SJM’s Uniform Adjusted EPS’ is expected to decline, not grow, and at current valuations, this may have implications for share prices

• SJM’s profitability is materially distorted by accounting for operating leases and R&D

• As such, their UAFRS EPS’ is expected to shrink by 7% in the next four quarters, not grow by 10%

• After making the appropriate UAFRS adjustments, SJM is trading near corporate averages, at a 19.2x Uniform P/E, rather than a 16.4x traditional P/E, indicating it is not cheap, and declining earnings suggest it may be a value trap

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Submitted June 19, 2017 at 08:49PM by Valens_Research http://ift.tt/2sMJz10