Intrinsic value of J.M. Smucker - SJM

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$126.72

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$126.72

 
Intrinsic value

$79.98

 
Up/down potential

-37%

 
Rating

sell

 
Value-price divergence* premium content

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*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of SJM stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 14.7

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  37.20
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  7,811
  7,967
  8,150
  8,360
  8,595
  8,856
  9,142
  9,453
  9,790
  10,153
  10,543
  10,959
  11,404
  11,878
  12,381
  12,915
  13,481
  14,080
  14,714
  15,383
  16,090
  16,836
  17,623
  18,452
  19,325
  20,245
  21,214
  22,233
  23,306
  24,435
  25,622
Variable operating expenses, $m
 
  6,553
  6,690
  6,846
  7,021
  7,216
  7,429
  7,661
  7,913
  8,183
  8,474
  8,176
  8,508
  8,861
  9,237
  9,635
  10,057
  10,504
  10,977
  11,476
  12,004
  12,560
  13,147
  13,765
  14,417
  15,103
  15,826
  16,587
  17,387
  18,229
  19,115
Fixed operating expenses, $m
 
  243
  249
  255
  262
  268
  275
  282
  289
  296
  303
  311
  319
  327
  335
  343
  352
  361
  370
  379
  388
  398
  408
  418
  429
  439
  450
  462
  473
  485
  497
Total operating expenses, $m
  6,666
  6,796
  6,939
  7,101
  7,283
  7,484
  7,704
  7,943
  8,202
  8,479
  8,777
  8,487
  8,827
  9,188
  9,572
  9,978
  10,409
  10,865
  11,347
  11,855
  12,392
  12,958
  13,555
  14,183
  14,846
  15,542
  16,276
  17,049
  17,860
  18,714
  19,612
Operating income, $m
  1,145
  1,171
  1,212
  1,259
  1,312
  1,372
  1,438
  1,510
  1,589
  1,674
  1,765
  2,473
  2,578
  2,690
  2,810
  2,937
  3,072
  3,216
  3,367
  3,528
  3,698
  3,878
  4,068
  4,268
  4,480
  4,702
  4,938
  5,185
  5,446
  5,721
  6,010
EBITDA, $m
  1,575
  2,065
  2,112
  2,167
  2,229
  2,297
  2,374
  2,457
  2,548
  2,645
  2,751
  2,864
  2,985
  3,114
  3,252
  3,398
  3,554
  3,719
  3,893
  4,078
  4,273
  4,480
  4,697
  4,927
  5,170
  5,426
  5,696
  5,980
  6,279
  6,594
  6,926
Interest expense (income), $m
  0
  186
  192
  199
  208
  217
  227
  239
  251
  265
  279
  294
  311
  329
  347
  367
  389
  411
  435
  460
  487
  515
  544
  575
  608
  643
  680
  718
  758
  801
  846
Earnings before tax, $m
  978
  985
  1,020
  1,059
  1,105
  1,155
  1,210
  1,271
  1,337
  1,409
  1,486
  2,178
  2,267
  2,361
  2,462
  2,570
  2,684
  2,804
  2,933
  3,068
  3,212
  3,363
  3,524
  3,693
  3,871
  4,059
  4,258
  4,467
  4,688
  4,920
  5,165
Tax expense, $m
  289
  266
  275
  286
  298
  312
  327
  343
  361
  380
  401
  588
  612
  638
  665
  694
  725
  757
  792
  828
  867
  908
  951
  997
  1,045
  1,096
  1,150
  1,206
  1,266
  1,328
  1,394
Net income, $m
  689
  719
  744
  773
  806
  843
  884
  928
  976
  1,029
  1,085
  1,590
  1,655
  1,724
  1,797
  1,876
  1,959
  2,047
  2,141
  2,240
  2,345
  2,455
  2,572
  2,696
  2,826
  2,963
  3,108
  3,261
  3,422
  3,592
  3,770

