J M SMUCKER Co (SJM) - Comprehensive Stock Analysis & Investment Research
Deep dive into J M SMUCKER Co's business profile, financial performance, AI predictions, and competitive positioning to make informed investment decisions.
J M SMUCKER Co Investment Summary
When evaluating whether J M SMUCKER Co (SJM) represents a compelling investment opportunity, investors must consider multiple factors including the company's financial health, market position, growth prospects, and what our AI-powered predictive models suggest about its near-term price trajectory.
Company Profile
J M SMUCKER Co (SJM) operates within the Manufacturing sector, specifically in the Canned, Fruits, Veg, Preserves, Jams & Jellies industry. The company employs approximately 21 people. With a market capitalization of $11 billion, the company is a large-cap stock offering relative stability combined with growth potential.
Financial Performance Analysis
J M SMUCKER Co generates annual revenues of approximately $10 billion. The company operates with a net margin of 4.9%, showing modest profitability.
From a profitability standpoint, the company has a Return on Equity (ROE) of 7.8%, suggesting room for improvement in capital efficiency. The Return on Assets (ROA) stands at 3.9%, suggesting potential for operational improvement. The gross margin of 32.3% indicates healthy product or service economics.
Balance Sheet Strength
Examining the balance sheet health, the current ratio of 1.03x indicates the company can meet its short-term obligations, though with limited buffer. The debt-to-equity ratio of 0.54x indicates moderate leverage, typical for many established companies.
Cash Flow Generation
J M SMUCKER Co generates $718 million in annual free cash flow, providing financial flexibility for dividends, share buybacks, debt reduction, or strategic investments. Operating cash flow stands at $1 billion, demonstrating the company's ability to generate cash from its core business operations. Year-over-year operating cash flow has changed by 24.7%, showing strong cash flow momentum.
Valuation Analysis
The P/E ratio of 17.6x represents a reasonable valuation that balances current earnings with growth expectations, falling within a typical range for established companies. The price-to-book ratio stands at 1.75x, suggesting the stock trades at a modest premium to book value. For income-focused investors, the current dividend yield of 4.43% offers an attractive income stream, though sustainability should be verified against payout ratios.
AI-Powered Price Predictions
Our AI models continuously analyze J M SMUCKER Co to identify potential price movements. Subscribe to Intratio Premium to unlock detailed AI-powered price predictions for 7, 30, and 90-day horizons.
Investment Considerations
When determining whether J M SMUCKER Co is a suitable investment, consider your investment objectives, risk tolerance, and time horizon. As a large-cap stock, J M SMUCKER Co typically offers more stability but potentially lower growth compared to smaller companies.
This analysis is generated automatically using our proprietary AI systems and should not be considered personalized investment advice. Past performance does not guarantee future results. Always conduct your own research and consider consulting a financial advisor before making investment decisions.
Corporate Identity
J M SMUCKER Co (Stock Symbol: SJM) is a prominent company operating within the Manufacturing sector, with a specific focus on the Canned, Fruits, Veg, Preserves, Jams & Jellies industry. The company's shares are publicly traded on the NYSE exchange.
Leadership & Workforce
The organization employs approximately 21 professionals, which is characteristic of a lean, focused organization that may emphasize efficiency and specialized expertise.
Market Classification
With a market capitalization of $11 billion, J M SMUCKER Co is classified as a large-cap stock. Large-cap companies are well-established industry leaders that typically offer investors relative stability combined with consistent returns. These companies often have diversified revenue streams, established competitive advantages, and the financial resources to weather economic downturns.
Sector & Industry Context
Operating within the Manufacturing sector, J M SMUCKER Co is subject to the unique dynamics, opportunities, and challenges that characterize this segment of the economy.
Revenue & Growth Analysis
J M SMUCKER Co generates annual revenues of $10 billion , demonstrating substantial market presence and operational scale. Companies at this revenue level typically benefit from established distribution networks, diversified revenue streams, and meaningful economies of scale.
Profitability Analysis
The company achieves a 4.9% net profit margin, reflecting thin profitability that may be characteristic of the industry or indicative of competitive pressures. Companies operating at these margins have limited buffer against economic downturns or cost increases.
Gross profit margin stands at 32.3%, a moderate margin common in manufacturing, retail, or distribution-heavy businesses where competition or cost structures limit pricing flexibility.
Operating margin is 13.4%, indicating moderate operational leverage where fixed costs consume a significant portion of gross profits.
Market Valuation
Current market capitalization stands at $11 billion . This large-cap valuation typically attracts institutional investors seeking stability and liquidity. Large-cap stocks generally exhibit lower volatility and often pay dividends, making them core portfolio holdings.
Return on Investment Metrics
Return on Equity (ROE) measures 7.8%, suggesting below-average capital efficiency that may reflect industry characteristics, high equity base, or operational challenges.
Return on Assets (ROA) stands at 3.9%, indicating lower asset efficiency that may reflect industry norms or opportunities for operational improvement.
Return on Invested Capital (ROIC) measures 5.8%, which may indicate returns below the cost of capital, potentially destroying shareholder value over time if sustained.
Cash Flow Generation
Free cash flow generation of $718 million annually represents healthy cash conversion that supports ongoing operations and provides capital for growth initiatives or shareholder returns.
Operating cash flow reaches $1 billion , with year-over-year growth of 24.7%. Operating cash flow represents the cash generated from core business operations before capital investments, providing insight into the sustainability of the company's business model.
Strategic Market Position
J M SMUCKER Co strategically competes in the highly dynamic Canned, Fruits, Veg, Preserves, Jams & Jellies marketplace. As a large-cap market participant, the company has established significant competitive advantages and market presence. Large-cap companies typically benefit from brand recognition, operational scale, diverse revenue streams, and the financial resources to invest in research and development, marketing, and strategic acquisitions. This size category attracts substantial institutional ownership and analyst coverage.
Industry Competitive Landscape
J M SMUCKER Co competes within the Manufacturing sector, navigating the competitive dynamics and market forces specific to this industry. The company's competitive position depends on its ability to differentiate through product quality, cost efficiency, customer relationships, or other strategic advantages relevant to its specific market segment.
Operational Efficiency
The company shows positive operational efficiency through free cash flow generation of $718 million annually , with year-over-year cash flow growth of 24.7%. Positive free cash flow indicates the business generates more cash than required for operations and capital investments, providing resources for growth initiatives or shareholder returns.
Margin & Pricing Power Analysis
The company maintains a 32.3% gross margin reflecting moderate pricing power typical of many manufacturing, retail, or service businesses. While not exceptionally high, these margins provide adequate room for operating expenses and profit generation. Competitive pressures or cost increases could impact profitability if margins compress.
Operating margin of 13.4% demonstrates how efficiently the company converts revenues into operating profits after accounting for all operating expenses including research and development, sales and marketing, and general administrative costs. This healthy operating margin shows balanced investment in growth functions while maintaining reasonable profitability.
Asset Utilization Efficiency
Asset turnover ratio of 0.49x indicates moderate asset turnover common in capital-intensive industries such as utilities, real estate, or heavy manufacturing. Lower turnover in these sectors is expected due to the significant infrastructure required for operations.
Financial Strength & Leverage
Current ratio of 1.03 suggests tight liquidity where current assets just cover current liabilities. This may be efficient but leaves limited cushion for unexpected needs.