Is J&J Snack Foods (NASDAQ:JJSF) A Risky Investment?
Is J&J Snack Foods (NASDAQ:JJSF) A Risky Investment?
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company. We note that J&J Snack Foods Corp. (NASDAQ:JJSF) does have debt on its balance sheet. But should shareholders be worried about its use of debt?
傳奇基金經理陸松遙(Charlie Munger的支持者)曾經說過:“最大的投資風險不是價格波動,而是你是否會遭受永久性資本損失。” 因此,當你考慮任何給定股票的風險時,需要考慮債務,因爲過多的債務可以導致公司破產。我們注意到J&J Snack Foods Corp.(納斯達克代碼:JJSF)確實在其資產負債表中有債務。但是股東是否應該擔心其使用債務?
When Is Debt A Problem?
什麼時候負債才是一個問題?
Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. When we examine debt levels, we first consider both cash and debt levels, together.
債務對於業務有幫助,直到企業開始無力償還,必須通過新的資本或自由現金流進行償還。如果公司無法履行償還債務的法律義務,股東最終可能什麼也拿不到。然而,更常見(但仍然很昂貴)的情況是,一家公司必須以便宜的股票價格稀釋股東,以便控制債務。當然,債務的好處是它通常代表廉價的資本,特別是當它取代具有以高回報率再投資能力的公司股份稀釋時。當我們檢查債務水平時,我們首先考慮現金和負債水平。
What Is J&J Snack Foods's Debt?
J&J Snack Foods的債務情況是什麼?
You can click the graphic below for the historical numbers, but it shows that J&J Snack Foods had US$17.0m of debt in March 2024, down from US$92.0m, one year before. But it also has US$43.6m in cash to offset that, meaning it has US$26.6m net cash.
您可以點擊下面的圖表以查看歷史數據,但它顯示J&J Snack Foods在2024年3月有1700萬美元的債務,比一年前的9200萬美元下降。但是它也有4360萬美元的現金來抵消這筆債務,意味着它擁有2660萬美元的淨現金。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240724/0-65c89979b3a78188f34e8d2aed3e4540-0-715284d005f5a94a5efdcf109f0be147.png/big)
How Strong Is J&J Snack Foods' Balance Sheet?
J&J Snack Foods的資產負債表有多強勁?
According to the last reported balance sheet, J&J Snack Foods had liabilities of US$174.6m due within 12 months, and liabilities of US$245.4m due beyond 12 months. On the other hand, it had cash of US$43.6m and US$178.3m worth of receivables due within a year. So its liabilities total US$198.0m more than the combination of its cash and short-term receivables.
根據最近公佈的資產負債表,J&J Snack Foods在12個月內應支付17460萬美元的負債和超過12個月應支付24540萬美元的負債。但另一方面,它有4360萬美元的現金和17830萬美元的應收賬款,可在一年內收到。因此,它的負債總額比其現金和短期應收賬款的組合多19800萬美元。
Of course, J&J Snack Foods has a market capitalization of US$3.29b, so these liabilities are probably manageable. However, we do think it is worth keeping an eye on its balance sheet strength, as it may change over time. While it does have liabilities worth noting, J&J Snack Foods also has more cash than debt, so we're pretty confident it can manage its debt safely.
當然,J&J Snack Foods的市值爲3.29億美元,因此這些負債可能是可以承受的。但是,我們認爲值得關注它的資產負債表強度,因爲它可能會隨時間改變。雖然它確實有值得注意的負債,但J&J Snack Foods的現金比債務多,因此我們非常有信心它可以安全地管理其債務。
On top of that, J&J Snack Foods grew its EBIT by 75% over the last twelve months, and that growth will make it easier to handle its debt. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately the future profitability of the business will decide if J&J Snack Foods can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
除此之外,J&J Snack Foods在過去的十二個月內將其EBIt增長了75%,這種增長將使其更容易處理其債務。當你分析債務時,資產負債表顯然是需要關注的領域。但最終,業務未來的盈利能力將決定J&J Snack Foods是否能隨着時間的推移加強其資產負債表。因此,如果您想看看專業人士的想法,您可能會發現這份有關分析師利潤預測的免費報告很有趣。
But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. J&J Snack Foods may have net cash on the balance sheet, but it is still interesting to look at how well the business converts its earnings before interest and tax (EBIT) to free cash flow, because that will influence both its need for, and its capacity to manage debt. In the last three years, J&J Snack Foods's free cash flow amounted to 27% of its EBIT, less than we'd expect. That's not great, when it comes to paying down debt.
但我們最後的考慮也很重要,因爲公司無法用紙上利潤支付債務;它需要冷硬的現金。儘管J&J Snack Foods在資產負債表上有淨現金,但看看業務如何將其利息和稅前收入(EBIT)轉化爲自由現金流,仍然很有趣,因爲這將影響其管理債務的需求和能力。在過去三年中,J&J Snack Foods的自由現金流佔其EBIt的27%,低於我們的預期。這在償還債務方面並不理想。
Summing Up
總之
While it is always sensible to look at a company's total liabilities, it is very reassuring that J&J Snack Foods has US$26.6m in net cash. And we liked the look of last year's 75% year-on-year EBIT growth. So we don't think J&J Snack Foods's use of debt is risky. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately, every company can contain risks that exist outside of the balance sheet. For instance, we've identified 1 warning sign for J&J Snack Foods that you should be aware of.
雖然查看公司的全部負債總是明智的,但J&J Snack Foods擁有2660萬美元的淨現金,這非常令人放心。我們喜歡去年同比增長75%的EBIt增長。因此,我們認爲J&J Snack Foods使用債務並不冒險。在分析債務水平時,資產負債表是顯然的起點。但最終,每家公司都可能包含超出資產負債表範圍的風險。例如,我們已經確定了1個需要注意的警告信號,這是關於J&J Snack Foods的。
If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.
如果在所有這些之後,您更感興趣的是具有堅實資產負債表的快速增長公司,那麼不要拖延,查看我們的淨現金增長股票列表。
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@simplywallst.com。
這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論,只使用公正的方法論,我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議,也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@simplywallst.com。