Saputo Inc. (TSE:SAP)
TSX:SAP
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Saputo Inc.
(TSX:SAP)
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Rating:70Outperform
Price Target:
C$47.00
â–²(7.67% Upside)
Action:UpgradedDate:02/08/26
The score is driven by improving operational performance and strong cash generation (supported by a positive earnings-call read-through and solid cash-flow metrics), alongside constructive technical momentum. These positives are moderated by mixed earnings consistency/top-line pressure in the financial statements and a less attractive valuation (higher P/E with only a modest dividend yield).
Positive Factors
Strong cash generation & improved leverage
Sustained operating cash flow (~$1.1B YTD) and reduced net leverage to ~1.8x provide durable financial flexibility. Strong cash conversion supports ongoing capex, selective M&A, and shareholder returns while insulating operations from short-term profit swings.
Negative Factors
Top-line pressure and negative revenue trend
Persistent top-line declines driven by commodity price weakness suggest revenue is sensitive to product price cycles. Structural recovery in volumes or successful mix shift toward higher‑value products is required to restore consistent growth over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & improved leverage
Sustained operating cash flow (~$1.1B YTD) and reduced net leverage to ~1.8x provide durable financial flexibility. Strong cash conversion supports ongoing capex, selective M&A, and shareholder returns while insulating operations from short-term profit swings.
Read all positive factors
Saputo Inc. (SAP) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$17.73B
Dividend Yield1.89%
Average Volume (3M)853.24K
Price to Earnings (P/E)19.2
Beta (1Y)0.47
Revenue Growth5.37%
EPS Growth-135.85%
CountryCA
Employees19,600
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.57
Shares Outstanding406,074,280
10 Day Avg. Volume768,057
30 Day Avg. Volume853,235
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)1.51
Price to Sales (P/S)0.55
P/FCF Ratio15.44
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$47.75Price Target Upside9.39% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)2.29
Revenue Forecast (FY)C$19.38B
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, ...
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 ...
Saputo Inc. Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jun 04, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational execution, significant margin expansion, robust cash generation and meaningful sector-level improvements (Canada, U.S. ingredients, International and Europe). These positives outweigh the near-term revenue pressure from commodity price effects, continued market volatility due to abundant milk supply, and higher operating costs. Management conveyed confidence in continued investments, share repurchases and the ability to capture protein-driven demand while acknowledging ongoing short-term headwinds.Positive Updates
Adjusted EBITDA Growth and Margin Expansion
Adjusted EBITDA increased 18% ($75M) to $492M; adjusted margin expanded to 10.1% from 8.4% a year ago (+1.7 percentage points), reflecting cost discipline and operational efficiencies.
Negative Updates
Overall Revenue Decline
Consolidated revenue declined 2% to $4.9B year-over-year, primarily driven by lower commodity-related selling prices in key markets.
Read all updates
Q3-2026 Updates
Positive
Negative
Adjusted EBITDA Growth and Margin Expansion
Adjusted EBITDA increased 18% ($75M) to $492M; adjusted margin expanded to 10.1% from 8.4% a year ago (+1.7 percentage points), reflecting cost discipline and operational efficiencies.
Read all positive updates
Company Guidance
Management guided that U.S. dairy market volatility is likely to persist through the remainder of the fiscal year and into FY27, but reiterated confidence in long‑term protein demand and the company’s ability to invest and grow: Q3 adjusted EBITDA was $492M (up 18% or $75M) on $4.9B revenue (−2%), net earnings $220M, adjusted net earnings $235M (up 41%) and adjusted EPS $0.57 (up 46%); Q3 net cash from operations was $401M (YTD $1.1B), net debt/adjusted EBITDA improved to 1.76x, and the company returned $646M YTD to shareholders (including NCIB repurchase of 12.6M shares). Management signaled continued capital allocation to organic growth, ingredients and selective M&A—CapEx for FY27 is expected north of $400M—and highlighted major project metrics (≈$180M Waupun upgrade with ~35% higher WPC80 output; Franklin consolidation boosting output ~30%; Green Bay closure), plus segment results (Canada revenue +4% with Adj. EBITDA $189M, +8%; U.S. revenue $2.1B, −7%, Adj. EBITDA $185M, +16%; International revenue $994M, −3%, Adj. EBITDA $82M, +61%; Europe revenue $336M, +8%, Adj. EBITDA $36M, 11% margin) and a target posture toward high‑single to double‑digit U.S. EBITDA margins as efficiencies are fully realized.Saputo Inc. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
62
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.99B | 19.06B | 17.34B | 17.84B | 15.04B | 14.29B |
| Gross Profit | 2.37B | 1.56B | 1.51B | 1.55B | 1.16B | 1.47B |
| EBITDA | 1.61B | 1.43B | 1.37B | 1.42B | 1.02B | 1.37B |
| Net Income | 644.00M | -176.00M | 265.00M | 622.00M | 274.00M | 626.00M |
Balance Sheet | ||||||
| Total Assets | 13.32B | 13.91B | 14.26B | 14.43B | 13.68B | 13.12B |
| Cash, Cash Equivalents and Short-Term Investments | 447.00M | 257.00M | 466.00M | 263.00M | 165.00M | 308.70M |
| Total Debt | 3.95B | 3.59B | 3.99B | 4.04B | 4.25B | 4.11B |
| Total Liabilities | 6.64B | 6.94B | 7.21B | 7.29B | 7.18B | 6.68B |
| Stockholders Equity | 6.68B | 6.98B | 7.05B | 7.14B | 6.50B | 6.44B |
Cash Flow | ||||||
| Free Cash Flow | 1.08B | 681.00M | 537.00M | 384.00M | 195.00M | 645.10M |
| Operating Cash Flow | 1.45B | 1.10B | 1.19B | 1.02B | 693.00M | 1.08B |
| Investing Cash Flow | -318.00M | -285.00M | -652.00M | -632.00M | -799.00M | -387.40M |
| Financing Cash Flow | -1.01B | -1.03B | -343.00M | -369.00M | -72.00M | -704.70M |
Saputo Inc. Technical Analysis
Positive
43.65
Price Trends
42.40
Positive
41.03
Positive
36.15
Positive
Market Momentum
0.25
Negative
57.78
Neutral
76.53
Neutral
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 43.65 is above the 20-day moving average (MA) of 42.85, above the 50-day MA of 42.40, and above the 200-day MA of 36.15, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 57.78 is Neutral, neither overbought nor oversold. The STOCH value of 76.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | C$3.73B | 5.72 | 11.72% | 4.95% | -0.03% | 497.79% | |
70 Outperform | C$17.73B | 19.22 | -1.32% | 1.89% | 5.37% | -135.85% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | C$406.08M | 8.64 | 8.89% | 4.83% | 6.15% | -36.76% | |
46 Neutral | C$4.31B | 112.26 | 3.82% | 3.34% | 13.05% | -33.72% |
* Consumer Defensive Sector Average
TSE:SAP
Saputo Inc.
43.65
20.10
85.35%
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14.35
-1.40
-8.87%
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29.94
10.12
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13.75%
Saputo Inc. Corporate Events
Business Operations and StrategyFinancial Disclosures
Saputo Delivers Double-Digit EBITDA Growth Despite Softer Revenues in Q3 2026
Positive
Feb 5, 2026
Saputo reported third-quarter fiscal 2026 revenues of $4.89 billion, down 2.1% year over year due to lower U.S. dairy commodity prices, but delivered an 18% increase in adjusted EBITDA to $492 million, lifting its margin to 10.1% from 8.4%. The pe...
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.