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J.M. Smucker Company (SJM)
NYSE:SJM
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JM Smucker
(NYSE:SJM)
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Rating:49Neutral
Price Target:
$103.00
â–¼(-5.63% Downside)
JM Smucker's overall stock score reflects significant financial challenges, including declining profitability and high leverage, which weigh heavily on the score. Technical indicators suggest bearish momentum, further impacting the score. While the earnings call provided some positive insights, particularly in growth segments, valuation concerns persist due to negative earnings. The company's strategic focus on debt reduction and growth in key segments offers some optimism, but substantial risks remain.
Positive Factors
Brand Portfolio Strength
JM Smucker's strong brand portfolio provides a competitive edge, ensuring customer loyalty and stable demand across diverse segments.
Debt Reduction Strategy
A focused debt reduction strategy enhances financial stability and flexibility, positioning the company for long-term growth and investment.
Uncrustables Brand Growth
Continued growth of the Uncrustables brand reflects successful innovation and market demand, contributing significantly to revenue expansion.
Negative Factors
High Leverage
Rising leverage poses financial risks, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns.
Profitability Challenges
Declining profitability and negative margins indicate operational inefficiencies, which could hinder long-term financial performance and competitiveness.
Coffee Tariff Impact
Ongoing tariff impacts on the coffee segment increase costs, affecting profitability and potentially leading to higher consumer prices.
JM Smucker (SJM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.94B
Dividend Yield4.45%
Average Volume (3M)1.37M
Price to Earnings (P/E)―
Beta (1Y)0.17
Revenue Growth-0.66%
EPS Growth-326.55%
CountryUS
Employees9,000
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)2.10
Shares Outstanding106,694,330
10 Day Avg. Volume1,384,025
30 Day Avg. Volume1,372,068
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)2.03
Price to Sales (P/S)1.42
P/FCF Ratio15.15
Enterprise Value/Market Cap1.73
Enterprise Value/Revenue2.16
Enterprise Value/Gross Profit6.39
Enterprise Value/Ebitda-100.34
Forecast
1Y Price Target
$116.10Price Target Upside6.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
JM Smucker Business Overview & Revenue Model
Company DescriptionThe J. M. Smucker Company manufactures and markets branded food and beverage products worldwide. It operates in three segments: U.S. Retail Pet Foods, U.S. Retail Coffee, and U.S. Retail Consumer Foods. The company offers mainstream roast, ground, single serve, and premium coffee; peanut butter and specialty spreads; fruit spreads, shortening and oils, and frozen sandwiches and snacks; pet food and pet snacks; and foodservice hot beverage, foodservice portion control, and flour products, as well as dog and cat food, frozen handheld products, juices and beverages, and baking mixes and ingredients. It provides its products under the Meow Mix, 9Lives, Kibbles 'n Bits, Milk-Bone, Pup-Peroni, Rachael Ray Nutrish and Nature's Recipe, Folgers, Café Bustelo, Dunkin', Folgers, Café Bustelo, 1850, Jif, Smucker's, Smucker's Uncrustables, Robin Hood, and Five Roses. The company sells its products through direct sales and brokers to food retailers, club stores, discount and dollar stores, online retailers, pet specialty stores, natural foods stores and distributors, drug stores, military commissaries, and mass merchandisers. Smucker Company was founded in 1897 and is headquartered in Orrville, Ohio.
How the Company Makes MoneyJM Smucker generates revenue through the sale of its diverse product offerings across several key segments. The U.S. Retail Coffee segment is a significant contributor, with brands like Folgers and Dunkin' driving sales through both retail channels and direct-to-consumer platforms. The U.S. Retail Consumer Foods segment, which includes products like jams, jellies, and peanut butter, also represents a substantial revenue stream. Additionally, the company's Pet Foods segment, featuring brands such as Meow Mix and Rachael Ray Nutrish, has seen growth due to increasing consumer spending on pet care. JM Smucker's revenue model is further bolstered by strategic partnerships with retailers, effective marketing campaigns, and a focus on innovation and product development. Seasonal promotions and new product introductions also play a critical role in driving sales, while the company's international operations provide additional revenue opportunities in global markets.
