📊 SJM Key Takeaways
Is J M SMUCKER Co (SJM) a Good Investment?
J.M. Smucker faces severe financial distress with a net loss of $138.7M, critically low liquidity (current ratio 0.78x), and only $58.6M cash against $10.7B liabilities. While operating cash flow of $1.5B and improving YoY metrics suggest operational stabilization, the combination of negative profitability, thin 4% operating margins, and elevated debt burden (1.18x D/E) create significant downside risk. The company requires immediate operational or strategic improvements to restore financial health.
J M Smucker shows decent top-line growth and solid free cash flow generation, but current fundamentals are weighed down by sharply negative operating and net profitability. Weak liquidity, elevated leverage, and negative interest coverage suggest the business has limited balance-sheet flexibility unless margins recover meaningfully.
J M SMUCKER Co Key Strengths (SJM)
- Strong operating cash flow of $1.5B provides debt servicing capability despite net losses
- Positive free cash flow of $1.2B (12.8% FCF margin) demonstrates underlying business cash generation
- Revenue growth of 3.7% YoY and 88.7% improvement in net income YoY suggest stabilization trend
- Revenue grew 6.7% year over year, indicating the business still has demand support
- Operating cash flow of $894.40M and free cash flow of $672.30M provide meaningful internal cash generation
- Gross margin of 32.0% suggests the core product portfolio still retains underlying pricing power and gross profitability
SJM Stock Risks: J M SMUCKER Co Investment Risks
- Critical liquidity crisis: current ratio of 0.78x and quick ratio of 0.33x indicate inability to cover short-term obligations
- Company currently unprofitable with $138.7M net loss and negative ROE (-2.5%) and ROA (-0.9%)
- Elevated debt burden of $6.5B with dangerously low cash position of $58.6M limits financial flexibility and increases bankruptcy risk
- Operating margin of -1.2% and net margin of -7.8% indicate serious earnings pressure
- Current ratio of 0.84x and quick ratio of 0.35x point to weak short-term liquidity
- Debt/equity of 1.31x and negative interest coverage raise concern about leverage sustainability if earnings stay depressed
Key Metrics to Watch
- Net profitability trend - critical to reach positive net income to restore financial stability
- Liquidity metrics and cash position - monitor if current ratio can recover above 1.0x and cash reserves increase
- Operating margin expansion - current 4% margin is unsustainable; target should be 8%+ for industry sustainability
- Operating margin recovery and interest coverage improvement
- Free cash flow consistency alongside debt reduction
J M SMUCKER Co (SJM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
SJM Profit Margin, ROE & Profitability Analysis
SJM vs Market Sector: How J M SMUCKER Co Compares
How J M SMUCKER Co compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is J M SMUCKER Co Stock Overvalued? SJM Valuation Analysis 2026
Based on fundamental analysis, J M SMUCKER Co shows some fundamental concerns relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
J M SMUCKER Co Balance Sheet: SJM Debt, Cash & Liquidity
SJM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: J M SMUCKER Co's revenue has grown significantly by 13% over the 5-year period, indicating strong business expansion. The most recent EPS of $7.13 reflects profitable operations.
SJM Revenue Growth, EPS Growth & YoY Performance
SJM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $2.2B | -$24.5M | $-4.72 |
| Q2 2026 | $2.3B | -$24.5M | $-0.23 |
| Q1 2026 | $2.1B | -$43.9M | $-0.41 |
| Q3 2025 | $2.2B | -$24.5M | $1.13 |
| Q2 2025 | $1.9B | -$24.5M | $-0.23 |
| Q1 2025 | $1.8B | $183.6M | $1.74 |
| Q3 2024 | $2.2B | $109.8M | $1.13 |
| Q2 2024 | $1.9B | $109.8M | $1.79 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
J M SMUCKER Co Dividends, Buybacks & Capital Allocation
SJM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for J M SMUCKER Co (CIK: 0000091419)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SJM
What is the AI rating for SJM?
J M SMUCKER Co (SJM) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are SJM's key strengths?
Claude: Strong operating cash flow of $1.5B provides debt servicing capability despite net losses. Positive free cash flow of $1.2B (12.8% FCF margin) demonstrates underlying business cash generation. ChatGPT: Revenue grew 6.7% year over year, indicating the business still has demand support. Operating cash flow of $894.40M and free cash flow of $672.30M provide meaningful internal cash generation.
What are the risks of investing in SJM?
Claude: Critical liquidity crisis: current ratio of 0.78x and quick ratio of 0.33x indicate inability to cover short-term obligations. Company currently unprofitable with $138.7M net loss and negative ROE (-2.5%) and ROA (-0.9%). ChatGPT: Operating margin of -1.2% and net margin of -7.8% indicate serious earnings pressure. Current ratio of 0.84x and quick ratio of 0.35x point to weak short-term liquidity.
What is SJM's revenue and growth?
J M SMUCKER Co reported revenue of $9.1B.
Does SJM pay dividends?
J M SMUCKER Co pays dividends, with $464.7M distributed to shareholders in the trailing twelve months.
Where can I find SJM SEC filings?
Official SEC filings for J M SMUCKER Co (CIK: 0000091419) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SJM's EPS?
J M SMUCKER Co has a diluted EPS of $-1.30.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is SJM's fundamental grade?
Based on our AI fundamental analysis in June 2026, J M SMUCKER Co has a C grade with 74% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is SJM stock overvalued or undervalued?
Valuation metrics for SJM: ROE of -2.5% (sector avg: 15%), net margin of -1.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is SJM's AI grade for 2026?
Our dual AI analysis gives J M SMUCKER Co a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SJM's free cash flow?
J M SMUCKER Co's operating cash flow is $1.5B, with capital expenditures of $317.4M. FCF margin is 12.8%.
How does SJM compare to other Market stocks?
Vs Default sector averages: Net margin -1.5% (avg: 12%), ROE -2.5% (avg: 15%), current ratio 0.78 (avg: 1.8).