Market Cap
CA$13.5b
Last Updated
2020/06/02 03:33 UTC
Data Sources
Company Financials +
Executive Summary
Saputo Inc. produces, markets, and distributes dairy products in Canada, the United States, Argentina, Australia, and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with mediocre balance sheet.
Similar Companies
Share Price & News
How has Saputo's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SAP has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.6%
SAP
0.1%
CA Food
0.9%
CA Market
1 Year Return
-27.2%
SAP
-22.0%
CA Food
-11.4%
CA Market
Return vs Industry: SAP underperformed the Canadian Food industry which returned -20.3% over the past year.
Return vs Market: SAP underperformed the Canadian Market which returned -11.3% over the past year.
Shareholder returns
| SAP | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.6% | 0.1% | 0.9% |
| 30 Day | -5.0% | 0.9% | 4.5% |
| 90 Day | -11.7% | -5.6% | -9.3% |
| 1 Year | -25.9%-27.2% | -20.5%-22.0% | -8.4%-11.4% |
| 3 Year | -20.0%-23.7% | -21.4%-25.6% | 0.4%-8.9% |
| 5 Year | 12.9%4.4% | 15.5%6.1% | 16.9%-0.3% |
Price Volatility Vs. Market
How volatile is Saputo's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Does Saputo (TSE:SAP) Have A Healthy Balance Sheet?3 weeks ago | Simply Wall St
What Did Saputo Inc.'s (TSE:SAP) CEO Take Home Last Year?1 month ago | Simply Wall St
Could The Market Be Wrong About Saputo Inc. (TSE:SAP) Given Its Attractive Financial Prospects?Valuation
Is Saputo undervalued compared to its fair value and its price relative to the market?
2.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SAP (CA$32.96) is trading below our estimate of fair value (CA$33.94)
Significantly Below Fair Value: SAP is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: SAP is poor value based on its PE Ratio (21.1x) compared to the Food industry average (16.8x).
PE vs Market: SAP is poor value based on its PE Ratio (21.1x) compared to the Canadian market (13x).
Price to Earnings Growth Ratio
PEG Ratio: SAP is poor value based on its PEG Ratio (2x)
Price to Book Ratio
PB vs Industry: SAP is overvalued based on its PB Ratio (2.2x) compared to the CA Food industry average (1.5x).
Next Steps
Future Growth
How is Saputo forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
10.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SAP's forecast earnings growth (10.6% per year) is above the savings rate (1.7%).
Earnings vs Market: SAP's earnings (10.6% per year) are forecast to grow slower than the Canadian market (23.9% per year).
High Growth Earnings: SAP's earnings are forecast to grow, but not significantly.
Revenue vs Market: SAP's revenue (3% per year) is forecast to grow slower than the Canadian market (6.2% per year).
High Growth Revenue: SAP's revenue (3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SAP's Return on Equity is forecast to be low in 3 years time (11.6%).
Next Steps
Past Performance
How has Saputo performed over the past 5 years?
5.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SAP has high quality earnings.
Growing Profit Margin: SAP's current net profit margins (4.3%) are lower than last year (5.9%).
Past Earnings Growth Analysis
Earnings Trend: SAP's earnings have grown by 5.4% per year over the past 5 years.
Accelerating Growth: SAP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SAP had negative earnings growth (-18.8%) over the past year, making it difficult to compare to the Food industry average (-8.9%).
Return on Equity
High ROE: SAP's Return on Equity (10.1%) is considered low.
Next Steps
Financial Health
How is Saputo's financial position?
Financial Position Analysis
Short Term Liabilities: SAP's short term assets (CA$3.9B) exceed its short term liabilities (CA$2.3B).
Long Term Liabilities: SAP's short term assets (CA$3.9B) do not cover its long term liabilities (CA$4.7B).
Debt to Equity History and Analysis
Debt Level: SAP's debt to equity ratio (65.3%) is considered high.
Reducing Debt: SAP's debt to equity ratio has increased from 61.5% to 65.3% over the past 5 years.
Debt Coverage: SAP's debt is well covered by operating cash flow (24.2%).
Interest Coverage: SAP's interest payments on its debt are well covered by EBIT (10.5x coverage).
Balance Sheet
Next Steps
Dividend
What is Saputo's current dividend yield, its reliability and sustainability?
2.06%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SAP's dividend (2.06%) is higher than the bottom 25% of dividend payers in the Canadian market (2.02%).
High Dividend: SAP's dividend (2.06%) is low compared to the top 25% of dividend payers in the Canadian market (6.46%).
Stability and Growth of Payments
Stable Dividend: SAP's dividends per share have been stable in the past 10 years.
