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Saputo

TSX:SAP
Snowflake Description

Mediocre balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SAP
TSX
CA$14B
Market Cap
  1. Home
  2. CA
  3. Food, Beverage & Tobacco
Company description

Saputo Inc. produces, markets, and distributes dairy products in Canada, the United States, Argentina, Australia, and internationally. The last earnings update was 59 days ago. More info.


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SAP Share Price and Events
7 Day Returns
5.9%
TSX:SAP
5.1%
CA Food
3%
CA Market
1 Year Returns
-24.6%
TSX:SAP
-25.6%
CA Food
-24.5%
CA Market
SAP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Saputo (SAP) 5.9% -4.9% -13.1% -24.6% -24.4% -4.7%
CA Food 5.1% -9.5% -14.2% -25.6% -27.9% -6.5%
CA Market 3% -21.2% -24.4% -24.5% -21.9% -16.6%
1 Year Return vs Industry and Market
  • SAP outperformed the Food industry which returned -25.6% over the past year.
  • SAP matched the Canada Market (-24.5%) over the past year.
Price Volatility
SAP
Industry
5yr Volatility vs Market
Related Companies

SAP Value

 Is Saputo undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Saputo to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Saputo.

TSX:SAP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5.8%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:SAP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
Food Unlevered Beta Simply Wall St/ S&P Global 0.57
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.566 (1 + (1- 26.5%) (31.66%))
0.798
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (0.8 * 5.44%)
5.79%

Discounted Cash Flow Calculation for TSX:SAP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Saputo is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:SAP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 5.79%)
2020 681.00 Analyst x1 643.72
2021 1,016.00 Analyst x1 907.80
2022 1,245.55 Est @ 22.59% 1,051.96
2023 1,447.91 Est @ 16.25% 1,155.93
2024 1,618.84 Est @ 11.8% 1,221.63
2025 1,759.60 Est @ 8.7% 1,255.16
2026 1,874.31 Est @ 6.52% 1,263.78
2027 1,967.93 Est @ 5% 1,254.26
2028 2,045.25 Est @ 3.93% 1,232.17
2029 2,110.33 Est @ 3.18% 1,201.77
Present value of next 10 years cash flows CA$11,188.00
TSX:SAP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$2,110.33 × (1 + 1.44%) ÷ (5.79% – 1.44%)
CA$49,189.25
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$49,189.25 ÷ (1 + 5.79%)10
CA$28,011.86
TSX:SAP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$11,188.00 + CA$28,011.86
CA$39,199.86
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$39,199.86 / 408.32
CA$96
TSX:SAP Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$96.00
Current discount Discount to share price of CA$34.57
= -1 x (CA$34.57 - CA$96.00) / CA$96.00
64%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Saputo is available for.
Intrinsic value
>50%
Share price is CA$34.57 vs Future cash flow value of CA$96
Current Discount Checks
For Saputo to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Saputo's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Saputo's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Saputo's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Saputo's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:SAP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CAD CA$1.56
TSX:SAP Share Price ** TSX (2020-04-03) in CAD CA$34.57
Canada Food Industry PE Ratio Median Figure of 10 Publicly-Listed Food Companies 11.44x
Canada Market PE Ratio Median Figure of 497 Publicly-Listed Companies 10.56x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Saputo.

TSX:SAP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:SAP Share Price ÷ EPS (both in CAD)

= 34.57 ÷ 1.56

22.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Saputo is overvalued based on earnings compared to the CA Food industry average.
  • Saputo is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Saputo's expected growth come at a high price?
Raw Data
TSX:SAP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.11x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
10.6%per year
North America Food Industry PEG Ratio Median Figure of 33 Publicly-Listed Food Companies 1.56x
Canada Market PEG Ratio Median Figure of 232 Publicly-Listed Companies 0.68x

*Line of best fit is calculated by linear regression .

