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Investor Insights

This summary was created by AI, based on 7 opinions in the last 12 months.

Saputo Inc. has reported a mixed performance in its recent financial results, with a notable EPS decline from €3.24 to €2.68 year-over-year despite revenues increasing by 9.5% to €34.2 billion, largely driven by strong growth in its cloud services segment. The company's cloud backlog surged by 43% year-over-year, indicating robust demand, while cloud revenue growth remained healthy at 25%. However, the dairy segment faces significant challenges, particularly related to pricing pressures and regulatory changes affecting the commodity side of the business, especially in Canada. Analysts express a range of sentiments, with some viewing the stock as undervalued while highlighting ongoing issues such as exposure to commodity prices and underperformance in the food services division, which has not fully rebounded from pre-pandemic levels.

Consensus
Neutral
Valuation
Fair Value
Similar
Lactalis, LAC
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It's a Monthly Gems opinion which is available only for Premium members

Curated by Allan Tong since 2019.
99+ opinions with 4.15 rating.

TOP PICK

A month ago, SAP reported its full-year earnings, and EPS of €2.68 beat expectations, but was down from €3.24 in FY 2023. Revenues of €34.2b were 9.5% higher from FY 2023. The main driver was the cloud. In 2024, its cloud backlog leapt 43% year-over-year to €63.3 billion while cloud revenues jumped 25% to €17.1 billion. This included a 33% increase in cloud ERP suite revenues. In terms of AI, SAP has incorporated over 1,300 skills into AI co-pilot which automates 80% of the most-used user activities. 

COMMENT
Trade deal on dairy opens up next year.

Has major operations in Europe, yet it's a Canadian company trading on the TSX. There are issues dealing with dairy and the commodity side of the business.

Lots of pressure within Canada on protected costs around dairy products. Might be an easier place for our government to give in on something, so wouldn't surprise him if our dairy protection weakens or softens a bit.

TOP PICK
Earnings after the bell on Thursday.

Completely unloved today. #1 in Canada, #2 in UK and Australia, #3 in USA. Pre-pandemic, very stable. Food services division hasn't really recovered, especially in the US. Exposed to commodity prices, industry capacity needs to be taken out, cost-cutting needs to continue.

Not as high quality a business as he first thought, but excessive negativity baked into the share price. Yield is 3.2%.

(Analysts’ price target is $31.23)
BUY ON WEAKNESS
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

At 13X forward earnings and having a steady growth and margin profile over the years, we think it is getting interesting. It still has some issues to work through related to their Argentina business but this is likely getting priced in at these levels. 
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COMMENT

It has made progress but in the macro environment of inflation in Argentina it has under-performed.

DON'T BUY

He is not covering them right now. He is looking for extraordinary stocks priced for growth. This one is OK but there are better places to be.

DON'T BUY

He's staying away from consumer staples stocks, unless they have some real edge. With dairy products, hard to get a margin and hard to set price.

WATCH

Found support at 2022 levels, which is good, bouncing off. A sign that it's OK, a 5/10 chart, proven it doesn't want to break down any more. Is it going to start going up? Best way to tell is that the last high must be taken out. If yes, it's bullish. If not, it's consolidating. Don't want last lows to be broken. In no man's land, one to watch.

HOLD

Seasonality a factor in this stock - performs better in the summer. Large brand with excellent product selection. Expecting share price to go higher. Would recommend holding. $35 share price seems reasonable. 

HOLD

Nothing wrong with business, but share price has been weak. Inflation and rising food prices tough on bottom line. Demand for premium brands falling recnetly, but overall a good business. Would recommend holding. Not good for capital appreciation, but safe business. 

DON'T BUY

Used to make smart acquisitions that increased margins significantly. Commodity business, as cheese prices move around. Prefers more capital light, less capital-intensive businesses than manufacturers. Bottom of the list on ROIC.

BUY ON WEAKNESS

Has had commodity pressures lately with inflation and rising costs. Cost inputs have reduced margins, but is expecting improvements going forward. Sector has been under pressure, but sees better days ahead. Has a strong brand. 

BUY

Lots of acquisitions. Integration and supply-chain issues have largely been solved. Buy at these levels and you'll do well over the next several years. Well run. 

DON'T BUY

They overexpanded. He owned this years ago but in no rush to return to it.

COMMENT

If it bounces off current support in a sharp "hook up", then step in for an intermediate trade.

Showing 1 to 15 of 207 entries

Saputo Inc.(SAP-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 1

Neutral - Hold Signals / Votes : 2

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 5

Stockchase rating for Saputo Inc. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Saputo Inc.(SAP-T) Frequently Asked Questions

What is Saputo Inc. stock symbol?

Saputo Inc. is a Canadian stock, trading under the symbol SAP-T on the Toronto Stock Exchange (SAP-CT). It is usually referred to as TSX:SAP or SAP-T

Is Saputo Inc. a buy or a sell?

In the last year, 5 stock analysts published opinions about SAP-T. 1 analyst recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Saputo Inc..

Is Saputo Inc. a good investment or a top pick?

Saputo Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for Saputo Inc..

Why is Saputo Inc. stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Saputo Inc. worth watching?

5 stock analysts on Stockchase covered Saputo Inc. In the last year. It is a trending stock that is worth watching.

What is Saputo Inc. stock price?

On 2025-04-02, Saputo Inc. (SAP-T) stock closed at a price of $25.42.