Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, in ...

Group 1: SiriusPoint Ltd. (SPNT) - SiriusPoint Ltd. is an insurance company with a Zacks Rank 1, indicating strong performance potential [1] - The Zacks Consensus Estimate for its current year earnings has increased by 7.6% over the last 60 days [1] - The company has a price-to-earnings ratio (P/E) of 9.15, significantly lower than the S&P 500's P/E of 24.67, and possesses a Value Score of A [1] Group 2: John B. Sanfilippo & Son, Inc. (JBSS) - John B. Sanfilippo & Son, Inc. operates in the tree nuts and peanuts sector and also holds a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has risen by 7.8% over the last 60 days [2] - The company has a P/E ratio of 12.90, which is lower than the industry average of 14.80, and has a Value Score of A [2] Group 3: United Natural Foods, Inc. (UNFI) - United Natural Foods, Inc. is involved in the distribution of natural, organic, and specialty foods, and carries a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 7.4% over the last 60 days [3] - The company has a P/E ratio of 16.24, which is lower than the S&P 500's P/E of 24.67, and possesses a Value Score of A [3]

Core Viewpoint - The article emphasizes the importance of value investing and highlights John B. Sanfilippo & Son (JBSS) as a strong value stock currently available in the market [2][3]. Group 1: Value Investing - Value investing is a popular strategy that utilizes fundamental analysis and traditional valuation metrics to identify undervalued stocks [2]. - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly focusing on the "Value" category for value investors [3]. Group 2: John B. Sanfilippo & Son (JBSS) - JBSS holds a Zacks Rank of 1 (Strong Buy) and has received an A grade for Value, indicating it is among the strongest value stocks currently [3]. - The P/S ratio for JBSS is 0.72, which is lower than the industry average P/S of 0.91, suggesting that JBSS may be undervalued [4]. - The combination of JBSS's strong earnings outlook and its valuation metrics positions it as an impressive value stock at this time [5].

Summary of John B Sanfilippo & Son (NasdaqGS:JBSS) FY Conference Call Company Overview - John B Sanfilippo & Son (JBSS) is a family-run business and the largest vertically integrated sheller and processor of nuts in the U.S. [3][4] - The company operates five high-capacity production facilities located in prime nut-growing regions, including California, Texas, and Georgia [4] Financial Performance - JBSS sold a record 358 million pounds of products last year, with diluted EPS increasing at a CAGR of 6.8% over the last 10 years [6] - The company reported an 8% sales growth and nearly 59% EPS growth in the first quarter of FY2025 [8] - The company has a strong balance sheet with a debt-to-equity ratio well below one [8] Product Portfolio and Market Strategy - The product portfolio includes recipe nuts, trail mixes, snack bars, and confectionery items, with trail and snack mixes accounting for approximately 25% of the portfolio [5] - The consumer channel is the largest distribution channel, making up 82% of the business, followed by commercial ingredients (10%) and contract manufacturing (8%) [8][9] - The company has shifted its focus towards the consumer channel to manage costs and pricing better, which has allowed for consistent gross profit despite commodity price volatility [10] Dividend Policy - JBSS established a dividend policy in 2017, paying its first yearly dividend of $0.50, which increased to $0.90 in 2025, supplemented by special dividends totaling $1.60 in the current year [7] Market Trends and Challenges - The nut category has seen a decrease in pound sales since FY2021 due to increased retail prices, negatively impacting volume growth [13] - The bar category, however, has been growing, driven by a shift towards higher-end bars like protein and energy bars [14] Growth Strategies - JBSS is focusing on three growth strategies: expanding consumer reach, creating value with key customers, and growing its brands [15] - The company aims to increase its presence in various retail channels, including home improvement stores and grocery chains [15] Brand Performance - The Fisher brand experienced a soft year in FY25 due to lost distribution in the mass channel, but is expected to perform well during the holiday season [18] - Private label products accounted for 83% of total sales in FY2025, with branded products making up only 17% [19] Future Outlook - The company is transitioning from a nut and trail-focused business to a broader snack company, investing in bar manufacturing capabilities to capture growth in the bar category [28] - JBSS plans to maintain margins in its core nut and trail business while expanding its private label bar offerings [21] Investment in Bar Manufacturing - JBSS has invested in new high-speed bar manufacturing lines, which will significantly increase production capacity [23] - The bar category is projected to grow, with JBSS aiming to fill the gap in private label bar manufacturing due to limited capacity among competitors [24][25] Conclusion - JBSS is strategically positioned to leverage its expertise in the nut market while expanding into the growing bar category, focusing on private label products to meet retailer demand and consumer preferences [28][30]

