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Saputo

TSX:SAP
Snowflake Description

Excellent balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SAP
TSX
CA$17B
Market Cap
  1. Home
  2. CA
  3. Food, Beverage & Tobacco
Company description

Saputo Inc. produces, markets, and distributes dairy products in Canada, the United States, Argentina, Australia, and internationally. The last earnings update was 40 days ago. More info.


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SAP Share Price and Events
7 Day Returns
-0.7%
TSX:SAP
0.4%
CA Food
0.9%
CA Market
1 Year Returns
7.2%
TSX:SAP
-4.3%
CA Food
1.2%
CA Market
SAP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Saputo (SAP) -0.7% 6.4% 10.3% 7.2% 9.3% 59.5%
CA Food 0.4% 4% 8.9% -4.3% 10.3% 50.3%
CA Market 0.9% 2.3% 12.4% 1.2% 16.1% 5.9%
1 Year Return vs Industry and Market
  • SAP outperformed the Food industry which returned -4.3% over the past year.
  • SAP outperformed the Market in Canada which returned 1.2% over the past year.
Price Volatility
SAP
Industry
5yr Volatility vs Market

SAP Value

 Is Saputo undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Saputo to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Saputo.

TSX:SAP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:SAP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Food Unlevered Beta Simply Wall St/ S&P Global 0.7
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.698 (1 + (1- 26.5%) (14.54%))
0.848
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.85
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (0.848 * 5.96%)
7%

Discounted Cash Flow Calculation for TSX:SAP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Saputo is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:SAP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 7%)
2019 675.00 Analyst x2 630.84
2020 773.37 Analyst x3 675.48
2021 929.30 Analyst x1 758.57
2022 1,053.96 Est @ 13.41% 804.04
2023 1,159.08 Est @ 9.97% 826.38
2024 1,246.77 Est @ 7.57% 830.74
2025 1,320.09 Est @ 5.88% 822.04
2026 1,382.13 Est @ 4.7% 804.37
2027 1,435.68 Est @ 3.87% 780.87
2028 1,483.00 Est @ 3.3% 753.83
Present value of next 10 years cash flows CA$7,687.16
TSX:SAP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$1,483.00 × (1 + 1.95%) ÷ (7% – 1.95%)
CA$29,916.04
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$29,916.04 ÷ (1 + 7%)10
CA$15,206.76
TSX:SAP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$7,687.16 + CA$15,206.76
CA$22,893.92
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$22,893.92 / 389.45
CA$58.79
TSX:SAP Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$58.79
Current discount Discount to share price of CA$44.29
= -1 x (CA$44.29 - CA$58.79) / CA$58.79
24.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Saputo is available for.
Intrinsic value
25%
Share price is CA$44.29 vs Future cash flow value of CA$58.79
Current Discount Checks
For Saputo to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Saputo's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Saputo's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Saputo's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Saputo's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:SAP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CAD CA$1.96
TSX:SAP Share Price ** TSX (2019-03-19) in CAD CA$44.29
Canada Food Industry PE Ratio Median Figure of 11 Publicly-Listed Food Companies 13.65x
Canada Market PE Ratio Median Figure of 542 Publicly-Listed Companies 14.83x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Saputo.

TSX:SAP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:SAP Share Price ÷ EPS (both in CAD)

= 44.29 ÷ 1.96

22.58x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Saputo is overvalued based on earnings compared to the CA Food industry average.
  • Saputo is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Saputo's expected growth come at a high price?
Raw Data
TSX:SAP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.58x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
8.6%per year
North America Food Industry PEG Ratio Median Figure of 34 Publicly-Listed Food Companies 1.65x
Canada Market PEG Ratio Median Figure of 252 Publicly-Listed Companies 1.21x

*Line of best fit is calculated by linear regression .

