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.
Price History & Performance
|Historical stock prices|
|Current Share Price||R41.96|
|52 Week High||R52.69|
|52 Week Low||R35.83|
|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 IPO||11.15%|
Recent News & Updates
|SAP||ZA Forestry||ZA Market|
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.
|SAP Average Weekly Movement||5.9%|
|Forestry Industry Average Movement||5.3%|
|Market Average Movement||5.7%|
|10% most volatile stocks in ZA Market||12.1%|
|10% least volatile stocks in ZA Market||3.3%|
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
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
|SAP fundamental statistics|
Is SAP overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SAP income statement (TTM)|
|Cost of Revenue||US$4.70b|
Last Reported Earnings
Sep 26, 2021
Next Earnings Date
Feb 09, 2022
|Earnings per share (EPS)||0.023|
|Net Profit Margin||0.25%|
How did SAP perform over the long term?See historical performance and comparison
Is Sappi undervalued compared to its fair value and its price relative to the market?
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).
How is Sappi forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
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%).
How has Sappi performed over the past 5 years?
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.
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 ($2.9B).
Debt to Equity History and Analysis
Debt Level: SAP's net debt to equity ratio (93.1%) is considered high.
Reducing Debt: SAP's debt to equity ratio has reduced from 152.9% to 111.7% over the past 5 years.
Debt Coverage: SAP's debt is not well covered by operating cash flow (18.5%).
Interest Coverage: SAP's interest payments on its debt are not well covered by EBIT (1.8x coverage).
What is Sappi current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SAP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate SAP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if SAP's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SAP's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: SAP is not paying a notable dividend for the ZA market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of SAP's dividend in 3 years as they are not forecast to pay a notable one for the ZA market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Steve Binnie (54 yo)
Mr. Stephen Robert Binnie, also known as Steve, B.Com, B Acc, CA(SA), MBA has been the Chief Executive Officer of Sappi Limited since July 1, 2014. Mr. Binnie served as the Chief Financial Officer at Sappi...
CEO Compensation Analysis
Compensation vs Market: Steve's total compensation ($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.
Experienced Management: SAP's management team is seasoned and experienced (7.2 years average tenure).
Experienced Board: SAP's board of directors are considered experienced (6.9 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Sappi Limited's employee growth, exchange listings and data sources
- 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
- Sappi Limited
- 108 Oxford Road
- South Africa
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/23 17:01|
|End of Day Share Price||2022/01/21 00:00|
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.