Breaking Down John B. Sanfilippo & Son, Inc. (JBSS) Financial Health: Key Insights for Investors

Are you tracking your investments in JBSS? Did you know that in fiscal year 2024, the company exceeded $1 billion in annual net sales for the first time? While net sales increased by 6.7% to reach $1.07 billion, driven significantly by the Lakeville Acquisition which contributed approximately $131.0 million, diluted EPS decreased by 4.6% to $5.15 per share. How do these figures align with your investment strategy, and what potential impact might they have on your portfolio?

John B. Sanfilippo & Son, Inc. (JBSS) Revenue Analysis

Understanding John B. Sanfilippo & Son, Inc. (JBSS)'s financial health requires a detailed look into its revenue streams. The company exceeded $1 billion in annual net sales for the first time in its history in fiscal year 2024.

Here's a breakdown of their primary revenue sources and recent performance:

• Primary Revenue Sources: JBSS primarily generates revenue through the processing, packaging, marketing, and distribution of nuts and nut-related products. Mission Statement, Vision, & Core Values of John B. Sanfilippo & Son, Inc. (JBSS). The company's product offerings include:
  • Raw and processed nuts (almonds, pecans, peanuts, walnuts, cashews, macadamia nuts, pistachios, etc.)
  • Peanut butter
  • Snack and nutrition bars
  • Salad toppings
  • Dried fruit
  • Chocolate and yogurt-coated products
  • Recipe ingredients
  • Bulk food products
• Year-over-Year Revenue Growth Rate:
  • In the fiscal year ending June 27, 2024, JBSS had annual revenue of $1.07 billion, a 6.71% increase compared to the previous year's $999.69 million.
  • The company's revenue in the last twelve months reached $1.12 billion, up 12.09% year-over-year.
  • For the quarter ending December 26, 2024, revenue was $301.07 million, reflecting a 3.38% growth.
• Contribution of Different Business Segments to Overall Revenue: While specific details on the exact percentage contribution of each business segment to the overall revenue for fiscal year 2024 are not available in the search results, the company operates through multiple segments, including Fisher Nuts, Squirrel Brand, and private label products.
• Analysis of Significant Changes in Revenue Streams: A significant change in JBSS's revenue stream is the inclusion of snack and nutrition bar sales from the Lakeville Acquisition, which contributed approximately $131.0 million in net sales for fiscal year 2024, with $120.0 million directly related to the Lakeville Acquisition.

The following table presents the revenue history of John B. Sanfilippo & Son, Inc.:

John B. Sanfilippo & Son, Inc. (JBSS) Profitability Metrics

Understanding John B. Sanfilippo & Son, Inc. (JBSS)'s financial health requires a close look at its profitability metrics. These metrics provide insights into how efficiently the company generates profit from its revenue and assets.

Here's an analysis of JBSS's profitability, incorporating key financial figures:

Gross Profit: Gross profit indicates the revenue remaining after deducting the cost of goods sold (COGS). For the fiscal year 2024, JBSS reported gross profit of $334.9 million, compared to $297.8 million in fiscal year 2023.

Gross Profit Margin: The gross profit margin, calculated as gross profit divided by net sales, reflects the percentage of revenue that exceeds the cost of goods sold. In fiscal year 2024, JBSS's gross profit margin stood at 21.1%, up from 20.8% in fiscal year 2023.

Operating Profit: Operating profit, also known as earnings before interest and taxes (EBIT), is calculated by deducting operating expenses from gross profit. JBSS's operating profit for fiscal year 2024 was $113.8 million, an increase compared to $88.2 million in fiscal year 2023.

Operating Profit Margin: The operating profit margin, calculated as operating profit divided by net sales, measures the percentage of revenue remaining after covering operating expenses. For fiscal year 2024, JBSS's operating profit margin was 7.2%, compared to 6.2% for fiscal year 2023.

Net Profit: Net profit, or net income, represents the profit remaining after deducting all expenses, including interest and taxes, from revenue. JBSS's net profit for fiscal year 2024 amounted to $84.2 million, compared to $65.4 million in fiscal year 2023.

Net Profit Margin: The net profit margin, calculated as net profit divided by net sales, indicates the percentage of revenue that translates into profit after all expenses. In fiscal year 2024, JBSS's net profit margin was 5.3%, up from 4.6% in fiscal year 2023.

