June 22, 2025 a 03:31 pm
SJM: Dividend Analysis - The J. M. Smucker Company
The J. M. Smucker Company, with a dividend history of 32 years without cuts or suspensions, exhibits moderate dividend growth and a competitive yield. Despite recent financial strains, the company's consistent dividend payments suggest a strong commitment to rewarding shareholders.
📊 Overview
A comprehensive overview of the dividend profile of The J. M. Smucker Company displays its sectorial focus and key dividend metrics.
| Category | Details |
|---|---|
| Sector | Consumer Staples |
| Dividend Yield | 3.81 % |
| Current Dividend per Share | 4.28 USD |
| Dividend History | 32 years |
| Last Cut/Suspension | None |
🗣️ Dividend History
The longevity of a company's dividend history is crucial for assessing its reliability as an income-generating investment. The Smucker Company, with an uninterrupted record of 32 years, is a testament to its consistent performance and investor-oriented policies.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 2.16 |
| 2024 | 4.28 |
| 2023 | 4.16 |
| 2022 | 4.02 |
| 2021 | 3.78 |
📈 Dividend Growth
Dividend growth is a key indicator of a company's ability to increase shareholder value. The Smucker Company has shown a modest annualized dividend growth of approximately 4.34% over the past five years, underlying steady fiscal management.
| Time | Growth |
|---|---|
| 3 years | 4.23 % |
| 5 years | 4.35 % |
The average dividend growth is 4.35% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
The payout ratio helps determine the sustainability of a company's dividend. A notably negative EPS-based payout ratio reflects recent net losses, while a more viable FCF-based ratio suggests dividends are still manageable within cash flow capabilities.
| Key Figure Ratio | Value |
|---|---|
| EPS-based | -37.00% |
| Free cash flow-based | 55.78% |
The negative EPS-based payout ratio indicates financial distress in earnings, whereas the FCF-based ratio remains within a secure boundary, reaffirming dividend payment potential from cash flows.
💰 Cashflow & Capital Efficiency
Healthy cash flow and efficient capital management are essential for sustaining dividends. The Smucker Company's free cash flow yield and CAPEX ratios offer insight into its financial operation dynamics.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 6.60 % | 5.38 % | 4.30 % |
| Earnings Yield | -9.95 % | 6.22 % | -0.55 % |
| CAPEX to Operating Cash Flow | 32.53 % | 47.71 % | 39.65 % |
| Stock-based Compensation to Revenue | 0.34 % | 0.29 % | 0.30 % |
| Free Cash Flow / Operating Cash Flow Ratio | 67.47 % | 52.29 % | 60.35 % |
The ratios highlight a moderate cash flow efficiency with variable earnings yields, illustrating cash flow robustness and prudent capital deployment despite mixed results.
💳 Balance Sheet & Leverage Analysis
A robust balance sheet with controlled leverage is vital for long-term financial health. J. M. Smucker's metrics indicate cautious leverage management amid evolving operational conditions.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 126.22% | 111.10% | 60.69% |
| Debt-to-Assets | 43.71% | 42.16% | 29.51% |
| Debt-to-Capital | 55.80% | 52.63% | 37.77% |
| Net Debt to EBITDA | -11.29 | 5.02 | 6.57 |
| Current Ratio | 80.94% | 52.30% | 143.89% |
| Quick Ratio | 35.34% | 24.67% | 93.06% |
| Financial Leverage | 2.89 | 2.64 | 2.06 |
These figures reflect a cautious leverage approach with notable improvements in the current and quick ratios, indicating sufficient liquidity and proactive debt management.
📊 Fundamental Strength & Profitability
Fundamental strength and profitability are critical to long-term sustainability. Smucker's fluctuating returns suggest periods of reinvestment and adjusting margins hint at operational refinements.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | -20.23% | 9.67% | -1.25% |
| Return on Assets | -7.01% | 3.67% | -0.61% |
| Net Margin | -14.11% | 9.10% | -1.07% |
| EBIT Margin | -7.54% | 15.41% | 1.67% |
| EBITDA Margin | -7.72% | 20.68% | 6.73% |
| Gross Margin | 38.79% | 38.09% | 32.85% |
| Research & Development to Revenue | 0% | 0% | 0% |
The recently negative margins indicate challenges, yet solid gross margins suggest potential for improved profitability through cost management and strategic investments.
📉 Price Development
📈 Dividend Scoring System
| Criterion | Score | Score Bar |
|---|---|---|
| Dividend Yield | 4/5 | |
| Dividend Stability | 5/5 | |
| Dividend Growth | 3/5 | |
| Payout Ratio | 2/5 | |
| Financial Stability | 3/5 | |
| Dividend Continuity | 5/5 | |
| Cashflow Coverage | 3/5 | |
| Balance Sheet Quality | 3/5 |
Overall Score: 28/40
📊 Rating
The J. M. Smucker Company exhibits solid dividend stability and an impressive yielding capacity. Despite financial challenges causing negative margins in recent years, its robust dividend history promotes confidence for dividend-seeking investors. A prudent focus on financial improvement could enhance future performance. Overall Rating: Hold