TSX:SAP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.58x ÷ 8.6%

2.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Saputo is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Saputo's assets?
Raw Data
TSX:SAP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CAD CA$14.03
TSX:SAP Share Price * TSX (2019-03-19) in CAD CA$44.29
Canada Food Industry PB Ratio Median Figure of 25 Publicly-Listed Food Companies 1.88x
Canada Market PB Ratio Median Figure of 2,347 Publicly-Listed Companies 1.56x
TSX:SAP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:SAP Share Price ÷ Book Value per Share (both in CAD)

= 44.29 ÷ 14.03

3.16x

* Primary Listing of Saputo.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Saputo is overvalued based on assets compared to the CA Food industry average.
X
Value checks
We assess Saputo's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Food industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Food industry average (and greater than 0)? (1 check)
  5. Saputo has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SAP Future Performance

 How is Saputo expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Saputo expected to grow at an attractive rate?
  • Saputo's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Saputo's earnings growth is positive but not above the Canada market average.
  • Saputo's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:SAP Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:SAP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 8.6%
TSX:SAP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 4.6%
Canada Food Industry Earnings Growth Rate Market Cap Weighted Average 20.2%
Canada Food Industry Revenue Growth Rate Market Cap Weighted Average 5.5%
Canada Market Earnings Growth Rate Market Cap Weighted Average 17.9%
Canada Market Revenue Growth Rate Market Cap Weighted Average 6.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:SAP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:SAP Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 14,647 1
2020-03-31 14,478 1,082 790 5
2019-03-31 13,758 635 630 9
TSX:SAP Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-12-31 13,010 962 761
2018-09-30 12,454 926 756
2018-06-30 11,918 846 778
2018-03-31 11,543 809 853
2017-12-31 11,518 694 887
2017-09-30 11,462 749 746
2017-06-30 11,423 845 752
2017-03-31 11,163 1,074 728
2016-12-31 11,177 1,169 705
2016-09-30 11,112 1,135 683
2016-06-30 11,059 1,064 640
2016-03-31 10,992 850 601

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Saputo's earnings are expected to grow by 8.6% yearly, however this is not considered high growth (20% yearly).
  • Saputo's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:SAP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Saputo Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:SAP Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31
2020-03-31 2.04 2.04 2.04 1.00
2019-03-31 1.62 1.62 1.62 1.00
TSX:SAP Past Financials Data
Date (Data in CAD Millions) EPS *
2018-12-31 1.96
2018-09-30 1.95
2018-06-30 2.01
2018-03-31 2.21
2017-12-31 2.29
2017-09-30 1.92
2017-06-30 1.93
2017-03-31 1.86
2016-12-31 1.80
2016-09-30 1.74
2016-06-30 1.63
2016-03-31 1.53

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Saputo is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Saputo's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Saputo has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SAP Past Performance

  How has Saputo performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Saputo's growth in the last year to its industry (Food).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Saputo's year on year earnings growth rate has been positive over the past 5 years.
  • Saputo's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Saputo's 1-year earnings growth is negative, it can't be compared to the CA Food industry average.
Earnings and Revenue History
Saputo's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Saputo Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:SAP Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 13,009.80 761.10
2018-09-30 12,454.40 756.10
2018-06-30 11,918.20 778.20
2018-03-31 11,542.50 852.50
2017-12-31 11,517.90 886.80
2017-09-30 11,462.20 745.90
2017-06-30 11,423.30 751.60
2017-03-31 11,162.60 727.80
2016-12-31 11,176.80 704.90
2016-09-30 11,111.70 683.30
2016-06-30 11,058.50 640.30
2016-03-31 10,991.50 601.10
2015-12-31 10,771.31 615.97
2015-09-30 10,692.14 594.07
2015-06-30 10,601.30 600.61
2015-03-31 10,657.70 607.60
2014-12-31 10,629.76 570.24
2014-09-30 10,151.09 561.78
2014-06-30 9,680.16 540.64
2014-03-31 9,232.89 533.10
2013-12-31 8,800.35 514.65
2013-09-30 8,257.83 500.49
2013-06-30 7,772.88 496.85
2013-03-31 7,297.68 481.92
2012-12-31 6,947.85 378.88
2012-09-30 6,943.68 378.67
2012-06-30 6,989.71 376.10
2012-03-31 6,930.37 380.84

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Saputo has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Saputo used its assets more efficiently than the CA Food industry average last year based on Return on Assets.
  • Saputo's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Saputo's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Food industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Saputo has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SAP Health

 How is Saputo's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Saputo's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Saputo is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Saputo's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Saputo's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Saputo Company Filings, last reported 2 months ago.

