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Saputo Inc.
(TSX:SAP)
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Rating:67Neutral
Price Target:
C$44.00
▲(7.82% Upside)
Action:Reiterated
Date:08/10/26
The score is driven primarily by stable financial fundamentals (improving profitability, declining leverage, and strong free cash flow) and a positive earnings-call backdrop (earnings growth, margin expansion, and shareholder returns). Offsetting these positives are a soft technical setup (below key short/intermediate moving averages with negative MACD) and a relatively expensive valuation (P/E ~32.5 with a modest ~2.0% yield).
Positive Factors
Earnings Growth and Margin Expansion
Higher EBITDA, EPS and margins indicate that pricing, product mix and efficiency initiatives are improving profitability. Sustained benefits from automation, utilization and operational discipline could support earnings quality over the next several quarters.
Negative Factors
Weak and Uneven Revenue Growth
Soft top-line performance limits operating leverage and makes earnings improvement more dependent on cost control, pricing and mix. Regional declines in Europe and the U.S. also show that volume and market recovery are not yet broad-based.
Read all positive and negative factors
Positive Factors
Negative Factors
Earnings Growth and Margin Expansion
Higher EBITDA, EPS and margins indicate that pricing, product mix and efficiency initiatives are improving profitability. Sustained benefits from automation, utilization and operational discipline could support earnings quality over the next several quarters.
Read all positive factors
Saputo Inc. (SAP) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$15.93B
Dividend Yield1.99%
Average Volume (3M)729.96K
Price to Earnings (P/E)32.2
Beta (1Y)0.42
Revenue Growth-4.63%
EPS GrowthN/A
CountryCA
Employees19,200
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)1.25
Shares Outstanding397,007,540
10 Day Avg. Volume693,708
30 Day Avg. Volume729,957
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)2.62
Price to Sales (P/S)1.02
P/FCF Ratio15.16
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$47.86Price Target Upside17.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)2.07
Revenue Forecast (FY)C$17.95B
Saputo Inc. Business Overview & Revenue Model
Company Description
Saputo Inc. operates as a prominent global dairy processor and distributor, with operations spanning Canada, the United States, Argentina, Australia, and the United Kingdom. The company boasts an extensive product lineup, offering a wide variety o...
How the Company Makes Money
Saputo makes money primarily by processing raw milk into branded and private-label dairy products and selling those products through retail, foodservice, and industrial channels. Its core revenue streams include: (1) Cheese and dairy product sales...
Saputo Inc. Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial picture: adjusted EBITDA and adjusted EPS grew meaningfully, ingredients and Australian operations delivered strong outperformance, and management demonstrated disciplined capital allocation (deleveraging, dividend increase and buybacks). Challenges remain—most notably inflationary cost pressures, working capital absorption, regional revenue softness (U.S. cheese/butter prices and Europe bulk volumes) and market supply volatility—but management has multiple mitigating levers (pricing, portfolio focus, operational efficiencies and targeted capex). Overall, the strengths and execution progress materially outweigh the near-term headwinds.Positive Updates
Consolidated Earnings Growth and Margin Expansion
Adjusted EBITDA increased close to 8% (~$30M) to $427M; consolidated margin expanded to 9.7% from 9.1%; revenue of $4.4B, up 1.5% year-over-year; net earnings from continuing operations $183M; adjusted net earnings $199M, up 13%; adjusted EPS $0.49, up 17%.
Negative Updates
Inflationary Pressure Impacting Margins
Ongoing inflation on labor, logistics, packaging and fuel weighed on margins (notably in Canada) and required pricing actions and other mitigations; management cites continued inflationary monitoring and partial pass-through via pricing.
Read all updates
Q1-2027 Updates
Positive
Negative
Consolidated Earnings Growth and Margin Expansion
Adjusted EBITDA increased close to 8% (~$30M) to $427M; consolidated margin expanded to 9.7% from 9.1%; revenue of $4.4B, up 1.5% year-over-year; net earnings from continuing operations $183M; adjusted net earnings $199M, up 13%; adjusted EPS $0.49, up 17%.
