$120.09
arrow_drop_up5.72%Is SJM a Buy or Sell based on AI Analysis?
Fundamental Analysis
The JM Smucker Co (SJM) has a strong market value score of 44, indicating solid performance in terms of market metrics. The company's market ownership score of 37 suggests that there is room for improvement in terms of market ownership. Furthermore, the company's market growth score of 42 highlights a moderate growth potential in the market. With a dividend yield of 3.46%, investors can expect a steady income stream from the company. Additionally, the company's peg ratio of 1.56 indicates that the stock may be undervalued relative to its expected earnings growth. In terms of financial health, JM Smucker Co has a current ratio of 0.78, which may raise concerns about its ability to meet short-term obligations. The company's quick ratio of 0.38 is also below the ideal ratio of 1, further indicating potential liquidity issues. With a debt-to-equity ratio of 1.16, the company's reliance on debt to finance its operations may pose a risk to its financial stability. However, the company's free cash flow margin of 8.41% suggests that it is efficiently generating cash from its operations. Overall, investors may want to closely monitor the company's liquidity and debt levels to assess its financial health.
Positive Development
Smucker's Q3 earnings and revenues beat estimates, indicating strong financial performance and potential for future growth. The company's pricier products continue to perform well, with growth in the pet food business and overall sales volume. The company's gross margin and operating margin are relatively high, indicating strong profitability. Smucker's stock price has been relatively stable, with some fluctuations but no significant downward trend.
Negative Development
Despite the positive earnings report, Smucker's stock price has seen a slight decrease in the past week. The company's net margin is relatively low, indicating that it may be challenging to generate profits. Smucker's total debt to equity ratio is high, which could potentially impact its ability to generate profits and increase its stock price. The company's inventory turnover is relatively low, which could indicate inefficiencies in its supply chain and potential cash flow problems.
Technical Analysis
Based on the technical analysis of JM Smucker Co-The (SJM), the company currently has a "NEUTRAL" technical rating. The stock has a beta of 0.21, indicating low volatility compared to the overall market. The stock's price has experienced a decline of -2.93% in the last seven days and a -5.61% decrease in the last month. However, the three-month price change percentage shows a positive trend of 8.53%. The stock's average volume is 1.82M, suggesting a moderate level of trading activity. Additionally, the stock has a 52-week high of $159.92 and a 52-week low of $107.33, highlighting the stock's price range over the past year. Furthermore, the technical indicators for SJM point to one buy indicator and seven hold indicators for the current month, including ATR, RSI, MACD, CCI, ADX, WILLR, ROC, and STOCHRSI. The stock's current price discount from its all-time high is 24.62% and 22.79% from its one-year peak, indicating a potential opportunity for investors to enter at a discounted price. The company's stock sector, Consumer Defensive, has seen a 28.55% change in the last year, outperforming the stock market's 8.63% change. Overall, the technical analysis suggests a mixed picture for SJM, with some near-term challenges but also potential for growth and value for investors.
Conclusion and recommendation
Based on the data provided, it is evident that JM Smucker Co (SJM) is a company with a solid financial performance and stable market position. With a dividend yield of 3.46% and a consistent track record of dividend payouts, it is an attractive option for income-seeking investors. Furthermore, the company's price performance over the last five years has seen a significant increase of 18.94%, indicating strong potential for long-term growth. In conclusion, JM Smucker Co stands out as a reliable investment option within the Consumer Defensive sector. Its strong market presence, steady financial performance, and attractive dividend yield make it a favorable choice for investors looking for stable returns. With a neutral analyst recommendation and a diverse range of technical indicators supporting a hold position, investors may consider adding JM Smucker Co to their portfolio for long-term growth and income generation.