Is Saputo (SAP) Halal?

TSX Consumer Defensive Canada $17.2B
✓ HALAL
Confidence: 95/100
Saputo (SAP) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 20.7% against the AAOIFI threshold of 30%, Saputo comfortably passes the key financial ratio tests. The company operates in the Consumer Defensive sector (Packaged Foods), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from March 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 20.7%
/ 30%
1.5%
/ 30%
9.1%
/ 30%
3.87%
/ 5%
✓ HALAL
DJIM 20.7%
/ 33%
1.5%
/ 33%
9.1%
/ 33%
3.87%
/ 5%
✓ HALAL
MSCI 25.8%
/ 33%
1.8%
/ 33%
11.4%
/ 33%
3.87%
/ 5%
✓ HALAL
S&P 20.7%
/ 33%
1.5%
/ 33%
9.1%
/ 33%
3.87%
/ 5%
✓ HALAL
FTSE 25.8%
/ 33%
1.8%
/ 33%
11.4%
/ 50%
3.87%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
27.2
Forward: 18.7
EPS
$1.56
Dividend Yield
186.0%
Payout: 50.0%
P/B Ratio
2.6
EV/EBITDA
12.6
EV: $20.3B
Revenue
$19.1B
Growth: -2.1%
Beta
0.1
Low volatility
Current Ratio
1.6

Profitability

Gross Margin 9.2%
Operating Margin 6.9%
Net Margin 3.4%
Return on Equity (ROE) 9.4%
Return on Assets (ROA) 5.1%

Cash Flow & Balance Sheet

Operating Cash Flow$1.1B
Free Cash Flow$681M
Total Debt$3.6B
Debt-to-Equity52.5
Current Ratio1.6
Total Assets$13.9B

Price & Trading

Last CloseCAD 42.26
50-Day MACAD 42.36
200-Day MACAD 36.11
Avg Volume968K
Beta0.1
52-Week Range
CAD 23.94
CAD 44.00

About Saputo (SAP)

CEO
Mr. Carl Colizza
Employees
19,400
Sector
Consumer Defensive
Industry
Packaged Foods
Country
Canada
Exchange
TSX
Market Cap
$17.2B
Currency
CAD

Saputo Inc. produces, markets, and distributes dairy products in Canada, the United States, Australia, Argentina, and the United Kingdom. The company offers a variety of cheeses comprising mozzarella and cheddar; specialty cheeses, such as ricotta, provolone, parmesan, goat cheese, feta, havarti, snacking, romano, string, blue, and soft and processed cheeses; brie and camembert fine cheeses; and other cheeses, which includes 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 other dairy and non-dairy products, such as 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; and distributes fine imported cheese to specialty stores, and dairy and non-dairy products manufactured by third parties. 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, Warrnambool, Sungold, Tasmanian Heritage, La Paulina, Molfino, Ricrem, 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.

Purification Calculator

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Frequently Asked Questions

Is Saputo (SAP) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Saputo is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Saputo's debt ratio?

Saputo's debt ratio is 20.7% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 25.8%.

Does Saputo require dividend purification?

Yes, Saputo has an impermissible income ratio of 3.87%, which means 3.87% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Saputo's key financial metrics?

Saputo has a market capitalization of $17.2B, trailing P/E ratio of 27.2, and revenue of $19.1B. The company maintains a gross margin of 9.2% and a net margin of 3.4%. Return on equity stands at 9.4%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.