TSX:SAP Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 5,454.70 2,508.20 145.90
2018-09-30 4,870.50 2,542.50 91.30
2018-06-30 4,890.70 2,859.10 99.50
2018-03-31 4,797.70 1,618.60 122.20
2017-12-31 4,616.90 1,796.10 124.30
2017-09-30 4,305.40 1,600.90 180.80
2017-06-30 4,332.10 1,521.10 131.10
2017-03-31 4,322.90 1,593.80 250.50
2016-12-31 4,402.30 1,589.60 433.70
2016-09-30 4,350.80 1,476.90 331.40
2016-06-30 4,159.90 1,627.80 381.60
2016-03-31 4,069.80 1,631.40 164.30
2015-12-31 4,251.14 1,929.03 306.11
2015-09-30 3,972.65 1,886.40 219.44
2015-06-30 3,678.20 1,877.09 176.50
2015-03-31 3,628.60 1,747.70 72.60
2014-12-31 3,229.06 1,992.80 47.25
2014-09-30 3,059.80 2,026.32 50.09
2014-06-30 2,852.07 2,061.93 47.97
2014-03-31 2,839.16 2,102.03 39.35
2013-12-31 2,555.78 1,665.80 84.87
2013-09-30 2,393.42 1,722.90 35.09
2013-06-30 2,422.37 1,727.17 27.54
2013-03-31 2,305.67 1,735.10 43.18
2012-12-31 2,259.55 514.32 274.06
2012-09-30 2,157.29 458.31 142.74
2012-06-30 2,175.53 504.96 172.82
2012-03-31 2,105.69 546.51 144.14
  • Saputo's level of debt (46%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (65.3% vs 46% today).
  • Debt is well covered by operating cash flow (38.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 16.9x coverage).
X
Financial health checks
We assess Saputo's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Saputo has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SAP Dividends

 What is Saputo's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.49%
Current annual income from Saputo dividends. Estimated to be 1.52% next year.
If you bought CA$2,000 of Saputo shares you are expected to receive CA$30 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Saputo's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.09%).
  • Saputo's dividend is below the markets top 25% of dividend payers in Canada (5.67%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:SAP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
Canada Food Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 1.9%
Canada Market Average Dividend Yield Market Cap Weighted Average of 330 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:SAP Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2021-03-31
2020-03-31 0.69 3.00
2019-03-31 0.66 3.00
TSX:SAP Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-02-07 0.660 1.540
2018-11-01 0.660 1.671
2018-08-07 0.660 1.664
2018-06-07 0.640 1.467
2018-02-01 0.640 1.540
2017-11-02 0.640 1.460
2017-08-01 0.640 1.474
2017-06-01 0.600 1.433
2017-02-02 0.600 1.326
2016-11-03 0.600 1.283
2016-08-02 0.600 1.343
2016-06-02 0.540 1.393
2016-02-04 0.540 1.360
2015-11-05 0.540 1.657
2015-08-04 0.540 1.770
2015-06-04 0.520 1.705
2015-02-05 0.520 1.470
2014-11-06 0.520 1.528
2014-08-06 0.520 1.603
2014-06-05 0.460 1.430
2014-02-06 0.460 1.633
2013-11-07 0.460 1.859
2013-08-06 0.460 1.883
2013-06-05 0.420 1.745
2013-02-13 0.420 1.657
2012-11-07 0.420 1.739
2012-07-31 0.420 1.966
2012-06-05 0.380 1.786
2012-02-07 0.380 1.770
2011-11-09 0.380 1.941
2011-08-02 0.380 1.888
2011-06-07 0.320 1.398
2011-02-03 0.320 1.471
2010-11-01 0.320 1.652
2010-08-03 0.320 1.849
2010-06-09 0.290 1.859
2010-02-03 0.290 1.988
2009-11-03 0.290 1.959
2009-08-04 0.290 2.216
2009-06-09 0.280 2.378
2009-03-20 0.280 2.579

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Saputo's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Saputo's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Saputo afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Saputo has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SAP Management

 What is the CEO of Saputo's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Lino Saputo
COMPENSATION CA$3,969,680
AGE 51
TENURE AS CEO 15 years
CEO Bio

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 National Bank of Canada since April 2012. He joined Saputo in 1988 as Administrative Assistant and in 1993, he became Vice President, Operations and in 1998, Executive Vice President, Operations. From July 2001 to January 2004, he was President and Chief Operating Officer of Saputo’s Dairy Products Division (USA). He served as Vice-Chairman of the board of directors of Saputo Inc. from 2011 to 2017. He served as Director of Transcontinental Inc. from 2008 to March 2017. He is involved with a number of charitable organizations, and in 2011 he co-founded the Amelia & Lino Saputo Jr. Foundation. He has been Co-chair of the Campaign for Concordia since November 2017. He holds a Bachelor’s degree in Political Science from Concordia University.

