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Sappi

DB:SPI
Snowflake Description

Very undervalued established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SPI
DB
ZAR21B
Market Cap
  1. Home
  2. DE
  3. Materials
Company description

Sappi Limited, a woodfibre company, manufactures and sells dissolving wood pulp, specialties and packaging papers, and graphic/printing papers to direct and indirect customers in North America, Europe, Southern Africa, and internationally. The last earnings update was 73 days ago. More info.


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  • Sappi has significant price volatility in the past 3 months.
SPI Share Price and Events
7 Day Returns
-3.6%
DB:SPI
6.5%
Europe Forestry
2.8%
DE Market
1 Year Returns
-56.7%
DB:SPI
-11.9%
Europe Forestry
3%
DE Market
SPI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sappi (SPI) -3.6% -25.4% -30.8% -56.7% -53.5% -23%
Europe Forestry 6.5% 1.9% 8.8% -11.9% 1% 49.9%
DE Market 2.8% 0.2% 1.3% 3% 8% 23.6%
1 Year Return vs Industry and Market
  • SPI underperformed the Forestry industry which returned -11.9% over the past year.
  • SPI underperformed the Market in Germany which returned 3% over the past year.
Price Volatility
SPI
Industry
5yr Volatility vs Market

Value

 Is Sappi 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 Sappi 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 Sappi.

DB:SPI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.1%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

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 DB:SPI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Forestry Unlevered Beta Simply Wall St/ S&P Global 1.37
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.367 (1 + (1- 28%) (136.23%))
2.145
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (2 * 5.96%)
12.15%

Discounted Cash Flow Calculation for DB:SPI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Sappi 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.

DB:SPI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 12.15%)
2020 213.50 Analyst x2 190.37
2021 296.33 Analyst x3 235.61
2022 403.00 Analyst x1 285.71
2023 406.00 Analyst x1 256.66
2024 408.22 Est @ 0.55% 230.11
2025 410.06 Est @ 0.45% 206.11
2026 411.63 Est @ 0.38% 184.49
2027 413.02 Est @ 0.34% 165.06
2028 414.28 Est @ 0.3% 147.63
2029 415.44 Est @ 0.28% 132.01
Present value of next 10 years cash flows $2,033.00
DB:SPI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $415.44 × (1 + 0.23%) ÷ (12.15% – 0.23%)
$3,493.22
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,493.22 ÷ (1 + 12.15%)10
$1,109.97
DB:SPI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,033.00 + $1,109.97
$3,142.97
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,142.97 / 548.05
$5.73
DB:SPI Discount to Share Price
Calculation Result
Exchange Rate USD/ZAR
(Reporting currency to currency of JSE:SAP)
14.749
Value per Share
(ZAR)
= Value per Share in USD x Exchange Rate (USD/ZAR)
= $5.73 x 14.749
ZAR84.58
Non-primary Listing Adjustment Factor 1 share in DB:SPI represents 0.05596x of JSE:SAP
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.05596x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (ZAR) x Listing Adjustment Factor
= ZAR 84.58 x 0.05596
€4.73
Value per share (EUR) From above. €4.73
Current discount Discount to share price of €2.16
= -1 x (€2.16 - €4.73) / €4.73
54.4%

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

Current Discount
Amount off the current price Sappi is available for.
Intrinsic value
>50%
Share price is €2.16 vs Future cash flow value of €4.73
Current Discount Checks
For Sappi to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Sappi's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Sappi'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 Sappi's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sappi's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:SPI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $0.50
JSE:SAP Share Price ** JSE (2019-10-11) in ZAR ZAR38.6
JSE:SAP Share Price converted to USD reporting currency Exchange rate (ZAR/ USD) 0.068 $2.62
Europe Forestry Industry PE Ratio Median Figure of 31 Publicly-Listed Forestry Companies 10.37x
Germany Market PE Ratio Median Figure of 417 Publicly-Listed Companies 19.72x

