J & J Snack Foods (JJSF) AI Stock Analysis

• Market Cap: $2.20B
• Dividend Yield: 2.8%
• Average Volume (3M): 160.49K
• Price to Earnings (P/E): 26.3
• Beta (1Y): 0.33
• Revenue Growth: 0.50%
• EPS Growth: -4.46%
• Country: US
• Employees: 5,000
• Sector: Consumer Defensive
• Sector Strength: 57
• Industry: Packaged Foods
• EPS (TTM): 2.00
• Shares Outstanding: 19,467,716
• 10 Day Avg. Volume: 222,675
• 30 Day Avg. Volume: 160,489
• PEG Ratio: 4.36
• Price to Book (P/B): 3.46
• Price to Sales (P/S): 2.10
• P/FCF Ratio: 33.29
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 1.42
• Enterprise Value/Gross Profit: 4.78
• Enterprise Value/Ebitda: 12.06
• 1Y Price Target: $129.67
• Price Target Upside: 16.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 61 Neutral
• Price Target: $117.00 ▲(5.13% Upside)

J & J Snack Foods' overall stock score is primarily influenced by its solid financial performance, despite cash flow challenges. The lack of technical indicators limits the analysis, while the high P/E ratio suggests overvaluation. The earnings call highlighted significant challenges, impacting the overall sentiment. The company's strengths in revenue growth and balance sheet stability are offset by operational and market headwinds.

Positive Factors

Earnings

J&J Snack Foods reported record operating results driven by strong performance in the Pretzel and Bakery product segments.

Financial Performance

Efforts to introduce cleaner ingredient profiles and better-for-you product offerings are aligning the portfolio with emerging consumer tastes and regulatory standards.

Product Innovation

Product innovation in the Superpretzel line significantly boosted sales, highlighting the success of new product introductions.

Negative Factors

Earnings Quality

Earnings quality was mixed, with sales and gross margin below, and the operating expense ratio higher than forecast.

Headwinds

Management highlighted specific headwinds such as theatre channel weakness and continued commodity cost inflation affecting results.

Outlook

A conservative outlook for the next quarter is communicated due to a choppy consumer macro environment and challenges with tariff-related price increases.

J & J Snack Foods Business Overview & Revenue Model

Company Description

J & J Snack Foods Corp. (JJSF) is a leading manufacturer and distributor of snack foods and frozen beverages in the United States. Founded in 1971, the company operates primarily in the food products sector, catering to various markets including retail, food service, and vending. JJSF's core product offerings include pretzels, pastries, ice cream products, and frozen beverages, which are marketed under well-known brands such as SuperPretzel, Luigi's, and ICEE. The company serves a diverse customer base, including convenience stores, restaurants, and amusement parks, positioning itself as a key player in the snack food industry.

How the Company Makes Money

J & J Snack Foods generates revenue through multiple key streams, primarily by selling its various snack food products to a wide array of customers across different channels. The company operates through two main segments: the Food Service segment and the Retail segment. In the Food Service segment, JJSF distributes products to restaurants, convenience stores, and vending operators, while the Retail segment focuses on selling directly to grocery and retail outlets. Significant revenue is derived from partnerships with major retailers and food service operators, enabling JJSF to secure shelf space and distribution agreements. Additionally, the company benefits from brand recognition and consumer loyalty, which help drive sales volume. The diverse product line and strategic marketing efforts also contribute to its earnings, allowing JJSF to adapt to changing consumer preferences and trends in the snack food market.

J & J Snack Foods Financial Statement Overview

Summary

J & J Snack Foods shows solid financial performance with consistent revenue growth and a strong balance sheet. However, there are slight declines in profitability margins, with net profit margin decreasing from 5.5% to 4.8% and free cash flow decreasing by 16.2% in TTM. Despite these challenges, the company maintains effective cash generation and conservative leverage.