CEO Compensation
  • Lino's compensation has been consistent with company performance over the past year.
  • Lino's remuneration is lower than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Saputo management team in years:

3.7
Average Tenure
57
Average Age
  • The tenure for the Saputo management team is about average.
Management Team

Lino Saputo

TITLE
Chairman & CEO
COMPENSATION
CA$4M
AGE
51
TENURE
15 yrs

Kai Bockmann

TITLE
President
COMPENSATION
CA$5M
TENURE
1.9 yrs

Maxime Therrien

TITLE
CFO & Secretary
COMPENSATION
CA$2M
TENURE
1.6 yrs

Paul Corney

TITLE
President & COO of Dairy Foods Division - USA
COMPENSATION
CA$4M
TENURE
4.9 yrs

Terry Brockman

TITLE
President & COO of Cheese Division - USA
COMPENSATION
CA$4M
TENURE
12.9 yrs

Louis-Philippe Carrière

TITLE
Senior Advisor & Corporate Director
COMPENSATION
CA$4M
AGE
57
TENURE
1.6 yrs

Marlene Robillard

TITLE
Director of Communications & Public Relations

Isabelle Viger

TITLE
Senior Vice President of Legal Affairs

Gaétane Wagner

TITLE
Chief Human Resources Officer
COMPENSATION
CA$691K
AGE
59
TENURE
4.2 yrs

Martin Gagnon

TITLE
Executive Vice President of Mergers and Acquisitions
TENURE
3.2 yrs
Board of Directors Tenure

Average tenure and age of the Saputo board of directors in years:

3.3
Average Tenure
56
Average Age
  • The tenure for the Saputo board of directors is about average.
Board of Directors

Anthony Fata

TITLE
Lead Director
COMPENSATION
CA$340K
AGE
51

Lino Saputo

TITLE
Chairman & CEO
COMPENSATION
CA$4M
AGE
51
TENURE
1.6 yrs

Tony Meti

TITLE
Independent Director
COMPENSATION
CA$315K
AGE
63
TENURE
11.2 yrs

Louis-Philippe Carrière

TITLE
Senior Advisor & Corporate Director
COMPENSATION
CA$4M
AGE
57
TENURE
1.6 yrs

Henry Demone

TITLE
Independent Director
COMPENSATION
CA$260K
AGE
64
TENURE
6.7 yrs

Annalisa King

TITLE
Independent Director
COMPENSATION
CA$260K
AGE
51
TENURE
6.7 yrs

Annette Verschuren

TITLE
Independent Director
COMPENSATION
CA$260K
AGE
62
TENURE
5.6 yrs

Karen Kinsley

TITLE
Independent Director
COMPENSATION
CA$260K
AGE
61
TENURE
3.3 yrs

Diane Nyisztor

TITLE
Independent Director
COMPENSATION
CA$260K
AGE
51
TENURE
2.6 yrs

Franziska Ruf

TITLE
Independent Director
COMPENSATION
CA$260K
AGE
55
TENURE
2.6 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Saputo insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
26. Feb 19 Buy Gaétane Wagner Individual 26. Feb 19 26. Feb 19 4,663 CA$42.99 CA$200,166
26. Nov 18 Buy Gaétane Wagner Individual 23. Nov 18 23. Nov 18 1,260 CA$39.66 CA$49,915
14. Nov 18 Buy Diane Nyisztor Individual 13. Nov 18 13. Nov 18 1,000 CA$39.01 CA$39,009
08. Nov 18 Buy Paul Corney Individual 07. Nov 18 07. Nov 18 5,000 CA$38.67 CA$192,717
21. Aug 18 Buy Haig Poutchigian Individual 20. Aug 18 20. Aug 18 1,075 CA$41.80 CA$44,918
13. Aug 18 Buy Carl Colizza Individual 10. Aug 18 10. Aug 18 1,243 CA$40.92 CA$50,861
X
Management checks
We assess Saputo's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Saputo has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SAP News

Simply Wall St News

What Kind Of Shareholders Own Saputo Inc. (TSE:SAP)?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Companies that have been privatized tend to have low insider ownership. … We'd expect to see both institutions and retail investors owning a portion of the company.

