J&J Snack Foods manufactures, markets, and distributes various nutritional snack foods and beverages for the food-service and retail supermarket industries in the United States, Mexico, and Canada. The company was founded in 1971 and is based in Pennsauken, New Jersey.
JJSF Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for JJSF, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that J&J Snack Foods Corp ranked in the 13th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of J&J Snack Foods Corp, consider:
The compound growth rate in the free cash flow of J&J Snack Foods Corp over the past 5.68 years is -0.04%; that's better than merely 16.82% of cash flow producing equities in the Consumer Defensive sector, where it is classified.
The business' balance sheet reveals debt to be 3% of the company's capital (with equity being the remaining amount). Approximately just 9.98% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
JJSF'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 48.15% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
LRN, IBA, MTEX, UTI, and ATGE can be thought of as valuation peers to JJSF, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
This market seems to have no shortage of overvalued stocks. Particularly in tech, valuations have reached levels not seen since the dot-com bubble.Of course, many of those same stocks have been called overvalued for some time -- and have continued to rally. It's important to remember that high multiples relative to earnings or profits (for those companies that even are profitable) don't alone suggest a stretched valuation.Investors received another reminder of that fact this week. Zoom Video Communications (NASDAQ:ZM) came into its fiscal second quarter earnings report valued, incredibly, at over 100x trailing twelve-month revenue. Zoom promptly crushed analyst estimates, just as it did with Q1 results. With revenue rising 355% year-over-year, the multiple compressed in a hurry....
Nationally recognized SUPERPRETZEL® Soft Pretzel brand is expanding its snack offerings, as it was announced today that J&J; Snack Foods Corp. (NASDAQ: JJSF) is introducing SUPERPRETZEL® Filled Soft Pretzel Bites. Available in three top-selling cheese flavors – Mozzarella, Pepper Jack and Pub Cheese – this microwaveable snack is ready to enjoy in seconds! SUPERPRETZEL® Filled Soft Pretzel Bites are packed with 7 grams of protein per serving, and baked not fried, making these the easy choice versus other frozen snack offerings. This introduction comes at the perfect time, as SUPERPRETZEL® Filled Soft Pretzel Bites offer consumers' favorite delicious moments of eating soft pretzels and cheese at the ballpark or movie theatres – now enjoyed in the comfort of their own home!
J & J Snack Foods Corp. (JJSF) Q3 2020 Results Earnings Conference Call July 28, 2020, 10:00 AM ET Company Participants Gerald Shreiber - Chairman and Chief Executive Officer Deb Kane - Director of Food Service Safety and Quality Assurance Dennis Moore - Chief Financial Officer Dan Fachner - President...