Nasdaq:JBSS
SANFILIPPO JOHN B & SON INC
A leading provider of durable mining and industrial equipment offering robust aftermarket solutions and OEM manufacturing.
Key Metrics
Investment Thesis
Bull Case
Investors may find value in the stock due to its consistent revenue growth over the last three years and a resilient cash generation profile that supports a meaningful dividend payout ratio. The company's entrenched position in the mining aftermarket provides recurring revenue streams and pricing power that can buffer against short-term economic volatility.
Bear Case
Concerns arise from the stagnation in net income despite rising revenue, as well as a significant buildup in inventory of $254.6M which could signal weakening demand or overstocking issues. Additionally, the substantial change in accounts receivable and negative non-operating income suggests potential liquidity pressures and underlying profitability challenges that warrant caution.
About SANFILIPPO JOHN B & SON INC
John B. & Son Inc. manufactures and distributes specialized equipment for the mining and industrial sectors, serving markets primarily in North America with a focus on high-performance machinery and replacement parts.
Analysis
Management Discussion
Net income remained relatively stable at $58.9M despite revenue growth from $999.7M in 2023 to $1.11B in 2025, indicating strong margin management even as operating expenses and inventory levels increased significantly. While cash flow from operations of $30.5M supports dividend payments of $24.4M, the company utilized $50.8M for capital expenditures, suggesting continued investment in capacity or asset replacement.
Industry Overview
The mining equipment and aftermarket industry is highly cyclical, closely tied to global commodity demand and capital spending cycles by major resource companies. Firms in this space compete on reliability, technical expertise, and the ability to minimize customer downtime through efficient parts distribution and service networks.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $999.7M | $1.07B | $1.11B |
| Cost of Revenue | $788.1M | $852.6M | $903.8M |
| Gross Profit | $211.6M | $214.1M | $203.5M |
| Operating Expenses | $121.4M | $129.0M | $118.8M |
| Operating Income | $90.2M | $85.2M | $84.7M |
| R&D | $3.4M | $3.6M | $3.5M |
| G&A | $44.6M | $48.5M | $39.8M |
| Stock-Based Comp | $3.6M | $4.4M | $4.5M |
| D&A | $20.5M | $24.6M | $26.9M |
| Depreciation | $18.7M | $22.9M | $25.5M |
| Other OpEx | $73.4M | $76.8M | $75.4M |
| Non-Operating Income | $-4.9M | $-5.2M | $-6.8M |
| Interest Expense | $2.2M | $2.5M | — |
| Pre-Tax Income | $85.3M | $79.9M | $77.9M |
| Income Tax | $22.5M | $19.7M | $18.9M |
| Continuing Ops | $62.9M | $60.2M | $58.9M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $62.9M | $60.2M | $58.9M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $62.9M | $60.2M | $58.9M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $254.4M | $294.1M | $346.4M |
| Cash & Equivalents | $1.9M | $484.0K | $585.0K |
| Accounts Receivable | $72.7M | $85.0M | $76.7M |
| Inventory | $172.9M | $196.6M | $254.6M |
| Prepaid Expenses | $6.8M | $12.1M | $14.6M |
| Other Current Assets | $0 | $0 | $0 |
| Long-Term Assets | $170.9M | $221.5M | $251.2M |
| PP&E (Net) | $135.5M | $165.1M | $178.2M |
| Goodwill | $11.8M | $11.8M | $11.8M |
| Operating Leases | $6.4M | $27.4M | $27.8M |
| Other LT Assets | $17.2M | $17.2M | $33.4M |
| Total Assets | $425.3M | $515.6M | $597.6M |
| Current Liabilities | $85.7M | $125.9M | $156.0M |
| Accounts Payable | $42.7M | $53.4M | $60.5M |
| Current Leases | $1.7M | $2.6M | $4.5M |
| Other Current Liab | $41.3M | $69.9M | $91.1M |
| Long-Term Liabilities | $47.4M | $67.0M | $80.9M |
| LT Operating Leases | $4.8M | $24.9M | $24.2M |
| Other LT Liab | $42.6M | $21.7M | $-948.0K |
| Total Liabilities | $133.1M | $193.0M | $236.9M |
| Shareholders' Equity | $292.2M | $322.6M | $360.7M |
| Retained Earnings | $161.5M | $187.0M | $221.5M |
| AOCI | $-204.0K | $1.0M | $564.0K |
| Treasury Stock | $1.2M | $1.2M | $1.2M |
| Total L&E | $425.3M | $515.6M | $597.6M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $62.9M | $60.2M | $58.9M |
| Non-Cash Adjustments | $77.3M | $20.8M | $-76.5M |
| Working Capital Changes | $-15.5M | $20.6M | $48.1M |
| Cash from Operations | $124.7M | $101.7M | $30.5M |
| Capital Expenditures | $20.7M | $28.3M | $50.7M |
| Cash from Investing | $-24.3M | $-87.3M | $-50.8M |
| Dividends Paid | $54.9M | $34.8M | $24.4M |
| Cash from Financing | $-98.8M | $-15.8M | $20.4M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $1.5M | $-1.5M | $101.0K |
| Beginning Cash | $415.0K | $1.9M | $484.0K |
| Ending Cash | $1.9M | $484.0K | $585.0K |
Frequently Asked Questions
How does SANFILIPPO JOHN B & SON INC make money?
Revenue is driven by two core pillars: original equipment manufacturing (OEM) sales for new machinery and a substantial aftermarket segment focused on the sale of replacement parts, wear components, and service support to maintain operational uptime for clients.
What are the main risks for JBSS?
Fluctuations in global commodity prices and interest rates impacting capital expenditure cycles, potential supply chain disruptions affecting raw material costs, cyclical demand shifts within the mining sector, and exposure to foreign exchange rate volatility given international operations.
What is JBSS's competitive advantage?
The company leverages deep domain expertise in niche industrial applications, a loyal customer base built on long-term relationships, and a specialized distribution network that ensures rapid part availability for critical mining operations.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.