# Saputo (SAP.TO)

Canonical: https://gigainvestors.com/s/SAP.TO

Analysis as of: 2026-10-16T07:35:43.464Z. Financial observations: FY1997–FY2026.

Listing currency: CAD. Reporting currency: CAD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CAD 39.88 per share; close as of 2026-10-15.

Estimated value: low CAD 6.44 per share, central CAD 7.28 per share, high CAD 8.41 per share. Buy at or below the central value CAD 7.28 per share. Valuation as of 2026-10-16T07:35:43.464Z; scenarios are not confidence intervals.

Expected annual return: 4.2% at the stated quote. About 4.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CA 10-year bond 3.8% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 0.17×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.12×

- FY2018: 0.11×

- FY2019: 0.09×

- FY2020: 0.10×

- FY2021: 0.10×

- FY2022: 0.08×

- FY2023: 0.09×

- FY2024: 0.09×

- FY2025: 0.08×

- FY2026: 0.06×

### moat: pass

- ROIC, median of available years: 15.6%

- ROIC, second-lowest year: 10.9%

- Typical minus recent gross margin: 0.7 pp

- Typical gross margin (annual median): 9.4%

- Recent gross margin (lower of latest and 3-year median): 8.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.1%

- ROIC including acquisitions, ten-year median: 4.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 26.5%

- FY2018: 29.3%

- FY2019: 18.3%

- FY2020: 14.2%

- FY2021: 15.1%

- FY2022: 10.5%

- FY2023: 16.4%

- FY2024: 13.2%

- FY2025: 16.0%

- FY2026: 10.9%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.98×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CAD 1.6B

- Net income, five-year total: CAD 1.7B

- Return on incremental invested capital: -3.2%

- Working capital / revenue, annual change: 0.1 pp

- Working capital / revenue, change between three-year averages: 0.5 pp

- Working capital / revenue, final three-year average: 11.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.67×

- FY2023: 0.86×

- FY2024: 0.43×

- FY2025: 0.32×

- FY2026: 1.25×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 26.5% vs 13.2%

- Per-share earnings: 1.86 to 0.62 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.2%

- Ordinary dilution, 5-year annual growth: -0.5%

- Market cap gain: CAD -394M

- Cumulative retained earnings: CAD 917M

- Diluted shares, 10-year annual growth: 0.2%

- Diluted shares, 5-year annual growth: -0.5%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -12.7%

- Per-share value change: CAD -1.23

- Per-share value, starting three-year median: CAD 1.86

- Per-share value, ending three-year median: CAD 0.62

- Buybacks concentrated in cheaper years (correlation): -0.40

- Average buyback yield: 1.9%

- Buyback history: 4 years

- Debt-funded buybacks: No

- Acquisition spending: CAD 2.1B

- Cumulative net income, 10 years: CAD 5.2B

- ROIC, first three-year median: 26.5%

- ROIC, last three-year median: 13.2%

Chart: Earnings per share; fiscal year observations.

- FY2017: CAD 1.86

- FY2018: CAD 2.17

- FY2019: CAD 1.84

- FY2020: CAD 1.41

- FY2021: CAD 1.51

- FY2022: CAD 0.65

- FY2023: CAD 1.47

- FY2024: CAD 0.62

- FY2025: CAD -0.43

- FY2026: CAD 1.66

### accounting: pass

- Sloan accruals: -6.1%

- Receivables to sales index (DSRI): 0.93×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 6.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.24×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.51×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -4.6%

- FY2018: 0.5%

- FY2019: -1.3%

- FY2020: -3.3%

- FY2021: -3.4%

- FY2022: -3.1%

- FY2023: -2.8%

- FY2024: -6.5%

- FY2025: -9.8%

- FY2026: -6.1%

## Holders

## Price story

Price needs cash profits to grow 23.2% a year for ten years · sales -7.9%

Story as of 2026-10-16T10:00:05.910Z; price observation 2026-10-15.