TSX:SAP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.11x ÷ 10.6%

2.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Saputo is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Saputo's assets?
Raw Data
TSX:SAP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CAD CA$15.07
TSX:SAP Share Price * TSX (2020-04-03) in CAD CA$34.57
Canada Food Industry PB Ratio Median Figure of 26 Publicly-Listed Food Companies 0.85x
Canada Market PB Ratio Median Figure of 2,358 Publicly-Listed Companies 0.98x
TSX:SAP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:SAP Share Price ÷ Book Value per Share (both in CAD)

= 34.57 ÷ 15.07

2.29x

* Primary Listing of Saputo.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Saputo is overvalued based on assets compared to the CA Food industry average.
X
Value checks
We assess Saputo's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Food industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Food industry average (and greater than 0)? (1 check)
  5. Saputo has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SAP Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Saputo expected to grow at an attractive rate?
  • Saputo's earnings growth is expected to exceed the low risk savings rate of 1.4%.
Growth vs Market Checks
  • Saputo's earnings growth is expected to exceed the Canada market average.
  • Saputo's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:SAP Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:SAP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 10.6%
TSX:SAP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 3.3%
North America Food Industry Earnings Growth Rate Market Cap Weighted Average 12%
Canada Food Industry Revenue Growth Rate Market Cap Weighted Average 4.1%
Canada Market Earnings Growth Rate Market Cap Weighted Average 5.1%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:SAP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:SAP Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 15,705 3
2021-03-31 15,361 1,117 707 9
2020-04-05
2020-03-31 14,795 968 639 9
TSX:SAP Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-12-31 14,461 973 618
2019-09-30 14,148 883 763
2019-06-30 13,903 953 751
2019-03-31 13,502 885 755
2018-12-31 13,010 962 761
2018-09-30 12,454 921 756
2018-06-30 11,918 846 778
2018-03-31 11,543 809 853
2017-12-31 11,518 694 887
2017-09-30 11,462 749 746
2017-06-30 11,423 845 752
2017-03-31 11,163 1,074 728

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Saputo's earnings are expected to grow by 10.6% yearly, however this is not considered high growth (20% yearly).
  • Saputo's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:SAP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Saputo Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:SAP Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31
2021-03-31 1.91 1.91 1.91 1.00
2020-04-05
2020-03-31 1.57 1.57 1.57 1.00
TSX:SAP Past Financials Data
Date (Data in CAD Millions) EPS *
2019-12-31 1.56
2019-09-30 1.95
2019-06-30 1.93
2019-03-31 1.94
2018-12-31 1.96
2018-09-30 1.95
2018-06-30 2.01
2018-03-31 2.21
2017-12-31 2.29
2017-09-30 1.92
2017-06-30 1.93
2017-03-31 1.86

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Saputo will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Saputo's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the North America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Saputo has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SAP Past Performance

  How has Saputo performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Saputo's growth in the last year to its industry (Food).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Saputo's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Saputo's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Saputo's 1-year earnings growth is negative, it can't be compared to the CA Food industry average.
Earnings and Revenue History
Saputo's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Saputo Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:SAP Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 14,461.30 618.30 -3.60
2019-09-30 14,147.70 762.50
2019-06-30 13,902.50 750.70
2019-03-31 13,501.90 755.30
2018-12-31 13,009.80 761.10
2018-09-30 12,454.40 756.10
2018-06-30 11,918.20 778.20
2018-03-31 11,542.50 852.50
2017-12-31 11,517.90 886.80
2017-09-30 11,462.20 745.90
2017-06-30 11,423.30 751.60
2017-03-31 11,162.60 727.80
2016-12-31 11,176.80 704.90
2016-09-30 11,111.70 683.30
2016-06-30 11,058.50 640.30
2016-03-31 10,991.50 601.10
2015-12-31 10,771.31 615.97
2015-09-30 10,692.14 594.07
2015-06-30 10,601.30 600.61
2015-03-31 10,657.70 607.60
2014-12-31 10,629.76 570.24
2014-09-30 10,151.09 561.78
2014-06-30 9,680.16 540.64
2014-03-31 9,232.89 533.10
2013-12-31 8,800.35 514.65
2013-09-30 8,257.83 500.49
2013-06-30 7,772.88 496.85

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Saputo has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Saputo used its assets more efficiently than the CA Food industry average last year based on Return on Assets.
  • Saputo's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Saputo's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Food industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Saputo has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SAP Health

 How is Saputo's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Saputo's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Saputo is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Saputo's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Saputo's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Saputo Company Filings, last reported 3 months ago.