Core Viewpoint - John B. Sanfilippo & Son (JBSS) is becoming an attractive option for value investors as its stock has decreased by 24% in 2025, similar to other food manufacturers [1] Company Summary - JBSS's stock performance reflects a broader trend in the food manufacturing sector, indicating potential investment opportunities for long-term investors [1]

Financial Data and Key Metrics Changes - The company reported a 59% improvement in diluted earnings per share, reflecting the strength of its strategy and operational efficiency [2] - Net sales for Q1 2026 increased by 8.1% to $298.7 million compared to $276.2 million in Q1 2025, driven by an 8.9% increase in the weighted average sales price per pound [10] - Net income for Q1 2026 was $18.7 million, or $1.59 per diluted share, compared to $11.7 million, or $1 per diluted share, in Q1 2025 [14] Business Line Data and Key Metrics Changes - Sales volume decreased by 0.7%, with declines across most product types except for peanuts, walnuts, and pecans, which saw volume growth [10] - The commercial ingredients distribution channel experienced a 12.8% increase in sales volume, driven by new business and increased peanut butter volume [12] - The contract manufacturing distribution channel saw an 18.4% increase in sales volume, primarily due to increased granola sales [12] Market Data and Key Metrics Changes - The snack nut and trail mix category saw a 3% decline in pounds but a 5% increase in dollars, driven by price increases [19] - The recipe nut category experienced a 2% decline in pounds but a 19% increase in dollars, with a significant price increase of 21% [21] - The Orchard Valley Harvest brand saw a 44% decline in pound shipments due to discontinuation at a national specialty retailer [20] Company Strategy and Development Direction - The company is focused on three key areas: growing sales volume, delivering best-in-class service, and driving ongoing improvements in profitability [21] - There is an emphasis on optimizing commodity acquisition costs and selling price alignment, as well as increasing distribution for snack and nutrition bars [21] - The company is expanding its retail distribution in club and alternative retail channels with innovative products and pack sizes [6] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as price inflation and changing consumer sentiment in the snack category [3] - The company is confident in its ability to navigate volatile times and grow its business despite ongoing headwinds [22] - Management highlighted the importance of innovation and renovation opportunities to mitigate commodity pressures [20] Other Important Information - A special cash dividend of $1 per share was approved, returning approximately $11.7 million to stockholders [3] - The total value of inventories increased by 20.6% due to higher commodity acquisition costs and preparation for anticipated holiday demand [14] Q&A Session Summary Question: What caused the decline in the private brand bar business? - The decline was primarily driven by consumer behavior, with unexpected declines in the fruit and grain bar segment [25] Question: Will the dividend be paid from cash flow or debt? - The dividend is expected to be paid mainly from cash flow [26] Question: Is the increase in demand for certain nuts due to consumer preference for cheaper alternatives? - There has been a shift from higher-cost nuts to cheaper alternatives, but some consumers have also left the snack nut category due to higher prices [26]

