The Smucker Company Provides Us with Our Favorite Jellies and More

The JM Smucker Company is most known for their Smucker jelly that is widely used and in many households. They also provide other food items along side the well known products. Being in this sector of the market shields them from direct impact of a market downturn. However, the company has to ensure that the quality of food and products are above standards because if they slip, people will switch to a competitor. Also, they can retain their current customers with brand loyalty and appeal to new ones with their diverse product line.

Published over a year ago
View all stories for JM Smucker | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Raphi Shpitalnik

Taking a look at a recent 8-K filing, we can the company’s second quarter earnings for the 2017 fiscal year. Net sales decreased 8 percent, but excluding the noncomparable divested United States canned milk business, net sales decreased 5 percent. Net income per diluted share increased 3 percent to $1.52 and cash provided by operating activities was $136.4 million in the second quarter. Overall, the numbers appears to be in line with a normal business flow, but let us take a look at the chart and see if price agrees.

Price has fallen in recent months, which may have provided a solid entry opportunity for potential investors. The chart seems to have caught some support around the $123 area and is on the way back up. If you believe this uptrend is going to be around for awhile, I certainly would have no problem entering here as price is just beginning to turn around. Be careful and make sure you do enough research because this could be a false change in trends. 

Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include JM Smucker income statement, its balance sheet, and the statement of cash flows. Potential JM Smucker investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although JM Smucker investors may use each financial statement separately, they are all related. The changes in JM Smucker's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on JM Smucker's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of JM Smucker fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of JM Smucker performance into the future periods or doing a reasonable stock valuation. The intrinsic value of JM Smucker shares is the value that is considered the true value of the share. If the intrinsic value of SJM is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares JM Smucker. Please read more on our fundamental analysis page.

How effective is JM Smucker in utilizing its assets?

JM Smucker reports assets on its Balance Sheet. It represents the amount of SJM resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, JM Smucker aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Packaged Foods & Meats space. To get a better handle on how balance sheet or income statements item affect SJM volatility, please check the breakdown of all its fundamentals.

Are JM Smucker Earnings Expected to grow?

The future earnings power of JM Smucker involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of JM Smucker factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. JM Smucker stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of SJM expected earnings.

And What about dividends?

A dividend is the distribution of a portion of JM Smucker earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. JM Smucker dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. SJM one year expected dividend income is about USD2.75 per share.
At this time, JM Smucker's Dividends Paid is very stable compared to the past year. As of the 28th of March 2024, Dividend Yield is likely to grow to 0.03, though Dividend Payout Ratio is likely to grow to (5.15).
Last ReportedProjected for 2024
Dividends Paid494.7 M519.5 M
Dividend Yield 0.03  0.03 
Dividend Payout Ratio(5.42)(5.15)
Dividend Paid And Capex Coverage Ratio(26.21)(24.90)
Investing in dividend-paying stocks, such as JM Smucker is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in JM Smucker must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for JM Smucker. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

JM Smucker Gross Profit

JM Smucker Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing JM Smucker previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show JM Smucker Gross Profit growth over the last 10 years. Please check JM Smucker's gross profit and other fundamental indicators for more details.

Scrutinizing JM Smucker - a closer look

Risks

You can take a look at the most recent 10-K filing for a full list of risks, but here are a few to note. This one is interesting and concerning, but the company states they may not be able to grow market share of their products. It is certainly understandable that this could occur for a short while, but if this happens long term, it could adversely affect the price. To go along with that, the company uses a single national broker to represent a portion of their branded product. An issue will arise only if the broker fails at some part of their job, which could result in delayed product shipment or other aspects of the business. Currently, the risks seem substantial, but the business continues to perform despite them.

Conclusion

Smuckers is a company that has the potential to be a great addition to anyone’s portfolio. However, be sure to conduct in depth research to ensure the risks mentioned are minimal and will not hinder the company’s growth. Also, seek an expert opinion to see if this is the best option or if there’s a better one out there that offers more value for you dollar.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of JM Smucker. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com