Smucker's
...and Non-Alcoholic Beverage
Recommendation: BUY
Analysts
Joseph Kern
joseph-kern@uiowa.edu
William Seitz
william-seitz@uiowa.edu
James Terrell
james-terrell@uiowa.edu
Company Overview
J.M. Smucker Co. was founded in 1987. They primarily
operate in North America. They are a leading producer in
fruit spreads, peanut butter, oils and shortenings, natural and
health foods, ice cream toppings, and condiments. SJM
classifies operations into their U.S. market segment and
their special market segment. The U.S. market segment
consists of consumer foods and oils businesses. The special
market segment consists of foodservice, industrial,
international, and beverage businesses. In 2005 SJM
acquired International Multifoods, which added flour and
baking products to their product mix. Some of SJM's most
recognizable brands are: Smucker's, Jif, Crisco, Pilsbury,
and Hungry Jack.
Stock Performance Highlights
52 week High $51.04
52 week Low $37.15
Beta Value 0.62
Average Daily Volume 359,800
Share Highlights
Market Capitalization $2.28 b
Shares Outstanding 58.21 m
Book Value per share 29.93
EPS (ttm) $2.22
P/E Ratio 17.90
Price/Sales 1.70
Dividend Yield 2.70%
Dividend Rate 1.08
Company Performance Highlights
ROA 6.00%
ROE 7.86%
Sales $2.14 b
Financial Ratios
Quick Ratio 0.40
Current Ratio 2.26
Debt to Equity 0.25
J.M. Smucker Co. (NYSE: SJM)
April 17, 2006
Current Price $39.54
Target Price Range $50-$53
Rising Input Costs and Slow Economic
Outlook Wont Hurt Growth
Rising interest rates will result in an economic downturn.
Non-cyclical companies like SJM will provide a safe haven for
investors in a bearish economy.
SJM relies heavily on commodities for their production of
goods. They will need to cut costs in other areas through
restructuring and improved synergy with International
Multifoods to offset the rising prices of...
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