SAPUTO INC (SAP.CA) Stock Fundamental Analysis
TSX:SAP - Toronto Stock Exchange - CA8029121057 - Common Stock - Currency: CAD
Taking everything into account, SAP scores 5 out of 10 in our fundamental rating. SAP was compared to 16 industry peers in the Food Products industry. Both the profitability and the financial health of SAP get a neutral evaluation. Nothing too spectacular is happening here. SAP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SAP was profitable.
In the past year SAP had a positive cash flow from operations.
In the past 5 years SAP has always been profitable.
In the past 5 years SAP always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -1.14%, SAP is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
SAP has a worse Return On Equity (-2.26%) than 62.50% of its industry peers.
SAP has a Return On Invested Capital of 5.04%. This is in the lower half of the industry: SAP underperforms 62.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SAP is in line with the industry average of 6.57%.
The 3 year average ROIC (4.96%) for SAP is below the current ROIC(5.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.14% | ||
| ROE | -2.26% | ||
| ROIC | 5.04% |
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
In the last couple of years the Profit Margin of SAP has declined.
Looking at the Operating Margin, with a value of 4.08%, SAP is doing worse than 75.00% of the companies in the same industry.
SAP's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 29.53%, SAP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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 | 4.08% | ||
| PM (TTM) | N/A | ||
| GM | 29.53% |
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.
Compared to 1 year ago, SAP has more shares outstanding
Compared to 5 years ago, SAP has more shares outstanding
The debt/assets ratio for SAP has remained at the same level compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.04 indicates that SAP is not in any danger for bankruptcy at the moment.
SAP has a Altman-Z score of 3.04. This is amongst the best in the industry. SAP outperforms 93.75% of its industry peers.
SAP has a debt to FCF ratio of 5.85. This is a neutral value as SAP would need 5.85 years to pay back of all of its debts.
The Debt to FCF ratio of SAP (5.85) is better than 87.50% of its industry peers.
SAP has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SAP (0.44) is better than 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 5.85 | ||
| Altman-Z | 3.04 |
ROIC/WACC0.77
WACC6.55%
2.3 Liquidity
SAP has a Current Ratio of 1.53. This is a normal value and indicates that SAP is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of SAP (1.53) is better than 75.00% of its industry peers.
A Quick Ratio of 0.60 indicates that SAP may have some problems paying its short term obligations.
The Quick ratio of SAP (0.60) is better than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The earnings per share for SAP have decreased strongly by -14.92% in the last year.
Measured over the past years, SAP shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.64% on average per year.
SAP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.20%.
The Revenue has been growing slightly by 5.13% on average over the past years.
EPS 1Y (TTM)-14.92%
EPS 3Y-0.22%
EPS 5Y-0.64%
EPS Q2Q%-317.21%
Revenue 1Y (TTM)9.2%
Revenue growth 3Y6.66%
Revenue growth 5Y5.13%
Sales Q2Q%17.04%
3.2 Future
Based on estimates for the next years, SAP will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.61% on average per year.
SAP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.55% yearly.
EPS Next Y1.6%
EPS Next 2Y12.51%
EPS Next 3Y13.2%
EPS Next 5Y9.61%
Revenue Next Year11.34%
Revenue Next 2Y7.4%
Revenue Next 3Y5.09%
Revenue Next 5Y4.55%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.50, which indicates a correct valuation of SAP.
Compared to the rest of the industry, the Price/Earnings ratio of SAP indicates a rather cheap valuation: SAP is cheaper than 81.25% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.62. SAP is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 13.04, which indicates a correct valuation of SAP.
SAP's Price/Forward Earnings ratio is rather cheap when compared to the industry. SAP is cheaper than 81.25% of the companies in the same industry.
SAP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.5 | ||
| Fwd PE | 13.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SAP is valued a bit cheaper than 62.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SAP is valued a bit cheaper than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.35 | ||
| EV/EBITDA | 9.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SAP does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as SAP's earnings are expected to grow with 13.20% in the coming years.
