Saputo Inc. (SAP) AI Stock Analysis

• Market Cap: C$13.80B
• Dividend Yield: 2.3%
• Average Volume (3M): 851.48K
• Price to Earnings (P/E): 42.3
• Beta (1Y): 0.54
• Revenue Growth: 7.58%
• EPS Growth: -155.93%
• Country: CA
• Employees: 19,600
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.44
• Shares Outstanding: 411,991,640
• 10 Day Avg. Volume: 1,146,659
• 30 Day Avg. Volume: 851,481
• PEG Ratio: -0.73
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 20.86
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$36.29
• Price Target Upside: 8.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 63 Neutral
• Price Target: C$35.00 ▲(4.48% Upside)

Saputo Inc.'s overall stock score is driven by strong technical indicators and positive earnings call highlights, despite concerns over valuation and financial performance. The company's robust revenue growth and cash flow management are offset by negative net income and profitability challenges.

Positive Factors

Revenue Growth

Saputo's steady revenue growth, driven by higher selling prices and sales volume, indicates strong market demand and effective pricing strategies, supporting long-term business expansion.

Product Innovation

Continuous product innovation helps Saputo meet evolving consumer preferences, strengthening its competitive position and driving future revenue growth.

Cash Flow Management

Improved cash flow management enhances Saputo's financial flexibility, enabling reinvestment in growth initiatives and providing a buffer against economic uncertainties.

Negative Factors

Higher Costs in Argentina

Rising input costs in key markets like Argentina can erode margins and reduce competitiveness, posing a risk to Saputo's cost management strategies.

International Sector Challenges

Declining international revenues highlight geographic vulnerabilities and market-specific challenges, potentially impacting overall growth and profitability.

Profitability Challenges

Negative profitability margins indicate operational inefficiencies and cost pressures, which could hinder Saputo's ability to generate sustainable profits and shareholder value.

Saputo Inc. Business Overview & Revenue Model

Company Description

Saputo Inc. produces, markets, and distributes dairy products in Canada, the United States, Argentina, Australia, and the United Kingdom. The company offers cheeses, including mozzarella and cheddar; specialty cheeses, such as ricotta, provolone, blue, parmesan, goat cheese, feta, romano, and havarti; fine cheeses comprising brie and camembert; and other cheeses that include brick, colby, farmer, munster, monterey jack, fresh curd, and processed cheeses. It also provides fluid milk, yogurt, sour cream, cottage cheese, and ice cream mixes, as well as other dairy and non-dairy products, which comprise butter, cream and creamers, aerosol whipped toppings, whipping cream, dips, spread, oil, flavored coffee whitener, and iced coffee. In addition, the company offers dairy ingredients and nutritional products, including milk powder, casein, whey powder, lactose, lactoferrin, infant formula, and whey protein concentrates; and distributes fine imported cheese to specialty stores, as well as dairy and 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, Bari, Cogruet, DuVillage 1860, Kingsey, Shepherd Gourmet Dairy, Stella, Woolwich Goat Dairy, Cathedral City, Clover, Country Life, Davidstow, Frylight, Wensleydale Creamery, Vitalite, Sheese, Dairyland, Neilson, Nutrilait, Baxter, Scotsburn, Trutaste, Milk2Go/Lait's Go, Joyya, Baileys, Heluva Good, CHEER, Cracker Barrel, Devondale, Fred Walker, Great Ocean Road, King Island Dairy, Liddells, Mersey Valley, Mil Lel, Murray Goulburn Ingredients, Warrnambool, South Cape, Sungold, Tasmanian Heritage, La Paulina, Molfino, Ricrem, Black Creek, Frigo Cheese Heads, Gardenia, Great Midwest, King's Choice, Lugano, Montchevre, Organic Creamery, Salemville, Treasure Cave, DairyStar, and Friendship Dairies brands. Saputo Inc. was founded in 1954 and is headquartered in Montreal, Canada.

How the Company Makes Money

Saputo Inc. generates revenue primarily through the manufacturing and sale of dairy products, including cheese, fluid milk, extended shelf-life milk and cream products, cultured products, and dairy ingredients. The company's key revenue streams include sales to retail grocery chains, foodservice distributors, and industrial clients who use Saputo's products as ingredients in their own food products. Saputo's earnings are influenced by factors such as global dairy market trends, the availability and cost of raw materials like milk, and consumer demand for dairy products. The company also engages in strategic acquisitions to expand its portfolio and market reach, thereby enhancing its revenue potential.

Saputo Inc. Financial Statement Overview

Summary

Saputo Inc. shows strong revenue growth and effective cash flow management, which are positive indicators. However, negative net income and declining profitability margins are significant concerns. The balance sheet is stable, but negative ROE highlights challenges in generating shareholder value.

Income Statement

Saputo Inc. has shown a mixed performance in its income statement. The company experienced a significant revenue growth rate of 13.1% in the TTM period, indicating strong top-line growth. However, the net profit margin is negative at -0.92%, reflecting a net loss, which is a concern. The gross profit margin has decreased from previous years, and both EBIT and EBITDA margins have declined, suggesting pressure on profitability. Overall, while revenue growth is a positive sign, the declining profitability metrics and net loss weigh heavily on the score.

