J&J Snack Foods Corp (JJSF, Financial) has experienced a notable fluctuation in its stock price recently. Over the past week, the stock has decreased by 4.69%, closing at $171.23. However, looking at a broader timeline, JJSF has seen a significant increase of 15.79% over the past three months. Currently, the stock is considered fairly valued with a GF Value of $171.83, closely aligning with its current market price. This valuation marks a shift from three months ago when it was considered modestly undervalued with a GF Value of $174.66.
Overview of J&J Snack Foods Corp
J&J Snack Foods Corp, operating within the consumer packaged goods industry, is a key player in manufacturing and distributing snack foods and beverages. The company's diverse product range includes frozen beverages, juice, fruit bars, sorbet, cakes, and cookies. These products find their way into various consumer markets such as restaurants, supermarkets, convenience stores, universities, theaters, and theme parks. JJSF operates through three main business segments: food service, retail supermarkets, and frozen beverages, with popular brands like Icee, Slush Puppie, and Parrot Ice under its belt.
Assessing Profitability
JJSF holds a strong Profitability Rank of 8/10, indicating robust profitability within its industry. The company's operating margin stands at 7.56%, which is higher than 62.96% of its peers. Additionally, its Return on Equity (ROE) is 9.59%, and Return on Assets (ROA) is 6.68%, both metrics outperforming a significant portion of competitors. The Return on Invested Capital (ROIC) at 7.94% further underscores JJSF's efficient capital use. Impressively, JJSF has maintained profitability consistently over the past decade.
Growth Metrics
The company's Growth Rank is 5/10, reflecting moderate growth potential. Over the past three years, JJSF has achieved a 14.50% revenue growth rate per share, outperforming 72.21% of its industry peers. While the long-term revenue forecast predicts a growth rate of 2.70% over the next 3-5 years, the 3-Year EPS without NRI Growth Rate has been an impressive 63.00%, significantly higher than 90.87% of competitors. These figures highlight JJSF's strong growth trajectory in both revenue and earnings per share.
Investor Insights
Notable investors in JJSF include Jeremy Grantham (Trades, Portfolio) holding 176,191 shares (0.91% of total shares), Jim Simons with 49,006 shares (0.25%), and Mario Gabelli (Trades, Portfolio) owning 45,600 shares (0.24%). Their investments underscore confidence in JJSF's market position and future prospects.
Competitive Landscape
JJSF's closest competitors include The Simply Good Foods Co (SMPL, Financial) with a market cap of $3.24 billion, Nomad Foods Ltd (NOMD, Financial) at $3.05 billion, and Central Garden & Pet Co (CENT, Financial) valued at $2.24 billion. These companies, while similar in market capitalization, differ in their market approaches and product offerings, providing a diverse competitive landscape for JJSF.
Conclusion
In conclusion, JJSF's recent stock performance, coupled with its strong profitability and growth metrics, positions it well in the competitive consumer packaged goods industry. The company's ability to maintain consistent profitability and promising growth prospects, along with strategic investor confidence, suggests a stable future. As market conditions evolve, JJSF appears equipped to continue its trajectory of growth and market adaptation.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
