Saputo Inc. has declared a quarterly dividend of C$0.20 per share, set to be distributed on December 12, 2023, to shareholders on record as of December 12, 2023. The ex-dividend date is scheduled for December 2, 2023. This dividend reflects an annual yield of approximately 2.0%, in line with the company’s ongoing commitment to returning value to its investors.
The announcement comes as Saputo’s stock demonstrated a slight increase, opening at C$39.61 on Friday, marking a 1.4% rise. The company currently holds a market capitalization of C$16.24 billion and exhibits a price-to-earnings (P/E) ratio of -198.05, alongside a P/E/G ratio of 0.56 and a beta of 0.07. With a quick ratio of 0.67 and a current ratio of 1.53, Saputo maintains a debt-to-equity ratio of 51.68, indicating a balanced approach to leveraging its operations.
Over the past year, Saputo’s stock has oscillated between a low of C$22.59 and a high of C$39.65. The company has a 50-day simple moving average of C$35.15 and a 200-day simple moving average of C$31.47, suggesting a positive trend in its share price performance.
In its latest earnings report released on November 6, 2023, Saputo recorded earnings per share (EPS) of C$0.45 for the quarter, although it reported a negative net margin of 0.84% and a negative return on equity of 2.20%. The firm’s revenue for the quarter stood at C$4.72 billion. Analysts forecast that Saputo will achieve an EPS of approximately 1.77 for the current fiscal year.
Understanding Saputo’s Market Position
Saputo is a major player in the global dairy processing industry, with its operations primarily based in Canada (28% of fiscal 2022 sales), the United States (43%), the United Kingdom (6%), and various other international markets (23%). The company’s product range includes cheese, cream, fluid milk, and other dairy products.
In the retail segment, which constitutes 50% of its revenue, Saputo’s brands encompass well-known names such as Saputo, Armstrong, Cheer, Cathedral City, and Frylight. This diverse portfolio positions the company favorably within the competitive dairy market, allowing it to cater to various consumer preferences.
As the company continues to navigate the complexities of the dairy industry, its commitment to delivering dividends highlights its focus on shareholder value. Investors will be closely monitoring Saputo’s performance in the upcoming quarters, particularly as the firm aims to improve its financial metrics and overall market standing.
For ongoing updates and insights regarding Saputo and related companies, interested parties can subscribe to receive daily summaries of the latest news and analysts’ ratings.
