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JM Smucker Co SJM Stock Quote

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Morningstar‘s Stock Analysis SJM

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Is it the right time to buy or sell?
Is it the right time to buy or sell?

1-Star Price

INVESTOR

5-Star Price

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Economic Moat

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Capital Allocation

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Smucker Has Its Hands Full, Dealing With Inflation, Supply Chain Challenges, and a Jif Recall

Rebecca Scheuneman, CFA Senior Equity Analyst

Business Strategy and Outlook

| Rebecca Scheuneman, CFA |

Despite having leading positions in many categories (fruit spreads, peanut butter, dog treats, coffee, and cat food), we believe Smucker lacks an economic moat, either via its brand assets or entrenched retail relationships. Our analysis shows that for most of its sales base, Smucker does not possess pricing power, and its market shares have slipped. This dilemma cannot be attributed to a lack of support, as Smucker’s brand investments exceed that of its peers (with marketing and R&D averaging 6.9% of sales the last three years versus 5.4% for peers). Rather, we suspect these expenditures are not as productive as its competitors, a problem not easily resolved, in our view.

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Key Statistics SJM

Company Profile SJM

Business Description

J.M. Smucker is a packaged food company that primarily operates in the U.S. retail channel (87% of fiscal 2022 revenue), but also in U.S. food-service (7%), and international (6%). Its largest segment is pet food and treats (36% of 2022 revenue), with popular brands such as Milk-Bone, Meow Mix, 9Lives, Kibbles 'n Bits, Nature's Recipe, and Rachael Ray Nutrish. Its second-largest category is coffee (35% across channels) with the number-two brand Folgers and number-six Dunkin'. Other large categories are peanut butter (10%), with number-one Jif, fruit spreads (5%) with number-one Smucker's, and frozen hand-held foods (6%) with number-one Uncrustables.

Contact
One Strawberry Lane
Orrville, OH, 44667-0280
T +1 330 682-3000
Industry Packaged Foods
Most Recent Earnings Jul 31, 2022
Fiscal Year End Apr 30, 2022
Employees 6,700