The J. M. Smucker Company (SJM)

FairStock Score: 55/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett-and-Graham-minded investor, I begin with the business: The J. M. Smucker sells branded coffee, spreads, pet snacks, frozen handhelds, and sweet baked goods. Brands can create a modest moat, but packaged food is competitive and shelf space is hard-won. The filed record shows a real turnaround attempt. In fiscal Q1 2027, the quarter ended 2026-07-31, revenue was $2.2B, net income $324.3M, and diluted EPS $3.03. That compares favorably with fiscal Q1 2026, ended 2025-07-31, when revenue was $2.1B, net loss was $43.9M, and diluted EPS was -$0.41. Still, the latest full year, FY2026 ended 2026-04-30, produced revenue of $9.1B but a net loss of $138.7M and diluted EPS of -$1.30; FY2025 was worse, with a $1.2B net loss and -$11.57 EPS. So the Lynch category is rightly TURNAROUND - loss in the latest year after earlier profits. Financial health is mixed. Trailing free cash flow is $1.6B, a 12.3% FCF yield, which is substantial, but debt-to-equity of 1.21 and a FairStock Altman Z-Score of 0.97 point to balance-sheet risk. FairStock calculations put ROE at 3.93% and ROCE at 6.26%. Valuation looks demanding on earnings: the $121.33 close on 2026-10-13 gives a FairStock P/E of 56.70 and P/B of 2.25. The Graham Number is $50.91, leaving a negative margin of safety of -138.32%. I see a cash-generative but leveraged turnaround priced for recovery, not for caution.

In plain English: The company makes and sells branded food and drink products such as coffee, peanut butter, pet snacks, frozen sandwiches and baked goods. It has reported losses in recent full years, but its latest filed quarter showed a profit and it generates a lot of cash. At the recent share price, the stock looks expensive compared with its reported earnings and accounting value, even though the cash flow is a plus.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-07-31) · fiscal Q3 2026 10-Q (period ended 2026-01-31) · fiscal Q2 2026 10-Q (period ended 2025-10-31) · fiscal Q1 2026 10-Q (period ended 2025-07-31) · FY2026 10-K (period ended 2026-04-30) · FY2025 10-K (period ended 2025-04-30) · FY2024 10-K (period ended 2024-04-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer