SAPUTO INC (SAP.CA) Stock Fundamental Analysis
TSX:SAP - Toronto Stock Exchange - CA8029121057 - Common Stock - Currency: CAD
SAP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 19 industry peers in the Food Products industry. SAP has an average financial health and profitability rating. SAP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
SAP had positive earnings in the past year.
SAP had a positive operating cash flow in the past year.
Each year in the past 5 years SAP has been profitable.
In the past 5 years SAP always reported a positive cash flow from operatings.
1.2 Ratios
SAP has a Return On Assets of 1.63%. This is comparable to the rest of the industry: SAP outperforms 50.00% of its industry peers.
SAP's Return On Equity of 3.18% is in line compared to the rest of the industry. SAP outperforms 50.00% of its industry peers.
With a Return On Invested Capital value of 4.58%, SAP is not doing good in the industry: 61.11% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for SAP is in line with the industry average of 6.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.63% | ||
| ROE | 3.18% | ||
| ROIC | 4.58% |
ROA(3y)2.72%
ROA(5y)3.43%
ROE(3y)5.56%
ROE(5y)7.06%
ROIC(3y)4.96%
ROIC(5y)5.43%
1.3 Margins
SAP's Profit Margin of 1.30% is in line compared to the rest of the industry. SAP outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of SAP has declined.
The Operating Margin of SAP (3.96%) is worse than 66.67% of its industry peers.
SAP's Operating Margin has declined in the last couple of years.
The Gross Margin of SAP (30.00%) is better than 94.44% of its industry peers.
In the last couple of years the Gross Margin of SAP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.96% | ||
| PM (TTM) | 1.3% | ||
| GM | 30% |
OM growth 3Y-12.2%
OM growth 5Y-8.54%
PM growth 3Y-29.6%
PM growth 5Y-22.85%
GM growth 3Y-2.11%
GM growth 5Y-0.67%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SAP is destroying value.
SAP has more shares outstanding than it did 1 year ago.
SAP has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SAP has about the same debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.86 indicates that SAP is not a great score, but indicates only limited risk for bankruptcy at the moment.
SAP's Altman-Z score of 2.86 is amongst the best of the industry. SAP outperforms 83.33% of its industry peers.
The Debt to FCF ratio of SAP is 7.10, which is on the high side as it means it would take SAP, 7.10 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SAP (7.10) is better than 77.78% of its industry peers.
SAP has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.40, SAP belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 7.1 | ||
| Altman-Z | 2.86 |
ROIC/WACC0.7
WACC6.51%
2.3 Liquidity
A Current Ratio of 1.46 indicates that SAP should not have too much problems paying its short term obligations.
SAP has a Current ratio of 1.46. This is comparable to the rest of the industry: SAP outperforms 50.00% of its industry peers.
SAP has a Quick Ratio of 1.46. This is a bad value and indicates that SAP is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SAP (0.60) is better than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
SAP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.64%.
The Earnings Per Share has been decreasing by -0.64% on average over the past years.
SAP shows a small growth in Revenue. In the last year, the Revenue has grown by 3.08%.
SAP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.13% yearly.
EPS 1Y (TTM)-15.64%
EPS 3Y-0.22%
EPS 5Y-0.64%
EPS Q2Q%-13.95%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y6.66%
Revenue growth 5Y5.13%
Sales Q2Q%8.91%
3.2 Future
SAP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.61% yearly.
SAP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.55% yearly.
EPS Next Y4.61%
EPS Next 2Y14.71%
EPS Next 3Y13.27%
EPS Next 5Y9.61%
Revenue Next Year9.33%
Revenue Next 2Y5.76%
Revenue Next 3Y4.48%
Revenue Next 5Y4.55%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.91 indicates a correct valuation of SAP.
Compared to the rest of the industry, the Price/Earnings ratio of SAP indicates a somewhat cheap valuation: SAP is cheaper than 77.78% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SAP to the average of the S&P500 Index (29.39), we can say SAP is valued slightly cheaper.
A Price/Forward Earnings ratio of 11.85 indicates a reasonable valuation of SAP.
SAP's Price/Forward Earnings ratio is rather cheap when compared to the industry. SAP is cheaper than 83.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 94.38, SAP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.91 | ||
| Fwd PE | 11.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SAP indicates a somewhat cheap valuation: SAP is cheaper than 61.11% of the companies listed in the same industry.
66.67% of the companies in the same industry are more expensive than SAP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.35 | ||
| EV/EBITDA | 10.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SAP's earnings are expected to grow with 13.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.45
PEG (5Y)N/A
EPS Next 2Y14.71%
EPS Next 3Y13.27%
5. Dividend
5.1 Amount
SAP has a Yearly Dividend Yield of 3.21%.
Compared to an average industry Dividend Yield of 4.50, SAP has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, SAP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
5.2 History
The dividend of SAP decreases each year by -2.45%.
SAP has been paying a dividend for at least 10 years, so it has a reliable track record.
SAP has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-2.45%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
125.42% of the earnings are spent on dividend by SAP. This is not a sustainable payout ratio.
