J. M. Smucker Co. (SJM) – Will Snacking be better with SJM &Hostess?

J. M. Smucker Co. (SJM) (Q1FY24)

Stock performance: J. M. Smucker’s stock gave returns of -12.9% and -5.2% in the period of three months and one year. The stock has a 52-week high of $163.07 and a 52-week low of $129. The stock gave returns of 16.2% and CAGR of 5.1% over a period of three years. The stock had a 200-Day Moving Average of $151.23 and a 50-Day Moving Average of $146.67.

Quarter Performance: In Q1FY24, net sales decreased 4% to $1.81bn from $1.87bn in Q1FY23, including a 9% favorable impact from Jif peanut butter primarily due to lapping the product recall in the prior year. Excluding noncomparable net sales in the prior year of $374.1mn from the divested pet food brands, as well as $3.8mn of unfavorable foreign currency exchange, net sales increased $310.1mn, or 21%.

Guidance: In FY24, SJM expects net sales to decline by 10% to 11% and the comparable sales is expected to grow by 8.5% to 9.5%. The adj. EPS is expected to be in the range of $9.45 to $9.85 for FY24. The company expects an adj. effective income tax rate of 24% and the capital expenditures to be around $550mn for FY23.

Highlights

The acquisition of Hostess Brands by J. M. Smucker Co. expands its product lineup with iconic snacks, enhances convenience for consumers, and strengthens its financial position. This strategic move aims to provide a wider range of beloved brands and innovative products while boosting long-term growth and shareholder value.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value-Added Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 35

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