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J&J Snack Foods Corp. (JJSF)

Company Dividend Discount ModelIndustry: Packaged FoodsSector: Consumer Defensive

Valuation Snapshot

Stable Growth$78.68 - $208.71$120.30
Multi-Stage$58.14 - $63.29$60.67
Blended Fair Value$90.49
Current Price$95.61
Upside-5.36%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS7.63%8.79%3.112.912.752.482.292.151.871.691.581.46
YoY Growth--6.66%5.72%11.23%8.15%6.50%14.76%10.82%7.15%8.19%9.06%
Dividend Yield--3.25%1.86%1.65%1.61%1.47%1.37%1.00%1.18%1.04%1.10%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)65.60
(-) Cash Dividends Paid (M)60.75
(=) Cash Retained (M)4.84
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)13.128.204.92
Cash Retained (M)4.844.844.84
(-) Cash Required (M)-13.12-8.20-4.92
(=) Excess Retained (M)-8.28-3.36-0.08
(/) Shares Outstanding (M)19.5619.5619.56
(=) Excess Retained per Share-0.42-0.170.00
LTM Dividend per Share3.113.113.11
(+) Excess Retained per Share-0.42-0.170.00
(=) Adjusted Dividend2.682.933.10
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$78.68$120.30$208.71
Upside / Downside-17.71%25.83%118.29%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)65.6069.8674.4079.2484.3989.8792.57
Payout Ratio92.62%92.09%91.57%91.05%90.52%90.00%92.50%
Projected Dividends (M)60.7564.3368.1372.1476.3980.8885.62

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)58.4258.9759.52
Year 2 PV (M)56.1757.2458.32
Year 3 PV (M)54.0155.5657.14
Year 4 PV (M)51.9253.9255.98
Year 5 PV (M)49.9252.3354.84
PV of Terminal Value (M)866.64908.50951.96
Equity Value (M)1,137.081,186.521,237.75
Shares Outstanding (M)19.5619.5619.56
Fair Value$58.14$60.67$63.29
Upside / Downside-39.19%-36.55%-33.81%

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