TSE:SAP
Saputo Inc. (SAP.TO)
42.84
+0.14 (0.33%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
203 watching
Financials 
Technical Analysis 0
Investor Insights
Jun 5, 2026, 12:00 amThis summary was created by AI, based on 7 opinions in the last 12 months.
Saputo Inc. has experienced a tumultuous period, particularly in its US operations, which have suffered due to a shift towards food services rather than retail. While there are signs of recovery, highlighted by improved margins and earnings, many experts express concerns about the stock's current valuation, suggesting it may be too expensive considering its performance metrics. The potential challenges from US dairy policy and competition further cloud the outlook, with some analysts advocating for a sell. Despite some improvements and a good recent quarter, there is a consensus that better investment opportunities exist elsewhere and that the company's future demand dynamics remain uncertain.
Consensus
Sell
Valuation
Overvalued
Similar
Lactalis, LCS
HOLD
Good time to sell covered calls? No, don't sell covered calls right now. Went down during Covid. Strong recovery recently, and this will continue. Interesting in an era of rising rates and low growth. Safe and stable. (Analysts’ price target is $37.00)
Darren SissonsOwned
food processing
PAST TOP PICK
(A Top Pick Jul 26/21, Down 13%) Headwind is the trend away from dairy. Buy when it's on sale and continue to hold. He'd buy for new clients at these levels.
Darren SissonsOwned
food processing
DON'T BUY
He owned it 5 years ago, but return on invested capital over 10 years was above 20%, but has more recently fallen to 5-6%. SAP relies on production and the supply of milk, which they don't control the price of (makes him nervous). So, it's like a commodity play. The returns on capital are too low for him and have been declining.
food processing
BUY
Owns shares in company.
Tightly held company which doesn't allow for much float.
Safe and defensive name that can rise prices and dividend.
Believes in the company strength and thinks share price is presenting good buying opportunity.
Darren SissonsOwned
food processing
HOLD
Global business. A laggard, but that's the opportunity. Earnings disappointment due to input costs. Fantastic acquirer and integrator. A very comfortable holding.
Lorne SteinbergOwned
food processing
TOP PICK
Surprised it's fallen as far as it has. A recovery story, with increased activity in social settings. NA market leader in cheese and dairy. Growing international operations, which are under pressure. Expanding, tuck-in acquisitions. On sale, buying for new clients. Yield is 2.38%. (Analysts’ price target is $34.89)
Darren SissonsOwned
food processing
WATCH
Large global footprint, but it's a tough business. Tough couple of years with Covid, shortages, and inflation. Not time to throw in the towel yet, but he's not a buyer either. Dividend is not enough to generate a good total return for shareholders. Watch what management says in next couple of quarters on dividend and acquisitions.
food processing
BUY
Owns company in TFSA.
Believes company has had problems with Covid-19.
Cheese portion of company is doing well, however dairy products not doing well (changing consumer preferences).
As Covid-19 ends, company will recover.
Is currently buying more shares of the company.
David DriscollOwned
food processing
DON'T BUY
Used to be a market darling. Suffering from structurally declining profitability since 2012. ROE has gone from 21-22% to 8-9%. Valuation has been dragged down. Core problem is cheese, with slow organic growth. Making acquisitions has diluted the quality of the core legacy business. Drastically underperformed the TSX for a decade, as well as consumer staples. Not in distress, but not a compelling total return.
food processing
BUY
Covid-19 has been problematic for company as restaurant industry has been hit hard.
Once things open up, margins will improve.
Dairy side has been challenged as consumer demands change.
Still generating free cash flows.
Good price to buy and currently owns company in TFSA.
David DriscollOwned
food processing
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