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SAP

SappiJSE:SAP Stock Report

Last Price

R41.96

Market Cap

R23.6b

7D

-10.8%

1Y

-0.9%

Updated

23 Jan, 2022

Data

Company Financials +
SAP fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance1/6
Financial Health2/6
Dividends0/6

SAP Stock Overview

Sappi Limited, a woodfibre company, manufactures and sells dissolving wood pulp, packaging and specialty papers, and printing and writing papers to direct and indirect customers in North America, Europe, Southern Africa, and internationally.

Sappi Competitors

UPM-Kymmene Oyj

HLSE:UPM

€18.4b

International Paper

NYSE:IP

US$18.3b

Amcor

ASX:AMC

AU$25.2b

Stora Enso Oyj

HLSE:STERV

€13.2b

Price History & Performance

Summary of all time highs, changes and price drops for Sappi
Historical stock prices
Current Share PriceR41.96
52 Week HighR52.69
52 Week LowR35.83
Beta0.95
1 Month Change-7.13%
3 Month Change-3.87%
1 Year Change-0.87%
3 Year Change-45.64%
5 Year Change-51.96%
Change since IPO11.15%

Recent News & Updates

Shareholder Returns

SAPZA ForestryZA Market
7D-10.8%-10.0%-0.3%
1Y-0.9%2.2%13.9%

Return vs Industry: SAP underperformed the ZA Forestry industry which returned 2.2% over the past year.

Return vs Market: SAP underperformed the ZA Market which returned 13.9% over the past year.

Price Volatility

Is SAP's price volatile compared to industry and market?
SAP volatility
SAP Average Weekly Movement5.9%
Forestry Industry Average Movement5.3%
Market Average Movement5.7%
10% most volatile stocks in ZA Market12.1%
10% least volatile stocks in ZA Market3.3%

Stable Share Price: SAP is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SAP's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
193612,800Steve Binniehttps://www.sappi.com

Sappi Limited, a woodfibre company, manufactures and sells dissolving wood pulp, packaging and specialty papers, and printing and writing papers to direct and indirect customers in North America, Europe, Southern Africa, and internationally. The company offers dissolving wood pulp products that are used by converters to create viscose fiber for clothing and textiles, acetate tow, and pharmaceutical products, as well as a range of consumer and household products. It also provides packaging and specialty papers, which are used in the manufacture of soup sachets, luxury carry bags, cosmetic and confectionery packaging, boxes for agricultural products for export, and tissue wadding for household tissue products, as well as casting and release papers for the fashion, textiles, automobile, and household industries.

Sappi Fundamentals Summary

How do Sappi's earnings and revenue compare to its market cap?
SAP fundamental statistics
Market CapUS$1.56b
Earnings (TTM)US$13.00m
Revenue (TTM)US$5.27b

120.3x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SAP income statement (TTM)
RevenueUS$5.27b
Cost of RevenueUS$4.70b
Gross ProfitUS$562.00m
ExpensesUS$549.00m
EarningsUS$13.00m

Last Reported Earnings

Sep 26, 2021

Next Earnings Date

Feb 09, 2022

Earnings per share (EPS)0.023
Gross Margin10.67%
Net Profit Margin0.25%
Debt/Equity Ratio111.7%

How did SAP perform over the long term?

See historical performance and comparison

Valuation

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

120.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SAP (ZAR41.96) is trading above our estimate of fair value (ZAR37.71)

Significantly Below Fair Value: SAP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SAP is poor value based on its PE Ratio (120.3x) compared to the Global Forestry industry average (12.4x).

PE vs Market: SAP is poor value based on its PE Ratio (120.3x) compared to the ZA market (10.9x).


Price to Earnings Growth Ratio

PEG Ratio: SAP is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: SAP is good value based on its PB Ratio (0.8x) compared to the XX Forestry industry average (1.1x).


Future Growth

How is Sappi forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

26.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAP's forecast earnings growth (26.8% per year) is above the savings rate (8.8%).

Earnings vs Market: SAP's earnings (26.8% per year) are forecast to grow faster than the ZA market (-0.2% per year).

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

Revenue vs Market: SAP's revenue (4.6% per year) is forecast to grow slower than the ZA market (6.3% per year).

High Growth Revenue: SAP's revenue (4.6% 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 (9.2%).


Past Performance

How has Sappi performed over the past 5 years?

-46.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAP has a large one-off loss of $38.0M impacting its September 26 2021 financial results.

Growing Profit Margin: SAP became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SAP's earnings have declined by 46.4% per year over the past 5 years.

Accelerating Growth: SAP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SAP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Forestry industry (47.1%).


Return on Equity

High ROE: SAP's Return on Equity (0.7%) is considered low.


Financial Health

How is Sappi's financial position?


Financial Position Analysis

Short Term Liabilities: SAP's short term assets ($1.9B) exceed its short term liabilities ($1.3B).

Long Term Liabilities: SAP's short term assets ($1.9B) do not cover its long term liabilities ($2.9B).


Debt to Equity History and Analysis

Debt Level: SAP's net debt to equity ratio (93.1%) is considered high.

Reducing Debt: SAP's debt to equity ratio has reduced from 152.9% to 111.7% over the past 5 years.

Debt Coverage: SAP's debt is not well covered by operating cash flow (18.5%).

Interest Coverage: SAP's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Dividend

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

1.86%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SAP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SAP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SAP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SAP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SAP is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SAP's dividend in 3 years as they are not forecast to pay a notable one for the ZA market.


Next Steps

Management

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

7.2yrs

Average management tenure


CEO

Steve Binnie (54 yo)

7.5yrs

Tenure

US$1,082,678

Compensation

Mr. Stephen Robert Binnie, also known as Steve, B.Com, B Acc, CA(SA), MBA has been the Chief Executive Officer of Sappi Limited since July 1, 2014. Mr. Binnie served as the Chief Financial Officer at Sappi...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD1.08M) is about average for companies of similar size in the ZA market ($USD937.69K).

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


Leadership Team

Experienced Management: SAP's management team is seasoned and experienced (7.2 years average tenure).


Board Members

Experienced Board: SAP's board of directors are considered experienced (6.9 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

Sappi Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Sappi Limited
  • Ticker: SAP
  • Exchange: JSE
  • Founded: 1936
  • Industry: Paper Products
  • Sector: Materials
  • Implied Market Cap: R23.561b
  • Shares outstanding: 561.52m
  • Website: https://www.sappi.com

Number of Employees


Location

  • Sappi Limited
  • 108 Oxford Road
  • Rosebank
  • Johannesburg
  • Gauteng
  • 2196
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/23 17:01
End of Day Share Price2022/01/21 00:00
Earnings2021/09/26
Annual Earnings2021/09/26


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.