Should I buy Saputo stock in 2025?

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At HelloSafe, our expert has been monitoring the performance of Saputo for over three years. Every month, hundreds of thousands of Canadians rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are intended for informational purposes only and do not represent investment advice. In line with our ethical guidelines, we have never been, and will never be, compensated by Saputo.

What is Saputo?

How much is Saputo stock?

The price of Saputo stock is falling this week. Currently trading at CAD 25.79, Saputo has dropped 4.13% in the past 24 hours and is down 2.68% over the last week. The company maintains a market capitalization of CAD 10.90 billion with an average three-month daily volume of 790,725 shares. As of now, the P/E ratio isn’t available due to recent negative earnings; the annual dividend yield stands at 2.95%, and the stock’s beta is a low 0.17, indicating minimal volatility. Saputo’s stable dividend and defensive profile may attract Canadian investors looking for income and relative safety despite recent short-term declines.

Our full analysis on Saputo stock

Having undertaken a rigorous review of Saputo Inc.'s (SAP.TO) latest financial disclosures and the stock’s trajectory over the past three years, our analysis leverages an integrated approach—combining advanced financial metrics, technical indicators, broad market trends, and peer benchmarking—synthesized through proprietary quantitative models. This holistic methodology reveals nuanced insights into Saputo’s current valuation and future potential. So, why might Saputo stock once again become a strategic entry point into the resilient consumer defensive sector heading into 2025?

Recent Performance and Market Context

Saputo has navigated a period marked by sector volatility and evolving consumer trends, reflected in its stock, which closed at CAD 25.79 on May 2, 2025. While the one-year price movement registers a modest decline of -2.13%, outperforming broader packaged food peers in preserving value amidst inflationary headwinds, Saputo’s underlying operational progress contrasts with recent share softness. The past week and 6-month variations (-2.68% and -3.98%, respectively) suggest a stock consolidating at multi-quarter lows, even as its average daily trading volume of 790,725 shares points to sustained market interest and liquidity.

• Strong Revenue Momentum: Q3 FY2025 saw revenues climb 17% year-over-year to nearly CAD 5 billion, decisively outpacing sector averages and signalling persistent consumer demand and pricing power.
• Robust EBITDA Growth: Adjusted EBITDA advanced 12.7%, underpinned by effective cost management and operational enhancements in core markets.
• Resilient North American Performance: Canadian and US operations are driving margin expansion and volume gains.
• Dividend Reliability: The company maintained its attractive 2.95% dividend yield, underscoring its shareholder commitment.
• Macro Backdrop: The consumer defensive sector in Canada is benefiting from defensive rotation, a search for stable cash flows, and increased demand for staple goods—a context in which Saputo is particularly well-positioned.

In an era of macro uncertainty, Saputo’s stable income stream, significant market presence, and proactive shareholder return policy provide foundational strength, while recent price weakness highlights a potential value opportunity for new entrants.

Technical Analysis

The technical landscape suggests that Saputo is at or near an inflection point:

• Oversold Signals: The 14-day RSI stands at 27.94, a clear indication of oversold conditions seldom seen in Saputo’s trading history. Such levels often precede a technical rebound as value-oriented investors recognize dislocation from fundamentals.
• Moving Averages: While the stock trades below its 20, 50, and 100-day moving averages—a short-term bearish sign—the current price remains above the 200-day MA (25.55), preserving the integrity of its broader bullish structure.
• MACD and StochRSI: The MACD (-0.15) remains negative, but the StochRSI at 0 reflects extreme oversold conditions, which are typically unsustainable and have historically set the stage for upward reversals.
• Support and Resistance: Key support levels between CAD 25.58 and 25.73 have held firm, with CAD 25.88–26.03 representing immediate technical hurdles. A bounce off current support could catalyze a test of these resistance zones.
• Momentum Profile: The convergence of oversold readings, stable long-term averages, and high volume strengthens the case for a technical floor—an ideal backdrop for investors seeking risk-adjusted entry points.

This setup suggests the market may be over-discounting short-term headwinds, with technicals pointing toward a potential bullish reversal as market sentiment normalizes.

Fundamental Analysis

Beneath the recent price turbulence, Saputo’s core business generates robust underlying value:

• Revenue and Profitability: The 17% year-over-year revenue surge and 12.7% EBITDA growth underscore operational resilience and management’s adept execution in margin expansion, particularly in the face of sector-wide challenges.
• Impairment-Driven Losses: While the headline net loss (CAD 518 million) in Q3 is notable, it is primarily a byproduct of a one-time, non-cash goodwill impairment charge of CAD 674 million related to UK operations, which does not impact ongoing cash flows or core business performance.
• Adjusted Net Earnings: Adjusted net earnings improved to CAD 167 million, with stable adjusted EPS, reflecting healthy recurring profitability once exceptional items are excluded.
• Valuation Appeal: The forward P/E ratio of 14.08 positions Saputo at an attractive discount to both historical norms and peers, particularly given its global scale and sector leadership. A price/sales ratio of 0.58 and price/book of 1.56 further support a compelling valuation thesis.
• Brand and Market Power: As a top-10 global dairy processor, Saputo commands leading positions in Canada, Australia, Argentina, the US, and the UK, diversified across retail, foodservice, and industrial channels. Its brand portfolio, especially in Europe and North America, remains a durable source of growth and pricing authority.
• Dividends and Buybacks: The steady 2.95% yield, coupled with the expansion of the share repurchase program (Normal Course Issuer Bid up to 5% of outstanding shares), demonstrates management’s resolve to enhance shareholder value both through direct returns and accretive capital allocation.