JM Smucker Key Performance Indicators (KPIs)
Any
Revenue by Product
Details revenue generated from individual products, offering insight into consumer preferences and product performance within the market.
Details revenue generated from individual products, offering insight into consumer preferences and product performance within the market.
Data provided by:
The Fly
The FlyJM Smucker Earnings Call Summary
Earnings Call Date:Nov 25, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 03, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted positive momentum in key segments such as Sweet Baked Snacks, Pet, and Uncrustables, with expectations for continued growth. However, challenges remain with coffee tariffs, profitability in Sweet Baked Snacks, and pressures in the spreads and Dunkin' segments. Despite these challenges, the company is committed to debt reduction and long-term growth strategies.Q2-2026 Updates
Positive Updates
Sweet Baked Snacks Segment Performance
Organic sales in Sweet Baked Snacks performed better than expected, with improved performance in the c-store and increased volume shares. The SKU rationalization plan led to a strong flowback into core brands, along with a successful relaunch of SuzyQs.
Pet Segment Growth Expectations
The Milk Bone brand is expected to return to growth, supported by marketing campaigns and innovation. The pet segment is projected to achieve low single-digit growth in the third and fourth quarters.
Uncrustables Brand Growth
Uncrustables demonstrated 7% growth in Q2 and is on track to become a billion-dollar brand by the end of the fiscal year. Innovations such as new flavors and higher protein items are contributing to growth.
Coffee Segment Resilience
Coffee segment showed elasticity improvements, with a current outlook of 16% year-over-year growth, driven by 22% pricing offset by 6% volume mix decline. The tariff environment is expected to be a tailwind in fiscal 2027.
Debt Reduction Commitment
The company is committed to $975 million of free cash flow generation, supporting a half-billion dollars of debt paydown in fiscal 2026, with further reductions planned for fiscal 2027.
Negative Updates
Coffee Tariff Impact
The $0.50 tariff impact, primarily related to green coffee, continues to be a headwind in fiscal 2026, with $75 million of tariff-related costs expected in the third quarter.
Sweet Baked Snacks Profitability
While Sweet Baked Snacks exceeded top-line expectations, it did not meet profit expectations for Q2. The shortfall was attributed to the transition of the bakery network and additional supply chain costs.
Spreads and Frozen Handheld Sales Decline
Reduced net sales expectations for frozen handheld and spreads, particularly peanut butter, are expected to continue impacting performance for the balance of the year.
Dunkin' Brand Pressure
The Dunkin' coffee brand faced competitive pricing pressures and did not perform as well as other brands in the portfolio.
