# Saputo Inc. (SAP.TO)



## maxandrelax (Jul 11, 2012)

Is Saputo at P/E 27 and continuously climbing, expensive? I have been waiting patiently for a better price, but am getting serious FOMO as it breaks out again.


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## Nemo2 (Mar 1, 2012)

maxandrelax said:


> Is Saputo at P/E 27 and continuously climbing, expensive? I have been waiting patiently for a better price, but am getting serious FOMO as it breaks out again.


Bought Saputo in Jan 2009, @ $20.40 and $19.40, (up ~ 160% right now).......don't know if it's 'expensive' at this time, but we have observed that periodically, (and for apparently no solid reason), it'll drop a couple percentage points in a day and regain them in short time....(so far....past performance, and all that..)


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## PMREdmonton (Apr 6, 2009)

Momentum works until it doesn't.

The one thing I worry about them is what happens when Canada's dairy protection ends to their profits.

I usually try not to buy any major companies above a PE of 20. History suggests they tend to underperform by a large margin compared to unloved stocks with low PEs.


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## maxandrelax (Jul 11, 2012)

PMREdmonton said:


> Momentum works until it doesn't.
> 
> The one thing I worry about them is what happens when Canada's dairy protection ends to their profits.


Is there any indication that this protectionism will ever end? Haven't heard a thing.


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## HaroldCrump (Jun 10, 2009)

maxandrelax said:


> Is there any indication that this protectionism will ever end? Haven't heard a thing.


It will have to - if they want to sign that free trade agreement with the EU.
And if they want to be a member of the TPP.


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## maxandrelax (Jul 11, 2012)

Are we talking 1 year or more?


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## HaroldCrump (Jun 10, 2009)

1 yr. for the EU agreement, I suppose.
TPP is an entirely different matter - there are far more roadblocks and the EU agreement is much further in process than TPP.


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## doctrine (Sep 30, 2011)

I wouldn't buy, if only because the yield is too low at 1.6%. They have a good dividend increase streak going though - 13 years.


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## The Dude (Feb 8, 2013)

I regret not buying sap at $18 back in 2008 and this summer at $40, I'm waiting for the stock to go under $40 to buy


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## riseofamillionaire (Feb 23, 2012)

I sold my SAP position about 2 months ago, unfortunately before the run to 50. It's a good company with a great track record but not enough growth to justify the multiple. Better opportunities out there.


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## Dibs (May 26, 2011)

Saputo's $392m bid for WCB
http://www.theland.com.au/news/agri...tos-392m-bid-for-wcb/2674219.aspx?storypage=0

SAP is up +2.5% this morning on the news


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## Ice Cream (Apr 22, 2013)

Does anyone know what has happened with Saputo? Yesterday it was at $62.66, today its at $32.09 on google finance it looks like its up 2.43% but in my IE Acc. its showing down 48.79%. I'm wondering if there was a split, but my IE Acc is still showing the same amount of shares.


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## andrewf (Mar 1, 2010)

Quite common with splits to take a day or three for the share count to be updated.


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## P_I (Dec 2, 2011)

There was a Stock Dividend (2-For-1 Stock Split) announced on August 5th, see Financial Results For Fiscal 2015 First Quarter Ended June 30, 2014 - Investors and Media - Saputo


> The stock dividend on the common shares will be paid on Monday, September 29, 2014 to shareholders of record as of the close of business on Friday, September 19, 2014, the record date for the stock dividend.


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## londoncalling (Sep 17, 2011)

I don't believe there is another thread for Saputo. It doesn't seem to get much attention on this forum but I do know many hold it in their low yield high div growth portfolios. I noticed it is trading at SP seen back in 2015-2016. I am going to take a closer look but thought I would give the thread a bump in the meantime.


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## KaeJS (Sep 28, 2010)

I have been buying between 30-32.
People are always going to eat dairy.
Sure, it's a slow growth business that needs to keep acquiring to grow... But that doesn't mean they won't.

You know it's going to be $35 again in the future. It's an easy 15% gain if you can wait and be happy with the garbage yield in the meantime.


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## londoncalling (Sep 17, 2011)

Thanks @KaeJS.

I took sometime to look further last night and the stock has really stalled since it's high performance, High dividend growth era. It's payout ratio has increased significantly and it has diluted the company with share issuance for acquisitions. I guess it begs the question of whether it will stay with it's slow growth low dividend model or will earnings increase and it see significant improvement and value. I would agree that people are always going to eat dairy. It's a question of how much and how profitable the margin can be for Saputo and its shareholders. I am light on consumer defensive stocks and should inflation be sustained instead of transitional I would like to increase my allocation in this sector. In the meantime I will let my cash position stockpile. I believe there the next earnings date is not till February. 