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  110
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  15,984
  16,194
  16,566
  16,992
  17,470
  17,999
  18,580
  19,213
  19,898
  20,636
  21,428
  22,275
  23,179
  24,142
  25,165
  26,251
  27,401
  28,619
  29,906
  31,267
  32,704
  34,220
  35,818
  37,503
  39,279
  41,149
  43,118
  45,190
  47,371
  49,665
  52,078
Adjusted assets (=assets-cash), $m
  15,874
  16,194
  16,566
  16,992
  17,470
  17,999
  18,580
  19,213
  19,898
  20,636
  21,428
  22,275
  23,179
  24,142
  25,165
  26,251
  27,401
  28,619
  29,906
  31,267
  32,704
  34,220
  35,818
  37,503
  39,279
  41,149
  43,118
  45,190
  47,371
  49,665
  52,078
Revenue / Adjusted assets
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
  0.492
Average production assets, $m
  8,375
  8,541
  8,737
  8,962
  9,214
  9,493
  9,800
  10,134
  10,495
  10,884
  11,302
  11,749
  12,225
  12,733
  13,273
  13,845
  14,452
  15,094
  15,773
  16,491
  17,249
  18,048
  18,891
  19,780
  20,717
  21,703
  22,741
  23,834
  24,984
  26,194
  27,467
Working capital, $m
  360
  542
  554
  568
  584
  602
  622
  643
  666
  690
  717
  745
  775
  808
  842
  878
  917
  957
  1,001
  1,046
  1,094
  1,145
  1,198
  1,255
  1,314
  1,377
  1,443
  1,512
  1,585
  1,662
  1,742
Total debt, $m
  5,430
  5,491
  5,699
  5,936
  6,203
  6,499
  6,823
  7,176
  7,558
  7,970
  8,412
  8,885
  9,389
  9,926
  10,497
  11,103
  11,745
  12,424
  13,143
  13,902
  14,704
  15,550
  16,442
  17,382
  18,373
  19,416
  20,515
  21,671
  22,888
  24,168
  25,514
Total liabilities, $m
  8,976
  9,036
  9,244
  9,481
  9,748
  10,044
  10,368
  10,721
  11,103
  11,515
  11,957
  12,430
  12,934
  13,471
  14,042
  14,648
  15,290
  15,969
  16,688
  17,447
  18,249
  19,095
  19,987
  20,927
  21,918
  22,961
  24,060
  25,216
  26,433
  27,713
  29,059
Total equity, $m
  7,009
  7,158
  7,322
  7,510
  7,722
  7,956
  8,213
  8,492
  8,795
  9,121
  9,471
  9,846
  10,245
  10,671
  11,123
  11,603
  12,111
  12,649
  13,219
  13,820
  14,455
  15,125
  15,832
  16,576
  17,361
  18,188
  19,058
  19,974
  20,938
  21,952
  23,018
Total liabilities and equity, $m
  15,985
  16,194
  16,566
  16,991
  17,470
  18,000
  18,581
  19,213
  19,898
  20,636
  21,428
  22,276
  23,179
  24,142
  25,165
  26,251
  27,401
  28,618
  29,907
  31,267
  32,704
  34,220
  35,819
  37,503
  39,279
  41,149
  43,118
  45,190
  47,371
  49,665
  52,077
Debt-to-equity ratio
  0.775
  0.770
  0.780
  0.790
  0.800
  0.820
  0.830
  0.850
  0.860
  0.870
  0.890
  0.900
  0.920
  0.930
  0.940
  0.960
  0.970
  0.980
  0.990
  1.010
  1.020
  1.030
  1.040
  1.050
  1.060
  1.070
  1.080
  1.080
  1.090
  1.100
  1.110
Adjusted equity ratio
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  689
  719
  744
  773
  806
  843
  884
  928
  976
  1,029
  1,085
  1,590
  1,655
  1,724
  1,797
  1,876
  1,959
  2,047
  2,141
  2,240
  2,345
  2,455
  2,572
  2,696
  2,826
  2,963
  3,108
  3,261
  3,422
  3,592
  3,770
Depreciation, amort., depletion, $m
  430
  894
  900
  908
  916
  926
  936
  947
  959
  972
  986
  392
  408
  424
  442
  462
  482