Saputo’s solid fundamentals and undervalued status—especially against the backdrop of one-off accounting charges—suggest the market is underappreciating the company’s intrinsic growth and cash-flow generation potential.

Volume and Liquidity

• Sustained Volume: With nearly 791,000 shares trading hands daily over the past quarter, Saputo’s liquidity profile ranks among the most robust within Canadian consumer defensive stocks, ensuring both accessibility for retail investors and efficient execution for institutional portfolios.
• Float Dynamics: As of November 2024, 424 million shares are outstanding—an ample float that supports price discovery while still allowing buybacks to meaningfully impact per-share value.

Consistent, high-quality trading volume paired with ongoing share repurchases creates fertile conditions for dynamic valuation re-rating when market sentiment shifts positive.

Catalysts and Positive Outlook

Looking to the future, several concrete catalysts reinforce Saputo’s upward prospects:

• Operational Excellence: Ongoing efficiency gains, particularly from plant optimization and capacity expansions in its largest segment (USA Sector), are set to drive continued EBITDA margin recovery through FY25–FY26.
• Cost Discipline: Management’s sharp cost control alongside disciplined capital expenditures sets the stage for enhanced free cash flow and reduced leverage.
• Recovery in International Markets: Easing milk prices in Australia and a stabilization of the European division, buoyed by strong regional brands, are expected to improve segment results as local market pressures subside.
• Strategic Share Repurchases: The expanded NCIB supports EPS accretion and reflects internal confidence in undervaluation.
• ESG and Innovation: Commitment to efficient, sustainable operations and new product offerings positions Saputo well for regulatory and consumer-driven demand shifts, including premium dairy and wellness categories.
• Dividend Track Record: Regular, tax-advantaged dividend payments—designated as "eligible dividends"—are especially attractive for Canadian investors seeking yield within tax-advantaged accounts (TFSA, RRSP, RESP).

Furthermore, with a consensus analyst target of CAD 29.64 (15% upside), the market anticipates a normalization of earnings and sentiment as temporary setbacks fade, spotlighting substantial value for forward-looking investors.

Investment Strategies

Saputo’s risk-return profile currently aligns with a favourable entry scenario across multiple investor horizons:

• Short-Term: For tactical investors, Saputo’s marked oversold technicals and proximity to key support offer an opportunity to capitalize on a mean-reversion bounce—especially as technical buyers return on the confirmation of a reversal.
• Medium-Term: The next 6–12 months present compelling optionality as operational improvements in North America, international segment recovery, and execution of cost efficiencies translate into accelerating normalized earnings. Entry at current price levels positions investors to benefit from both valuation rerating and dividend compounding.
• Long-Term: For core, income-oriented investors, Saputo’s wide moat—backed by market leadership, geographic and segment diversification, brand strength, and a proven ability to navigate market cycles—offers a robust foundation for patient capital looking to harvest stable, growing dividends and participate in secular consumer staples growth.

Ideal portfolio positioning appears to be accumulating shares near current technical support, particularly for those seeking exposure ahead of anticipated positive catalysts and sector mean reversion.

Is It the Right Time to Buy Saputo?

Synthesizing the evidence: Saputo combines rare traits—strong revenue momentum, resilient profitability normalized for one-off items, disciplined capital allocation, and a highly attractive entry point from both a valuation and technical perspective. The decisive operational turnaround in North America, stabilization in Europe, and multi-year dividend reliability further reinforce an investment case that is difficult to ignore. Oversold technicals and resilient liquidity provide a unique risk-managed entry point, while sustained buyback activity and sectoral tailwinds amplify upside potential.

For investors seeking quality exposure to the Canadian consumer defensive sector, Saputo’s fundamentals, technical structure, and near-term catalysts seem to represent an excellent opportunity for renewed interest and portfolio inclusion. As market sentiment recovers, the stock may be entering a new bullish phase—encouraging investors to take a closer look at Saputo’s compelling risk-reward profile in 2025.

In an environment craving stability and growth, Saputo stands out as a disciplined operator with meaningful upside—a promising candidate for those shaping resilient, income-generating portfolios at the dawn of a new cycle.

How to buy Saputo stock in Canada?

Buying Saputo stock online is simple, secure, and accessible for Canadian investors thanks to regulated online brokers. Whether you’re seeking direct share ownership (spot buying) for long-term growth and dividends, or looking for dynamic strategies like trading via contracts for difference (CFDs), today's platforms cater to every objective. Spot buying gives you actual shares, while CFDs let you speculate on price movements with leverage. Each approach has its own advantages and costs—so it’s important to choose based on your risk tolerance and investment goals. For a detailed comparison of top Canadian brokers, see our table further down the page.

