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SAP

SaputoTSX:SAP Stock Report

Market Cap

CA$12.5b

7D

-3.8%

1Y

-8.0%

Updated

27 Oct, 2021

Data

Company Financials +
SAP fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance1/6
Financial Health3/6
Dividends5/6

SAP Overview

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

Saputo Competitors

Maple Leaf Foods

TSX:MFI

CA$3.4b

GreenSpace Brands

TSXV:JTR

CA$34.6m

Nestlé

SWX:NESN

CHF323.1b

Oracle

NYSE:ORCL

US$265.1b

Price History & Performance

Summary of all time highs, changes and price drops for Saputo
Historical stock prices
Current Share PriceCA$30.22
52 Week HighCA$30.19
52 Week LowCA$42.42
Beta0.62
1 Month Change-6.30%
3 Month Change-16.24%
1 Year Change-7.95%
3 Year Change-24.66%
5 Year Change-36.69%
Change since IPO1,105.79%

Recent News & Updates

Oct 12
Is Saputo (TSE:SAP) A Risky Investment?

Is Saputo (TSE:SAP) A Risky Investment?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Sep 13
Is Saputo Inc. (TSE:SAP) Trading At A 38% Discount?

Is Saputo Inc. (TSE:SAP) Trading At A 38% Discount?

How far off is Saputo Inc. ( TSE:SAP ) from its intrinsic value? Using the most recent financial data, we'll take a...

Shareholder Returns

SAPCA FoodCA Market
7D-3.8%-0.9%1.0%
1Y-8.0%5.8%36.8%

Return vs Industry: SAP underperformed the Canadian Food industry which returned 5.8% over the past year.

Return vs Market: SAP underperformed the Canadian Market which returned 36.8% over the past year.

Price Volatility

Is SAP's price volatile compared to industry and market?
SAP volatility
SAP Beta0.62
Industry Beta0.87
Market Beta1

Stable Share Price: SAP is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: SAP's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
195417,300Lino Saputohttps://www.saputo.com

Saputo Inc., through its subsidiaries, 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$12.52b
Earnings (TTM)CA$536.60m
Revenue (TTM)CA$14.39b

23.3x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SAP income statement (TTM)
RevenueCA$14.39b
Cost of RevenueCA$13.00b
Gross ProfitCA$1.39b
ExpensesCA$857.30m
EarningsCA$536.60m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 04, 2021

Earnings per share (EPS)1.30
Gross Margin9.69%
Net Profit Margin3.73%
Debt/Equity Ratio57.7%

How did SAP perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

54%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SAP (CA$30.22) is trading below our estimate of fair value (CA$62.58)

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


Price To Earnings Ratio

PE vs Industry: SAP is poor value based on its PE Ratio (23.3x) compared to the Canadian Food industry average (18.4x).

PE vs Market: SAP is poor value based on its PE Ratio (23.3x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: SAP is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: SAP is good value based on its PB Ratio (2x) compared to the CA Food industry average (2.7x).


Future Growth

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

12.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAP's forecast earnings growth (12.4% per year) is above the savings rate (1.6%).

Earnings vs Market: SAP's earnings (12.4% per year) are forecast to grow faster than the Canadian market (12% per year).

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

Revenue vs Market: SAP's revenue (3.4% per year) is forecast to grow slower than the Canadian market (6.7% per year).

High Growth Revenue: SAP's revenue (3.4% 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 (12.8%).


Past Performance

How has Saputo performed over the past 5 years?

-4.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAP has high quality earnings.

Growing Profit Margin: SAP's current net profit margins (3.7%) are lower than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: SAP's earnings have declined by 4.7% 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 (-11.1%) over the past year, making it difficult to compare to the Food industry average (41.8%).


Return on Equity

High ROE: SAP's Return on Equity (8.4%) is considered low.


Financial Health

How is Saputo's financial position?


Financial Position Analysis

Short Term Liabilities: SAP's short term assets (CA$3.8B) exceed its short term liabilities (CA$2.6B).

Long Term Liabilities: SAP's short term assets (CA$3.8B) do not cover its long term liabilities (CA$4.1B).


Debt to Equity History and Analysis

Debt Level: SAP's debt to equity ratio (57.7%) is considered high.

Reducing Debt: SAP's debt to equity ratio has increased from 39.1% to 57.7% over the past 5 years.

Debt Coverage: SAP's debt is well covered by operating cash flow (23.9%).

Interest Coverage: SAP's interest payments on its debt are well covered by EBIT (9.5x coverage).


Balance Sheet


Dividend

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

2.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SAP's dividend (2.38%) is higher than the bottom 25% of dividend payers in the Canadian market (1.55%).

High Dividend: SAP's dividend (2.38%) is low compared to the top 25% of dividend payers in the Canadian market (4.5%).


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 reasonable payout ratio (54%), SAP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SAP's dividends in 3 years are forecast to be well covered by earnings (34.2% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Lino Saputo (54 yo)

17.58yrs

Tenure

CA$4,344,290

Compensation

Mr. Lino Anthony Saputo, Jr., has been Chief Executive Officer of Saputo Inc., since March 2004 and its Chairman of the Board since August 2017 and Director since 2001. Mr. Saputo has been an Independent D...


CEO Compensation Analysis

Compensation vs Market: Lino's total compensation ($USD3.52M) is below average for companies of similar size in the Canadian market ($USD6.05M).

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 (5.8 years average tenure).


Board Members

Experienced Board: SAP's board of directors are considered experienced (5.9 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
  • Market Cap: CA$12.522b
  • Shares outstanding: 414.36m
  • Website: https://www.saputo.com

Number of Employees


Location

  • Saputo Inc.
  • 6869, Métropolitain 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 Analysis2021/10/27 23:00
End of Day Share Price2021/10/27 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.