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Saputo Inc's three year revenue growth was 15.4% per year

11.06.2015 • About Saputo Inc ($SAP) • By InTwits

Saputo Inc is a fast-growing stock in Consumer, Non-cyclical industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.

Growth story


Saputo Inc showed fast growth in the last financial year. The company's revenue surged on 15.4% in FY2015. EBITDA also increased: 12.3% for the same period.

In the longer period Saputo Inc showed fast revenue growth of 15.4% from FY2012 to FY2015 annually. EBITDA surged on 9.61% from FY2012 to FY2015 annually.

Saputo Inc ($SAP) financials for the last 5 years

mln. CAD FY2011 FY2012 FY2013 FY2014 FY2015
Revenue6,0036,9307,2989,23310,658
Revenue growth, %15.4%5.3%26.5%15.4%
Gross margin, %13.1%12.0%11.8%11.1%9.96%
SG&A, %
EBITDA7888318189751,094
EBITDA growth, %5.4%-1.5%19.1%12.3%
EBITDA margin, %13.1%12.0%11.2%10.6%10.3%
Net Income450381482533608
Net Income margin, % 7.50%5.50%6.60%5.77%5.70%
 
CAPEX112119178224187
CAPEX/Revenue, %1.87%1.71%2.44%2.42%1.75%
Debt5495471,7302,0991,740
Cash77144433973
Net Debt/EBITDA0.6x0.5x2.1x2.1x1.5x
 
ROIC, %23.8%24.6%19.2%17.0%16.5%
ROE, %21.9%18.2%21.8%21.0%19.2%

Profitability and return on investment


EBITDA margin declined slightly from 10.6% in FY2014 to 10.3% in FY2015. In the longer period EBITDA margin dropped on 1.70 pp from 12% in FY2012 to 10.3% in FY2015.

We call Saputo Inc an attractive growth stock as together with the growth it delivers high ROIC at 16.5%. Three years ago it was higher at 24.6%. Average ROIC for the last three years was 17.5%.

The company's Net Income margin decreased slightly on 0.100 pp from 5.80% to 5.70% in FY2015. In the last 3 years Saputo Inc's Net Income margin increased slightly on 0.200 pp from 5.50% in FY2012 to 5.70% in FY2015.

Saputo Inc operates at ROE of 19.2%. It's average level of ROE for the last three years was 20.7%.

Capital expenditures (CAPEX)


In FY2015 Saputo Inc had CAPEX/Revenue of 1.75%. The company showed small growth in CAPEX/Revenue of 0.0427 pp from 1.71% in FY2012 to 1.75% in FY2015. It's average level of CAPEX/Revenue for the last three years was 2.21%.

Leverage (Debt)


Saputo Inc has medium debt level at 1.5x Net Debt/EBITDA to maintain high growth. If we look for the longer period the company showed fast leverage growth of 1.04x from 0.48x in FY2012 to 1.52x in FY2015.

Valuation vs. comparable companies


The company trades at 13.0x EV/EBITDA which is 52.9% lower than 27.6x Consumer, Non-cyclical industry avearge calculated based on 289 companies. The company trades at 20.7x P/E which is 80.4% lower than 105.7x Consumer, Non-cyclical industry avearge calculated based on 38 companies.

Management team


Lino A Saputo Jr runs Saputo Inc as a CEO. Lino A Saputo Jr is a longstanding CEO having spent 11.1 years with the company.

Peers in Consumer, Non-cyclical


Below we provide Saputo Inc benchmarking against other companies in Consumer, Non-cyclical industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.

Top companies by Revenue growth, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
GDI Integrated Facility Services Inc ($GDI)43.8%-38.8%-72.9%218,969.1%
Cardiome Pharma Corp ($COM)-97.7%-47.6%471.7%566.0%
Family Memorials Inc ($FAM)-13.6%54.7%22.9%245.3%
Nobilis Health Corp ($NHC)16.6%45.3%49.0%169.9%
Concordia Healthcare Corp ($CXR)159.5%
 
Median (85 companies)11.2%7.7%6.9%12.2%5.3%
Saputo Inc ($SAP)15.4%5.3%26.5%15.4%


Top companies by Gross margin, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Nobilis Health Corp ($NHC)99.8%
Cipher Pharmaceuticals Inc ($CPH)99.5%98.3%
Heritage Global Inc ($HGP)99.5%95.7%
Ritchie Bros Auctioneers Inc ($RBA)87.9%88.7%88.4%88.0%
Concordia Healthcare Corp ($CXR)79.4%86.0%
 
Median (73 companies)35.4%37.4%36.1%35.6%28.6%
Saputo Inc ($SAP)13.1%12.0%11.8%11.1%10.0%


Top companies by EBITDA margin, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Cipher Pharmaceuticals Inc ($CPH)-50.0%40.6%71.4%63.7%
Merus Labs International Inc ($MSL)32.9%64.7%46.2%
Valeant Pharmaceuticals International Inc ($VRX)37.0%30.6%27.8%45.6%
EnerCare Inc ($ECI)59.0%52.8%51.0%45.5%
Information Services Corp ($ISV)34.1%39.6%39.6%37.6%
 
Median (84 companies)7.9%7.9%8.3%10.7%-92.5%
Saputo Inc ($SAP)13.1%12.0%11.2%10.6%10.3%


Top companies by CAPEX/Revenue, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Neptune Technologies & Bioressources Inc ($NTB)6.0%4.7%73.6%84.6%119.0%
CanaDream Corp ($CDN)68.6%43.3%38.1%70.4%
Ceapro Inc ($CZO)2.2%3.9%35.3%52.0%
Feronia Inc/Canada ($FRN)129.0%191.4%117.4%42.4%
Microbix Biosystems Inc ($MBX)1.0%1.2%3.0%40.3%
 
Median (85 companies)2.4%2.6%2.4%2.6%5.4%
Saputo Inc ($SAP)1.9%1.7%2.4%2.4%1.8%


Top companies by ROIC, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Biosyent Inc ($RX)45.5%71.7%62.4%62.9%
Information Services Corp ($ISV)56.0%71.8%72.8%58.9%
Covalon Technologies Ltd ($COV)-49.6%-75.8%-30.1%50.6%
Cipher Pharmaceuticals Inc ($CPH)-22.9%21.8%81.4%44.6%
Ceapro Inc ($CZO)69.9%-33.5%15.5%43.5%
 
Median (85 companies)7.4%6.7%6.7%6.9%6.8%
Saputo Inc ($SAP)23.8%24.6%19.2%17.0%16.5%


Top companies by Net Debt / EBITDA

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Noble Iron Inc ($NIR)25.5x12.9x227.3x
Family Memorials Inc ($FAM)15.2x
Amica Mature Lifestyles Inc ($ACC)11.7x9.4x14.7x13.8x
Cott Corp ($BCB)2.6x2.0x2.2x13.4x
CRH Medical Corp ($CRH)-2.3x-3.1x-3.5x12.0x
 
Median (69 companies)1.9x2.8x2.2x2.7x1.7x
Saputo Inc ($SAP)0.6x0.5x2.1x2.1x1.5x