DP125.42%
EPS Next 2Y14.71%
EPS Next 3Y13.27%
SAPUTO INC
TSX:SAP (2/11/2025, 7:00:00 PM)
24.02
-0.12 (-0.5%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners25.03%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap10.18B
Analysts75.71
Price Target32.36 (34.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
Yearly Dividend0.58
Dividend Growth(5Y)-2.45%
DP125.42%
Div Incr Years26
Div Non Decr Years26
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.37%
Min EPS beat(2)-4.28%
Max EPS beat(2)5.01%
EPS beat(4)2
Avg EPS beat(4)-0.29%
Min EPS beat(4)-4.28%
Max EPS beat(4)5.01%
EPS beat(8)5
Avg EPS beat(8)2.97%
EPS beat(12)9
Avg EPS beat(12)6.21%
EPS beat(16)11
Avg EPS beat(16)2.23%
Revenue beat(2)2
Avg Revenue beat(2)3.03%
Min Revenue beat(2)1.75%
Max Revenue beat(2)4.3%
Revenue beat(4)3
Avg Revenue beat(4)1.55%
Min Revenue beat(4)-4.5%
Max Revenue beat(4)4.63%
Revenue beat(8)4
Avg Revenue beat(8)-0.3%
Revenue beat(12)8
Avg Revenue beat(12)1.11%
Revenue beat(16)9
Avg Revenue beat(16)0.19%
PT rev (1m)-3.38%
PT rev (3m)-8.2%
EPS NQ rev (1m)-7.42%
EPS NQ rev (3m)-22.68%
EPS NY rev (1m)-2.57%
EPS NY rev (3m)-6.25%
Revenue NQ rev (1m)2.52%
Revenue NQ rev (3m)2.54%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.91 | ||
| Fwd PE | 11.85 | ||
| P/S | 0.56 | ||
| P/FCF | 18.35 | ||
| P/OCF | 9.35 | ||
| P/B | 1.37 | ||
| P/tB | 3.23 | ||
| EV/EBITDA | 10.05 |
EPS(TTM)1.51
EY6.29%
EPS(NY)2.03
Fwd EY8.44%
FCF(TTM)1.31
FCFY5.45%
OCF(TTM)2.57
OCFY10.69%
SpS42.75
BVpS17.5
TBVpS7.43
PEG (NY)3.45
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.63% | ||
| ROE | 3.18% | ||
| ROCE | 6.49% | ||
| ROIC | 4.58% | ||
| ROICexc | 4.77% | ||
| ROICexgc | 7.8% | ||
| OM | 3.96% | ||
| PM (TTM) | 1.3% | ||
| GM | 30% | ||
| FCFM | 3.06% |
ROA(3y)2.72%
ROA(5y)3.43%
ROE(3y)5.56%
ROE(5y)7.06%
ROIC(3y)4.96%
ROIC(5y)5.43%
ROICexc(3y)5.09%
ROICexc(5y)5.58%
ROICexgc(3y)8.46%
ROICexgc(5y)9.46%
ROCE(3y)7.04%
ROCE(5y)7.68%
ROICexcg growth 3Y-9.45%
ROICexcg growth 5Y-11.52%
ROICexc growth 3Y-7.31%
ROICexc growth 5Y-9.97%
OM growth 3Y-12.2%
OM growth 5Y-8.54%
PM growth 3Y-29.6%
PM growth 5Y-22.85%
GM growth 3Y-2.11%
GM growth 5Y-0.67%
F-Score5
Asset Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 7.1 | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 88.26% | ||
| Cap/Sales | 2.95% | ||
| Interest Coverage | 4.03 | ||
| Cash Conversion | 82.31% | ||
| Profit Quality | 235.17% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 2.86 |
F-Score5
WACC6.51%
ROIC/WACC0.7
Cap/Depr(3y)102.99%
Cap/Depr(5y)103.28%
Cap/Sales(3y)3.56%
Cap/Sales(5y)3.51%
Profit Quality(3y)120.61%
Profit Quality(5y)110.16%
High Growth Momentum
Growth
EPS 1Y (TTM)-15.64%
EPS 3Y-0.22%
EPS 5Y-0.64%
EPS Q2Q%-13.95%
EPS Next Y4.61%
EPS Next 2Y14.71%
EPS Next 3Y13.27%
EPS Next 5Y9.61%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y6.66%
Revenue growth 5Y5.13%
Sales Q2Q%8.91%
Revenue Next Year9.33%
Revenue Next 2Y5.76%
Revenue Next 3Y4.48%
Revenue Next 5Y4.55%
EBIT growth 1Y-26.81%
EBIT growth 3Y-6.36%
EBIT growth 5Y-3.84%
EBIT Next Year72.21%
EBIT Next 3Y28.64%
EBIT Next 5Y16.02%
FCF growth 1Y62.76%
FCF growth 3Y-6.69%
FCF growth 5Y2.95%
OCF growth 1Y31.36%
OCF growth 3Y2.87%
OCF growth 5Y5.76%