Simply Wall St -

Is Saputo Inc.’s (TSE:SAP) Cash Outlook Optimistic?

(TSE:SAP) is, how it makes money and how it spends its cash. … Today we will examine Saputo’s ability to generate cash flows, as well as the level of capital expenditure it is expected to incur over the next couple of years, which will result in how much money goes to you. … Saputo’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure

Simply Wall St -

Was Saputo Inc.'s (TSE:SAP) Earnings Decline Part Of A Broader Industry Downturn?

Below, I will assess SAP's latest performance announced on 31 December 2018 and weigh these figures against its longer term trend and industry movements. … SAP's trailing twelve-month earnings (from 31 December 2018) of CA$761m has … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 9.5%, indicating the rate at which SAP is growing has slowed down

Simply Wall St -

Why Saputo Inc.’s (TSE:SAP) Return On Capital Employed Looks Uninspiring

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Are Saputo Inc.'s (TSE:SAP) Interest Costs Too High?

(TSE:SAP), a large-cap worth CA$15b, comes to mind for investors seeking a strong and reliable stock investment. … Market participants who are conscious of risk tend to search for large firms, attracted by the prospect of varied revenue sources and strong returns on capital. … Today we will look at Saputo’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth.

Simply Wall St -

Here's What Saputo Inc.'s (TSE:SAP) P/E Is Telling Us

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll look at Saputo Inc.'s (TSE:SAP) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

A Look At The Fair Value Of Saputo Inc. (TSE:SAP)

In this article I am going to calculate the intrinsic value of Saputo Inc. … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Saputo Inc (TSE:SAP) Insiders Increased Their Holdings

We often see insiders buying up shares in companies that perform well over the long term. … So before you buy or sell Saputo Inc (TSE:SAP), you may well want to know whether insiders have been buying or selling. … In any event it's generally a positive if insiders are buying shares at around the current price.

Simply Wall St -

Saputo Inc (TSE:SAP): Ex-Dividend Is In 4 Days

If you are interested in cashing in on Saputo Inc's (TSE:SAP) upcoming dividend of CA$0.17 per share, you only have 4 days left to buy the shares before its ex-dividend date, 03 December 2018, in time for dividends payable on the 14 December 2018. … 5 checks you should use to assess a dividend stock? … If you are a dividend investor, you should always assess these five key metrics:?

Simply Wall St -

Should You Be Impressed By Saputo Inc's (TSE:SAP) ROE?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each CA$1 of shareholders' equity it has, the company made CA$0.16 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

SAP Company Info

Description

Saputo Inc. produces, markets, and distributes dairy products in Canada, the United States, Argentina, Australia, and internationally. It offers cheese products, including mozzarella and cheddar; specialty cheese, such as ricotta, provolone, parmesan, goat cheese, feta, and havarti; fine cheese, such as brie and camembert; other cheese, including brick, colby, farmer, munster, monterey jack, fresh curd, and processed cheese; and butter. The company also provides fluid milk, cream, yogurt, sour cream, cottage cheese, and ice cream mixes, as well as other dairy and non-dairy products, including flavored creams, dips, and coffee whiteners. In addition, it 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, COON, Cracker Barrel, Dairyland, DairyStar, Devondale, Friendship Dairies, Frigo Cheese Heads, La Paulina, Milk2Go/Lait’s Go, Montchevre, Murray Goulburn Ingredients, Neilson, Nutrilait, Scotsburn, Stella, Sungold, Treasure Cave, and Woolwich Dairy brands. Saputo Inc. was founded in 1954 and is headquartered in Montreal, Canada.

Details
Name: Saputo Inc.
SAP
Exchange: TSX
Founded: 1954
CA$17,248,673,932
389,448,497
Website: http://www.saputo.com
Address: Saputo Inc.
6869, Metropolitain Boulevard East,
Montreal,
Quebec, H1P 1X8,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX SAP Common Shares The Toronto Stock Exchange CA CAD 06. Oct 1997
OTCPK SAPI.F Common Shares Pink Sheets LLC US USD 06. Oct 1997
DB SB7 Common Shares Deutsche Boerse AG DE EUR 06. Oct 1997
Number of employees
Current staff
Staff numbers
13,200
Saputo employees.
Industry
Packaged Foods and Meats
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/19 23:42
End of day share price update: 2019/03/19 00:00
Last estimates confirmation: 2019/03/01
Last earnings filing: 2019/02/07
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.