TSX:SAP

Stock Analysis Report

Executive Summary

Saputo Inc. produces, markets, and distributes dairy products in Canada, the United States, Argentina, Australia, and internationally.

Snowflake

Fundamentals

Mediocre balance sheet second-rate dividend payer.


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


Market Performance


7 Day Return

-0.5%

SAP

0.1%

CA Food

0.1%

CA Market


1 Year Return

-0.5%

SAP

-5.9%

CA Food

1.6%

CA Market

Return vs Industry: SAP exceeded the Canadian Food industry which returned -5.9% over the past year.

Return vs Market: SAP underperformed the Canadian Market which returned 1.6% over the past year.


Shareholder returns

SAPIndustryMarket
7 Day-0.5%0.1%0.1%
30 Day-4.6%-5.2%-2.9%
90 Day-3.0%-4.0%-1.4%
1 Year1.1%-0.5%-4.2%-5.9%5.2%1.6%
3 Year-13.5%-17.3%-9.8%-14.4%13.8%3.7%
5 Year31.7%22.0%36.2%25.5%25.3%7.2%

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

Valuation

Is Saputo undervalued compared to its fair value and its price relative to the market?

11.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SAP (CA$38.47) is trading below our estimate of fair value (CA$43.41)

Significantly Undervalued: SAP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SAP is good value based on its PE Ratio (19.9x) compared to the Food industry average (20x).

PE vs Market: SAP is poor value based on its PE Ratio (19.9x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: SAP is poor value based on its PEG Ratio (7.8x)


Price to Book Ratio

PB vs Industry: SAP is overvalued based on its PB Ratio (2.8x) compared to the CA Food industry average (1.7x).


Next Steps

Future Growth

How is Saputo forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAP's forecast earnings growth (2.5% per year) is above the savings rate (1.9%).

Earnings vs Market: SAP's earnings (2.5% per year) are forecast to grow slower than the Canadian market (13.2% per year).

High Growth Earnings: SAP's earnings are forecast to grow, but not significantly.

Revenue vs Market: SAP's revenue (4.7% per year) is forecast to grow slower than the Canadian market (5.8% per year).

High Growth Revenue: SAP's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if SAP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Saputo performed over the past 5 years?

7.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SAP's earnings have grown by 7.9% 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 (-3.5%) over the past year, making it difficult to compare to the Food industry average (-23.3%).


Return on Equity

High ROE: SAP's Return on Equity (14%) is considered low.


Return on Assets

ROA vs Industry: SAP has a higher Return on Assets than the Food industry average last year.


Return on Capital Employed

ROCE Improving: SAP's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Saputo's financial position?


Financial Position Analysis

Short Term Liabilities: SAP's short term assets (CA$3.6B) exceeds its short term liabilities (CA$2.8B)

Long Term Liabilities: SAP's short term assets (3.6B) do not cover its long term liabilities (4.5B)


Debt to Equity History and Analysis

Debt Level: SAP's debt to equity ratio (82.3%) is considered high

Reducing Debt: SAP's debt to equity ratio has increased from 72.2% to 82.3% over the past 5 years.

Debt Coverage: SAP's debt is well covered by operating cash flow (21.7%).

Interest Coverage: SAP's interest payments on its debt are well covered by EBIT (12.6x coverage).


Balance Sheet

Inventory Level: SAP has a high level of physical assets or inventory.

Debt Coverage by Assets: SAP's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

1.77%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%2.0%markettop25%6.0%industryaverage2.0%forecastin3Years1.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SAP's dividend (1.77%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.01%).

High Dividend: SAP's dividend (1.77%) is low compared to the top 25% of dividend payers in the Canadian market (6.01%).

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 (34.5%), SAP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Lino Saputo (52yo)

15.6yrs

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 ($USD2.78M) is about average for companies of similar size in the Canadian market ($USD6.91M).

Compensation vs Earnings: Lino's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.1yrs

Average Tenure

58yo

Average Age

Experienced Management: SAP's management team is considered experienced (4.1 years average tenure).


