SJM Intrinsic Value Calculation – J. M. SMUCKER Reports Q1 FY2024 Earnings Results on July 31, 2023
September 6, 2023
🌥️Earnings Overview
On July 31, 2023, J. M. Smucker ($NYSE:SJM) reported their earnings results for the first quarter of the fiscal year 2024, ending August 29, 2023. The company had total revenue of USD 1805.2 million, a decrease of 3.6% from the year before. However, net income reported was USD 183.6 million, an increase of 67.2% compared to the same period in the previous year.
Share Price
On Tuesday, July 31, 2023, J. M. Smucker reported their first-quarter fiscal year 2024 earnings results. The stock opened at $145.8 and closed at $145.9, an increase of 2.1% from the previous day’s closing price of 142.9. Overall, J. M. Smucker reported solid earnings results for their first quarter of fiscal year 2024, showing growth in both revenue and net income year-over-year. The company’s stock rose by 2.1%, and the company stands well-positioned for continued success in the upcoming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for SJM. More…
| Total Revenues | Net Income | Net Margin |
| 8.46k | -17.3 | 7.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for SJM. More…
| Operations | Investing | Financing |
| 1.45k | 175.8 | -1.54k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for SJM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 14.71k | 7.71k | 68.59 |
Key Ratios Snapshot
Some of the financial key ratios for SJM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.9% | -2.1% | 2.8% |
| FCF Margin | ROE | ROA |
| 10.8% | 2.0% | 1.0% |
Analysis – SJM Intrinsic Value Calculation
At GoodWhale, we recently conducted an analysis of the fundamentals of J. M. Smucker Co. (SJM). Our proprietary Valuation Line estimated the intrinsic value per share of SJM to be approximately $144.3. From our analysis, it appears that investors should consider buying SJM at the current price, as it offers a fair value relative to its intrinsic value. More…
Peers
The company has a strong track record of delivering shareholder value through a combination of organic growth and strategic acquisitions. Smucker’s is a well-run company with a clear strategy for growth. Smucker’s competes in a number of food categories, some of which are more competitive than others. In the fruit spreads category, Smucker’s faces stiff competition from Hormel Foods Corp, Bell Food Group Ltd, and Fruitas Holdings Inc. Each of these companies has its own strengths and weaknesses, and Smucker’s must compete against them on a number of fronts. In order to continue growing, Smucker’s must continue to innovate and differentiate its products from those of its competitors. The company must also continue to focus on execution, delivering consistent quality and value to its customers.
– Hormel Foods Corp ($NYSE:HRL)
Hormel Foods Corporation is an American food company based in Austin, Minnesota. The company was founded in 1891 by George A. Hormel as a manufacturer of ham and other pork products. Hormel Foods Corporation is now a publicly traded company on the New York Stock Exchange, and it is included in the S&P 500 index. The company employs over 20,000 people worldwide.
Hormel Foods Corporation has a market capitalization of $24.52 billion as of 2022. The company’s return on equity is 11.34%. Hormel Foods Corporation is a food company that manufactures and markets a variety of meat and food products. The company’s products include ham, bacon, sausage, turkey, chicken, chili, and Spam. Hormel Foods Corporation also manufactures and markets a variety of other food products, including shelf-stable foods, dairy products, and other meat products.
– Bell Food Group Ltd ($LTS:0RFX)
The company’s market cap is $1.43 billion, and its ROE is 7.15%. The company is a leading international food group, with operations in over 40 countries and employing more than 80,000 people. The company’s brands include Dolmio, Nando’s, Weetabix, and Ovaltine. The company has a strong focus on healthy eating and sustainability, and has been named one of the world’s most ethical companies by the Ethisphere Institute.
– Fruitas Holdings Inc ($PSE:FRUIT)
Fruitas Holdings Inc is a publicly traded company with a market capitalization of $2.13 billion as of 2022. The company’s return on equity, a measure of profitability, is 2.5%. Fruitas Holdings is engaged in the business of operating fruit and vegetable stalls in the Philippines. The company has a network of over 1,000 stores nationwide.
Summary
Investors in J. M. SMUCKER can be pleased with the company’s earnings results for the first quarter of FY2024. Revenue was down 3.6% from the same period last year, but net income rose an impressive 67.2%. This suggests that the company is able to maintain its profits even in a challenging market. Overall, J. M. SMUCKER looks like an attractive investment opportunity for long-term investors.
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