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

** Primary Listing of Sappi.

DB:SPI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= JSE:SAP Share Price ÷ EPS (both in USD)

= 2.62 ÷ 0.50

5.28x

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

  • Sappi is good value based on earnings compared to the Europe Forestry industry average.
  • Sappi is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Sappi's expected growth come at a high price?
Raw Data
DB:SPI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.28x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
8.7%per year
Europe Forestry Industry PEG Ratio Median Figure of 19 Publicly-Listed Forestry Companies 0.3x
Germany Market PEG Ratio Median Figure of 265 Publicly-Listed Companies 1.39x

*Line of best fit is calculated by linear regression .

DB:SPI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.28x ÷ 8.7%

0.6x

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

  • Sappi is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Sappi's assets?
Raw Data
DB:SPI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $3.75
JSE:SAP Share Price * JSE (2019-10-11) in ZAR ZAR38.6
JSE:SAP Share Price converted to USD reporting currency Exchange rate (ZAR/ USD) 0.068 $2.62
Europe Forestry Industry PB Ratio Median Figure of 39 Publicly-Listed Forestry Companies 1.17x
Germany Market PB Ratio Median Figure of 598 Publicly-Listed Companies 1.74x
DB:SPI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= JSE:SAP Share Price ÷ Book Value per Share (both in USD)

= 2.62 ÷ 3.75

0.7x

* Primary Listing of Sappi.

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

  • Sappi is good value based on assets compared to the Europe Forestry industry average.
X
Value checks
We assess Sappi'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 Forestry 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 Forestry industry average (and greater than 0)? (1 check)
  5. Sappi has a total score of 6/6, 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.

Future Performance

 How is Sappi expected to perform in the next 1 to 3 years based on estimates from 8 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
8.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sappi expected to grow at an attractive rate?
  • Sappi's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Sappi's earnings growth is positive but not above the Germany market average.
  • Sappi's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:SPI Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:SPI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 8.7%
DB:SPI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 3.1%
Europe Forestry Industry Earnings Growth Rate Market Cap Weighted Average 3.2%
Europe Forestry Industry Revenue Growth Rate Market Cap Weighted Average 1.2%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.8%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5%

*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
DB:SPI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:SPI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-09-30
2022-09-30
2021-09-30 6,169 619 295 6
2020-09-30 5,842 556 306 8
2019-10-13
2019-09-30 5,777 602 238 7
DB:SPI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 5,827 430 268
2019-03-31 5,901 459 311
2018-12-31 5,894 514 341
2018-09-30 5,806 491 323
2018-06-30 5,682 569 318
2018-03-31 5,497 538 325
2017-12-31 5,317 565 311
2017-10-01 5,296 540 338
2017-06-30 5,225 546 348
2017-03-31 5,188 569 322
2016-12-31 5,166 587 334
2016-09-25 5,141 550 319

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Sappi's earnings are expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).
  • Sappi's revenue is expected to grow by 3.1% 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
DB:SPI 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 8 Analyst Estimates (S&P Global) See Below

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

DB:SPI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-09-30
2022-09-30
2021-09-30 0.53 0.60 0.48 3.00
2020-09-30 0.53 0.68 0.43 4.00
2019-10-13
2019-09-30 0.44 0.46 0.42 2.00
DB:SPI Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 0.50
2019-03-31 0.58
2018-12-31 0.63
2018-09-30 0.60
2018-06-30 0.59
2018-03-31 0.61
2017-12-31 0.58
2017-10-01 0.63
2017-06-30 0.65
2017-03-31 0.61
2016-12-31 0.63
2016-09-25 0.60

*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.
  • Sappi is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Sappi'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 Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe 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.
Sappi has a total score of 1/6, 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.

