JBSSJohn B. Sanfilippo & Son, Inc.
Is the business good?
The checks split: earnings fully cash-backed (1.9×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
Efficiency-driven, thin margins turned over fast (the retail model). ROE 18% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is JBSS?
John B. Sanfilippo & Son, Inc. earns 15% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 6.3 points above what the capital costs: growth creates value
- Operating margin
- 7.6%
Operating margin · Packaged Foods median 7.6% · 12 months to Q4 2026
- Cash conversion
- 1.86×
Cash conversion · 0.48× a year ago · operating cash flow covers the operating profit after tax
- Gross margin
- 18%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 9.9% |
| FY2022 | 9.2% |
| FY2023 | 9.0% |
| FY2024 | 8.0% |
| FY2025 | 7.6% |
| FY2026 | 7.6% |
Details›
- Gross margin12 months to Q4 2026
- 18%
- Operating margin12 months to Q4 2026
- 7.6%
- Net margin12 months to Q4 2026
- 5.3%
- Free cash flow margin
- 3.0%
- Revenue, trailing twelve months
- $1.18B
- Free cash flow, trailing twelve months
- $36M
- Net income, trailing twelve months
- $62M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 15%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.