JM Smucker provides various consumer food and beverage products, including coffee, peanut butter, fruit spreads, shortening and oils, baking mixes and ready-to-spread frostings, canned milk, flour and baking ingredients, juices and beverages, frozen sandwiches, toppings, syrups, pickles, condiments, grain products, and nut mix products; and pet products comprising dry and wet dog food, dry and wet cat food, dog snacks, and cat snacks. The company was founded in 1897 and is based in Orrville, Ohio.
SJM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for J M SMUCKER Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that J M SMUCKER Co ranked in the 61th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 86.67%. As for the metrics that stood out in our discounted cash flow analysis of J M SMUCKER Co, consider:
The company has produced more trailing twelve month cash flow than 68.03% of its sector Consumer Defensive.
J M SMUCKER Co's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 8.52% of tickers in our DCF set.
SJM'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 merely 8.52% 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 SJM, try UL, HELE, JBSS, CHEF, and GHC.
J. M. Smucker (SJM): FQ1 Non-GAAP EPS of $2.37 beats by $0.70; GAAP EPS of $2.08 beats by $0.59.Revenue of $1.97B (+10.7% Y/Y) beats by $160M.Gross margin rate of 38.5% vs. consensus of 37.2% and Operating margin rate 20.5% vs. consensus of of 16.5%.Shares +2.7% PM.Press Release...