Saputo : Financial Results for the Second Quarter of Fiscal 2021 Ended September 30, 2020 | MarketScreener


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## KaeJS (Sep 28, 2010)

They definitely have not been following a large path to growth. You have already identified the issues (debt, dilution).

I am playing this more as an immigration play, too.
Canada is bringing more people every year. Surely, profits SHOULD increase over time given everything is copacetic and their acquisitions prove to be at least somewhat fruitful.

However, I do know that some of their business is outside of Canada, which could be somewhat of a gamble since I don't know the competition that well for those areas.


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## Ponderling (Mar 1, 2013)

I am in LAS, also another kinds staple food stock. It is down presently as well. Not flashy, but not likely to collapse either.


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## KaeJS (Sep 28, 2010)

Ponderling said:


> I am in LAS, also another kinds staple food stock. It is down presently as well. Not flashy, but not likely to collapse either.


I wanted to buy this but I used WealthTrade and they don't offer this stock. For the longest time they also didn't offer AW.UN and it drove me insane.


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## londoncalling (Sep 17, 2011)

I had looked at LAS in the past and did a quick comparison this evening P/E, P/B Debt, PEG etc. It has better numbers on that basis but had a major dividend cut in 2019. For me that is a huge red flag. 

Although stocks who do business out side of Canada are more difficult to analyze I view the diversification of holdings as a plus for most stocks.


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## KaeJS (Sep 28, 2010)

SAP is really getting hammered...

I bought a bunch at 28.05 yesterday and it ended the day in the 27s today.

Crazy times.
I guess the market really is pricing in another lockdown and restaurant issues.


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## londoncalling (Sep 17, 2011)

Today's intraday was quite volatile. I am tempted to pull the trigger on SAP as I am underweight on Consumer Staples. The Canadian bank earnings are either priced into the market or being overshadowed by inflation and Omicron. Would have to sell something to establish a full position.


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## londoncalling (Sep 17, 2011)

Your back in the green on your purchase this week. Volatility is alive and well. 
I like to hear views contrary to my own to mitigate confirmation bias. As companies get bigger they have to work harder to see growth. Although ROE has come down from where it was I don't believe SAP to go crazy with its acquisitions like a CPG etc. I appreciate when companies realize sometimes growth opportunities are not there and reward shareholders with share buyback and sustainable dividend increases while they look for suitable places to deploy capital. We'll likely see more market volatility the rest of the year. 

Brian Madden discusses Saputo Inc. - Brian Madden discusses Saputo Inc. (bnnbloomberg.ca)


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## metrop (Apr 23, 2014)

With food prices and population on the rise I see this a good buy @ $29


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## KaeJS (Sep 28, 2010)

People aren't going to stop eating pizzas.
Especially when times get tough =)


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## londoncalling (Sep 17, 2011)

Dipped my toe in at 28.39. Gonna celebrate with a glass of milk. Perhaps I should have bought Diago instead.


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## londoncalling (Sep 17, 2011)

Also this

Saputo Announces a Change in Its Senior Management Structure | Saputo (gcs-web.com)


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## londoncalling (Sep 17, 2011)

Saputo Announces Significant Capital Investment Plan to Optimize and Enhance its Manufacturing Footprint | Saputo (gcs-web.com)


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## londoncalling (Sep 17, 2011)

SAP_Q1_2023_MDA_ANG.pdf

Great earnings report today for period ending June 2022.

One of the highlights was revenue up 24%. Outlook also looks good. SP up over 9% on the day. If the next earnings report shows similar results there is a chance we will see a dividend increase in the 2-3% range we have seen previously. I would like to see a larger increase but I think prudence is needed in the current economic environment. I will be content if they keep the increase streak alive. However, will be interesting to see what inflation does to operating costs.


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## KaeJS (Sep 28, 2010)

KaeJS said:


> SAP is really getting hammered...
> 
> I bought a bunch at 28.05 yesterday and it ended the day in the 27s today.
> 
> ...


Should have bought more.

If I had a dime for every time I've said this, I would be rich 🤣

From $28 to $34 in 8 months.
I'll take that 21% return.


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## londoncalling (Sep 17, 2011)

@KaeJS I had a bid in awhile back when it was floating around $24-$25. I refused to chase it past $26. Oh well, happy to have bought at the end of last year and am holding longer term. I think most of the pandemic headwinds are past them now, and things will even get better when air travel gets itself sorted.


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