Growing Dividend: SAP's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (43.2%), SAP's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SAP's dividends in 3 years are forecast to be well covered by earnings (36.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.2yrs
Average management tenure
CEO
Lino Saputo (52yo)
16.25yrs
Tenure
CA$3,648,840
Compensation
Mr. Lino A. Saputo, Jr., has been Chief Executive Officer of Saputo Inc. since March 2004 and has been its Chairman of the Board since August 2017 and Director since 2001. Mr. Saputo has been a Director of ...
CEO Compensation Analysis
Compensation vs Market: Lino's total compensation ($USD2.68M) is below average for companies of similar size in the Canadian market ($USD6.86M).
Compensation vs Earnings: Lino's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 16.25yrs | CA$3.65m | 0.024% CA$3.2m | |
| President and COO of Saputo Inc. & the International Sector | 3.17yrs | CA$5.32m | 0.012% CA$1.6m | |
| CFO & Secretary | 2.83yrs | CA$2.84m | 0.0053% CA$707.3k | |
| Senior Advisor & Corporate Director | 2.83yrs | no data | 0.011% CA$1.5m | |
| President & COO of Cheese Division - USA | 14.17yrs | CA$4.02m | 0.020% CA$2.8m | |
| President & COO - North America and Interim of Dairy Foods Division (USA) | 5.17yrs | CA$3.30m | 0.0069% CA$929.5k | |
| Director of Communications & Public Relations | no data | no data | no data | |
| Senior Vice President of Legal Affairs | no data | no data | 0.0019% CA$254.6k | |
| Chief Human Resources Officer | 5.42yrs | CA$690.72k | 0.0073% CA$979.4k | |
| Executive Officer | 0.17yr | CA$3.96m | 0.0062% CA$829.9k |
4.2yrs
Average Tenure
58yo
Average Age
Experienced Management: SAP's management team is considered experienced (4.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 16.25yrs | CA$3.65m | 0.024% CA$3.2m | |
| Senior Advisor & Corporate Director | 2.83yrs | no data | 0.011% CA$1.5m | |
| Independent Director | 6.83yrs | CA$260.00k | 0.0020% CA$264.0k | |
| Corporate Director | 7.92yrs | CA$260.00k | 0.0024% CA$330.1k | |
| Corporate Director | 4.58yrs | CA$260.00k | 0.0017% CA$223.6k | |
| Independent Director | 12.42yrs | CA$315.00k | 0.0051% CA$685.7k | |
| Independent Director | 3.83yrs | CA$260.00k | 0.00049% CA$66.0k | |
| Independent Director | 3.83yrs | CA$260.00k | 0.0012% CA$164.4k | |
| Independent Director | 7.92yrs | CA$260.00k | 0.00074% CA$99.7k | |
| Independent Lead Director | no data | CA$340.00k | 0.0029% CA$396.1k |
4.6yrs
Average Tenure
57yo
Average Age
Experienced Board: SAP's board of directors are considered experienced (4.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.6%.
Top Shareholders
Company Information
Saputo Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Saputo Inc.
- Ticker: SAP
- Exchange: TSX
- Founded: 1954
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Market Cap: CA$13.472b
- Shares outstanding: 408.73m
- Website: https://www.saputo.com
Number of Employees
Location
- Saputo Inc.
- 6869, Métropolitain Boulevard East
- Montréal
- Quebec
- H1P 1X8
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SAP | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Oct 1997 |
| SB7 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Oct 1997 |
| SAPI.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Oct 1997 |
Biography
Saputo Inc. produces, markets, and distributes dairy products in Canada, the United States, Argentina, Australia, and internationally. The company offers cheeses, including mozzarella and cheddar; specialty cheeses, such as ricotta, provolone, parmesan, goat cheese, feta, and havarti; fine cheeses comprising brie and camembert; and other cheeses that include brick, colby, farmer, munster, monterey jack, fresh curd, and processed cheeses. It also provides fluid milk, cream, yogurt, sour cream, cottage cheese, and ice cream mixes, as well as other dairy and non-dairy products, which comprise butter, flavored cream, dips, and flavored coffee whitener. In addition, the company offers dairy ingredients, including milk powder, whey powder, lactose, and whey protein concentrates; and distributes fine imported cheese to specialty stores, as well as non-dairy products manufactured by third parties. It serves customers in the retail, foodservice, and industrial segments. The company sells its products under the Saputo, Alexis de Portneuf, Armstrong, Cathedral City, Clover, COON, Cracker Barrel, Dairyland, DairyStar, Devondale, Friendship Dairies, Frigo Cheese Heads, Joyya, La Paulina, Liddells, Milk2Go/Lait’s Go, Montchevre, Murray Goulburn Ingredients, Neilson, Nutrilait, Scotsburn, Stella, Sungold, Treasure Cave, and Woolwich Goat Dairy brands. Saputo Inc. was founded in 1954 and is headquartered in Montréal, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/02 03:33 |
| End of Day Share Price | 2020/06/01 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.