John B Sanfilippo & Son (JBSS) AI Stock Analysis

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John B Sanfilippo & Son

(NASDAQ:JBSS)

67Neutral

John B Sanfilippo & Son shows solid financial performance with strong revenue growth and profitability, though margin pressures and increased costs present challenges. The technical indicators suggest bearish momentum, and the valuation is average. The earnings call highlighted robust sales growth but also noted profitability pressures.

John B Sanfilippo & Son (JBSS) vs. S&P 500 (SPY)

Market Cap

$781.73M

Dividend Yield1.27%

Average Volume (3M)68.38K

Price to Earnings (P/E)16.1

Beta (1Y)0.18

Revenue Growth12.09%

EPS Growth-27.64%

CountryUS

Employees1,800

SectorConsumer Defensive

Sector Strength86

IndustryPackaged Foods

Share Statistics

EPS (TTM)4.16

Shares Outstanding9,040,641

10 Day Avg. Volume66,454

30 Day Avg. Volume68,382

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.73

Price to Cash Flow (P/CF)18.70

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

John B Sanfilippo & Son Business Overview & Revenue Model

Company DescriptionJohn B. Sanfilippo & Son, Inc. (JBSS) is a leading processor, distributor, and marketer of snack and baking nuts in the United States. The company operates in the consumer goods sector and is renowned for its wide range of nut-based products, including peanuts, pecans, walnuts, almonds, and cashews. In addition to raw and roasted nuts, JBSS also offers snack mixes, trail mixes, and other nut-related products under popular brands such as Fisher and Orchard Valley Harvest.

How the Company Makes MoneyJohn B. Sanfilippo & Son, Inc. generates revenue primarily through the sale of its nut and nut-related products. The company's revenue model revolves around manufacturing and distributing its products to various retail channels, including grocery stores, club stores, and convenience stores, as well as to commercial ingredient and contract manufacturing customers. Key revenue streams include direct sales under its own brands and private label products produced for other companies. Significant factors contributing to JBSS's earnings include its established relationships with large retailers, its extensive product line catering to diverse consumer preferences, and its capability to adapt to market trends such as health and wellness. Additionally, the company leverages economies of scale in production and distribution to maintain competitive pricing.

John B Sanfilippo & Son Financial Statement Overview

Summary

John B Sanfilippo & Son demonstrates solid financial health with consistent revenue growth and strong profit margins. The company maintains a stable balance sheet with low leverage, supporting potential future investments. Cash flows are generally positive, though further optimization could enhance financial flexibility.

Income Statement

Positive

John B Sanfilippo & Son shows a solid gross profit margin and consistent revenue growth, with a notable increase from the previous year. The net profit margin is healthy, albeit slightly reduced, indicating room for improvement in cost management. The EBIT and EBITDA margins are stable, reflecting effective operational control.

Balance Sheet

Very Positive

The balance sheet reveals a strong equity position with a favorable debt-to-equity ratio, demonstrating financial stability and low leverage risk. The return on equity is robust, highlighting effective use of shareholder funds. However, maintaining liquidity levels should be a focus given the industry context.

Cash Flow

Positive

Cash flow statements indicate a positive trend in free cash flow, though growth has decelerated. The operating cash flow to net income ratio suggests efficient cash generation relative to earnings, but the free cash flow to net income ratio shows potential for enhancement in cash flow utilization.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
1.12B	1.07B	999.69M	955.87M	858.48M	880.09M
	Gross Profit
197.21M	214.14M	211.63M	199.63M	184.99M	175.78M
	EBIT
69.57M	85.19M	90.22M	62.98M	62.95M	56.78M
	EBITDA
97.13M	109.09M	108.02M	99.55M	99.57M	92.65M
	Net Income Common Stockholders
48.74M	60.25M	62.86M	61.79M	59.74M	54.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
754.00K	484.00K	1.95M	415.00K	672.00K	1.53M
	Total Assets
339.63M	515.58M	425.29M	447.26M	398.45M	407.46M
	Total Debt
88.87M	55.57M	12.83M	52.65M	26.58M	52.05M
	Net Debt
88.11M	55.08M	10.88M	52.24M	25.91M	50.52M
	Total Liabilities
161.64M	192.96M	133.08M	168.44M	155.96M	169.22M
	Stockholders Equity
177.99M	322.61M	292.21M	278.82M	242.49M	238.24M
Cash Flow		Free Cash Flow
17.44M	73.36M	103.92M	1.85M	79.52M	48.59M
	Operating Cash Flow
60.42M	101.67M	124.66M	19.60M	104.70M	63.61M
	Investing Cash Flow
-43.06M	-87.35M	-24.29M	-11.38M	-22.95M	-14.05M
	Financing Cash Flow
-19.00M	-15.79M	-98.83M	-8.48M	-82.61M	-49.62M

John B Sanfilippo & Son Technical Analysis

Technical Analysis Sentiment

Negative

Last Price67.73

Price Trends

50DMA

71.82

Negative

100DMA

79.25

Negative

200DMA

86.88

Negative

Market Momentum

MACD

-0.95

Negative

RSI

43.17

Neutral

STOCH

65.67

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JBSS, the sentiment is Negative. The current price of 67.73 is below the 20-day moving average (MA) of 69.96, below the 50-day MA of 71.82, and below the 200-day MA of 86.88, indicating a bearish trend. The MACD of -0.95 indicates Negative momentum. The RSI at 43.17 is Neutral, neither overbought nor oversold. The STOCH value of 65.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JBSS.