PEG (NY)10.32
PEG (5Y)N/A
EPS Next 2Y12.51%
EPS Next 3Y13.2%
5. Dividend
5.1 Amount
SAP has a Yearly Dividend Yield of 2.97%.
Compared to an average industry Dividend Yield of 4.45, SAP has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, SAP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-2.45%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
SAP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-201.9%
EPS Next 2Y12.51%
EPS Next 3Y13.2%
TSX:SAP (2/21/2025, 7:00:00 PM)
25.41
-0.18 (-0.7%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners25.42%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap10.74B
Analysts75.71
Price Target31.24 (22.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
Yearly Dividend0.58
Dividend Growth(5Y)-2.45%
DP-201.9%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)3.33%
Min Revenue beat(2)1.75%
Max Revenue beat(2)4.92%
Revenue beat(4)4
Avg Revenue beat(4)3.9%
Min Revenue beat(4)1.75%
Max Revenue beat(4)4.92%
Revenue beat(8)5
Avg Revenue beat(8)0.58%
Revenue beat(12)8
Avg Revenue beat(12)1.41%
Revenue beat(16)10
Avg Revenue beat(16)0.69%
PT rev (1m)-6.73%
PT rev (3m)-11.37%
EPS NQ rev (1m)-2.86%
EPS NQ rev (3m)-16.69%
EPS NY rev (1m)-5.38%
EPS NY rev (3m)-8.95%
Revenue NQ rev (1m)-3.14%
Revenue NQ rev (3m)-1.48%
Revenue NY rev (1m)1.84%
Revenue NY rev (3m)2.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.5 | ||
| Fwd PE | 13.04 | ||
| P/S | 0.57 | ||
| P/FCF | 17.35 | ||
| P/OCF | 9.82 | ||
| P/B | 1.53 | ||
| P/tB | 3.23 | ||
| EV/EBITDA | 9.76 |
EPS(TTM)1.54
EY6.06%
EPS(NY)1.95
Fwd EY7.67%
FCF(TTM)1.46
FCFY5.76%
OCF(TTM)2.59
OCFY10.18%
SpS44.61
BVpS16.57
TBVpS7.86
PEG (NY)10.32
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.14% | ||
| ROE | -2.26% | ||
| ROCE | 7.22% | ||
| ROIC | 5.04% | ||
| ROICexc | 5.2% | ||
| ROICexgc | 7.88% | ||
| OM | 4.08% | ||
| PM (TTM) | N/A | ||
| GM | 29.53% | ||
| FCFM | 3.28% |
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 Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 5.85 | ||
| Debt/EBITDA | 2.23 | ||
| Cap/Depr | 76.58% | ||
| Cap/Sales | 2.51% | ||
| Interest Coverage | 4.18 | ||
| Cash Conversion | 78.69% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 3.04 |
F-Score5
WACC6.55%
ROIC/WACC0.77
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)-14.92%
EPS 3Y-0.22%
EPS 5Y-0.64%
EPS Q2Q%-317.21%
EPS Next Y1.6%
EPS Next 2Y12.51%
EPS Next 3Y13.2%
EPS Next 5Y9.61%
Revenue 1Y (TTM)9.2%
Revenue growth 3Y6.66%
Revenue growth 5Y5.13%
Sales Q2Q%17.04%
Revenue Next Year11.34%
Revenue Next 2Y7.4%
Revenue Next 3Y5.09%
Revenue Next 5Y4.55%
EBIT growth 1Y-11.39%
EBIT growth 3Y-6.36%
EBIT growth 5Y-3.84%
EBIT Next Year72.21%
EBIT Next 3Y28.64%
EBIT Next 5Y16.02%
FCF growth 1Y95.27%
FCF growth 3Y-6.69%
FCF growth 5Y2.95%
OCF growth 1Y27.09%
OCF growth 3Y2.87%
OCF growth 5Y5.76%