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:
Below please find a table outlining a discounted cash flow forecast for SJM, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that J M SMUCKER Co ranked in the 65th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 123% on a DCF basis. The most interesting components of our discounted cash flow analysis for J M SMUCKER Co ended up being:
The company has produced more trailing twelve month cash flow than 71.85% 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 only 8.76% 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 only 8.76% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
TAP, STZ, PSMT, VGR, and GHC can be thought of as valuation peers to SJM, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
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...