Top 15 Packaged Foods Stocks by Marvin Score
Marvin's rules rank 15 packaged foods stocks above about $300 million in size. Smithfield Foods, John B. Sanfilippo & Son and Darling Ingredients score highest against other companies in the industry today.
Packaged foods companies make and sell food that is processed, preserved or prepared for sale. This list shows the 15 companies in that industry that Marvin's scores place highest, starting with Smithfield Foods, John B. Sanfilippo & Son and Darling Ingredients.
The scores run from 0 to 100 and compare each company only with other companies in its own industry. A high score means a company looks strong next to its packaged foods peers today. It is not a forecast and not a suggestion to buy or sell anything.
Read each figure with care. Growth, margins, return on equity and debt tell different parts of the story, and a few companies below are missing some figures. Where data is not available, the blurb says so.
The list
How Marvin ranked these stocks
Marvin included companies above about $300 million in size and ranked them by Marvin scores, with the highest Overall score first. All scores run from 0 to 100 and are relative to each company's own industry, here Packaged Foods. A score describes how a company compares with its industry peers today, not how its stock may perform.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). The Packaged Foods industry, highest Overall score first.
The stocks, one by one
Smithfield Foods, Inc. SFD
Smithfield Foods has the top Overall score of 96, with quality at 96. Revenue grew 9.8% last fiscal year, and debt-to-equity is a low 0.26. Caution: operating margin of 8.6% is modest, and free cash flow margin is not available.
John B. Sanfilippo & Son, Inc. JBSS
John B. Sanfilippo & Son scores 93 overall. Revenue grew 6.2%, return on equity is 16.3%, and debt-to-equity is low at 0.20. Caution: operating margin of 7.6% and free cash flow margin of 3.0% are thin, so little of each sale becomes profit.
Darling Ingredients Inc. DAR
Darling Ingredients has a solid operating margin of 14.5% and a gross margin of 26.3%. Revenue grew 7.4% last fiscal year. Caution: debt-to-equity of 0.78 is higher than the top two names, and free cash flow margin is not available.
McCormick & Company, Incorporated MKC
McCormick has a high gross margin of 39.1% and a return on equity of 21.3%, which suggest strong profitability. Operating margin is 13.4%. Caution: revenue growth was only 1.7%, so sales are expanding slowly, and free cash flow margin is not available.
Ingredion Incorporated INGR
Ingredion has a quality score of 93, with operating margin of 11.9% and free cash flow margin of 4.9%. Debt-to-equity is low at 0.39. Caution: revenue growth was -2.8%, meaning sales shrank, and its opportunity score is only 69.
The Marzetti Company MZTI
The Marzetti Company converts sales to cash well, with a free cash flow margin of 10.7%. Return on equity is 18.2% and debt-to-equity is low at 0.24. Caution: revenue growth was just 1.1%, so sales were close to flat.
Freshpet, Inc. FRPT
Freshpet grew revenue 13.0% and has a gross margin of 41.4%, showing strong growth and room between sales and direct costs. Caution: operating margin is only 8.1%, free cash flow margin is 5.2%, and debt-to-equity is not available.
Seneca Foods Corporation SENEA
Seneca Foods grew revenue 8.2% and carries modest debt, with debt-to-equity of 0.31. Its opportunity score is 86, above its quality score of 75. Caution: margin and return on equity figures are not available, so profitability is hard to judge.
BellRing Brands, Inc. BRBR
BellRing Brands has an overall score of 74 and quality of 77. Revenue grew 16.1% last fiscal year, one of the faster rates on this list. Caution: margin, return and debt figures are not available, so the picture of profitability and borrowing is incomplete.
Westrock Coffee Company, LLC WEST
Westrock Coffee grew revenue 39.8%, and its opportunity score is 96. Caution: its quality score is only 37, operating margin is -1.2% and free cash flow margin is -1.2%, so it is not yet profitable on these measures.
Central Garden & Pet Company CENT
Central Garden & Pet turns sales into cash well, with a free cash flow margin of 11.2% and a gross margin of 32.5%. Caution: revenue growth was -2.2%, meaning sales fell, and debt-to-equity of 0.81 is on the higher side.
Mama's Creations, Inc. MAMA
Mama's Creations grew revenue 39.2%, among the fastest on this list, with a free cash flow margin of 8.3%. Caution: operating margin of 4.5% and return on equity of 4.4% are low, and debt-to-equity is not available.
J&J Snack Foods Corp. JJSF
J&J Snack Foods has a quality score of 72 and low debt, with debt-to-equity of 0.22. Caution: revenue growth was just 0.5%, operating margin is 3.9%, and its opportunity score of 21 is among the lowest here.
The J. M. Smucker Company SJM
J. M. Smucker has a gross margin of 38.7% and a free cash flow margin of 17.3%, both healthy. Caution: debt-to-equity of 1.21 is the highest of the stocks with a value apart from Campbell, and return on equity is only 4.0%.
Campbell Soup Company CPB
Campbell Soup has an operating margin of 8.7% and a return on equity of 10.5%. Caution: revenue growth was -5.0%, meaning sales shrank, and debt-to-equity of 2.05 is the highest on this list, with a quality score of just 42.
Common questions
What does Marvin's Overall score mean?
It is a score from 0 to 100 that combines Marvin's quality and opportunity measures. It compares a company only with others in its own industry, so a high score means it looks strong next to its packaged foods peers today. It is not a prediction.
Why are some figures missing for certain companies?
Marvin only shows a figure when the data is available for that company. Where a margin, return or debt figure is missing, such as for Seneca Foods or BellRing Brands, the blurb says so. A missing figure means less is known, not that the result is good or bad.
Are packaged foods stocks considered defensive?
Marvin files these companies under the Consumer Defensive sector, which covers businesses selling everyday goods that people tend to keep buying. Being in that sector does not protect any single company from weak sales, rising costs or heavy debt, as several figures above show.
Keep reading
- Top 15 Consumer Defensive Companies by Business Quality
- Top 15 Consumer Defensive Stocks Right Now
- Top 15 Consumer Defensive Stocks by Marvin Opportunity Score
- Top 20 Stocks to Hold for the Long Term, Ranked by Marvin
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Marvin's scores (0-100) compare each company with others in its industry today. Growth and margin figures come from SEC filings. This is general information, not personal investment advice or a recommendation to buy or sell anything. Do your own research.