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KeyBanc Rated J&J Snack Foods as ‘Sector Weight’

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Price movement

J&J Snack Foods (JJSF) has a market cap of $2.3 billion. It rose by 0.33% and closed at $122.79 per share on August 22, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 0.05%, 1.3%, and 6.0%, respectively, on the same day. J&J Snack Foods is trading 0.92% above its 20-day moving average, 4.0% above its 50-day moving average, and 10.9% above its 200-day moving average.

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Related ETF and peers

The PowerShares S&P SmallCap Low Volatility ETF (XSLV) invests 1.1% of its holdings in J&J Snack Foods. XSLV tracks a volatility weighted index of the 120 least volatile securities from the S&P SmallCap 600 Index. XSLV’s YTD price movement was 14.6% on August 22.

The market caps of J&J Snack Foods peers are as follows:

  • Snyder’s-Lance (LNCE) – $3.4 billion
  • Pinnacle Foods (PF) – $6.0 billion
  • TreeHouse Foods (THS) – $5.4 billion

J&J Snack Foods’ rating

KeyBanc Capital Markets rated coverage of J&J Snack Foods as “sector weight.”

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Performance of J&J Snack Foods in fiscal 3Q16

J&J Snack Foods reported fiscal 3Q16 net sales of $278.0 million—a fall of 0.25% from net sales of $278.7 million in fiscal 3Q15. Sales from the Food Service and Frozen Beverages segments rose by 1.1% and 2.1%, respectively. Sales from the Retail Supermarket segment fell by 10.0% between fiscal 3Q15 and 3Q16. The company’s gross profit margin and operating income rose by 2.1% and 4.1%, respectively.

Its net income and EPS (earnings per share) rose to $26.8 million and $1.43, respectively, in fiscal 3Q16—compared to $24.5 million and $1.30 in fiscal 3Q15. J&J Snack Foods’ cash and cash equivalents fell by 22.0% and its inventories rose by 14.8% between fiscal 4Q15 and 3Q16. Its current ratio fell to 3.2x in fiscal 3Q16—compared to 3.4x in fiscal 4Q15.

Quarterly dividend

J&J Snack Foods declared a regular quarterly cash dividend of $0.39 per share on its common stock. The dividend will be paid on October 6, 2016, to shareholders of record at the close of business on September 15, 2016.

In the next part, we’ll look at Hormel Foods.

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