John B Sanfilippo & Son Risk Analysis

John B Sanfilippo & Son disclosed 25 risk factors in its most recent earnings report. John B Sanfilippo & Son reported the most risks in the “Production” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

John B Sanfilippo & Son Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRFS	74 Outperform	$5.32B	8.74	21.60%	2.78%	5.85%	―
SENEA	71 Outperform	$574.17M	15.17	6.35%	―	4.01%	22.46%
JBSS	67 Neutral	$781.73M	16.13	15.40%	1.27%	12.09%	-27.64%
Sector *	62 Neutral	$20.34B	13.97	-16.14%	3.32%	1.30%	5.01%
BGS	55 Neutral	$473.25M	―	-36.94%	12.46%	-6.30%	-258.92%
THS	54 Neutral	$1.22B	41.05	1.67%	―	-4.59%	-42.81%
HAIN	44 Neutral	$345.65M	―	-19.41%	―	-6.68%	-9.71%

* Consumer Defensive Sector Average

Performance Comparison

JBSS

John B Sanfilippo & Son

67.73

-28.79

-29.83%

BGS

B&G Foods

5.98

-3.92

-39.60%

BRFS

BRF SA

3.46

0.20

6.13%

SENEA

Seneca Foods

82.69

25.69

45.07%

HAIN

Hain Celestial

3.43

-2.78

-44.77%

THS

TreeHouse Foods

22.90

-14.16

-38.21%

John B Sanfilippo & Son Earnings Call Summary

Earnings Call Date: Jan 29, 2025 | % Change Since: -21.81% | Next Earnings Date: Apr 30, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted significant sales volume growth and successful operational moves but was tempered by challenges in maintaining margins due to increased commodity costs and competitive pricing pressures. The positive achievements in sales and expansion efforts are offset by decreased profitability and financial pressures.

Highlights

Record-Breaking Sales Volume and Net Sales

The company reported its largest quarterly sales volume and highest net sales in its history for the second quarter. Sales volume increased across all distribution channels, with a notable 28% increase in bar sales volume compared to the prior-year quarter.

Successful Relocation and Expansion

The company successfully moved its warehouse distribution in Elgin to a new facility in Huntley, Illinois. This move frees up 300,000 square feet in Elgin for expanding production capabilities over the next 18 months.

Sales Volume and Distribution Channel Growth

Net sales increased by 3.4% to $301.1 million, with a 7.1% increase in sales volume. Consumer distribution channel sales volume rose by 2.9%, and branded product sales volume increased by 3.4%.

Private Label Bar and Fisher Recipe Nut Growth

Private label bar shipments increased by 28%, and Fisher recipe nut sales volume rose by 3.8%, performing better than the category during the holiday season.

Lowlights

Margin Compression and Commodity Cost Challenges

Gross profit decreased by $5.7 million or 9.8%, with gross profit margin as a percentage of net sales dropping to 17.4% from 19.9% the previous year. Increased costs for commodities like chocolate and walnuts and competitive pricing pressures contributed to margin compression.

Decreased Net Income

Net income for the second quarter was $13.6 million, or $1.16 per diluted share, compared to $19.2 million, or $1.64 per diluted share, in the same quarter of fiscal 2024.

Inventory and Acquisition Cost Increases

The total value of inventories increased by $8.5 million or 4.3%, with the weighted average cost per pound of raw nuts and dried food rising 33.7% year-over-year.

Company Guidance

During the second quarter of fiscal year 2025, John B. Sanfilippo & Son, Inc. achieved its largest quarterly sales volume and highest net sales in the company's history, with net sales increasing by 3.4% to $301.1 million compared to the previous year. This growth was driven by a 7.1% increase in sales volume, despite a 3.4% decline in the weighted average sales price per pound. The company's gross profit margin decreased from 19.9% in Q2 2024 to 17.4% in Q2 2025 due to competitive pricing pressures and elevated commodity costs, notably in chocolate and walnuts. The successful transition of warehouse operations in Elgin to Huntley, Illinois, freed up 300,000 square feet for expanded production capabilities. The company is also addressing margin pressure through strategic pricing adjustments expected to take effect in Q3 and a focus on operational efficiencies. Despite these challenges, John B. Sanfilippo & Son remains optimistic, leveraging growth in their Fisher recipe brand, bar sales volume, and a successful holiday season to drive future opportunities.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.