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SAP

Saputo TSX:SAP Stock Report

Last Price

CA$28.76

Market Cap

CA$12.0b

7D

4.1%

1Y

-22.0%

Updated

26 Jun, 2022

Data

Company Financials +
SAP fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance1/6
Financial Health2/6
Dividends3/6

SAP Stock Overview

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

Saputo Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Saputo
Historical stock prices
Current Share PriceCA$28.76
52 Week HighCA$37.75
52 Week LowCA$24.61
Beta0.59
1 Month Change14.67%
3 Month Change-1.88%
1 Year Change-21.95%
3 Year Change-26.63%
5 Year Change-30.28%
Change since IPO1,047.53%

Recent News & Updates

Jun 14
Saputo's (TSE:SAP) Dividend Will Be CA$0.18

Saputo's (TSE:SAP) Dividend Will Be CA$0.18

The board of Saputo Inc. ( TSE:SAP ) has announced that it will pay a dividend of CA$0.18 per share on the 28th of...

May 01
Is Saputo (TSE:SAP) A Risky Investment?

Is Saputo (TSE:SAP) A Risky Investment?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Shareholder Returns

SAPCA FoodCA Market
7D4.1%2.0%0.3%
1Y-22.0%-23.1%-4.0%

Return vs Industry: SAP exceeded the Canadian Food industry which returned -23.2% over the past year.

Return vs Market: SAP underperformed the Canadian Market which returned -4.1% over the past year.

Price Volatility

Is SAP's price volatile compared to industry and market?
SAP volatility
SAP Average Weekly Movement3.4%
Food Industry Average Movement10.3%
Market Average Movement10.0%
10% most volatile stocks in CA Market17.3%
10% least volatile stocks in CA Market4.4%

Stable Share Price: SAP is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SAP's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
195418,600Lino Saputohttps://www.saputo.com

Saputo Inc. produces, markets, and distributes dairy products in Canada, the United States, Argentina, Australia, and the United Kingdom. The company offers cheeses, including mozzarella and cheddar; specialty cheeses, such as ricotta, provolone, blue, parmesan, goat cheese, feta, romano, 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, yogurt, sour cream, cottage cheese, and ice cream mixes, as well as other dairy and non-dairy products, which comprise butter, cream and creamers, aerosol whipped toppings, whipping cream, dips, spread, oil, flavored coffee whitener, and iced coffee.

Saputo Fundamentals Summary

How do Saputo's earnings and revenue compare to its market cap?
SAP fundamental statistics
Market CapCA$11.99b
Earnings (TTM)CA$274.00m
Revenue (TTM)CA$15.04b

43.8x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SAP income statement (TTM)
RevenueCA$15.04b
Cost of RevenueCA$13.88b
Gross ProfitCA$1.16b
Other ExpensesCA$881.00m
EarningsCA$274.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 04, 2022

Earnings per share (EPS)0.66
Gross Margin7.68%
Net Profit Margin1.82%
Debt/Equity Ratio58.3%

How did SAP perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

109%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SAP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SAP?

Other financial metrics that can be useful for relative valuation.

SAP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.1x
Enterprise Value/EBITDA15.7x
PEG Ratio1x

Price to Earnings Ratio vs Peers

How does SAP's PE Ratio compare to its peers?

SAP PE Ratio vs Peers
The above table shows the PE ratio for SAP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average25.4x

Price-To-Earnings vs Peers: SAP is expensive based on its Price-To-Earnings Ratio (43.8x) compared to the peer average (25.4x).


Price to Earnings Ratio vs Industry

How does SAP's PE Ratio compare vs other companies in the Food Industry?

Price-To-Earnings vs Industry: SAP is expensive based on its Price-To-Earnings Ratio (43.8x) compared to the Canadian Food industry average (13.2x)


Price to Earnings Ratio vs Fair Ratio

What is SAP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SAP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio43.8x
Fair PE Ratio42.6x

Price-To-Earnings vs Fair Ratio: SAP is expensive based on its Price-To-Earnings Ratio (43.8x) compared to the estimated Fair Price-To-Earnings Ratio (42.6x).


Share Price vs Fair Value

What is the Fair Price of SAP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SAP (CA$28.76) is trading below our estimate of fair value (CA$43.34)

Significantly Below Fair Value: SAP is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: SAP is poor value based on its PEG Ratio (1x)


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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


43.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAP's forecast earnings growth (43% per year) is above the savings rate (1.6%).

Earnings vs Market: SAP's earnings (43% per year) are forecast to grow faster than the Canadian market (8.3% per year).

High Growth Earnings: SAP's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SAP's revenue (6.1% per year) is forecast to grow slower than the Canadian market (7.3% per year).

High Growth Revenue: SAP's revenue (6.1% 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 (11.1%).


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Past Performance

How has Saputo performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-13.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SAP has high quality earnings.

Growing Profit Margin: SAP's current net profit margins (1.8%) are lower than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: SAP's earnings have declined by 13.2% 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 (-56.2%) over the past year, making it difficult to compare to the Food industry average (-10.3%).


Return on Equity

High ROE: SAP's Return on Equity (4.2%) is considered low.


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Financial Health

How is Saputo's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SAP's short term assets (CA$4.3B) exceed its short term liabilities (CA$2.8B).

Long Term Liabilities: SAP's short term assets (CA$4.3B) do not cover its long term liabilities (CA$4.4B).


Debt to Equity History and Analysis

Debt Level: SAP's net debt to equity ratio (55.8%) is considered high.

Reducing Debt: SAP's debt to equity ratio has increased from 36.8% to 58.3% over the past 5 years.

Debt Coverage: SAP's debt is not well covered by operating cash flow (18.3%).

Interest Coverage: SAP's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.50%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SAP's dividend (2.5%) is higher than the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: SAP's dividend (2.5%) is low compared to the top 25% of dividend payers in the Canadian market (5.33%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (108.8%), SAP's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (153.9%), SAP's dividend payments are not well covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

6.4yrs

Average management tenure


CEO

Lino Saputo (54 yo)

18.25yrs

Tenure

CA$1,629,680

Compensation

Mr. Lino Anthony Saputo, Jr., has been Director at Global Dairy Platform. Mr. Saputo has been Chief Executive Officer of Saputo Inc. since March 2004 and has been its Chairman of the Board since August 201...


CEO Compensation Analysis

Compensation vs Market: Lino's total compensation ($USD1.26M) is below average for companies of similar size in the Canadian market ($USD4.78M).

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


Leadership Team

Experienced Management: SAP's management team is seasoned and experienced (6.4 years average tenure).


Board Members

Experienced Board: SAP's board of directors are considered experienced (8.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Saputo Inc.'s 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
  • Implied Market Cap: CA$11.990b
  • Shares outstanding: 416.89m
  • Website: https://www.saputo.com

Number of Employees


Location

  • Saputo Inc.
  • 6869 MEtropolitain Boulevard East
  • Montreal
  • Quebec
  • H1P 1X8
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.