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
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Investor Insights
star iconJun 5, 2026, 12:00 am

This 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.

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Consensus
Sell
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Valuation
Overvalued
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BUY
It has struggled through COVID. People are drinking less milk and being less interested in dairy. They have started to make inroads into plant-based equivalents of dairy and that will be a growth target going forward. People are not eating out as much and SUP-T sells to a lot of restaurants. This is a buying opportunity and he has bought it in the last month.
BUY
Market's very fixated on growth right now and is ignoring companies with dividend and share buyback stories. Recovery beneficiary. Very cheap. Good company if you want safe and steady, particularly when it's on sale.
DON'T BUY
It has hit a wall. Not sure what the issue is. A low margin business that is competitive. Were long term holders but sold it in 2018. Not a compounder anymore. Not sure what it will take to bring back this business. Prefers to stick to restaurants.
PAST TOP PICK
(A Top Pick Sep 24/20, Up 4%) Will benefit from the recovery. Safe dividend play. Dividend is relatively slight. Continues to buy for new clients.
TOP PICK
He thinks it is still relatively cheap. COVID exit will see it get better revenue opportunities. He likes that the family owns a significant chunk. It is priced inexpensively. (Analysts’ price target is $40.78)
DON'T BUY
They've been pulling back since winter 2017, though shares have recovered well off the $30 low, now hitting resistance. This used to be a steady grower through acquisitions, but are now struggling to find new companies to buy. A bigger problem is that the acquisitions of the past 10 years are diluting company value. This isn't a stalwart grower anymore, nor is it a trading stock or income play (the dividend is below 2%). This likely won't go down much, but look elsewhere.
HOLD
It is a good quality company and an industry leader. It has a dominant position. It is not the best use of a dollar today as others have better leverage to a recovery, but for 5 years it is a good holding. They are a good consolidator and the industry remains fragmented.
BUY
An amazing company over the years. The stock has come off and the valuation is the lowest it has been in 6 years. The pandemic has hurt their sales and earnings. Give it a couple of quarters and the numbers will start to look better. It is the most attractive it has been for a number of years.
DON'T BUY
Consumer staple companies have also been lukewarm. They have grown through acquisition. If the yield goes up to 4-5%, he would be open to look at it more closely.
TOP PICK
Structural growth story for 3-5 years. Great exposure in US, with growing international presence. Really likes management. Healthy dividend that has grown at 9%. Yield is 2.09%. (Analysts’ price target is $39.11)
TOP PICK
Always looked expensive, but now is a rare opportunity. The food services side was impacted by the pandemic. Competitors are struggling, so acquisitions are coming that should boost the growth. Raised dividend. Yield is 1.98%. (Analysts’ price target is $39.11)
HOLD
It is an excellent example of a company whose stock is getting hit here. Its economic sensitivity is as close to zero as possible. For the long term this is a great company to continue to hold. Step in and buy great companies if the stock price goes way down.
WAIT
Trades in a tight band of consolidation around $40. It's a defensive stock. Wait till summertime seasonality when it may do well. Wait till $42 before considering it; it could breakout above that level.
DON'T BUY
Problem he sees is that its profitability, with all its acquisitions, has been falling. Stock's trading above its FMV, so not a lot of upside. Should have good support above $37.50, but if it falls below, get out.
BUY ON WEAKNESS
Their earnings disappointed, yes, but he would buy. His model price is $44.99. He would buy at $37--even better. Food stocks, though, are seeing slow growth as consumers shift towards healthier food.
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