.20M barely covers its investment activities of (64.60M), with a coverage ratio of -15, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 62.80M against inventory of 1.35B, the 0.05 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of 969.20M provides thin coverage of dividend payments of (460.10M) with a -2.11 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 62.80M provide limited coverage of acquisition spending of 326M, which is 0.19x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of (709.30M) show weak coverage of depreciation charges of 524M, with a -1.35 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2025)

Geographical 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 0.73 1.47
EV to Cash from Ops. EV/CFO 15.11 29.75
EV to Debt EV to Debt 1.63 27.85
EV to EBIT EV/EBIT 13.92 86.88
EV to EBITDA EV/EBITDA 11.01 -156.20
EV to Free Cash Flow [EV/FCF] EV/FCF 22.03 -5.67
EV to Market Cap EV to Market Cap 1.17 1.15
EV to Revenue EV/Rev 2.31 7.32
Price to Book Value [P/B] P/B 2.20 8.48
Price to Earnings [P/E] P/E 19.60 14.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -2.59 4.58
Dividend Payout Ratio % Div Payout % (Qtr) -38.70 3.76
Dividend per Basic Share Div per Share (Qtr) 4.36 0.65
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 71.71 22.76
Interest Coverage Int. cover (Qtr) -1.83 6.64
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 35.65 -118.07
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 27.64 43.48
Dividend Growth (1y) % Div 1y % (Qtr) 1.87 0.66
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -198.94 -48.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -111.86 -152.35
EBIT Growth (1y) % EBIT 1y % (Qtr) -158.25 -50.79
EBT Growth (1y) % EBT 1y % (Qtr) -233.64 -54.94
EPS Growth (1y) % EPS 1y % (Qtr) -325.75 -28.10
FCF Growth (1y) % FCF 1y % (Qtr) -29.00 7.02
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -10.93 439.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.50 1.01
Cash Payout Ratio Cash Payout (Qtr) 0.36 0.12
Cash Ratio Cash Ratio (Qtr) 0.02 0.86
Current Ratio Curr Ratio (Qtr) 0.89 2.60
Debt to Equity Ratio Debt/Equity (Qtr) 1.31 2.21
Interest Cover Ratio Int Coverage (Qtr) -1.83 6.64
Times Interest Earned Times Interest Earned (Qtr) -1.83 6.64
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -2.10 -919.13
EBIT Margin % EBIT Margin % (Qtr) -8.08 -1,474.87
EBT Margin % EBT Margin % (Qtr) -12.51 -1,537.76
Gross Margin % Gross Margin % (Qtr) 34.70 26.98
Net Profit Margin % Net Margin % (Qtr) -13.60 -1,538.60