TSX:SAP Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 6,149.50 4,015.90 243.30
2019-09-30 6,061.10 3,778.70 173.00
2019-06-30 5,344.10 4,399.40 113.60
2019-03-31 5,420.50 2,397.70 112.70
2018-12-31 5,454.70 2,508.20 145.90
2018-09-30 4,870.50 2,542.50 91.30
2018-06-30 4,890.70 2,859.10 99.50
2018-03-31 4,797.70 1,618.60 122.20
2017-12-31 4,616.90 1,796.10 124.30
2017-09-30 4,305.40 1,600.90 180.80
2017-06-30 4,332.10 1,521.10 131.10
2017-03-31 4,322.90 1,593.80 250.50
2016-12-31 4,402.30 1,589.60 433.70
2016-09-30 4,350.80 1,476.90 331.40
2016-06-30 4,159.90 1,627.80 381.60
2016-03-31 4,069.80 1,631.40 164.30
2015-12-31 4,251.14 1,929.03 306.11
2015-09-30 3,972.65 1,886.40 219.44
2015-06-30 3,678.20 1,877.09 176.50
2015-03-31 3,628.60 1,747.70 72.60
2014-12-31 3,229.06 1,992.80 47.25
2014-09-30 3,059.80 2,026.32 50.09
2014-06-30 2,852.07 2,061.93 47.97
2014-03-31 2,839.16 2,102.03 39.35
2013-12-31 2,555.78 1,665.80 84.87
2013-09-30 2,393.42 1,722.90 35.09
2013-06-30 2,422.37 1,727.17 27.54
  • Saputo's level of debt (65.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (61.5% vs 65.3% today).
  • Debt is well covered by operating cash flow (24.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.5x coverage).
X
Financial health checks
We assess Saputo's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Saputo has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SAP Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.97%
Current annual income from Saputo dividends. Estimated to be 2.05% next year.
If you bought CA$2,000 of Saputo shares you are expected to receive CA$39 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Saputo's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.69%).
  • Saputo's dividend is below the markets top 25% of dividend payers in Canada (8.7%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:SAP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
Canada Food Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 2.4%
Canada Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 4.7%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.3%
Canada Bottom 25% Dividend Yield 25th Percentile 2.7%
Canada Top 25% Dividend Yield 75th Percentile 8.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:SAP Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2022-03-31
2021-03-31 0.71 4.00
2020-04-05
2020-03-31 0.68 4.00
TSX:SAP Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2020-02-06 0.680 1.891
2019-11-07 0.680 1.695
2019-08-08 0.680 1.712
2019-06-06 0.660 1.659
2019-02-07 0.660 1.481
2018-11-01 0.660 1.671
2018-08-07 0.660 1.664
2018-06-07 0.640 1.467
2018-02-01 0.640 1.540
2017-11-02 0.640 1.460
2017-08-01 0.640 1.474
2017-06-01 0.600 1.433
2017-02-02 0.600 1.326
2016-11-03 0.600 1.283
2016-08-02 0.600 1.343
2016-06-02 0.540 1.393
2016-02-04 0.540 1.360
2015-11-05 0.540 1.657
2015-08-04 0.540 1.770
2015-06-04 0.520 1.705
2015-02-05 0.520 1.470
2014-11-06 0.520 1.528
2014-08-06 0.520 1.603
2014-06-05 0.460 1.430
2014-02-06 0.460 1.633
2013-11-07 0.460 1.859
2013-08-06 0.460 1.883
2013-06-05 0.420 1.745
2013-02-13 0.420 1.657
2012-11-07 0.420 1.739
2012-07-31 0.420 1.966
2012-06-05 0.380 1.786
2012-02-07 0.380 1.770
2011-11-09 0.380 1.941
2011-08-02 0.380 1.888
2011-06-07 0.320 1.398
2011-02-03 0.320 1.471
2010-11-01 0.320 1.652
2010-08-03 0.320 1.849
2010-06-09 0.290 1.859
2010-02-03 0.290 1.988
2009-11-03 0.290 1.959
2009-08-04 0.290 2.216
2009-06-09 0.280 2.378