Board Age and Tenure

3.9yrs

Average Tenure

57yo

Average Age

Experienced Board: SAP's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

Insider Buying: SAP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$16203 Oct 19
Frank Guido
EntityIndividual
Shares4
Max PriceCA$40.45
BuyCA$16202 Oct 19
Frank Guido
EntityIndividual
Shares4
Max PriceCA$40.45
BuyCA$100,000,02013 Sep 19
Emanuele Saputo
EntityIndividual
Shares2,525,253
Max PriceCA$39.60
BuyCA$99,000,00113 Sep 19
Placements Italcan Inc.
EntityCompany
Shares2,500,000
Max PriceCA$39.60
BuyCA$39,06428 Jun 19
Frank Guido
EntityIndividual
Shares1,000
Max PriceCA$39.07
BuyCA$38,52026 Jun 19
Frank Guido
EntityIndividual
Shares1,000
Max PriceCA$38.52
BuyCA$85,62825 Jun 19
Patrick Turcotte
EntityIndividual
Shares2,200
Max PriceCA$38.93
BuyCA$138,92114 Jun 19
Martin Gagnon
EntityIndividual
Role
Senior Key Executive
Chief Acquisition & Strategic Development Officer
Shares3,500
Max PriceCA$39.71
BuyCA$285,21214 Jun 19
Carl Colizza
EntityIndividual
Role
Senior Key Executive
President & COO - North America
Shares7,200
Max PriceCA$39.74
BuyCA$149,43714 Jun 19
Gaétane Wagner
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer
Shares3,750
Max PriceCA$39.85
BuyCA$200,16626 Feb 19
Gaétane Wagner
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer
Shares4,663
Max PriceCA$42.99
BuyCA$49,91526 Nov 18
Gaétane Wagner
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer
Shares1,260
Max PriceCA$39.66
BuyCA$39,00914 Nov 18
Diane Nyisztor
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceCA$39.01
BuyCA$192,71708 Nov 18
Paul Corney
EntityIndividual
Shares5,000
Max PriceCA$38.67

Ownership Breakdown


Management Team

  • Lino Saputo (52yo)

    Chairman & CEO

    • Tenure: 15.6yrs
    • Compensation: CA$3.65m
  • Isabelle Viger

    Senior Vice President of Legal Affairs

    • Tenure: 0yrs
  • Gaétane Wagner (60yo)

    Chief Human Resources Officer

    • Tenure: 4.8yrs
    • Compensation: CA$690.72k
  • Louis-Philippe Carrière (58yo)

    Senior Advisor & Corporate Director

    • Tenure: 2.2yrs
  • Terry Brockman

    President & COO of Cheese Division - USA

    • Tenure: 13.5yrs
    • Compensation: CA$4.02m
  • Maxime Therrien

    CFO & Secretary

    • Tenure: 2.2yrs
    • Compensation: CA$2.84m
  • Kai Bockmann

    President and COO of Saputo Inc. & the International Sector

    • Tenure: 2.5yrs
    • Compensation: CA$5.32m
  • Carl Colizza

    President & COO - North America

    • Tenure: 4.5yrs
    • Compensation: CA$3.30m
  • Martin Gagnon

    Chief Acquisition & Strategic Development Officer

    • Tenure: 3.8yrs
  • Marlene Robillard

    Director of Communications & Public Relations

    • Tenure: 0yrs

Board Members

  • Lino Saputo (52yo)

    Chairman & CEO

    • Tenure: 15.6yrs
    • Compensation: CA$3.65m
  • Annette Verschuren (63yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: CA$260.00k
  • Henry Demone (65yo)

    Corporate Director

    • Tenure: 7.3yrs
    • Compensation: CA$260.00k
  • Louis-Philippe Carrière (58yo)

    Senior Advisor & Corporate Director

    • Tenure: 2.2yrs
  • Karen Kinsley (62yo)

    Corporate Director

    • Tenure: 3.9yrs
    • Compensation: CA$260.00k
  • Tony Meti (64yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: CA$315.00k
  • Franziska Ruf (56yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: CA$260.00k
  • Diane Nyisztor (52yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: CA$260.00k
  • Annalisa King (52yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: CA$260.00k
  • Anthony Fata (52yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: CA$340.00k

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$15.684b
  • Shares outstanding: 407.69m
  • Website: https://www.saputo.com

Number of Employees


Location

  • Saputo Inc.
  • 6869, Métropolitain Boulevard East
  • Montréal
  • Quebec
  • H1P 1X8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SAPTSX (The Toronto Stock Exchange)YesCommon SharesCACADOct 1997
SB7DB (Deutsche Boerse AG)YesCommon SharesDEEUROct 1997
SAPI.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 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; specialt ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:39
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.