Home Sectors Consumer Defensive Buy or Sell: J.M. Smucker Company (NYSE: SJM)

Buy or Sell: J.M. Smucker Company (NYSE: SJM)


J.M. Smucker Company trades as part of the consumer defensive sector and trades as part of the consumer packaged goods industry. The company CEO is Mark T. Smucker. JM Smucker Co operates in the consumer foods industry. It deals with a range of products spanning food, beverage and pet products under brands such as Folgers, Crisco, Milk-Bone, and Kibbles ‘n Bits.

Previous Intraday Trading Performance:

The SJM stock showed a previous change of -0.94% with an open at 119.05 and a close of 118.34. It reached an intraday high of 119.25 and a low of 118.18.

SeekingAlpha:  Credit Suisse warms up to J.M. Smucker


The stock has a market cap of $13.5b with 113.7m shares outstanding, of which the float is 111.6m shares. Trading volume reached 735,234 shares compared to its average volume of 1,297,697 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, J.M. Smucker Company shares returned 0.31% and in the past 30 trading days it returned 15.41%. Over three months, it changed 15.65%. In one year it has changed 0.84% and within that year its 52-week high was 122.11 and its 52-week low was 91.32. SJM stock is 29.59% above its 52 Week Low.

Our calculations show a 200 day moving average of 105.48 and a 50 day moving average of 108.24. Currently SJM stock is trading 12.19% above its 200 day moving average.

SeekingAlpha:  How Safe Is J.M. Smucker’s Dividend?


The last annual fiscal EPS for the company was reported at 11.78 that ended on 30th of April 2018, which according to the previous close, that is a PE of 10.05. Based on 7 analyst estimates, the consensus EPS for the next quarter is 1.81. The TTM EPS is 8.23, which comes to a TTM PE of 14.38. Historically, the PE high was 40.00 and the PE low was 10.05. If the stock reached its PE low, that would represent a price of 82.67, which is a decrease of -30.14%.

The dividend per share is currently 3.33, which is a dividend yield of 2.81%. Also, the payout ratio is 40.46%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 197.90, which means it is possibly undervalued and has a margin of safety of 40.20%

Indicators to Watch:

Based on the latest filings, there is 1.90% of insider ownership and 122.30% of institutional ownership. Short-interest is 6,538,529, which is 5.75% of shares outstanding. The short-interest ratio or days-to-cover ratio is 4.43. This stock has a moderate level of short interest, but may still be a buying opportunity depending on other indicators.

The current calculated beta is 0.56

SeekingAlpha:  How Safe Is J.M. Smucker’s Dividend?

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 7.91%, return on assets is 3.88%, profit margin is 8.15%, price-to-sales is 1.76 and price-to-book is 1.68.

Company Scores:

All scores are out of six:
 4  :Valuation Score
 2  :Past Performance Score
 1  :Financial Strength Score
 1  :Future Growth Score
 5  :Dividend Score
 2  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.