Long-Term Outlook for Saputo Intact After in Line 3Q Results; Shares Look Overvalued
Narrow-moat Saputo posted third quarter results that largely aligned with our expectations, with revenue up 18% (largely driven by the Murray Goulburn acquisition) and EBITDA margin contracting around 150 basis points to 9.0%, versus our 21% and 8.9% full-year estimates. Top-line performance in Canada (30% of revenue) remained muted, with sales growing just 0.2% as an increase in selling prices for milk and positive mix effects were largely offset by lower volumes of fluid milk. This supports ou...Saputo produces, markets, and distributes an array of dairy products including cheese, fluid milk, extended shelf-life milk and cream products, cultured products and dairy ingredients. Co.'s products are sold in several countries under brand names such as Saputo, Alexis de Portneuf, Armstrong, COON, Cracker Barrel*, Dairyland, DairyStar, Friendship Dairies, Frigo Cheese Heads, La Paulina, Milk2Go/Lait's Go, Neilson, Nutrilait, Scotsburn*, Stella, Sungold, Treasure Cave and Woolwich Dairy. Co. operates its business through three sectors, the Canada Sector, the USA Sector and the International Sector.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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