Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
JM Smucker Co's 5-Year RORE % for the quarter that ended in Jan. 2024 was -106.19%.
The industry rank for JM Smucker Co's 5-Year RORE % or its related term are showing as below:
SJM's 5-Year RORE % is ranked worse than 93.61% of 1550
companies
in the Consumer Packaged Goods industry
Industry Median: 6.86
vs SJM: -106.19
JM Smucker Co 5-Year RORE % Historical Data
The historical data trend for JM Smucker Co's 5-Year RORE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of JM Smucker Co's 5-Year RORE %
For the Packaged Foods subindustry, JM Smucker Co's 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
JM Smucker Co's 5-Year RORE % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, JM Smucker Co's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where JM Smucker Co's 5-Year RORE % falls into.
JM Smucker Co 5-Year RORE % Calculation
JM Smucker Co's 5-Year RORE % for the quarter that ended in Jan. 2024 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Jan. 2024 and 5-year before.
JM Smucker Co (NYSE:SJM) 5-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
JM Smucker Co 5-Year RORE % Related Terms
Thank you for viewing the detailed overview of JM Smucker Co's 5-Year RORE % provided by GuruFocus.com. Please click on the following links to see related term pages.
JM Smucker Co (JM Smucker Co) Business Description
J.M. Smucker is a packaged food company that primarily sells through the U.S. retail channel (77% of forecast fiscal 2024 revenue), with the remaining share consisting of Hostess, foodservice, and international (primarily Canada). Following the divestiture of several pet foods brands and private-label products that constituted about $1.5 billion of sales, retail coffee is now its largest category (33% of sales) with brands Folgers and Dunkin'. Pet foods (22% of sales) holds leading brands like Milk-Bone and Meow Mix. Of its remaining, approximately 22% comes from consumer foods, primarily peanut butter and jelly, through brands Jif and Smucker's. The company acquired Hostess Brands in fiscal 2024 to boost its snack and convenience store presence.
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