One-glance verdict
Undervalued
$171.14 our estimate vs market $116.49
Wall Street consensus: $121.59 (-29.0% lower than our fair-value estimate)
Fundamentals snapshot
The J. M. Smucker Company
SJM · NYQ · Consumer Defensive · Packaged Foods
Current price
$116.49
52-week range
$88.25 - $119.39
Market cap
$12.42B
Balance sheet
Stretched
4.26x 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 73.4% 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'd find in a grocery store, including Folgers coffee, Jif peanut butter, and Milk-Bone dog treats. Most of its money comes from selling coffee, pet food, and consumer foods like its iconic jams and Uncrustables frozen sandwiches. Because people buy these household staples over and over, the company generates consistent sales that are less likely to be affected by economic ups and downs.
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. The company grew over the next century by adding more fruit spreads and jellies to its lineup. A major shift happened in the 2000s when it began buying other well-known food companies, including Jif peanut butter and Crisco in 2002, Folgers coffee in 2008, and Big Heart Pet Brands in 2015. More recently, the company acquired Hostess Brands in 2023, adding iconic snack cakes like Twinkies to its portfolio. These acquisitions transformed Smucker from a jam and jelly maker into a much larger company with a diverse portfolio of recognizable household brands.
What it actually does
The J. M. Smucker Company makes and sells a wide variety of food and beverage products that you likely see in your local grocery store. Its products range from the coffee you might drink in the morning to the peanut butter and jelly for sandwiches, and even snacks for your pets. Many of its brands are household names in the United States and Canada, such as Folgers, Jif, Smucker's, and Milk-Bone. The company sells these items to various retailers, including supermarkets, club stores, and online sellers, making them widely available to shoppers.
U.S. Retail Coffee
This is one of the company's largest segments, responsible for a significant portion of its sales. It includes popular coffee brands that many people brew at home, such as Folgers, Dunkin', and Café Bustelo. The company makes money by selling packaged coffee, whether it's ground, in K-Cup pods, or in instant form, to retail stores across the country. This part of the business benefits from the daily coffee-drinking habits of millions of consumers.
U.S. Retail Consumer Foods
This segment features some of the company's most iconic and long-standing brands. It includes Jif peanut butter, Smucker's fruit spreads, and the popular Smucker's Uncrustables frozen sandwiches. This part of the business earns money by selling these pantry staples to grocery shoppers. The growth in this area is often driven by the convenience of products like Uncrustables, which have become a nearly billion-dollar brand for the company.
U.S. Retail Pet Foods
This division focuses on food and snacks for pets, a market the company entered in a big way with the acquisition of Big Heart Pet Brands. Key brands in this segment include Milk-Bone dog snacks and Meow Mix cat food. The company makes money by selling these products to pet owners who are increasingly willing to spend more on their animal companions. This segment is an important part of the company's strategy to be in high-growth areas.
Sweet Baked Snacks
This is the newest major business for the company, created after it purchased Hostess Brands. This segment includes well-known snack cakes like Twinkies, CupCakes, and Ding Dongs. By adding these popular treats, the company now has a strong presence in the sweet baked goods aisle of the grocery store. This acquisition is a key part of the company's plan to expand its offerings in the snacking category.
What management is betting on now
The company's leadership is focused on growing its key brands, particularly in the areas of coffee, snacking, and pet food. A major priority is the continued expansion of the Uncrustables brand, with a goal of making it a billion-dollar business. They are also working to successfully integrate the recently acquired Hostess Brands to strengthen their position in the sweet snacks market. Management has also stated its commitment to improving profitability (the ability to make a profit from its sales) and maintaining a disciplined approach to how it spends its money.
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
—
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 $171.14 vs current price $116.49
Wall Street consensus is the average analyst price target: $121.59 (-29.0% lower than our fair-value estimate).
Our most-likely fair value is $171.14 a share — about 46.9% above today's price of $116.49, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $7.1B. Interest coverage 4.3x.
Net debt
$7.07B
Interest coverage
4.26x
The J. M. Smucker Company's profit covers its interest bill about 4.3 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
SJM
BASELINE
The J. M. Smucker Company
Total debt $7.13B Interest coverage 4.26x This is the baseline the peer rows are being compared against.
Total debt $0.00 Interest coverage 5.99x +41% vs SJM Carries about 1.4x more debt cushion than SJM.
Total debt $7.33B Interest coverage 3.50x -18% vs SJM Carries about 1.2x less debt cushion than SJM.
Total debt $250.00M Interest coverage 11.47x +169% vs SJM Carries about 2.7x more debt cushion than SJM.
Total debt $7.34B Interest coverage 3.92x -8% 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 73.4% 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)
—
Forward P/E
10.87x
P/B
2.37x
P/S
1.37x
EV/EBITDA
10.12x
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
-11.79
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
2026-05-15