Financial Performance - Net sales for the first quarter of fiscal 2026 increased by $22.5 million, or 8.1%, to $298.7 million compared to $276.2 million in the first quarter of fiscal 2025[79] - Gross profit increased by $7.6 million, or 16.2%, to $54.1 million, with a gross profit margin of 18.1% for the first quarter of fiscal 2026, up from 16.9% in the prior year[91] - Income from operations increased to $27.0 million, or 9.0% of net sales, for Q1 fiscal 2026, up from $17.0 million, or 6.2% of net sales, in Q1 fiscal 2025[95] - Net income rose to $18.7 million, or $1.60 per common share basic, for Q1 fiscal 2026, compared to $11.7 million, or $1.00 per common share, in Q1 fiscal 2025[100] - Net cash provided by operating activities was $32.1 million for Q1 fiscal 2026, significantly higher than $8.9 million for the same period in fiscal 2025[103] Sales and Distribution Channels - Sales volume decreased by 0.7% compared to the first quarter of fiscal 2025, with an 8.9% increase in weighted average selling price per pound due to higher commodity acquisition costs[86] - Net sales in the consumer distribution channel increased by $12.7 million, or 5.5%, despite a sales volume decrease of 5.1% in the first quarter of fiscal 2026[88] - Net sales in the commercial ingredients distribution channel increased by $4.3 million, or 16.0%, with a sales volume increase of 12.8% in the first quarter of fiscal 2026[89] - Net sales in the contract manufacturing distribution channel increased by $5.5 million, or 27.5%, with a sales volume increase of 18.4% in the first quarter of fiscal 2026[90] Operating Expenses and Inventory - Total operating expenses decreased by $2.5 million, or 8.3%, to 9.1% of net sales in the first quarter of fiscal 2026, down from 10.7% in the first quarter of fiscal 2025[81] - Total inventories were $234.7 million at September 25, 2025, a decrease of $19.9 million, or 7.8%, from June 26, 2025[104] - The total value of inventories increased by $40.2 million, or 20.6%, at the end of the first quarter of fiscal 2026 compared to the same period in fiscal 2025[82] Capital Expenditures and Investments - The company plans to invest approximately $90.0 million in capital expenditures throughout fiscal 2026 to expand production capabilities[102] - Cash used in investing activities was $24.9 million during Q1 fiscal 2026, compared to $12.0 million for the same period last year[106] - The Equipment Loan allows the company to finance up to $50 million for equipment purchases to enhance production capabilities[114] Risks and Challenges - The company acknowledges that actual results may differ materially from forward-looking statements due to various risks and uncertainties[118] - Key risks include potential declines in sales to major customers and shifts in consumer preferences towards lower-margin products[118] - The company faces challenges related to raw material costs, including tariffs and fixed price commitments, which could impact profitability[118] - There is a risk of losing sales and product liability due to product recalls or food safety issues, affecting consumer confidence[118] - Economic conditions, including inflation and potential downturns, may lead to decreased consumer demand for products[118] - Technology disruptions, cybersecurity incidents, and the ability to protect brand value and intellectual property are critical concerns[118] - The company is also monitoring the impacts of climate change on raw material availability due to changing weather patterns[118] Strategic Focus - The company is focusing on expanding its private brand business and enhancing production capabilities through significant capital investments starting in fiscal 2025[68] - The company aims to implement its Long-Range Plan, focusing on growing branded and private brand product sales and diversifying product offerings[118]

Core Points - The company declared a special cash dividend of $1.00 per share on all issued and outstanding shares of Common Stock and Class A Common Stock, totaling approximately $11.7 million to stockholders [1][2][3] Company Overview - John B. Sanfilippo & Son, Inc. is involved in processing, packaging, marketing, and distributing nut and dried fruit-based products, snack bars, and dried cheese snacks under various private brands and its own brand names such as Fisher®, Orchard Valley Harvest®, Squirrel Brand®, Southern Style Nuts®, and Just the Cheese® [4]