Company Guidance
During The J. M. Smucker Company's Fiscal 2026 Second Quarter Earnings Call, key guidance metrics were discussed, reflecting both current performance and future expectations. The company reported sequential improvements in their Sweet Baked Snacks segment, with organic sales surpassing Street expectations, driven by SKU rationalization and brand investments. Coffee segment performance was highlighted, with a significant $0.50 tariff impact affecting FY 2026, predominantly linked to green coffee, but anticipated as a tailwind for FY 2027. The coffee portfolio is expected to grow by 16% year-over-year, supported by a 22% price increase, although volume/mix is down by 6%. In terms of marketing, expenditures are projected to rise, maintaining at 5.5% of net sales. The Uncrustables brand continues to show robust growth, aiming for a billion-dollar valuation by year-end, despite a temporary volume decline attributed to strong prior year comparisons. The company remains committed to its strategic objectives, with plans for significant debt reduction, targeting a net debt to EBITDA ratio of three times by 2027, supported by $975 million in free cash flow generation this fiscal year.JM Smucker Financial Statement Overview
Summary
JM Smucker faces significant financial challenges, with declining profitability and increasing leverage. While revenue growth is strong, operational inefficiencies and high debt levels pose risks. The company needs to address its profitability issues and manage its debt to improve its financial health.Income Statement
The income statement shows significant challenges with negative net income and declining margins in the TTM period. The gross profit margin has decreased from previous periods, and the net profit margin is negative, indicating profitability issues. Revenue growth is strong, but the negative EBIT and EBITDA margins suggest operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet reflects a high debt-to-equity ratio, which has increased over time, indicating rising leverage and potential financial risk. The return on equity is negative in the TTM period, highlighting profitability challenges. However, the equity ratio remains stable, suggesting a balanced asset structure.55
Neutral
Cash Flow
Cash flow analysis reveals a decline in free cash flow growth, although the free cash flow to net income ratio remains positive, indicating some ability to generate cash relative to earnings. The operating cash flow to net income ratio is moderate, reflecting operational cash generation despite net losses.50
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.73B | 8.18B | 8.53B | 8.00B | 8.00B |
| Gross Profit | 3.38B | 3.12B | 2.80B | 2.70B | 3.14B |
| EBITDA | -155.60M | 1.69B | 573.80M | 1.46B | 1.80B |
| Net Income | -1.23B | 744.00M | -91.30M | 631.70M | 876.30M |
Balance Sheet | |||||
| Total Assets | 17.56B | 20.27B | 14.99B | 16.05B | 16.28B |
| Cash, Cash Equivalents and Short-Term Investments | 69.90M | 62.00M | 1.14B | 169.90M | 334.30M |
| Total Debt | 7.76B | 8.55B | 4.42B | 4.61B | 4.91B |
| Total Liabilities | 11.48B | 12.58B | 7.70B | 7.91B | 8.16B |
| Stockholders Equity | 6.08B | 7.69B | 7.29B | 8.14B | 8.12B |
Cash Flow | |||||
| Free Cash Flow | 816.60M | 642.90M | 717.00M | 718.80M | 1.26B |
| Operating Cash Flow | 1.21B | 1.23B | 1.19B | 1.14B | 1.56B |
| Investing Cash Flow | -100.30M | -3.96B | 262.60M | -355.50M | 311.10M |
| Financing Cash Flow | -1.10B | 2.14B | -964.60M | -944.50M | -1.94B |
JM Smucker Technical Analysis
Positive
109.14
Price Trends
101.53
Positive
103.48
Negative
105.07
Negative
Market Momentum
0.67
Negative
55.41
Neutral
59.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SJM, the sentiment is Positive. The current price of 109.14 is above the 20-day moving average (MA) of 99.91, above the 50-day MA of 101.53, and above the 200-day MA of 105.07, indicating a neutral trend. The MACD of 0.67 indicates Negative momentum. The RSI at 55.41 is Neutral, neither overbought nor oversold. The STOCH value of 59.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SJM.
JM Smucker Risk Analysis
JM Smucker disclosed 31 risk factors in its most recent earnings report. JM Smucker 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
JM Smucker Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $13.53B | 28.32 | 6.02% | 4.82% | 1.55% | -40.81% | |
66 Neutral | $23.78B | 9.62 | 27.29% | 5.19% | -5.65% | 0.41% | |
65 Neutral | $16.31B | 20.75 | 14.32% | 2.61% | 1.64% | -1.83% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | $7.99B | 13.86 | 14.82% | 5.64% | 2.71% | 4.90% | |
52 Neutral | $8.37B | -85.03 | -1.16% | 7.87% | -5.82% | -119.70% | |
49 Neutral | $10.94B | -9.13 | -17.44% | 4.45% | -0.66% | -326.55% |
* Consumer Defensive Sector Average
SJM
JM Smucker
102.53
-0.56
-0.55%
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HRL
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.