Price needs cash profits to grow 23.2% a year for ten years

- 2026-02-08: Saputo Efficiency Push And Ripon Investment Reshape Margins And Valuation ([finance.yahoo.com](https://finance.yahoo.com/news/saputo-efficiency-push-ripon-investment-090641771.html))

- 2026-08-07: Saputo Earnings Rise as Dairy Giant Targets Protein Growth and Accretive Deals ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/saputo-earnings-rise-dairy-giant-210420557.html))

### Sales · FY2025–2026

sales -7.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: CAD 11B 

- FY2018: CAD 12B 

- FY2019: CAD 14B 

- FY2020: CAD 15B 

- FY2021: CAD 14B 

- FY2022: CAD 15B 

- FY2023: CAD 18B 

- FY2024: CAD 17B 

- FY2025: CAD 19B 

- FY2026: CAD 18B 

### Gross margin · FY2026

gross margin 15.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 11.6% 

- FY2018: 11.0% 

- FY2019: 9.0% 

- FY2020: 9.8% 

- FY2021: 10.3% 

- FY2022: 7.7% 

- FY2023: 8.7% 

- FY2024: 8.7% 

- FY2025: 8.2% 

- FY2026: 15.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in packaged foods; annual sales are CAD 17.6 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.464Z); FY2026: revenue 17551000000; grossProfit 2781000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SAP.TO: Saputo Inc. produces, markets, and distributes dairy products in Canada, the United States, Australia, and the United Kingdom. The company offers mozzarella and cheddar; specialty cheeses, such as ricotta, provolone, parmesan, goat cheese, feta, havarti, snacking, romano, string, blue, and soft and processed cheeses; and brie, camembert, brick, colby, farmer, munster, monterey jack, and fresh curd. It also provides fluid milk, cream, yogurt, sour cream, cottage cheese, and ice cream mixes; and butter and butter blends, flavored cream, dips, half and half, whipping cream, value-added beverages, creamers, coffee beverages, aerosol whipped toppings, almond and oat milk, and aseptic food products and beverages. In addition, the company offers dairy ingredients, including milk powder, whey powder, lactose, and whey protein concentrates, as well as lactoferrin and infant formula; spreads and oils; demineralized whey, lactose, casein, galacto-oligosaccharides, dairy ingredient blends, and nutritional products; and distributes fine imported cheese to specialty stores, and dairy and non-dairy products manufactured by third parties, as well as dairy alternative products. It serves customers in the retail, foodservice, and industrial markets. The company sells its products under the Saputo, Armstrong, Alexis de Portneuf, Bari, Cogruet, DuVillage 1860, Kingsey, Shepherd Gourmet Dairy, Stella, Woolwich Goat Dairy, Dairyland, Neilson, Nutrilait, Baxter, Scotsburn, Trutaste, Milk2Go/Lait's Go, Baileys, Heluva Good, Black Creek, Frigo, Frigo Cheese Heads, Lugano, Montchevre, Mozzeria, Saputo Gold, Treasure Cave, DairyStar, Friendship Dairies, Caboolture, CHEER, Cracker Barrel, Devondale, Great Ocean Road, Liddells, Mersey Valley, Mil Lel, Murray Goulburn Ingredients, Sungold, Tasmanian Heritage, Cathedral City, Clover, Country Life, Davidstow, Frylight, Wensleydale Creamery, Vitalite, and Sheese brands. Saputo Inc. was founded in 1954 and is headquartered in Montreal, Canada.

