J M Story

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SJM -- USA Stock  

USD 128.18  4.09  3.30%

J M Smucker is scheduled to announce its earnings today. The next earnings report is expected on the 24th of February 2021. J M Enterprise Value is relatively stable at the moment as compared to the past year. The company's current Enterprise Value is estimated at 19.75 Billion. Free Cash Flow is expected to hike to about 1.2 B this year, although the value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA will most likely fall to nearly 1.2 B. While many traders are getting carried away by overanalyzing consumer defensive space, it is reasonable to summarize J M Smucker as an investment alternative.
Published over two months ago
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Continue to hold J M (NYSE:SJM) based on its current debt obligations?
J M Smucker has 5.52 B in debt with debt to equity (D/E) ratio of 0.66, which is OK given its current industry classification. The entity has a current ratio of 0.94, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. J M has an asset utilization ratio of 494.61 percent. This denotes that the company is making $4.95 for each dollar of assets. An increasing asset utilization means that J M Smucker is more efficient with each dollar of assets it utilizes for everyday operations.
J M financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of J M, including all of J M's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of J M assets, the company is considered highly leveraged. Understanding the composition and structure of overall J M debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding J M Total Liabilities

J M Smucker liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. J M Smucker has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on J M balance sheet include debt obligations and money owed to different J M vendors, workers, and loan providers. Below is the chart of J M short long-term liabilities accounts currently reported on its balance sheet.
You can use J M Smucker financial leverage analysis tool to get a better grip on understanding its financial position

How important is J M's Liquidity

J M financial leverage refers to using borrowed capital as a funding source to finance J M Smucker ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. J M 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 M's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for J M, but it might be worth checking our own buy vs. sell analysis

Another Deeper Perspective

The small pull down in market price for the last few months created some momentum for stakeholders as it was traded today as low as 114.79 and as high as 119.14 per share. The company management teams did not add much value to J M Smucker investors in October. However, diversifying your holdings with J M Smucker or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.51. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.

Asset Breakdown

12.2 B
Goodwill
Current Assets
Total Assets14.33 Billion
Current Assets1.73 Billion
Assets Non Current13.99 Billion
Goodwill12.22 Billion

Will J M pull back in December 2020?

The downside variance is down to 2.77 as of today. As of the 24th of November, J M retains the semi deviation of 1.59, and Market Risk Adjusted Performance of 0.123. In relation to fundamental indicators, the technical analysis model lets you check timely technical drivers of J M Smucker, as well as the relationship between them. Simply put, you can use this information to find out if the entity will indeed mirror its model of historical price patterns, or the prices will eventually revert. We are able to interpolate and collect nineteen technical drivers for J M Smucker, which can be compared to its competitors. Please check out J M Smucker standard deviation, maximum drawdown, as well as the relationship between the Maximum Drawdown and expected short fall to decide if J M is priced some-what accurately, providing market reflects its last-minute price of 117.84 per share. Given that J M Smucker has jensen alpha of 0.0188, we strongly advise you to confirm J M Smucker's regular market performance to make sure the company can sustain itself sooner or later.

Our Final Take On J M

When is the right time to buy or sell J M Smucker? Buying stocks such as J M isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily bases. To conclude, as of the 24th of November 2020, our present 30 days advice on the company is Strong Hold. We believe J M is fairly valued with very low probability of distress for the next two years.

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 Achuva Shats do not own shares of J M Smucker. Please refer to our Terms of Use for any information regarding our disclosure principles.

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