Is J M getting crazy?
 | By Rifka Kats | Macroaxis Story |
Today's write-up is for all stakeholders who are seriously contemplating on exiting a position in J M. I will summarize the rationale of why J M stakeholders should not be insulted by the new pull down. The company current daily volatility is 1.24 percent, with beta of 0.0 and alpha of 0.0 over S&P 500. Macroaxis considers J M to be very steady. J M holds Efficiency (Sharpe) Ratio of -0.1872 which attests that the entity had -0.1872% of return per unit of risk over the last 1 month. Macroaxis philosophy towards determining risk of any stock is to look at both systematic and un-systematic factors of the business, including all available market data and technical indicators. J M exposes twenty-one different technical indicators which can help you to evaluate volatility that cannot be diversified away. Please be advised to check out J M Risk Adjusted Performance of 0.01 to validate risk estimate we provide.
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Reviewed by Gabriel Shpitalnik
J M has 5.96B in debt with debt to equity (D/E) ratio of 74.7 . This implies that the stock may be unable to create cash to meet all of its financial commitments. This firm dividends can provide a clue to current valuation of the stock. J M one year expected dividend income is about $1.61 per share. Let me now go over J M Shares Outstanding. Based on latest financial disclosure The J M Smucker Company has 114.04M of shares currently outstending. This is 72.61% lower than that of the Consumer Defensive sector, and 56.0% lower than that of Packaged Foods industry, The Shares Outstanding for all stocks is 80.06% higher than J M. JM Smucker financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of JM Smucker, including all of JM Smucker's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of JM Smucker assets, the company is considered highly leveraged. Understanding the composition and structure of overall JM Smucker debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding SJM Total Liabilities
JM Smucker liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. JM Smucker has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on JM Smucker balance sheet include debt obligations and money owed to different JM Smucker vendors, workers, and loan providers. Below is the chart of SJM short long-term liabilities accounts currently reported on its balance sheet. You can use JM Smucker financial leverage analysis tool to get a better grip on understanding its financial positionHow important is JM Smucker's Liquidity
JM Smucker financial leverage refers to using borrowed capital as a funding source to finance JM Smucker ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. JM Smucker financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to JM Smucker's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of JM Smucker's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between JM Smucker's total debt and its cash.
Scrutinizing JM Smucker - a closer look
The recent J M price drops has created some momentum for investors as it was traded today as low as 114.97 and as high as 116.6 per share. The company executives were unable to exploit market volatilities in June. However, diversifying your overall positions with J M can protect your principal portfolio during market swings. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.2367. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. J M retains price to earnings to growth of 2.95x. J M is selling for under 116.01. That is 1.50% increase. Started trading at 116.01. J M Liabilities Non Current is increasing over the last 5 years. The previous year value of J M Liabilities Non Current was 4,715,542,063. Moreover, J M Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 5 years. The previous year value of J M Earnings Before Interest Taxes and Depreciation Amortization EBITDA was 1,600,000,000. The bottom line, our analysis show that J M Barely shadows market. The business is fairly valued and projects probability of distress low for the next 2 years. Our actual buy-hold-sell recommendation on the business is Strong Hold.
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