J&J Snack Foods Corp (JJSF) stock analysis

P/E below its 5-year median

J&J Snack Foods's P/E of 34.2 is below its own 5-year median of 37.5.

P/E above the industry

J&J Snack Foods's P/E of 34.2 is above the Food and Kindred Products median of 21.0.

EV/EBITDA below its 5-year median

J&J Snack Foods's EV/EBITDA of 12.0 is below its 5-year median of 17.1.

P/B below the industry

J&J Snack Foods's price-to-book of 1.86 is below the Food and Kindred Products median of 2.12.

Trading below fair value

The share price of $88.95 is below our fair value estimate of $93.62.

Margin of safety under 20%

The price is 5.0% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 4.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 11.0% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -41.2% over the last twelve months, against a 5-year average of 29.1% a year.

Growing slower than the industry

Revenue grew -4.7% over the last twelve months; the Food and Kindred Products median is 2.7%.

Guidance issued

The latest outlook (fiscal 2026 additional plant closure and other non-recurring charges associated with our business transformation program, Nov 17, 2025) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 31.3% over the last twelve months, against 29.7% a year earlier.

Return on equity under 15%

Return on equity was 5.3% over the last twelve months and averaged 7.4% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 5.5%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

J&J Snack Foods's return on equity of 5.3% is below the Food and Kindred Products median of 6.6%.

Earnings grew over 5 years

Net income grew 29.1% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 3.2% over the last twelve months, against a 5-year average of 4.6%.

Net margin above the industry

J&J Snack Foods's net margin of 3.2% is above the Food and Kindred Products median of 2.7%.

Low debt

Debt is 3.1% of shareholders' equity, under the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 596% of total debt.

Interest well covered

Operating income covers interest expense 27.8 times.

Short-term assets cover short-term debts

Current assets are 2.34 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.52; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

J&J Snack Foods paid dividends worth 3.6% of the share price over the last twelve months.

Yield below Treasuries

The 3.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; J&J Snack Foods yields 3.6%.

Dividend stability

Fewer than five years of dividend history.

Not covered by earnings

Dividends take 124% of net income, leaving little room.

Covered by free cash flow

Dividends take 66.2% of free cash flow.