### Why customers stay

Margins ranged from 8.2% to 15.8% during 2024–26; it earns 15.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.464Z); FY2024: grossProfit / revenue = 8.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.464Z); FY2025: grossProfit / revenue = 8.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.464Z); FY2026: grossProfit / revenue = 15.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.464Z); 10-year return on capital observations [[2017,0.2645393025550564],[2018,0.29277272957941525],[2019,0.18323091937355507],[2020,0.14204289714357002],[2021,0.15106551226350778],[2022,0.1054554983084567],[2023,0.16392595839948246],[2024,0.13229422848601777],[2025,0.1601296008294453],[2026,0.10936092622670776]]; median 0.15559755654647656. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back CAD 680 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.464Z); FY2017: growth capex 33565530.16206902; upkeep 287834469.837931; owner earnings 646065530.1620691. Growth capex / owner earnings = 0.05195375483605963.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.464Z); FY2018: growth capex 72302814.38044113; upkeep 271697185.6195589; owner earnings 800602814.3804412. Growth capex / owner earnings = 0.09031046741497377.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.464Z); FY2019: growth capex 150000000; upkeep 286000000; owner earnings 755300000. Growth capex / owner earnings = 0.1985965841387528.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.464Z); FY2020: growth capex 200200000; upkeep 376100000; owner earnings 499840000. Growth capex / owner earnings = 0.4005281690140845.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.464Z); FY2021: growth capex 0; upkeep 433000000; owner earnings 508800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.464Z); FY2022: growth capex 71000000; upkeep 427000000; owner earnings 183800000. Growth capex / owner earnings = 0.3862894450489663.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.464Z); FY2023: growth capex 59000000; upkeep 582000000; owner earnings 535400000. Growth capex / owner earnings = 0.11019798281658573.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.464Z); FY2024: growth capex 0; upkeep 654000000; owner earnings 115000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.464Z); FY2026: growth capex 0; upkeep 330000000; owner earnings 840000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.464Z); Dividend observations: [[2017,228300000],[2018,243500000],[2019,254600000],[2020,269700000],[2021,204600000],[2022,209000000],[2023,199000000],[2024,245000000],[2025,320000000],[2026,324000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.464Z); FY2026: cash repurchases 680000000 CAD.

### Are managers owners

Insiders own 41.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SAP.TO SharesStats.PercentInsiders = 41.747 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 23.2% yearly over ten years; actual growth was 3.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.464Z); Ten-year compound average after fade. Initial solved rate 0.3252256139666633. Price 39.88; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 1.5115612685245468 → FY2026 2.0756920888702624. Closing-price date 2026-10-15.