Income Statement

J & J Snack Foods has shown a consistent increase in total revenue over the years, with a revenue growth rate of approximately 1% in TTM (Trailing-Twelve-Months) compared to the previous year. The gross profit margin is solid at about 29.8% for TTM, indicating efficient cost management. However, the net profit margin has decreased from 5.5% in 2024 to 4.8% in TTM, highlighting a slight decline in profitability. EBIT and EBITDA margins have also seen a slight decrease, suggesting pressure on operating profitability.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.18 in TTM, indicating conservative leverage and financial stability. The equity ratio remains strong at around 68.9%, showcasing a robust asset base backed by equity. Return on equity (ROE) has decreased slightly to 8.1% in TTM from 9% in the previous year, reflecting a modest decline in profitability relative to equity.

Cash Flow

Cash flow from operations has remained relatively stable, supporting the company's liquidity position. The operating cash flow to net income ratio is strong at 2.1 in TTM, indicating effective cash generation relative to earnings. However, free cash flow has decreased by 16.2% in TTM due to increased capital expenditures, which could be a potential concern if it continues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.60B	1.57B	1.56B	1.38B	1.14B	1.02B
Gross Profit	475.18M	486.13M	469.87M	369.64M	298.93M	238.43M
EBITDA	188.40M	191.37M	174.34M	119.03M	121.88M	74.58M
Net Income	83.86M	86.55M	78.91M	47.23M	55.61M	18.30M
Balance Sheet
Total Assets	1.41B	1.37B	1.28B	1.22B	1.12B	1.06B
Cash, Cash Equivalents and Short-Term Investments	77.38M	73.39M	49.58M	39.19M	291.17M	246.96M
Total Debt	167.19M	160.50M	121.91M	111.56M	60.53M	61.58M
Total Liabilities	444.00M	408.13M	365.72M	353.80M	276.56M	247.06M
Stockholders Equity	969.92M	956.97M	911.52M	863.17M	845.65M	809.50M
Cash Flow
Free Cash Flow	66.56M	99.50M	67.54M	-61.23M	47.92M	34.33M
Operating Cash Flow	145.02M	173.07M	172.28M	26.06M	101.50M	92.14M
Investing Cash Flow	-63.20M	-77.67M	-93.24M	-296.17M	9.94M	-44.46M
Financing Cash Flow	-67.86M	-68.37M	-66.84M	22.22M	-24.67M	-43.46M

J & J Snack Foods Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 111.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JJSF, the sentiment is Negative. The current price of 111.29 is below the 20-day moving average (MA) of 114.10, below the 50-day MA of 114.85, and below the 200-day MA of 133.35, indicating a bearish trend. The MACD of -1.17 indicates Positive momentum. The RSI at 45.06 is Neutral, neither overbought nor oversold. The STOCH value of 28.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JJSF.

J & J Snack Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMPL	75 Outperform	$2.92B	20.31	8.22%	―	14.22%	-1.81%
FLO	68 Neutral	$3.50B	15.42	15.61%	6.17%	-0.61%	70.09%
Sector *	63 Neutral	$20.97B	14.57	-8.07%	3.14%	2.79%	-9.97%
JJSF	61 Neutral	$2.20B	26.28	8.79%	2.80%	0.50%	-4.46%
NOMD	61 Neutral	$2.30B	10.20	7.88%	4.39%	0.87%	8.59%
UTZ	61 Neutral	$1.87B	64.33	2.56%	2.04%	-0.09%	316.21%
KLG	57 Neutral	$1.99B	55.15	10.87%	2.82%	-4.30%	-69.47%

J & J Snack Foods Corporate Events

J & J Snack Foods Launches New Deferred Compensation Plan

J & J Snack Foods Corp. introduces a new Non-Qualified Deferred Compensation Plan (DCP) for management, directors, and contractors, effective January 2025. Participants can defer portions of their salary, bonuses, and commissions into notional investments, with the option to choose payment in lump sums or installments after separation from service. While the DCP offers investment flexibility, it remains an unfunded and unsecured plan, ensuring participants are general creditors of the company.

J & J Snack Foods Appoints New CFO Shawn Munsell

J & J Snack Foods Corp. has appointed Shawn Munsell as the new Senior Vice President and Chief Financial Officer, effective December 2, 2024, following the retirement of Ken Plunk. With a robust financial background including leadership roles at Calavo Growers and Tyson Foods, Munsell will oversee the company’s financial operations. His compensation package includes a $500,000 base salary, a 75% target bonus, and a $50,000 sign-on bonus, alongside long-term incentives.