J J Story

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JJSF -- USA Stock  

USD 158.97  2.63  1.68%

J J Average Assets are projected to increase significantly based on the last few years of reporting. The past year's Average Assets were at 838.06 Million. The current year Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to grow to about 166.6 M, whereas Earnings before Tax are forecasted to decline to about 121 M. The underlying objective of this short story is to digest J J as an investment oportunity for February. We will discuss why recent J J price moves suggest a bounce in February.
Published over a month ago
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Are J J (NASDAQ:JJSF) shareholders starting to hold back?
The company has a beta of -0.1238. Let's try to break down what J J's beta means in this case. As returns on the market increase, J J returns are expected to increase less than the market. However, during the bear market, the loss on holding J J will be expected to be smaller as well. The beta indicator helps investors understand whether J J moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if J J deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as J J Snack. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for J J

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of J J's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of J J in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as J J. Your research has to be compared to or analyzed against J J's peers to derive any actionable benefits. When done correctly, J J's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in J J Snack.

How important is J J's Liquidity

J J financial leverage refers to using borrowed capital as a funding source to finance J J Snack ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. J J financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between J J's total debt and its cash.

How J J utilizes its cash?

To perform a cash flow analysis of J J, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash J J is receiving and how much cash it distributes out in a given period. The J J cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
J J Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 125.35 Million

Another Deeper Perspective

The latest bullish price patterns experienced by current J J shareholders may raise some interest from shareholders. The stock closed today at a share price of 153.09 on 132,500 in trading volume. The company directors and management have been very successful in rebalancing the entity assets at opportune times to take advantage of market volatility in December. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.5. The current volatility is consistent with the ongoing market swings in December 2020 as well as with J J Snack unsystematic, company-specific events.

Margin Breakdown

Operating Margin11.49
EBITDA Margin0.14
Gross Margin0.29
Profit Margin0.0679

J J may start a relapse in February

Latest downside variance is at 4.01. J J Snack has relatively low volatility with skewness of 2.79 and kurtosis of 17.09. However, we advise all investors to independently investigate J J Snack to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Final Perspective on J J

Although other companies under the packaged foods industry are still a bit expensive, J J may offer a potential longer-term growth to shareholders. To conclude, as of the 25th of January 2021, we believe that at this point, J J is very steady with very small probability of bankruptcy within the next 2 years. From a slightly different point of view, the entity appears to be overvalued. However, our ongoing 30 days buy vs. sell advice on the firm is Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of J J Snack. Please refer to our Terms of Use for any information regarding our disclosure principles.

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