Read all positive updates
Company Guidance
Saputo reiterated a disciplined, growth-focused outlook for fiscal 2027, expecting capital expenditures of approximately $515 million (Q1 CapEx $57M) weighted to high‑return projects, while ending Q1 with net debt/adjusted EBITDA of 1.47x versus a long‑term leverage target of 2.25x; the company closed the sale of 80% of its Argentina Dairy Division for $710M (~$612M after tax) and agreed to sell its DSDA JV for ~ $253M (expected H2 2026), used Argentina proceeds to repay $350M of Series 8 notes, and said it is confident in cash generation to fund growth and disciplined M&A. Management plans to remain active on share repurchases (Q1 repurchases: 7.2M shares for ~ $300M; total capital returned ~ $380M including $80M dividends), intends to increase its NCIB to ~24M shares (max 10% public float), and raised the quarterly dividend 5% to $0.21/share; it also earmarked roughly $28–30M for technology/digital/cybersecurity. These guidance items are supported by Q1 continuing‑operations results: revenue $4.4B (+1.5%), adjusted EBITDA $427M (+~8%) with margin 9.7% (vs 9.1% LY), adjusted net earnings $199M (+13%), adjusted EPS $0.49 (+17%), and operating cash flow from continuing operations $151M.Saputo Inc. Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
72
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.20B | 17.55B | 19.06B | 17.34B | 17.84B | 15.04B |
| Gross Profit | 2.54B | 2.78B | 1.56B | 1.51B | 1.55B | 1.16B |
| EBITDA | 1.74B | 1.66B | 1.43B | 1.37B | 1.42B | 1.02B |
| Net Income | 510.00M | 672.00M | -176.00M | 265.00M | 622.00M | 274.00M |
Balance Sheet | ||||||
| Total Assets | 13.23B | 13.61B | 13.91B | 14.26B | 14.43B | 13.68B |
| Cash, Cash Equivalents and Short-Term Investments | 488.00M | 444.00M | 257.00M | 466.00M | 263.00M | 165.00M |
| Total Debt | 2.97B | 3.27B | 3.59B | 3.99B | 4.04B | 4.25B |
| Total Liabilities | 6.14B | 6.80B | 6.94B | 7.21B | 7.29B | 7.18B |
| Stockholders Equity | 7.09B | 6.80B | 6.98B | 7.05B | 7.14B | 6.50B |
Cash Flow | ||||||
| Free Cash Flow | 1.02B | 1.18B | 815.00M | 537.00M | 384.00M | 195.00M |
| Operating Cash Flow | 1.34B | 1.51B | 1.19B | 1.19B | 1.02B | 693.00M |
| Investing Cash Flow | 279.00M | -318.00M | -243.00M | -652.00M | -632.00M | -799.00M |
| Financing Cash Flow | -1.41B | -998.00M | -1.17B | -343.00M | -369.00M | -72.00M |
Saputo Inc. Technical Analysis
Negative
40.81
Price Trends
41.15
Negative
40.95
Negative
41.11
Negative
Market Momentum
-0.20
Positive
42.64
Neutral
27.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SAP, the sentiment is Negative. The current price of 40.81 is below the 20-day moving average (MA) of 41.18, below the 50-day MA of 41.15, and below the 200-day MA of 41.11, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 42.64 is Neutral, neither overbought nor oversold. The STOCH value of 27.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SAP.
Saputo Inc. Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | C$15.93B | 32.17 | 7.45% | 1.99% | -4.63% | ― | |
63 Neutral | C$406.91M | 11.80 | 6.27% | 4.82% | 14.25% | -44.39% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | C$3.31B | 6.34 | 36.83% | 5.46% | -21.88% | 189.83% | |
55 Neutral | C$4.11B | 47.83 | 4.19% | 4.32% | 20.43% | -21.27% |
* Consumer Defensive Sector Average
TSE:SAP
Saputo Inc.
40.13
6.37
18.88%
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78.75
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Saputo Inc. Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Saputo Shareholders Back Full Slate of Directors at 2026 Annual Meeting
Positive
Aug 7, 2026
Saputo Inc. announced that shareholders elected all 11 board nominees at the company’s annual meeting held on August 7, 2026, with each director receiving strong majority support in a ballot vote. The results, with approval levels generally ...
Business Operations and StrategyFinancial Disclosures
Saputo Delivers Broad-Based Earnings Growth in Strong Q1 FY2027
Positive
Aug 6, 2026
Saputo reported a strong start to fiscal 2027, with first‑quarter revenues rising 1.5% to $4.421 billion and adjusted EBITDA increasing 7.6% to $427 million, lifting its adjusted EBITDA margin to 9.7%. Higher dairy ingredient prices, robust ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.