SJM – Market expectations are for Uniform ROA compression, but management is confident about their positioning, brand strength, and performance

• The J. M. Smucker Company (SJM:USA) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 16.8x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, but management is confident about their strategic positioning, brand strength, and performance
• Specifically, management is confident they are well-positioned in the high-growth snack, pet, and coffee categories, and they are confident their positioning allows them to lead pricing trends. Furthermore, they are confident they are going to see improvements in their growth brands through the remainder of the year.