Cash buying (Spot purchase)

A cash purchase means you buy Saputo shares outright on the Toronto Stock Exchange (TSX: SAP), owning them in your name. This method is ideal for long-term investors seeking potential capital appreciation and regular dividends—the current yield is 2.95%. Brokers typically charge a flat commission per trade, ranging from CAD $5 to $10, depending on the platform.

Important Information

Example:
Suppose Saputo’s share price is CAD $25.79. With a $1,000 investment and a typical $5 brokerage fee, you could buy approximately 38 shares ($1,000 - $5 fee = $995; $995 / $25.79 ≈ 38 shares).
✔️ Gain scenario:
If the share price rises by 10%, your holdings are now worth about $1,100 (38 × $28.37).
Result: +$100 gross gain, or +10% on your investment (excluding taxes and fees).

Trading via CFD

CFD (Contract for Difference) trading on Saputo shares is a way to speculate on price movements without owning the underlying shares. CFDs allow you to use leverage, meaning you can control a larger exposure with a smaller upfront capital. Fees typically include the spread (the difference between buy and sell prices set by the broker) and an overnight financing cost if you hold leveraged positions for more than a day.

Important Information

Example:
You deposit $1,000 and use 5x leverage to open a CFD position on Saputo. Your market exposure is now $5,000.
✔️ Gain scenario:
If Saputo’s share price rises by 8%, your CFD position gains 8% × 5 = 40%.
Result: +$400 gain on your $1,000 deposit (excluding spreads and overnight fees).

Final advice

Before investing, it’s wise to compare brokers’ fees, account minimums, and features. Spot buying offers direct ownership and dividend benefits, while CFDs provide short-term trading flexibility with higher risk and reward potential. Your decision should reflect your investment goals, time horizon, and comfort with market movements. If you’d like help choosing the right platform, our broker comparison table is available further down the page to guide your choice.

Platforms

Minimum Deposit

Discover

#1

Tier 1 regulation, including ASIC and FSA

#1

Star Trader

4.9

Minimum Deposit

$50

Discover

with our partner Star Trader

#2

Broker specializing in Forex and CFDs

#2

IFC Markets

4.8

Minimum Deposit

$1

Discover

with our partner IFC Markets

#3

Broker regulated since 2006

#3

Avatrade

4.8

Minimum Deposit

$100

Discover

with our partner Avatrade

Our 7 tips for buying Saputo stock

The latest news about Saputo

Saputo's Q3 fiscal 2025 results show double-digit revenue and EBITDA growth, led by the Canadian market. The company reported consolidated revenue of CAD 4.994 billion, up 17.0% year-over-year, and adjusted EBITDA of CAD 417 million, marking a 12.7% increase versus the prior year. This positive trend was reinforced by the Canada Sector, where adjusted EBITDA climbed 16.7% to CAD 175 million, outpacing cost pressures thanks to operational efficiencies and higher sales volumes. At the same time, the U.S. Segment also delivered strong adjusted EBITDA growth of 20.3%, reflecting successful capital investment and operational improvements, which is especially relevant as the U.S. remains a key export market for Canadian dairy processors.

The company enhanced its shareholder return program with an expanded share buyback authorization of up to 5% of outstanding shares. Saputo has raised its Normal Course Issuer Bid (NCIB) from 2% to 5%, now allowing repurchase of up to 21.2 million common shares. This sustained and recently strengthened buyback initiative provides tangible support for the share price, signals management's confidence in the company's long-term prospects, and could benefit Canadian investors through potential share value appreciation and improved per-share financial metrics.

Saputo continues to reward Canadian investors with predictable dividends, confirmed by the latest quarterly distribution. The Board approved a CAD 0.19 dividend per share for the upcoming payment, implying an annualized yield of 2.95% based on current prices. Classified as an 'eligible dividend' under Canadian tax law, this payout qualifies for enhanced tax credits, making it particularly attractive for domestic investors and reinforcing Saputo's positioning as a reliable income stock in Canadian tax-advantaged accounts.

Despite a reported net loss, the underlying business is stable thanks to non-cash charges and healthy adjusted earnings. The company's headline net loss of CAD 518 million in the latest quarter was entirely attributable to a non-cash goodwill impairment in its UK division, not reflective of core operational performance. Excluding this one-off impact, adjusted net earnings reached CAD 167 million and adjusted EPS stood at CAD 0.39, consistent with the prior year. This distinction is vital for Canadian equity analysts, as it underscores the underlying strength of Saputo's North American operations and the recoverable nature of its earnings profile.

Current technical signals indicate the stock is significantly oversold, presenting a possible entry opportunity for long-term Canadian investors. Saputo’s shares are trading below their short- and medium-term moving averages, and the RSI of 27.94, along with a zero value on the StochRSI, points to an extreme oversold condition. With a forward P/E of 14.08 and analyst consensus suggesting a 15% upside to a target price of CAD 29.64, combined with ongoing share repurchases and a stable dividend, the present level may represent a constructive accumulation point, particularly given the stock’s low beta and defensive sector profile.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.