SJMJ.M. Smucker Company (The)
Is the business good?
A genuinely good business: earnings fully cash-backed (4.3×) and margins widening.
Operating profit is fully backed by cash.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is SJM?
J.M. Smucker Company (The) earns 5.2% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 3.8 points below what the capital costs: growth destroys value
- Operating margin
- 9.0%
Operating margin · Packaged Foods median 7.6% · 12 months to Q1 2027
- Cash conversion
- 4.25×
Cash conversion · operating cash flow covers the operating profit after tax
- Gross margin
- 39%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 17% |
| FY2022 | 13% |
| FY2023 | 1.8% |
| FY2024 | 16% |
| FY2025 | −7.7% |
| FY2026 | 4.0% |
Details›
- Gross margin12 months to Q1 2027
- 39%
- Operating margin12 months to Q1 2027
- 9.0%
- Net margin12 months to Q1 2027
- 2.5%
- Free cash flow margin
- 17%
- Revenue, trailing twelve months
- $9.16B
- Free cash flow, trailing twelve months
- $1.59B
- Net income, trailing twelve months
- $230M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.2%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Packaged Foods
The closest names by size in the same industry