## Monthly share-price history (CAD per share)

- 2016-10: CAD 48.20 per share

- 2016-11: CAD 45.43 per share

- 2016-12: CAD 47.51 per share

- 2017-01: CAD 47.91 per share

- 2017-02: CAD 45.61 per share

- 2017-03: CAD 45.89 per share

- 2017-04: CAD 44.88 per share

- 2017-05: CAD 45.10 per share

- 2017-06: CAD 41.25 per share

- 2017-07: CAD 42.26 per share

- 2017-08: CAD 42.16 per share

- 2017-09: CAD 43.19 per share

- 2017-10: CAD 46.58 per share

- 2017-11: CAD 43.78 per share

- 2017-12: CAD 45.18 per share

- 2018-01: CAD 42.33 per share

- 2018-02: CAD 41.01 per share

- 2018-03: CAD 41.35 per share

- 2018-04: CAD 41.63 per share

- 2018-05: CAD 45.06 per share

- 2018-06: CAD 43.65 per share

- 2018-07: CAD 43.37 per share

- 2018-08: CAD 39.96 per share

- 2018-09: CAD 38.42 per share

- 2018-10: CAD 40.11 per share

- 2018-11: CAD 41.29 per share

- 2018-12: CAD 39.19 per share

- 2019-01: CAD 38.52 per share

- 2019-02: CAD 42.89 per share

- 2019-03: CAD 45.55 per share

- 2019-04: CAD 45.81 per share

- 2019-05: CAD 44.98 per share

- 2019-06: CAD 39.20 per share

- 2019-07: CAD 39.86 per share

- 2019-08: CAD 40.02 per share

- 2019-09: CAD 40.72 per share

- 2019-10: CAD 38.20 per share

- 2019-11: CAD 40.15 per share

- 2019-12: CAD 40.20 per share

- 2020-01: CAD 40.66 per share

- 2020-02: CAD 37.36 per share

- 2020-03: CAD 33.84 per share

- 2020-04: CAD 35.00 per share

- 2020-05: CAD 33.83 per share

- 2020-06: CAD 32.37 per share

- 2020-07: CAD 32.78 per share

- 2020-08: CAD 32.54 per share

- 2020-09: CAD 33.40 per share

- 2020-10: CAD 32.43 per share

- 2020-11: CAD 36.03 per share

- 2020-12: CAD 35.63 per share

- 2021-01: CAD 33.53 per share

- 2021-02: CAD 35.84 per share

- 2021-03: CAD 37.79 per share

- 2021-04: CAD 39.06 per share

- 2021-05: CAD 41.25 per share

- 2021-06: CAD 36.97 per share

- 2021-07: CAD 36.00 per share

- 2021-08: CAD 35.49 per share

- 2021-09: CAD 32.21 per share

- 2021-10: CAD 29.56 per share

- 2021-11: CAD 28.28 per share

- 2021-12: CAD 28.50 per share

- 2022-01: CAD 28.49 per share

- 2022-02: CAD 31.06 per share

- 2022-03: CAD 29.61 per share

- 2022-04: CAD 27.46 per share

- 2022-05: CAD 25.43 per share

- 2022-06: CAD 28.07 per share

- 2022-07: CAD 31.63 per share

- 2022-08: CAD 33.35 per share

- 2022-09: CAD 32.93 per share

- 2022-10: CAD 33.16 per share

- 2022-11: CAD 33.40 per share

- 2022-12: CAD 33.52 per share

- 2023-01: CAD 36.68 per share

- 2023-02: CAD 36.54 per share

- 2023-03: CAD 34.97 per share

- 2023-04: CAD 35.08 per share

- 2023-05: CAD 35.12 per share

- 2023-06: CAD 29.68 per share

- 2023-07: CAD 27.84 per share

- 2023-08: CAD 29.21 per share

- 2023-09: CAD 28.40 per share

- 2023-10: CAD 28.00 per share

- 2023-11: CAD 26.38 per share

- 2023-12: CAD 26.83 per share

- 2024-01: CAD 27.72 per share

- 2024-02: CAD 27.61 per share

- 2024-03: CAD 26.65 per share

- 2024-04: CAD 26.47 per share

- 2024-05: CAD 27.58 per share

- 2024-06: CAD 30.72 per share

- 2024-07: CAD 31.73 per share

- 2024-08: CAD 29.97 per share

- 2024-09: CAD 29.19 per share

- 2024-10: CAD 26.56 per share

- 2024-11: CAD 26.10 per share

- 2024-12: CAD 24.99 per share

- 2025-01: CAD 24.15 per share

- 2025-02: CAD 25.49 per share

- 2025-03: CAD 24.83 per share

- 2025-04: CAD 26.90 per share

- 2025-05: CAD 26.44 per share

- 2025-06: CAD 27.87 per share

- 2025-07: CAD 29.06 per share

- 2025-08: CAD 34.38 per share

- 2025-09: CAD 33.80 per share

- 2025-10: CAD 33.89 per share

- 2025-11: CAD 39.61 per share

- 2025-12: CAD 41.31 per share

- 2026-01: CAD 41.08 per share

- 2026-02: CAD 43.54 per share

- 2026-03: CAD 43.46 per share

- 2026-04: CAD 41.13 per share

- 2026-05: CAD 42.24 per share

- 2026-06: CAD 41.08 per share

- 2026-07: CAD 39.43 per share

- 2026-08: CAD 40.66 per share

- 2026-09: CAD 40.01 per share

- 2026-10: CAD 38.67 per share

## Annual estimated value (CAD per share)

- FY2017: low CAD 20.50 per share, central CAD 27.77 per share, high CAD 32.53 per share

- FY2018: low CAD 20.22 per share, central CAD 26.21 per share, high CAD 30.64 per share

- FY2019: low CAD 23.43 per share, central CAD 31.26 per share, high CAD 36.61 per share

- FY2020: low CAD 23.90 per share, central CAD 29.35 per share, high CAD 34.22 per share

- FY2021: low CAD 21.69 per share, central CAD 25.40 per share, high CAD 29.53 per share

- FY2022: low CAD 13.93 per share, central CAD 15.85 per share, high CAD 18.40 per share

- FY2023: low CAD 15.54 per share, central CAD 17.84 per share, high CAD 20.73 per share

- FY2024: low CAD 13.69 per share, central CAD 15.54 per share, high CAD 18.00 per share

- FY2025: low CAD 6.90 per share, central CAD 8.82 per share, high CAD 10.31 per share

- FY2026: low CAD 6.02 per share, central CAD 6.82 per share, high CAD 7.89 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:41:28.524Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.