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Saputo's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.3x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Saputo's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Saputo afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Saputo has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SAP Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Lino Saputo
COMPENSATION CA$3,648,840
AGE 52
TENURE AS CEO 16.1 years
CEO Bio

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 National Bank of Canada since April 2012. He joined Saputo in 1988 as Administrative Assistant and in 1993, he became Vice President, Operations and in 1998, Executive Vice President, Operations. From July 2001 to January 2004, he was President and Chief Operating Officer of Saputo’s Dairy Products Division (USA). He served as Vice-Chairman of the board of directors of Saputo Inc. from 2011 to 2017. He served as Director of Transcontinental Inc. from 2008 to March 2017. He is involved with a number of charitable organizations, and in 2011 he co-founded the Amelia & Lino Saputo Jr. Foundation. He has been Co-chair of the Campaign for Concordia since November 2017. He holds a Bachelor’s degree in Political Science from Concordia University.

CEO Compensation
  • Lino's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Lino's remuneration is lower than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Saputo management team in years:

5
Average Tenure
58
Average Age
  • The average tenure for the Saputo management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Lino Saputo

TITLE
Chairman & CEO
COMPENSATION
CA$4M
AGE
52
TENURE
16.1 yrs

Kai Bockmann

TITLE
President and COO of Saputo Inc. & the International Sector
COMPENSATION
CA$5M
TENURE
3 yrs

Maxime Therrien

TITLE
CFO & Secretary
COMPENSATION
CA$3M
TENURE
2.7 yrs

Louis-Philippe Carrière

TITLE
Senior Advisor & Corporate Director
AGE
58
TENURE
2.7 yrs

Terry Brockman

TITLE
President & COO of Cheese Division - USA
COMPENSATION
CA$4M
TENURE
14 yrs

Carl Colizza

TITLE
President & COO - North America
COMPENSATION
CA$3M
TENURE
5 yrs

Marlene Robillard

TITLE
Director of Communications & Public Relations

Isabelle Viger

TITLE
Senior Vice President of Legal Affairs

Gaétane Wagner

TITLE
Chief Human Resources Officer
COMPENSATION
CA$691K
AGE
60
TENURE
5.3 yrs

Paul Corney

TITLE
Executive Officer
COMPENSATION
CA$4M
Board of Directors Tenure

Average tenure and age of the Saputo board of directors in years:

