One-glance verdict
Undervalued
$177.93 our estimate vs market $121.05
Wall Street consensus: $123.94 (-30.3% lower than our fair-value estimate)
32% below our estimate, below the bear case
Fundamentals snapshot
The J. M. Smucker Company
SJM · NYQ · Consumer Defensive · Packaged Foods
Current price
$121.05
52-week range
$88.25 - $121.67
Market cap
$12.94B
Balance sheet
Stretched
3.52x Stretched
Net debt $7.07B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 4.9% last year.
- Reward Free cash flow was positive in 10/10 years.
- Risk Net debt grew 114.3% over 3 years.
- Risk Return on equity was -2.4% last year — the company lost money on shareholders' equity.
What this company does
The J. M. Smucker Company
The J. M. Smucker Company owns many famous food brands you find in grocery stores, including Folgers coffee, Jif peanut butter, Uncrustables sandwiches, and Hostess snacks. It makes most of its money selling these everyday items to U.S. shoppers, which is important because people tend to buy these products regularly, leading to steady and predictable sales for the company. Having such well-known brands helps Smucker compete for customer loyalty and shelf space in a crowded market.
How the company got here
The J. M. Smucker Company started in 1897 when Jerome Monroe Smucker began selling apple butter from the back of a horse-drawn wagon in Ohio. For many decades, it was known for its jams and jellies. The company transformed significantly through major acquisitions (when one company buys another), adding iconic brands like Jif peanut butter, Folgers coffee, and Milk-Bone pet treats to its family. More recently, it expanded into the sweet baked snacks category by purchasing Hostess, the maker of Twinkies and Donettes. This history of buying well-known brands has turned it from a fruit spread company into a diversified portfolio of popular grocery store products.
What it actually does
The J. M. Smucker Company makes and sells a wide variety of branded food that you likely see on your grocery store shelves every day. Its products range from the coffee you might brew in the morning to the peanut butter and jelly for sandwiches at lunch. The company is also a major player in food for pets, offering popular dog and cat treats and food. It even sells convenient, pre-made items like frozen crustless sandwiches and snack cakes for quick meals and treats. Essentially, Smucker focuses on well-known, trusted brands that are staples in many North American households.
U.S. Retail Coffee
This is the company's largest business, making up about a third of its sales. This segment sells coffee that people buy in stores to brew at home. You would recognize its key brands like Folgers, Dunkin' (for at-home brewing, not the coffee shops), and the fast-growing Café Bustelo. The company profits by roasting, packaging, and selling this coffee to retailers across the country. This part of the business is a huge cash generator for the company because so many people drink coffee every day.
U.S. Retail Frozen Handheld and Spreads
This division includes some of the company's most famous and original products, like Smucker's fruit spreads and Jif peanut butter. A major growth driver (a product or service that significantly increases a company's revenue) in this segment is the Uncrustables brand of frozen, crustless sandwiches. This business makes money by selling these pantry staples and convenient frozen snacks to grocery stores and mass retailers. It represents a significant portion of the company's sales, at just over 20%.
U.S. Retail Pet Foods
This segment focuses on food and treats for dogs and cats, making up just under 20% of the company's total sales. Its most recognizable brands are Milk-Bone dog snacks and Meow Mix cat food. The company sells these products to pet owners through grocery stores, pet specialty shops, and online retailers. This business is important because it allows Smucker to compete in the large and growing pet care market, which has different trends than human food.
Sweet Baked Snacks
This is the company's newest major business line, created after it purchased Hostess Brands in late 2023. This segment sells iconic snack cakes and treats like Twinkies, Donettes, and CupCakes. These products are often sold in convenience stores as well as larger grocery retailers. While currently a smaller part of the company, Smucker is focused on growing this business and making its mark in the indulgent snacking category.
Away From Home
This part of the business sells Smucker's products to customers who aren't traditional grocery shoppers buying for their homes. Think of places like restaurants, schools, hospitals, and offices that buy coffee, single-serving jellies, and other items in bulk. This segment provides an additional, smaller stream of revenue (the total amount of money a business takes in from its sales) by getting its well-known brands into places where people eat and drink outside of their houses.