  503
  526
  550
  575
  602
  630
  659
  691
  723
  758
  794
  833
  873
  916
Funds from operations, $m
  1,889
  1,613
  1,645
  1,681
  1,723
  1,769
  1,819
  1,875
  1,935
  2,000
  2,071
  1,982
  2,062
  2,148
  2,240
  2,337
  2,441
  2,550
  2,667
  2,789
  2,919
  3,057
  3,202
  3,355
  3,517
  3,687
  3,866
  4,056
  4,255
  4,465
  4,686
Change in working capital, $m
  431
  11
  12
  14
  16
  18
  19
  21
  23
  25
  26
  28
  30
  32
  34
  36
  38
  41
  43
  46
  48
  51
  53
  56
  59
  63
  66
  69
  73
  77
  81
Cash from operations, $m
  1,458
  1,349
  1,632
  1,667
  1,707
  1,751
  1,800
  1,854
  1,912
  1,976
  2,044
  1,953
  2,032
  2,116
  2,206
  2,301
  2,402
  2,510
  2,623
  2,744
  2,871
  3,006
  3,148
  3,299
  3,457
  3,624
  3,800
  3,986
  4,182
  4,388
  4,605
Maintenance CAPEX, $m
  0
  -279
  -285
  -291
  -299
  -307
  -316
  -327
  -338
  -350
  -363
  -377
  -392
  -408
  -424
  -442
  -462
  -482
  -503
  -526
  -550
  -575
  -602
  -630
  -659
  -691
  -723
  -758
  -794
  -833
  -873
New CAPEX, $m
  -201
  -166
  -196
  -225
  -252
  -279
  -306
  -334
  -361
  -389
  -418
  -447
  -477
  -508
  -540
  -573
  -607
  -642
  -679
  -718
  -758
  -800
  -843
  -889
  -936
  -986
  -1,038
  -1,093
  -1,150
  -1,210
  -1,273
Cash from investing activities, $m
  22
  -445
  -481
  -516
  -551
  -586
  -622
  -661
  -699
  -739
  -781
  -824
  -869
  -916
  -964
  -1,015
  -1,069
  -1,124
  -1,182
  -1,244
  -1,308
  -1,375
  -1,445
  -1,519
  -1,595
  -1,677
  -1,761
  -1,851
  -1,944
  -2,043
  -2,146
Free cash flow, $m
  1,480
  903
  1,151
  1,151
  1,156
  1,164
  1,177
  1,193
  1,213
  1,237
  1,264
  1,130
  1,164
  1,201
  1,242
  1,286
  1,334
  1,386
  1,441
  1,501
  1,564
  1,632
  1,704
  1,780
  1,861
  1,947
  2,039
  2,135
  2,237
  2,345
  2,459
Issuance/(repayment) of debt, $m
  -742
  171
  208
  238
  267
  296
  324
  353
  382
  412
  442
  473
  504
  537
  571
  606
  642
  679
  719
  759
  802
  846
  892
  940
  991
  1,043
  1,099
  1,156
  1,217
  1,280
  1,346
Issuance/(repurchase) of shares, $m
  -441
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -1,179
  171
  208
  238
  267
  296
  324
  353
  382
  412
  442
  473
  504
  537
  571
  606
  642
  679
  719
  759
  802
  846
  892
  940
  991
  1,043
  1,099
  1,156
  1,217
  1,280
  1,346
Total cash flow (excl. dividends), $m
  301
  1,074
  1,359
  1,389
  1,422
  1,460
  1,501
  1,546
  1,595
  1,649
  1,706
  1,602
  1,668
  1,738
  1,813
  1,892
  1,976
  2,065
  2,160
  2,260
  2,366
  2,478
  2,596
  2,720
  2,852
  2,991
  3,137
  3,292
  3,454
  3,625
  3,806
Retained Cash Flow (-), $m
  78
  -149
  -165
  -188
  -211
  -234
  -257
  -280
  -303
  -326
  -350
  -374
  -400
  -425
  -452
  -480
  -508
  -538
  -569
  -601
  -635
  -670
  -707
  -745
  -785
  -827
  -870
  -916
  -964
  -1,014
  -1,067
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  926
  1,194
  1,201
  1,211
  1,226
  1,244
  1,267
  1,293
  1,322
  1,356
  1,228
  1,268
  1,313
  1,360
  1,412
  1,467
  1,527
  1,591
  1,658
  1,731
  1,807
  1,889
  1,976
  2,067
  2,164
  2,267
  2,376
  2,490
  2,611
  2,739
Discount rate, %
 