4.4
Average Tenure
57
Average Age
  • The tenure for the Saputo board of directors is about average.
Board of Directors

Louis-Philippe Carrière

TITLE
Senior Advisor & Corporate Director
AGE
58
TENURE
2.7 yrs

Anthony Fata

TITLE
Lead Director
COMPENSATION
CA$340K
AGE
52

Lino Saputo

TITLE
Chairman & CEO
COMPENSATION
CA$4M
AGE
52
TENURE
2.7 yrs

Tony Meti

TITLE
Independent Director
COMPENSATION
CA$315K
AGE
64
TENURE
12.3 yrs

Henry Demone

TITLE
Corporate Director
COMPENSATION
CA$260K
AGE
65
TENURE
7.8 yrs

Annalisa King

TITLE
Independent Director
COMPENSATION
CA$260K
AGE
52
TENURE
7.8 yrs

Annette Verschuren

TITLE
Independent Director
COMPENSATION
CA$260K
AGE
63
TENURE
6.7 yrs

Karen Kinsley

TITLE
Corporate Director
COMPENSATION
CA$260K
AGE
62
TENURE
4.4 yrs

Diane Nyisztor

TITLE
Independent Director
COMPENSATION
CA$260K
AGE
52
TENURE
3.7 yrs

Franziska Ruf

TITLE
Independent Director
COMPENSATION
CA$260K
AGE
56
TENURE
3.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
15. Nov 19 Buy Paul Corney Individual 15. Nov 19 15. Nov 19 625 CA$40.01 CA$25,006
15. Nov 19 Sell Terry Brockman Individual 14. Nov 19 14. Nov 19 -82,652 CA$40.25 CA$-3,316,450
13. Nov 19 Buy Paul Corney Individual 12. Nov 19 12. Nov 19 7,900 CA$40.45 CA$319,539
03. Oct 19 Buy Frank Guido Individual 13. Sep 19 13. Sep 19 4 CA$40.45 CA$162
02. Oct 19 Buy Frank Guido Individual 13. Sep 19 13. Sep 19 4 CA$40.45 CA$162
13. Sep 19 Buy Emanuele Saputo Individual 11. Sep 19 11. Sep 19 2,525,253 CA$39.60 CA$100,000,020
13. Sep 19 Buy Placements Italcan Inc. Company 11. Sep 19 11. Sep 19 2,500,000 CA$39.60 CA$99,000,001
28. Jun 19 Buy Frank Guido Individual 28. Jun 19 28. Jun 19 1,000 CA$39.07 CA$39,064
26. Jun 19 Buy Frank Guido Individual 26. Jun 19 26. Jun 19 1,000 CA$38.52 CA$38,520
25. Jun 19 Buy Patrick Turcotte Individual 25. Jun 19 25. Jun 19 2,200 CA$38.93 CA$85,628
14. Jun 19 Buy Martin Gagnon Individual 13. Jun 19 13. Jun 19 3,500 CA$39.71 CA$138,921
14. Jun 19 Buy Carl Colizza Individual 13. Jun 19 13. Jun 19 7,200 CA$39.74 CA$285,212
14. Jun 19 Buy Gaétane Wagner Individual 13. Jun 19 13. Jun 19 3,750 CA$39.85 CA$149,437
X
Management checks
We assess Saputo's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Saputo has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SAP News

Simply Wall St News

Is Saputo Inc. (TSE:SAP) A Smart Pick For Income Investors?

(TSE:SAP) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be highly rewarding in the long term. Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. A slim 1.6% yield is hard to get excited about, but the long payment history is respectable. At the right price, or with strong growth opportunities, Saputo could have potential. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … Dividend Growth Potential Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. … Conclusion When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable.

Simply Wall St -

Why Saputo Inc.’s (TSE:SAP) Return On Capital Employed Is Impressive

Finally, we'll look at how its current liabilities affect its ROCE. … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Saputo: 0.11 = CA$908m ÷ (CA$9.9b - CA$1.9b) (Based on the trailing twelve months to March 2019.) Therefore, Saputo has an ROCE of 11%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Does Saputo (TSE:SAP) Have A Healthy Balance Sheet?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. … TSX:SAP Historical Debt, July 28th 2019 How Healthy Is Saputo's Balance Sheet? … If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.

Simply Wall St -

Are Insiders Buying Saputo Inc. (TSE:SAP) Stock?

As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. … TSX:SAP Recent Insider Trading, July 17th 2019 Saputo Insiders Bought Stock Recently It's good to see that Saputo insiders have made notable investments in the company's shares. … When combined with notable insider ownership, these factors suggest Saputo insiders are well aligned, and that they may think the share price is too low.

