JM Smucker (SJM) AI Stock Analysis

• Market Cap: $10.74B
• Dividend Yield: 4.39%
• Average Volume (3M): 1.69M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.17
• Revenue Growth: -0.66%
• EPS Growth: -326.55%
• Country: US
• Employees: 9,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 2.10
• Shares Outstanding: 106,694,330
• 10 Day Avg. Volume: 1,620,999
• 30 Day Avg. Volume: 1,687,316
• PEG Ratio: 0.04
• Price to Book (P/B): 2.03
• Price to Sales (P/S): 1.42
• P/FCF Ratio: 15.15
• Enterprise Value/Market Cap: 1.76
• Enterprise Value/Revenue: 2.16
• Enterprise Value/Gross Profit: 6.41
• Enterprise Value/Ebitda: -100.51
• 1Y Price Target: $117.27
• Price Target Upside: 7.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 9
• Revenue Forecast (FY): $9.06B

• Rating: 49 Neutral
• Price Target: $103.00 ▼(-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 Business Overview & Revenue Model

Company Description

JM Smucker Company (SJM) is a diversified food and beverage company based in the United States, primarily known for its wide range of consumer products. Established in 1897, the company operates through various segments, including U.S. Retail Coffee, U.S. Retail Consumer Foods, International and Away From Home, and Pet Foods. Core products include well-known brands such as Jif, Smucker's, Folgers, and Meow Mix. JM Smucker focuses on delivering high-quality products that cater to the everyday needs of consumers, leveraging its strong brand portfolio to maintain a competitive edge in the market.

How the Company Makes Money

JM 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 Financial Statement Overview

Summary

JM Smucker is facing significant financial challenges, particularly in profitability and cash flow management. The company has experienced a decline in margins and increased leverage, which could impact its financial stability. While revenue growth is strong, the inability to translate this into profitability is concerning. The balance sheet remains relatively stable, but the rising debt levels need careful monitoring. Overall, the financial health of the company is under pressure, requiring strategic adjustments to improve profitability and manage leverage effectively.

Income Statement

The income statement shows a concerning trend with declining profitability. The TTM data reveals negative EBIT and net profit margins, indicating operational challenges. Despite a significant revenue growth rate, the company is struggling with high costs, leading to negative net income. Historical data shows a decline from positive margins in previous years, highlighting a downward trajectory in profitability.

Balance Sheet

The balance sheet reflects a moderate level of financial stability. The debt-to-equity ratio has increased over time, indicating rising leverage, which could pose risks if not managed carefully. The return on equity is negative in the TTM period, reflecting the company's current unprofitability. However, the equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis indicates challenges in maintaining positive cash flow growth. The TTM period shows a decline in free cash flow growth, although the company maintains a reasonable free cash flow to net income ratio. Operating cash flow has decreased, reflecting the company's operational struggles. Historical data shows fluctuations in free cash flow growth, indicating potential volatility.

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

• Technical Analysis Sentiment: Negative
• Last Price: 109.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SJM, the sentiment is Negative. The current price of 109.14 is above the 20-day moving average (MA) of 103.90, above the 50-day MA of 103.91, and above the 200-day MA of 106.55, indicating a bearish trend. The MACD of -1.32 indicates Positive momentum. The RSI at 38.83 is Neutral, neither overbought nor oversold. The STOCH value of 18.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SJM.

JM Smucker Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MKC	73 Outperform	$16.98B	21.90	13.92%	2.83%	1.64%	-1.83%
HRL	68 Neutral	$13.39B	28.02	6.02%	4.91%	1.55%	-40.81%
CAG	64 Neutral	$8.16B	9.62	9.65%	8.18%	-4.11%	72.17%
GIS	64 Neutral	$24.50B	8.70	30.98%	5.30%	-3.26%	25.58%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
CPB	60 Neutral	$8.81B	14.75	15.64%	5.48%	6.40%	6.17%
SJM	49 Neutral	$10.74B	―	-17.44%	4.39%	-0.66%	-326.55%

JM Smucker Corporate Events

J.M. Smucker Co. Reports Mixed Fiscal Q2 Results

The J.M. Smucker Co. is a leading North American food company known for its diverse portfolio of brands, including coffee, peanut butter, and pet foods, operating primarily in the consumer goods sector.

J.M. Smucker’s Mixed Earnings Call: Coffee Shines Amid Challenges

The recent earnings call for J.M. Smucker Company revealed a mixed sentiment among stakeholders. While there were notable positive developments in the coffee segment, free cash flow, and specific brands such as Uncrustables and Milk Bone, these were counterbalanced by challenges including increased tariffs, soft first-quarter earnings, and volume declines in sweet baked snacks. This mixed sentiment reflects the company’s ongoing efforts to navigate both opportunities and obstacles in the current market environment.

J.M. Smucker Reports Q1 Earnings and Raises Sales Outlook

The J.M. Smucker Company, a leading food manufacturer known for its diverse range of brands including Folgers, Jif, and Smucker’s, operates in the food and beverage sector, offering products across North America. In its fiscal 2026 first-quarter earnings report, the company announced a slight decrease in net sales by 1% to $2.1 billion, influenced by recent divestitures. Despite this, the company saw a 2% increase in net sales when excluding these divestitures and foreign currency impacts. Adjusted earnings per share fell by 22% to $1.90, and the company reported a net loss per diluted share of $0.41. Cash flow from operations also saw a significant decline, with cash used for operating activities amounting to $10.6 million, compared to cash provided of $172.9 million in the previous year. The company’s operating income dropped by 87% to $45.6 million, primarily due to increased commodity costs and unfavorable volume/mix. However, the company updated its full-year fiscal 2026 outlook, raising its net sales growth expectations to 3.0% to 5.0%, reflecting confidence in its brand portfolio and strategic initiatives. Looking ahead, J.M. Smucker remains focused on investing in key growth platforms to drive long-term growth and enhance shareholder value, despite the dynamic external environment.