Past Performance

  How has Sappi 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 Sappi's growth in the last year to its industry (Forestry).
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.
  • Sappi has delivered over 20% year on year earnings growth in the past 5 years.
  • Sappi's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Sappi's 1-year earnings growth is negative, it can't be compared to the Europe Forestry industry average.
Earnings and Revenue History
Sappi'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 Sappi Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:SPI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 5,827.00 268.00 381.00
2019-03-31 5,901.00 311.00 388.00
2018-12-31 5,894.00 341.00 407.00
2018-09-30 5,806.00 323.00 401.00
2018-06-30 5,682.00 318.00 389.00
2018-03-31 5,497.00 325.00 378.00
2017-12-31 5,317.00 311.00 353.00
2017-10-01 5,296.00 338.00 341.00
2017-06-30 5,225.00 348.00 335.00
2017-03-31 5,188.00 322.00 335.00
2016-12-31 5,166.00 334.00 347.00
2016-09-25 5,141.00 319.00 347.00
2016-06-30 5,204.00 290.00 342.00
2016-03-31 5,253.00 262.00 339.00
2015-12-31 5,297.00 218.00 330.00
2015-09-27 5,390.00 167.00 332.00
2015-06-30 5,492.00 152.00 319.00
2015-03-31 5,704.00 165.00 334.00
2014-12-31 5,939.00 141.00 345.00
2014-09-28 6,061.00 135.00 355.00
2014-06-30 6,086.00 -82.00 397.00
2014-03-31 6,019.00 -146.00 398.00
2013-12-31 5,949.00 -176.00 403.00
2013-09-29 5,925.00 -182.00 386.00
2013-06-30 5,980.00 74.00 392.00
2013-03-31 6,107.00 15.00 400.00
2012-12-31 6,237.00 71.00 407.00

*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.
  • Sappi has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Sappi used its assets more efficiently than the Europe Forestry industry average last year based on Return on Assets.
  • Sappi's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Sappi'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 Forestry 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.
Sappi 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.

Health

 How is Sappi'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 Sappi's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sappi is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Sappi's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Sappi'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 not covered by short term assets, assets are 0.9x 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 Sappi Company Filings, last reported 3 months ago.

DB:SPI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 2,033.00 1,954.00 226.00
2019-03-31 1,987.00 2,400.00 720.00
2018-12-31 1,915.00 1,907.00 350.00
2018-09-30 1,947.00 1,931.00 363.00
2018-06-30 1,842.00 1,920.00 317.00
2018-03-31 1,968.00 2,091.00 459.00
2017-12-31 1,821.00 1,967.00 618.00
2017-10-01 1,747.00 1,872.00 550.00
2017-06-30 1,627.00 1,764.00 446.00
2017-03-31 1,551.00 2,032.00 703.00
2016-12-31 1,442.00 2,019.00 681.00
2016-09-25 1,378.00 2,111.00 741.00
2016-06-30 1,182.00 2,125.00 542.00
2016-03-31 1,114.00 2,109.00 457.00
2015-12-31 1,015.00 2,117.00 383.00
2015-09-27 1,015.00 2,227.00 456.00
2015-06-30 1,120.00 2,268.00 351.00
2015-03-31 1,135.00 2,315.00 399.00
2014-12-31 1,059.00 2,369.00 329.00
2014-09-28 1,044.00 2,526.00 528.00
2014-06-30 1,160.00 2,534.00 248.00
2014-03-31 1,146.00 2,555.00 307.00
2013-12-31 1,122.00 2,558.00 210.00
2013-09-29 1,144.00 2,690.00 352.00
2013-06-30 1,340.00 2,533.00 236.00
2013-03-31 1,443.00 2,550.00 398.00
2012-12-31 1,513.00 2,599.00 504.00
  • Sappi's level of debt (96.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (218.7% vs 96.1% today).
  • Debt is well covered by operating cash flow (22%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.9x coverage).
X
Financial health checks
We assess Sappi'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. Sappi has a total score of 4/6, 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.