Financial Performance - Net sales for Q1 fiscal 2026 increased by $22.5 million, or 8.1%, to $298.7 million, driven by an 8.9% increase in the weighted average selling price per pound [3]. - Diluted earnings per share (EPS) rose 59% to $1.59, reflecting strong operational efficiencies and strategic execution [5]. - Gross profit increased by $7.6 million to $54.1 million, with gross profit margin improving to 18.1% from 16.9% year-over-year [8]. - Total operating expenses decreased by $2.5 million, resulting in a reduction of operating expenses as a percentage of net sales to 9.1% from 10.7% [9]. Sales Volume and Distribution Channels - Sales volume in the consumer distribution channel decreased by 5.1%, primarily due to a reduction in private brand sales volume [4]. - The commercial ingredients distribution channel saw a sales volume increase of 12.8%, driven by new business and higher peanut butter volume [6]. - The contract manufacturing distribution channel experienced an 18.4% increase in sales volume, attributed to increased granola and snack nut sales [7]. Inventory and Costs - Inventory value increased by $40.2 million, or 20.6%, due to higher commodity acquisition costs and preparation for anticipated holiday demand [10]. - The weighted average cost per pound of raw nut and dried fruit input stock increased by 24.8% year-over-year due to higher acquisition costs [10]. Assets and Liabilities - Total assets increased to $598.682 billion in September 2025, up from $597.603 billion in June 2025, and $519.367 billion in September 2024 [20]. - Current assets decreased to $333.518 billion in September 2025 from $346.424 billion in June 2025, while inventories decreased to $234.716 billion from $254.600 billion [20]. - Total stockholders' equity rose to $362.784 billion in September 2025, compared to $360.697 billion in June 2025 and $310.803 billion in September 2024 [20]. - Long-term debt, less current maturities, increased to $29.827 billion in September 2025 from $14.564 billion in June 2025, indicating a significant rise in leverage [20]. - Current liabilities decreased to $136.669 billion in September 2025 from $156.046 billion in June 2025, reflecting improved short-term financial health [20]. - The total liabilities increased to $236.898 billion in September 2025 from $236.906 billion in June 2025, reflecting a stable leverage position despite increased long-term debt [20]. Cash Flow and Expense Management - Cash accounts receivable, net, increased to $84.368 billion in September 2025 from $76.656 billion in June 2025, indicating better collection efficiency [20]. - Retained earnings grew to $222.728 billion in September 2025, up from $221.495 billion in June 2025, showing continued profitability [20]. - Accrued expenses decreased to $31.054 billion in September 2025 from $36.748 billion in June 2025, suggesting improved expense management [20]. - The company reported a decrease in accounts payable to $51.616 billion in September 2025 from $60.479 billion in June 2025, indicating a reduction in outstanding obligations [20]. Strategic Focus - The company aims to focus on growing sales volume, delivering customer value, and improving profitability moving forward [11].

Core Insights - The company reported a 59% increase in diluted earnings per share (EPS) to $1.59, driven by higher net sales and operational efficiencies [1][2][7] Financial Performance - Net sales for the first quarter of fiscal 2026 rose by $22.5 million, or 8.1%, reaching $298.7 million, primarily due to an 8.9% increase in the weighted average selling price per pound [3][7] - Gross profit increased by $7.6 million to $54.1 million, with the gross profit margin improving to 18.1% from 16.9% in the prior year [7][8] - Total operating expenses decreased by $2.5 million, resulting in a reduction of operating expenses as a percentage of net sales to 9.1% from 10.7% [9] Sales Volume Analysis - Sales volume in the consumer distribution channel decreased by 5.1%, mainly due to a 3.2% reduction in private brand sales volume [4] - The commercial ingredients distribution channel saw a 12.8% increase in sales volume, driven by new business and higher peanut butter volume [5] - The contract manufacturing distribution channel experienced an 18.4% increase in sales volume, attributed to increased granola and snack nut sales [6] Inventory and Costs - Total inventories increased by $40.2 million, or 20.6%, due to higher commodity acquisition costs and greater quantities of finished goods [10] - The weighted average cost per pound of raw nut and dried fruit input stock rose by 24.8% year over year [10] Strategic Outlook - The company aims to maintain momentum by focusing on growing sales volume, delivering customer value, and improving profitability [11]