Balance Sheet

The balance sheet of Saputo Inc. shows moderate financial stability. The debt-to-equity ratio stands at 0.52, indicating a manageable level of leverage. However, the return on equity is negative at -2.46%, which is concerning as it reflects the company's inability to generate positive returns for shareholders. The equity ratio is relatively stable, suggesting a balanced capital structure. While the leverage is under control, the negative ROE impacts the overall score.

Cash Flow

Saputo Inc.'s cash flow statement presents a mixed picture. The free cash flow growth rate is strong at 23.35%, indicating improved cash generation. The operating cash flow to net income ratio is 0.34, showing that the company is generating cash from operations despite the net loss. The free cash flow to net income ratio is 0.62, suggesting that the company is managing its cash flow effectively. The positive cash flow metrics provide a cushion against the net loss, resulting in a relatively favorable score.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.09B	19.06B	17.34B	17.84B	15.04B	14.29B
Gross Profit	4.79B	5.70B	2.52B	5.42B	4.68B	4.72B
EBITDA	788.00M	730.00M	1.18B	1.51B	1.08B	1.48B
Net Income	-153.00M	-176.00M	265.00M	622.00M	274.00M	626.00M
Balance Sheet
Total Assets	13.25B	13.91B	14.26B	14.43B	13.68B	13.12B
Cash, Cash Equivalents and Short-Term Investments	256.00M	257.00M	466.00M	263.00M	165.00M	308.70M
Total Debt	3.52B	3.59B	3.99B	4.04B	4.25B	4.11B
Total Liabilities	6.60B	6.94B	7.21B	7.29B	7.18B	6.68B
Stockholders Equity	6.65B	6.98B	7.05B	7.14B	6.50B	6.44B
Cash Flow
Free Cash Flow	840.00M	681.00M	537.00M	384.00M	195.00M	645.10M
Operating Cash Flow	1.22B	1.10B	1.19B	1.02B	693.00M	1.08B
Investing Cash Flow	-330.00M	-285.00M	-652.00M	-632.00M	-799.00M	-387.40M
Financing Cash Flow	-1.03B	-1.03B	-343.00M	-369.00M	-72.00M	-705.00M

Saputo Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SAP, the sentiment is Positive. The current price of 33.5 is below the 20-day moving average (MA) of 34.01, above the 50-day MA of 31.51, and above the 200-day MA of 26.73, indicating a neutral trend. The MACD of 0.58 indicates Positive momentum. The RSI at 54.12 is Neutral, neither overbought nor oversold. The STOCH value of 18.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SAP.

Saputo Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PBH	73 Outperform	4.19B	44.58	5.43%	3.65%	8.42%	-17.99%
MFI	72 Outperform	4.36B	24.22	11.24%	2.69%	5.44%	1391.43%
HLF	66 Neutral	485.42M	7.55	11.48%	4.81%	1.05%	13.40%
SAP	63 Neutral	C$13.80B	42.30	-2.20%	2.30%	7.58%	-155.93%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Saputo Inc. Corporate Events

Saputo Inc. Announces Successful Election of Directors

Saputo Inc. announced the election of its board of directors at the annual shareholders’ meeting held on August 8, 2025. All ten nominees proposed by the board were successfully elected, with high approval rates, indicating strong shareholder support. This election is significant for Saputo as it reinforces the company’s governance structure and may impact its strategic direction and stakeholder confidence.

The most recent analyst rating on (TSE:SAP) stock is a Buy with a C$37.00 price target. To see the full list of analyst forecasts on Saputo Inc. stock, see the TSE:SAP Stock Forecast page.

Saputo Inc. Reports Strong Q1 Fiscal 2026 Results

Saputo Inc. reported strong financial results for the first quarter of fiscal 2026, with revenues reaching $4.631 billion, a 0.5% increase from the previous year. The company’s adjusted EBITDA rose by 11.2% to $426 million, driven by higher selling prices and operational improvements. Despite unfavorable US dairy market conditions, Saputo achieved significant gains in international markets and maintained robust cash flow, enabling continued investment and shareholder returns.

The most recent analyst rating on (TSE:SAP) stock is a Buy with a C$35.00 price target. To see the full list of analyst forecasts on Saputo Inc. stock, see the TSE:SAP Stock Forecast page.

Saputo Inc. Reports Stable Fiscal 2025 Results Amidst Challenges

Saputo Inc. reported its fiscal 2025 results, highlighting stable performance amidst challenging conditions. The company achieved year-over-year growth in adjusted EBITDA and revenues in Canada, USA, and Europe, despite facing issues like the unfavorable milk-cheese spread in the USA and currency devaluation in Argentina. Saputo’s strategic investments in focus brands and infrastructure are expected to support future growth, while restructuring efforts and share buybacks reflect ongoing optimization and shareholder value enhancement.

The most recent analyst rating on (TSE:SAP) stock is a Buy with a C$37.00 price target. To see the full list of analyst forecasts on Saputo Inc. stock, see the TSE:SAP Stock Forecast page.