  7.50
  7.88
  8.27
  8.68
  9.12
  9.57
  10.05
  10.55
  11.08
  11.63
  12.22
  12.83
  13.47
  14.14
  14.85
  15.59
  16.37
  17.19
  18.05
  18.95
  19.90
  20.89
  21.94
  23.04
  24.19
  25.40
  26.67
  28.00
  29.40
  30.87
PV of cash for distribution, $m
 
  861
  1,026
  946
  868
  792
  719
  648
  579
  514
  451
  346
  298
  254
  213
  177
  144
  116
  92
  71
  54
  40
  29
  21
  14
  10
  6
  4
  2
  1
  1
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

The J. M. Smucker Company manufactures and markets branded food and beverage products worldwide. It operates through U.S. Retail Coffee, U.S. Retail Consumer Foods, U.S. Retail Pet Foods, and International and Foodservice segments. The company primarily offers coffee, pet food, pet snacks, peanut butter, fruit spreads, shortening and oils, baking mixes and ready-to-spread frostings, frozen sandwiches, flour and baking ingredients, juices and beverages, and portion control products. It also provides dog snacks, natural beverages, ice cream toppings, pickles, and canned milk. The company offers its products under the Folgers, Dunkin’ Donuts, Café Bustelo, Jif, Smucker’s, Crisco, Pillsbury, Uncrustables, Meow Mix, Milk-Bone, Natural Balance, Kibbles ‘n Bits, 9Lives, Pup-Peroni, Nature’s Recipe, Gravy Train, and Douwe Egberts brand names. It sells its products through direct sales and brokers to food retailers, food wholesalers, drug stores, club stores, mass merchandisers, discount and dollar stores, military commissaries, natural foods stores and distributors, and pet specialty stores; and through retail channels, and foodservice distributors and operators, such as restaurants, lodging, schools and universities, and health care operators. The company was founded in 1897 and is headquartered in Orrville, Ohio.

FINANCIAL RATIOS  of  J.M. Smucker (SJM)

Valuation Ratios
P/E Ratio 21.4
Price to Sales 1.9
Price to Book 2.1
Price to Tangible Book
Price to Cash Flow 10.1
Price to Free Cash Flow 11.7
Growth Rates
Sales Growth Rate 37.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -19%
Cap. Spend. - 3 Yr. Gr. Rate -0.6%
Financial Strength
Quick Ratio 0
Current Ratio 0.1
LT Debt to Equity 73.4%
Total Debt to Equity 77.5%
Interest Coverage 0
Management Effectiveness
Return On Assets 4.2%
Ret/ On Assets - 3 Yr. Avg. 4.6%
Return On Total Capital 5.4%
Ret/ On T. Cap. - 3 Yr. Avg. 5.5%
Return On Equity 9.8%
Return On Equity - 3 Yr. Avg. 8.9%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 38.2%
Gross Margin - 3 Yr. Avg. 36.4%
EBITDA Margin 18%
EBITDA Margin - 3 Yr. Avg. 17.7%
Operating Margin 14.7%
Oper. Margin - 3 Yr. Avg. 14.9%
Pre-Tax Margin 12.5%
Pre-Tax Margin - 3 Yr. Avg. 12.3%
Net Profit Margin 8.8%
Net Profit Margin - 3 Yr. Avg. 8.3%
Effective Tax Rate 29.6%
Eff/ Tax Rate - 3 Yr. Avg. 32.4%
Payout Ratio 46%

SJM stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SJM stock intrinsic value calculation we used $7811 million for the last fiscal year's total revenue generated by J.M. Smucker. The default revenue input number comes from 2016 income statement of J.M. Smucker. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our SJM stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.5%, whose default value for SJM is calculated based on our internal credit rating of J.M. Smucker, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of J.M. Smucker.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of SJM stock the variable cost ratio is equal to 82.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $237 million in the base year in the intrinsic value calculation for SJM stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for J.M. Smucker.

Corporate tax rate of 27% is the nominal tax rate for J.M. Smucker. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the SJM stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for SJM are equal to 107.2%.

Life of production assets of 33.5 years is the average useful life of capital assets used in J.M. Smucker operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for SJM is equal to 6.8%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $7009 million for J.M. Smucker - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 116.265 million for J.M. Smucker is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of J.M. Smucker at the current share price and the inputted number of shares is $14.7 billion.


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COMPANY NEWS

▶ 3 Best Coffee Stocks for 2017   [Apr-14-17 04:46PM  Investopedia]
▶ Morgan Stanley Bearish on Smucker   [Apr-11-17 10:28AM  Investopedia]
▶ Conagras Sales Are Showing Improvement   [Mar-28-17 07:37AM  Market Realist]
▶ [$$] Consumer Staples Could Be in for a Fall   [Mar-25-17 02:44AM  at Barrons.com]
▶ Weekly Top Insider Buys Highlight for the Week of March 10   [Mar-11-17 11:05AM  GuruFocus.com]
▶ Soup to Nuts! Campbell, Smucker Adapt to New Tastes   [Feb-21-17 02:05PM  Investopedia]
▶ [$$] J.M. Smucker Revenue, Profit Falls   [07:52AM  at The Wall Street Journal]
▶ The J. M. Smucker Company Declares Dividend   [Jan-20-17 05:15PM  PR Newswire]
▶ [$$] Supply shortage in world coffee market led by robusta beans   [Jan-13-17 08:57AM  at Financial Times]
▶ J M Smucker Co (SJM) Dividend Stock Analysis   [Dec-29-16 09:52AM  at Insider Monkey]
▶ Putting J.M. Smucker Company's Slowing Sales in Context   [Dec-07-16 09:15PM  at Motley Fool]
Stock chart of SJM Financial statements of SJM
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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