What management is betting on now
The company's leadership is heavily focused on growing its most popular and profitable brands. A top priority is expanding the Uncrustables brand, with the goal of making it a billion-dollar business by increasing production and distribution. They are also investing in their fastest-growing coffee brand, Café Bustelo, and working to successfully integrate the recently acquired Hostess snack cake business. At the same time, the company is focused on paying down the debt it took on to buy Hostess and ensuring it operates efficiently to generate strong free cash flow (cash left after paying operating costs and equipment spending).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$49.20M
FY2025 Q2
$317.20M
FY2025 Q3
$151.30M
FY2025 Q4
$298.90M
FY2026 Q1
$-94.90M
FY2026 Q2
$280.20M
FY2026 Q3
$487.00M
FY2026 Q4
$483.90M
Revenue
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Net income
$388.10M
Diluted EPS
3.64
Operating cash flow
$579.20M
Free cash flow
$483.90M
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Sources
Revenue
—
Net income
$-724.20M
Diluted EPS
-6.79
Operating cash flow
$558.50M
Free cash flow
$487.00M
Fetching…
Sources
Revenue
—
Net income
$241.30M
Diluted EPS
2.26
Operating cash flow
$346.50M
Free cash flow
$280.20M
Fetching…
Sources
Revenue
—
Net income
$-43.90M
Diluted EPS
-0.41
Operating cash flow
$-10.60M
Free cash flow
$-94.90M
Fetching…
Sources
Revenue
—
Net income
$-729.00M
Diluted EPS
-6.86
Operating cash flow
$393.90M
Free cash flow
$298.90M
Fetching…
Sources
Revenue
—
Net income
$-662.30M
Diluted EPS
-6.22
Operating cash flow
$239.40M
Free cash flow
$151.30M
Fetching…
Sources
Revenue
—
Net income
$-24.50M
Diluted EPS
-0.23
Operating cash flow
$404.20M
Free cash flow
$317.20M
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Sources
Revenue
—
Net income
$185.00M
Diluted EPS
1.74
Operating cash flow
$172.90M
Free cash flow
$49.20M
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Sources
Is it cheap or expensive?
Fair value $177.93 vs current price $121.05
Wall Street consensus is the average analyst price target: $123.94 (-30.3% lower than our fair-value estimate).
Our most-likely fair value is $177.93 a share — about 47.0% above today's price of $121.05, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $7.1B. Interest coverage 3.5x.
Net debt
$7.07B
Interest coverage
3.52x
The J. M. Smucker Company's profit covers its interest bill about 3.5 times over.
Stretched
Worse cushion
Baseline
Better cushion
SJM
BASELINE
The J. M. Smucker Company
Total debt $7.13B Interest coverage 3.52x This is the baseline the peer rows are being compared against.
Total debt $0.00 Interest coverage 4.93x +40% vs SJM Carries about 1.4x more debt cushion than SJM.
Total debt $7.48B Interest coverage 3.23x -8% vs SJM Has roughly the same debt cushion as SJM.
Total debt $250.00M Interest coverage 11.47x +226% vs SJM Carries about 3.3x more debt cushion than SJM.
Total debt $7.34B Interest coverage 3.92x +11% vs SJM Has roughly the same debt cushion as SJM.
What you should know
The case for and against SJM
3 Rewards
2 Risks
Rewards
-
Revenue grew 4.9% last year.
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 3.8% with 27-year payout history.
Risks
-
Net debt grew 114.3% over 3 years.
-
Return on equity was -2.4% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
11.31x
P/B
2.33x
P/S
1.43x
EV/EBITDA
10.38x
PEG ratio
2.17x
Profitability
How much profit each dollar creates
Gross margin
34.3%
Operating margin
18.5%
Net margin
-1.5%
ROE
-2.4%
ROA
5.1%
Health
Liquidity and balance-sheet strength
Debt / equity
1.29x
Current ratio
0.78x
Quick ratio
0.28x
Total debt
$7.13B
Total cash
$58.60M
Growth
How the business has been compounding
Revenue TTM
$7.72B
Revenue 5Y CAGR
7.0%
EPS TTM
-1.33
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$1.47B
Free CF TTM
$1.16B
FCF margin
15.0%
Dividend
Shareholder payout
Yield
3.8%
Payout ratio
86.1%
Last ex-div date
2026-08-14