Dividends

 What is Sappi'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
6.5%
Current annual income from Sappi dividends. Estimated to be 7.03% next year.
If you bought €2,000 of Sappi shares you are expected to receive €130 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?
  • Sappi's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.46%).
  • Sappi's dividend is above the markets top 25% of dividend payers in Germany (3.86%).
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
DB:SPI 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 8 Analyst Estimates (S&P Global) See Below
Europe Forestry Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 4.4%
Germany Market Average Dividend Yield Market Cap Weighted Average of 337 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.7%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

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

DB:SPI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-09-30
2022-09-30
2021-09-30 0.20 6.00
2020-09-30 0.17 8.00
2019-10-13
2019-09-30 0.14 6.00
DB:SPI Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-11-15 0.170 4.210
2017-12-15 0.150 2.282
2017-11-16 0.150 2.104
2016-11-10 0.110 1.653
2010-11-08 0.000 0.000
2010-08-02 0.000 0.000
2010-05-07 0.000 0.000
2010-01-28 0.000 0.000
2009-11-16 0.000 0.000
2009-11-09 0.000 0.000
2008-12-08 0.160 5.529
2008-11-06 0.160 4.169

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

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Sappi's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.5x coverage).
X
Income/ dividend checks
We assess Sappi's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - 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 Sappi afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Sappi has a total score of 5/6, see the detailed checks below.


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

Management

 What is the CEO of Sappi'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
Steve Binnie
COMPENSATION $1,885,656
AGE 52
TENURE AS CEO 5.3 years
CEO Bio

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 Limited from July 2012 to June 30, 2014. He served as the Chief Financial Officer of Edcon Holdings (Proprietary) Limited (also called as Edcon (Pty) Ltd., Edgars Consolidated Stores Ltd) from 2002 to June 30, 2012. He served as the Group Financial Director of Edcon Holdings (Proprietary) Limited. He served as Senior Financial Manager for over 15 years, including Financial Director of the credit bureau, Information Trust Corporation and an executive at an international banking group. He was Group Financial Manager at Investec Bank Limited. He started his career as Regional Financial Manager of Tanker Services. He served as Financial Manager of New Zealand Milk Products (SA) and Financial Director of Transunion ITC. Mr. Binnie has been an Executive Director at Sappi Limited since September 1, 2012. He served as a Director at Edcon Limited (formerly Edcon (Proprietary) Ltd.) until June 30, 2012. He served as an Executive Director of Edcon Holdings (Proprietary) Limited since 2003. He completed his articles at KPMG. He is a qualified chartered accountant. Mr. Binnie holds a B.Com and a B.Acc from University of Witwatersrand and an M.B.A. from Heriot-Watt University.

CEO Compensation
  • Steve's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Steve's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

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

5.3
Average Tenure
53.5
Average Age
  • The average tenure for the Sappi management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Steve Binnie

TITLE
CEO & Executive Director
COMPENSATION
$2M
AGE
52
TENURE
5.3 yrs

Glen Pearce

TITLE
CFO & Executive Director
COMPENSATION
$992K
AGE
56
TENURE
5.3 yrs

Gary Bowles

TITLE
Group Head Technology
COMPENSATION
$844K
AGE
59
TENURE
1 yrs

Maarten Hoven

TITLE
Group Head of Strategy & Legal
COMPENSATION
$628K
AGE
46
TENURE
7.8 yrs

Fergus C. Marupen

TITLE
Group Head of Human Resources
COMPENSATION
$576K
AGE
55
TENURE
4.6 yrs

Mohamed Mansoor

TITLE
Executive Vice President of Sappi Dissolving Wood Pulp
COMPENSATION
$613K
AGE
52
TENURE
1.8 yrs

Alex van Coller Thiel

TITLE
Chief Executive Officer of Sappi Southern Africa
COMPENSATION
$1M
AGE
58
TENURE
8.8 yrs

Berry Wiersum

TITLE
Chief Executive Officer of Sappi Europe
COMPENSATION
$2M
AGE
64
TENURE
12.8 yrs

