John B Sanfilippo & Son Inc. processes and distributes peanuts and tree nuts in the United States. The company offers raw and processed nuts, including almonds, pecans, peanuts, black walnuts, English walnuts, cashews, macadamia nuts, pistachios, pine nuts, Brazil nuts, and filberts. The company was founded in 1959 and is based in Elgin, Illinois.
JBSS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Sanfilippo John B & Son Inc. To summarize, we found that Sanfilippo John B & Son Inc ranked in the 89th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 1871.83% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for JBSS, they are:
In the past 5.43 years, Sanfilippo John B & Son Inc has a compound free cash flow growth rate of 0.96%; that's better than 95.68% of cash flow producing equities in the Consumer Defensive sector, where it is classified.
The business' balance sheet reveals debt to be 4% of the company's capital (with equity being the remaining amount). Approximately only 11.06% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
JBSS's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 57.56% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Defensive that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as JBSS, try LAUR, SIAF, ACU, SENEA, and BTI.