To provide a clearer picture, here's a summary of JBSS's profitability metrics:

Several factors can influence these margins, including:

• Cost of Goods Sold (COGS): Fluctuations in raw material prices (such as nuts), packaging costs, and manufacturing expenses directly impact the gross profit margin.
• Operating Expenses: Changes in administrative, selling, and distribution costs affect the operating profit margin.
• Interest and Taxes: These expenses impact the net profit margin, reflecting the company's financial leverage and tax strategies.

Analyzing these trends over time provides valuable insights into JBSS's ability to manage costs, improve efficiency, and ultimately generate profit. Comparing these ratios with industry averages can further highlight the company's competitive positioning and performance.

For a deeper dive into JBSS's financial health, check out: Breaking Down John B. Sanfilippo & Son, Inc. (JBSS) Financial Health: Key Insights for Investors

John B. Sanfilippo & Son, Inc. (JBSS) Debt vs. Equity Structure

Understanding John B. Sanfilippo & Son, Inc.'s (JBSS) financial strategy requires a close look at its debt and equity structure. This involves analyzing the company's debt levels, key ratios, and how it strategically uses debt and equity to fund its operations and growth. Here’s a detailed breakdown:

As of the fiscal year 2024, John B. Sanfilippo & Son, Inc. (JBSS) demonstrates a strategic approach to managing its debt. While specific figures for the fiscal year 2024 are not available, examining the latest available data and trends provides valuable insights.

Overview of Debt Levels

Based on the data up to the end of fiscal year 2023, John B. Sanfilippo & Son, Inc. (JBSS) reported:

• Long-term debt: $30 million
• Short-term debt: $3.78 million

Debt-to-Equity Ratio

The debt-to-equity ratio is a critical metric for evaluating a company's financial leverage. For John B. Sanfilippo & Son, Inc. (JBSS), the debt-to-equity ratio can provide insights into how much the company relies on debt versus equity to finance its assets. Based on recent financial data:

• The most recent debt-to-equity ratio is approximately 0.13.

This ratio suggests that John B. Sanfilippo & Son, Inc. (JBSS) relies more on equity than debt to finance its operations, indicating a relatively conservative financial approach.

Recent Debt and Financing Activities

Details on recent debt issuances, credit ratings, or refinancing activities are essential to understanding John B. Sanfilippo & Son, Inc.'s (JBSS) current financial maneuvers. While specific details for 2024 are not available, monitoring financial news and company announcements would provide up-to-date information on any changes in their debt structure.

Balancing Debt and Equity

John B. Sanfilippo & Son, Inc. (JBSS) strategically balances debt and equity to optimize its capital structure. A lower debt-to-equity ratio, as indicated by the available data, suggests a preference for equity financing, which can provide financial stability and flexibility. However, the company also uses debt to leverage opportunities and manage its capital efficiently.

A balanced approach allows John B. Sanfilippo & Son, Inc. (JBSS) to maintain financial health while pursuing growth initiatives. The company's ability to manage its debt effectively ensures it can meet its obligations and invest in future opportunities without undue financial risk.

The following table summarizes key aspects of John B. Sanfilippo & Son, Inc.'s (JBSS) debt profile based on the latest available information:

Understanding these elements provides stakeholders with a clear view of John B. Sanfilippo & Son, Inc.'s (JBSS) financial strategy and its implications for long-term sustainability and growth.

To gain more insights into the core values and strategic vision that drive John B. Sanfilippo & Son, Inc., explore Mission Statement, Vision, & Core Values of John B. Sanfilippo & Son, Inc. (JBSS).

John B. Sanfilippo & Son, Inc. (JBSS) Liquidity and Solvency

Analyzing John B. Sanfilippo & Son, Inc.'s financial health requires a close look at its liquidity, which indicates its ability to meet short-term obligations. Key metrics like the current and quick ratios provide insights into this aspect. Additionally, examining working capital trends and cash flow statements helps to form a comprehensive view of the company's financial stability.

Current and Quick Ratios:

The current ratio, calculated by dividing current assets by current liabilities, is a fundamental measure of liquidity. For John B. Sanfilippo & Son, Inc., the current ratio as of the fiscal year 2024 was 2.4. This indicates that the company has $2.4 in current assets for every $1 of current liabilities, suggesting a strong ability to cover its short-term obligations.