Marjorie Boles

TITLE
Group Chief Information Officer
AGE
48
TENURE
1.3 yrs

Graeme Wild

TITLE
Group Head of Investor Relations & Sustainability
AGE
46
Board of Directors Tenure

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

7.6
Average Tenure
67.5
Average Age
  • The tenure for the Sappi board of directors is about average.
Board of Directors

Nigel Rudd

TITLE
Independent Chairman
COMPENSATION
$430K
AGE
73
TENURE
3.6 yrs

Steve Binnie

TITLE
CEO & Executive Director
COMPENSATION
$2M
AGE
52
TENURE
7.1 yrs

Glen Pearce

TITLE
CFO & Executive Director
COMPENSATION
$992K
AGE
56
TENURE
5.3 yrs

Nkateko Mageza

TITLE
Independent Non-Executive Director
COMPENSATION
$79K
AGE
65
TENURE
9.8 yrs

Mohammed Moosa

TITLE
Non-Independent Non-Executive Director
COMPENSATION
$67K
AGE
62
TENURE
9.2 yrs

Mike Fallon

TITLE
Independent Non-Executive Director
COMPENSATION
$144K
AGE
61
TENURE
8.1 yrs

Jock McKenzie

TITLE
Lead Independent Non-Executive Director
COMPENSATION
$78K
AGE
72
TENURE
3.6 yrs

Franklin Sonn

TITLE
Director
COMPENSATION
$14K
AGE
80

Helmut Mamsch

TITLE
Director
COMPENSATION
$28K
AGE
75

Karen Osar

TITLE
Independent Non-Executive Director
COMPENSATION
$126K
AGE
70
TENURE
12.4 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 (€) Value (€)
10. Dec 18 Sell Glen Pearce Individual 06. Dec 18 06. Dec 18 -39,525 €4.75 €-186,832
10. Dec 18 Sell Stephen Binnie Individual 06. Dec 18 06. Dec 18 -107,522 €4.75 €-508,250
23. Nov 18 Buy Glen Pearce Individual 16. Nov 18 16. Nov 18 65,000 €5.03 €326,718
23. Nov 18 Buy Stephen Binnie Individual 16. Nov 18 16. Nov 18 142,000 €5.03 €713,753
X
Management checks
We assess Sappi'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. Sappi 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.

News

Simply Wall St News

Company Info

Description

Sappi Limited, a woodfibre company, manufactures and sells dissolving wood pulp, specialties and packaging papers, and graphic/printing 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 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. In addition, the company offers graphic paper products that are used by printers in the production of books, brochures, magazines, catalogues, direct mail, newspapers, and various other print applications; and newsprint, uncoated graphic, and business papers. Further, it develops and processes biomaterials and biochemicals; offers sawn timber for construction and furniture manufacturing purposes; and produces and sells green electricity through a network of 5 hydro, 2 gas, and 31 steam turbines that generate approximately 800MW renewable power on 14 sites across 7 countries, as well as produces biogas. The company was formerly known as South African Pulp and Paper Industries Limited and changed its name to Sappi Limited in 1973. Sappi Limited was founded in 1936 and is headquartered in Johannesburg, South Africa.

Details
Name: Sappi Limited
SPI
Exchange: DB
Founded: 1936
ZAR1,298,029,182
548,053,463
Website: http://www.sappi.com
Address: Sappi Limited
108 Oxford Road,
Rosebank,
Johannesburg,
Gauteng, 2196,
South Africa
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
JSE SAP Ordinary Shares The Johannesburg Securities Exchange ZA ZAR 02. Jan 1992
DB SPI Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
OTCPK SPPJ.Y SPON ADR NEW Pink Sheets LLC US USD 05. Nov 1998
Number of employees
Current staff
Staff numbers
0
Sappi employees.
Industry
Paper Products
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/13 21:33
End of day share price update: 2019/10/11 00:00
Last estimates confirmation: 2019/10/08
Last earnings filing: 2019/08/01
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/09/30


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.