Saputo, Inc. (SAP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

High Liner Foods, Inc.

Rogers Sugar, Inc.

Lassonde Industries, Inc.

Saputo, Inc.

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Burcon NutraScience Corp.

Plant Veda Foods Ltd.

Gourmet Ocean Products, Inc.

Bettermoo(d) Food Corp.

Why is Saputo, Inc. ?

Poor long term growth as Operating profit has grown by an annual rate 4.34% of over the last 5 years

The company has declared Positive results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CAD 1,508 MM
ROCE(HY) Highest at 10.55%
RAW MATERIAL COST(Y) Fallen by -26.83% (YoY)

With ROE of 10.70%, it has a expensive valuation with a 2.46 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 54.37%, its profits have risen by 24.5% ; the PEG ratio of the company is 0.8

Majority shareholders : FIIs

Market Beating Performance

The stock has generated a return of 54.37% in the last 1 year, much higher than market (S&P/TSX 60) returns of 29.60%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Saputo, Inc. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Saputo, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Saputo, Inc.

54.37%

1.74

23.72%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.19%

EBIT Growth (5y)

4.34%

EBIT to Interest (avg)

5.73

Debt to EBITDA (avg)

2.36

Net Debt to Equity (avg)

0.41

Sales to Capital Employed (avg)

1.79

Tax Ratio

100.00%

Dividend Payout Ratio

48.30%

Pledged Shares

Institutional Holding

1.40%

ROCE (avg)

8.45%

ROE (avg)

7.91%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.46

EV to EBIT

16.81

EV to EBITDA

10.91

EV to Capital Employed

2.08

EV to Sales

1.04

PEG Ratio

0.77

Dividend Yield

ROCE (Latest)

12.36%

ROE (Latest)

10.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 1,508 MM

ROCE(HY)

Highest at 10.55%

RAW MATERIAL COST(Y)

Fallen by -26.83% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 41.56 %

INVENTORY TURNOVER RATIO(HY)

Highest at 5.74 times

DIVIDEND PER SHARE(HY)

Highest at CAD 12.51

-2What is not working for the Company

NET SALES(Q)

Lowest at CAD 4,173 MM

Here's what is working for Saputo, Inc.

Operating Cash Flow

Highest at CAD 1,508 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Debt-Equity Ratio

Lowest at 41.56 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 5.74 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at CAD 12.51

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Raw Material Cost

Fallen by -26.83% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Saputo, Inc.

Net Sales

Lowest at CAD 4,173 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Net Sales

At CAD 4,173 MM has Fallen at -12.11%

over average net sales of the previous four periods of CAD 4,748.25 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)