The J. M. Smucker Company (SJM) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: The J. M. Smucker Company

Updated on October 4, 2026 · accounts published on August 26, 2026

Reading of October 4, 2026: A cash-generating staples business weighed down by thin profits and heavy debt

J. M. Smucker trades at a P/E of 54.8 over the last 12 months, 177 % above its sector median and higher than in 97 % of the last decade.

• Is J. M. Smucker expensive or cheap? Its P/E of 54.8 sits 177 % above the sector median and is higher than in 97 % of the last decade.
• How is the business doing? Operating margin hit 19.7 % over the last 12 months, against 4.0 % in fiscal 2026 and a 2015-2026 average of 10.7 %.
• How strong is the balance sheet? Net debt was $69.46 per share in fiscal 2026, equal to 59 % of the current share price.
• What to expect from the next earnings? Analysts expect EPS of $2.50 on November 24, 2026, and 16 of 31 recommend buying.
• Is it as stable as the sector promises? Only one of six sector tests passes, and net debt at 13.3× fiscal 2026 EBITDA is over five times the 2.5× ceiling.

Is J. M. Smucker expensive or cheap?

Over the last 12 months J. M. Smucker trades at a P/E of 54.8. That is 152 % above its ten-year median of 21.8, close to the decade high of 61.8 and far above the sector median of 19.8. Other measures look much less stretched: EV/EBITDA is 14.5× and the free cash flow yield is 10.1 %, so the business generates far more cash than its accounting profit shows. With a net margin of 2.5 %, the P/E mostly reflects a thin earnings base. The stock is up 13 % over 12 months and sits 10 % below its 52-week high of $132.34.

How is the business doing?

Revenue grew 3.7 % over the last 12 months, a pace that fits a mature staples company, while EPS jumped 88.8 % from a weak base. The operating margin of 19.7 % over the last 12 months compares with 4.0 % in fiscal 2026 and a 2015-2026 average of 10.7 %, a sharp recovery if it holds. Returns on capital stay modest: ROIC is 6.9 %, 3.2 points below the sector median of 10.1 %, and it has not exceeded 10 % in any of the last 10 fiscal years. A net margin of 2.5 % shows how little of that operating profit reaches shareholders.

How strong is the balance sheet?

Debt is the main weak spot. Net debt in fiscal 2026 was $69.46 per share, equal to 59 % of the current share price, and debt to equity stands at 1.20 over the last 12 months. The current ratio of 0.87 means short-term liabilities exceed short-term assets, and the Altman Z-score of 1.4 sits in the danger zone. The Piotroski score is 5 of 9, a middling reading. The dividend yields 3.8 % over the last 12 months and has risen for 11 consecutive fiscal years, a record that now depends on cash flow holding up while leverage stays this high.

What to expect from the next earnings?

J. M. Smucker reports next on November 24, 2026, and analysts expect EPS of $2.50, below the $3.24 delivered on August 26, 2026. That last result beat the $2.22 estimate by 46 %, the largest surprise of the last eight quarters, and the company has beaten EPS estimates in 6 of the last 8 quarters. Expectations for 2027 have barely moved: the EPS consensus went from $10.79 to $10.83 over 18 days across 11 analysts, and the revenue consensus is also steady. Of 31 analysts, 16 recommend buying, 13 holding and 2 selling.

Is it as stable as the sector promises?

Defensive staples are owned for steady margins and a dividend that keeps growing, so investors check gross margin, ROE, dividend growth, payout and leverage first. J. M. Smucker only partly fits. Gross margin was 33.5 % in fiscal 2026, just under the 35 % stability line. ROE of 4.1 % over the last 12 months is far from the 15 % considered healthy, and dividend growth of 5.1 % a year over 2016-2026 falls short of the 6 % bar. Net debt reached 13.3× EBITDA in fiscal 2026 against a healthy ceiling of 2.5×. The payout of −335 % technically passes, but a negative ratio means fiscal 2026 earnings were negative.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.