Saputo Inc. (SAP) AI Stock Analysis

• Market Cap: C$13.83B
• Dividend Yield: 1.99%
• Average Volume (3M): 853.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: 5.37%
• EPS Growth: -135.85%
• Country: CA
• Employees: 19,600
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.48
• Shares Outstanding: 411,291,720
• 10 Day Avg. Volume: 768,057
• 30 Day Avg. Volume: 853,235
• PEG Ratio: 0.36
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.55
• P/FCF Ratio: 15.44
• 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$39.80
• Price Target Upside: 1.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: C$37.00 ▼(-5.27% Downside)

Saputo Inc.'s overall stock score is driven by strong earnings call results and positive technical indicators, which are offset by concerns over financial performance and valuation. The company's robust cash flow and strategic initiatives are promising, but profitability challenges and a negative P/E ratio weigh on the score.

Positive Factors

Revenue Growth

Stable revenue growth, particularly in North America, indicates strong market demand and effective sales strategies, supporting long-term business sustainability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling strategic investments and shareholder returns, crucial for long-term growth.

Operational Efficiency

Improved operational efficiency and cost management strengthen margins, contributing to sustainable profitability and competitive positioning.

Negative Factors

Declining Profitability

Negative profit margins indicate challenges in cost management and pricing power, potentially impacting long-term financial health and investor confidence.

U.S. Revenue Decline

Declining U.S. revenues highlight market challenges and competitive pressures, which may affect future growth prospects in a key region.

Challenges in Australia

Operational challenges in Australia due to cost pressures and supply issues could hinder efficiency and profitability in the region.

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 sale of dairy products, which include cheese, fluid milk, and dairy ingredients. The company operates through various segments, including the Dairy Products Division (Canada), the Dairy Products Division (USA), the Cheese Division (Canada and USA), and the International Sector. Key revenue streams come from retail sales, foodservice sales, and industrial sales. Significant partnerships with retailers and foodservice operators contribute to consistent demand for its products. Additionally, Saputo benefits from economies of scale due to its extensive production capabilities and distribution networks, enhancing its profitability. The company also engages in strategic acquisitions to expand its product offerings and market presence, further driving revenue growth.

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 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.09B	19.06B	17.34B	17.84B	15.04B	14.29B
Gross Profit	1.61B	1.56B	1.51B	1.55B	1.16B	1.47B
EBITDA	1.48B	1.43B	1.37B	1.42B	1.02B	1.37B
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	-704.70M

Saputo Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 39.06 is above the 20-day moving average (MA) of 36.96, above the 50-day MA of 35.03, and above the 200-day MA of 29.37, indicating a bullish trend. The MACD of 1.30 indicates Negative momentum. The RSI at 73.30 is Negative, neither overbought nor oversold. The STOCH value of 85.78 is Negative, 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
MFI	67 Neutral	C$3.28B	18.22	11.72%	3.12%	-0.03%	497.79%
PBH	67 Neutral	C$4.27B	45.49	3.86%	3.52%	13.05%	-33.72%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SAP	61 Neutral	C$13.83B	-95.78	-1.32%	1.99%	5.37%	-135.85%
HLF	58 Neutral	C$490.34M	7.63	8.60%	6.11%	6.15%	-36.76%

Saputo Inc. Corporate Events

Saputo Inc. Achieves Strong Q2 Fiscal 2026 Results with Strategic Initiatives

Saputo Inc. reported strong financial results for the second quarter of fiscal 2026, with revenues reaching $4.721 billion, a slight increase from the previous year. The company’s adjusted EBITDA rose significantly by 15.7% to $450 million, driven by successful commercial initiatives, operational improvements, and cost optimization measures. Despite unfavorable US dairy commodity market conditions, Saputo managed to increase sales volumes and maintain margins through strategic pricing and efficiency efforts. Net earnings also saw a substantial rise, attributed to higher adjusted EBITDA, gains from hyperinflation adjustments, and reduced financial charges.

The most recent analyst rating on (TSE:SAP) stock is a Buy with a C$42.00 price target. To see the full list of analyst forecasts on Saputo Inc. stock, see the TSE:SAP Stock Forecast page.

Saputo Inc. Achieves Record Earnings Amid Challenges

Saputo Inc. Reports Strong Quarter with Record Earnings Amidst International Challenges