- SJM recently reported Q2 results reflecting a marginal deterioration in adjusted gross profit margin and adjusted operating income margin relative to Q2 2017.
- Adjusted EPS revised downward for the second time subsequent to the release of FY adjusted EPS in June 2017 but FCF forecast remains consistent at $0.775B.
- SJM has a 4 pronged strategy in which it intends to generate sustainable, long-term sales and earnings growth.
- Competitive pressures persist but SJM has strong brand recognition. Underperformance is largely due to temporary factors.
- SJM will likely trade in a tight range over the next several months thus providing an opportunity to skim some profit through the use of covered calls.
Continue reading “J.M. Smucker Stock Analysis – Covered Call Profit Skim”
- This The J.M. Smucker stock analysis is based on Q4 and FY2017 results released June 8, 2017 and its 2018 forecast.
- I have been looking to increase my exposure in the Consumer sector and view the Non-Cyclical Consumer Goods space as one likely to experience a lower level of volatility.
- SJM has been on my radar but I have viewed the stock as overpriced. The price has retraced to a level where I now view SJM as fairly priced.
- It has been in business for 120 years, has several iconic brands in its portfolio, and meets my criteria for a company in which I want to invest for the long-term.
- SJM generates strong free cash flow which will enable management to deleverage while making astute “bolt-on” acquisitions thus resulting in strong stock price appreciation over the long-term.
Continue reading “The J.M. Smucker Company Stock Analysis – Welcome to My FFJ Portfolio”