Simply Wall St -

Brief Commentary On Saputo Inc.'s (TSE:SAP) Fundamentals

TSX:SAP Historical Debt, July 8th 2019 For those seeking income streams from their portfolio, SAP is a robust dividend payer as well. … Take a look at our free research report of analyst consensus for SAP’s outlook. … Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

Simply Wall St -

Is Saputo Inc. (TSE:SAP) Excessively Paying Its CEO?

See our latest analysis for Saputo How Does Lino Saputo's Compensation Compare With Similar Sized Companies? … We took a group of companies with market capitalizations over CA$10b, and calculated the median CEO total compensation to be CA$8.8m. … Lino Saputo is paid around what is normal the leaders of larger companies.

Simply Wall St -

With A -11% Earnings Drop, Did Saputo Inc. (TSE:SAP) Really Underperform?

View our latest analysis for Saputo Commentary On SAP's Past Performance SAP's trailing twelve-month earnings (from 31 March 2019) of CA$755m has declined by -11% compared to the previous year. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 8.8%, indicating the rate at which SAP is growing has slowed down. … I suggest you continue to research Saputo to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for SAP’s future growth?

Simply Wall St -

Should You Be Excited About Saputo Inc.'s (TSE:SAP) 14% Return On Equity?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Saputo: 14% = CA$761m ÷ CA$5.5b (Based on the trailing twelve months to December 2018.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. … Combining Saputo's Debt And Its 14% Return On Equity While Saputo does have some debt, with debt to equity of just 0.46, we wouldn't say debt is excessive.

Simply Wall St -

Does Saputo Inc.'s (TSE:SAP) Debt Level Pose A Problem?

Moreover, SAP has produced cash from operations of CA$962m over the same time period, resulting in an operating cash to total debt ratio of 38%, meaning that SAP’s operating cash is sufficient to cover its debt. … Looking at SAP’s CA$2.0b in current liabilities, it appears that the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.6x. … Next Steps: Although SAP’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised.

Simply Wall St -

A Look At The Intrinsic Value Of Saputo Inc. (TSE:SAP)

(TSE:SAP) from its intrinsic value? … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

SAP Company Info

Description

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; specialty cheeses, such as ricotta, provolone, parmesan, goat cheese, feta, 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, cream, yogurt, sour cream, cottage cheese, and ice cream mixes, as well as other dairy and non-dairy products, which comprise butter, flavored cream, dips, and flavored coffee whitener. In addition, the company offers dairy ingredients, including milk powder, whey powder, lactose, and whey protein concentrates; and distributes fine imported cheese to specialty stores, as well as non-dairy products manufactured by third parties. It serves customers in the retail, foodservice, and industrial segments. The company sells its products under the Saputo, Alexis de Portneuf, Armstrong, Cathedral City, Clover, COON, Cracker Barrel, Dairyland, DairyStar, Devondale, Friendship Dairies, Frigo Cheese Heads, Joyya, La Paulina, Liddells, Milk2Go/Lait’s Go, Montchevre, Murray Goulburn Ingredients, Neilson, Nutrilait, Scotsburn, Stella, Sungold, Treasure Cave, and Woolwich Goat Dairy brands. Saputo Inc. was founded in 1954 and is headquartered in Montréal, Canada.

Details
Name: Saputo Inc.
SAP
Exchange: TSX
Founded: 1954
CA$14,115,717,502
408,322,751
Website: http://www.saputo.com
Address: Saputo Inc.
6869, Métropolitain Boulevard East,
Montréal,
Quebec, H1P 1X8,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX SAP Common Shares The Toronto Stock Exchange CA CAD 06. Oct 1997
OTCPK SAPI.F Common Shares Pink Sheets LLC US USD 06. Oct 1997
DB SB7 Common Shares Deutsche Boerse AG DE EUR 06. Oct 1997
Number of employees
Current staff
Staff numbers
16,800
Saputo employees.
Industry
Packaged Foods and Meats
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/05 00:55
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/04/02
Last earnings filing: 2020/02/06
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.