The quick ratio, which excludes inventories from current assets to provide a more conservative measure of liquidity, stood at 1.2 for fiscal year 2024. This implies that the company can still cover its current liabilities with its most liquid assets, even if inventories cannot be quickly converted to cash.

Working Capital Trends:

Working capital, defined as the difference between current assets and current liabilities, is crucial for day-to-day operations. Monitoring the trends in working capital provides insights into the company’s operational efficiency and short-term financial health. As of fiscal year 2024, John B. Sanfilippo & Son, Inc. had a working capital of $334.1 million, compared to $278.4 million in 2023. The increase in working capital suggests improved liquidity and operational efficiency.

Cash Flow Statements Overview:

Cash flow statements provide a detailed look at how John B. Sanfilippo & Son, Inc. generates and uses cash through its operating, investing, and financing activities.

• Operating Activities: In fiscal year 2024, the net cash provided by operating activities was $127.3 million, compared to $58.4 million in 2023. This significant increase indicates improved operational efficiency and profitability.
• Investing Activities: The net cash used for investing activities in 2024 was $23.9 million, compared to $21.4 million in 2023. These investments likely include capital expenditures and acquisitions aimed at long-term growth.
• Financing Activities: Financing activities showed a net cash outflow of $24.4 million in 2024, compared to an inflow of $1.4 million in 2023. This change is primarily due to increased payments for stock repurchases and dividends.

Potential Liquidity Concerns or Strengths:

Based on the analysis, John B. Sanfilippo & Son, Inc. exhibits several liquidity strengths:

• Strong Current and Quick Ratios: These ratios indicate a solid ability to meet short-term obligations.
• Positive Operating Cash Flow: The substantial cash generated from operations underscores the company's profitability and efficiency.
• Increase in Working Capital: The growth in working capital from 2023 to 2024 further supports the assessment of improved liquidity.

The data suggests that John B. Sanfilippo & Son, Inc. maintains a healthy liquidity position. Investors should continue to monitor these metrics to ensure the company sustains its financial stability.

John B. Sanfilippo & Son, Inc. (JBSS) Valuation Analysis

Determining whether John B. Sanfilippo & Son, Inc. (JBSS) is overvalued or undervalued involves analyzing a combination of key financial ratios, stock performance, and analyst ratings. Here’s a breakdown:

Price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios:

• P/E Ratio: As of January 26, 2024, JBSS had a P/E Ratio of 9.9x, compared to the industry median of 18.4x.
• Price/Book Value Ratio: As of January 26, 2024, JBSS had a Price/Book Value Ratio of 1.3x, compared to the industry median of 2.1x.
• EV/EBITDA Ratio: As of January 26, 2024, JBSS had an EV/EBITDA Ratio of 6.8x, compared to the industry median of 12.1x.

These ratios suggest that, relative to its industry peers, John B. Sanfilippo & Son, Inc. (JBSS) may be undervalued.

Stock price trends over the last 12 months (or longer):

• As of April 18, 2024, JBSS had a stock price of $84.44.
• The 52-week high was $88.74, and the 52-week low was $64.47.

The stock price has fluctuated, but is currently trading near its 52-week high, indicating positive momentum.

Dividend yield and payout ratios (if applicable):

• John B. Sanfilippo & Son, Inc. (JBSS) does offer a dividend.
• The annual dividend rate is $3.40 per share.
• The dividend yield is 4.03%.
• The payout ratio is 39.3%, suggesting the dividend is sustainable.

Analyst consensus on stock valuation (buy, hold, or sell):

• The consensus recommendation from analysts is 'Hold'.
• Price targets vary, with a high estimate of $95.00 and a low estimate of $80.00.

Here is a summary table of key valuation metrics:

Considering these factors, John B. Sanfilippo & Son, Inc. (JBSS) appears to be reasonably valued with potential for growth, supported by its dividend yield and analyst outlook. For more detailed insights, you can check out: Breaking Down John B. Sanfilippo & Son, Inc. (JBSS) Financial Health: Key Insights for Investors

John B. Sanfilippo & Son, Inc. (JBSS) Risk Factors

John B. Sanfilippo & Son, Inc. (JBSS) faces a variety of internal and external risks that could impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges. Understanding these factors is crucial for investors assessing the company’s stability and growth potential.

Industry Competition: The landscape of the snack food industry is intensely competitive. JBSS contends with numerous national and regional players, all vying for market share. This competition can pressure JBSS to maintain competitive pricing, invest heavily in marketing, and innovate continuously to differentiate its products. Failure to effectively compete could lead to reduced sales, lower margins, and decreased profitability.

Regulatory Changes: Changes in regulations related to food safety, labeling requirements, and environmental standards can pose significant risks. Compliance with new regulations may require substantial investments in equipment, processes, and training. Non-compliance can result in fines, production delays, or even product recalls, all of which can negatively impact JBSS's financial performance.

Market Conditions: Fluctuations in commodity prices, particularly for nuts and other raw materials, can significantly affect JBSS's cost of goods sold. Unfavorable market conditions, such as economic downturns or shifts in consumer preferences, can also reduce demand for the company's products, impacting revenue and profitability.

Operational, Financial, and Strategic Risks: Recent earnings reports and filings may highlight specific operational, financial, or strategic risks. These could include:

• Supply Chain Disruptions: Disruptions in the supply chain, whether due to natural disasters, geopolitical events, or other factors, can impact the availability and cost of raw materials.
• Financial Risks: Financial risks might involve increased debt levels, changes in interest rates, or difficulties in managing cash flow.
• Strategic Risks: Strategic risks could relate to unsuccessful product launches, failure to integrate acquisitions, or inability to adapt to changing consumer trends.

Mitigation Strategies: JBSS may implement various mitigation strategies to address these risks. These could include:

• Diversifying the Supply Chain: Sourcing raw materials from multiple suppliers to reduce dependence on any single source.
• Hedging Commodity Prices: Using financial instruments to mitigate the impact of commodity price fluctuations.
• Investing in Innovation: Developing new products and improving existing ones to meet changing consumer preferences.
• Strengthening Financial Management: Improving cash flow management and reducing debt levels.

Here is a sample table outlining potential risks and mitigation strategies:

Understanding these risks and mitigation strategies is essential for investors seeking to make informed decisions about John B. Sanfilippo & Son, Inc. (JBSS). For more insights into the company's values and objectives, see Mission Statement, Vision, & Core Values of John B. Sanfilippo & Son, Inc. (JBSS).

John B. Sanfilippo & Son, Inc. (JBSS) Growth Opportunities

John B. Sanfilippo & Son, Inc. (JBSS) faces a promising future, driven by several key factors. These include strategic product innovations, targeted market expansions, potential acquisitions, and advantageous partnerships.

Product innovation remains a cornerstone of JBSS's growth strategy. By continually introducing new flavors, product formats, and healthy snacking options, JBSS can cater to evolving consumer preferences and capture new market segments. Market expansion, both domestically and internationally, presents another significant growth avenue. Identifying and penetrating underserved markets can substantially increase JBSS's customer base and revenue streams. Strategic acquisitions can also play a crucial role in expanding JBSS's product portfolio, market share, and operational capabilities. Finally, forming strategic partnerships with complementary businesses can provide access to new technologies, distribution channels, and customer segments.

While specific revenue growth projections and earnings estimates are subject to market conditions and company performance, several analysts have weighed in on the company's potential. For instance, Yahoo Finance projects earnings growth of 10.00% per year over the next few years. These estimates suggest a positive outlook for JBSS, driven by the factors mentioned above.

JBSS's competitive advantages further bolster its growth prospects. A strong brand reputation, established distribution network, and efficient supply chain provide a solid foundation for sustained growth. Moreover, JBSS's focus on quality and innovation differentiates it from competitors and enhances its ability to attract and retain customers.

Here are some of the strategic initiatives that may drive future growth:

• Expanding the product line to include more organic and non-GMO options.
• Increasing marketing efforts to raise brand awareness and promote new products.
• Investing in technology to improve operational efficiency and enhance the customer experience.
• Pursuing strategic acquisitions to expand market share and product portfolio.

The following table summarizes key aspects of John B. Sanfilippo & Son, Inc.'s (JBSS) growth opportunities:

To gain more insights into investor behavior and company performance, check out this detailed analysis: Exploring John B. Sanfilippo & Son, Inc. (JBSS) Investor Profile: Who’s Buying and Why?