Fact based stock research
Sappi (JSE:SAP)

ZAE000006284

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Sappi stock research in summary

sappi.com

ANALYSIS: With an Obermatt Combined Rank of 72 (better than 72% compared with investment alternatives), Sappi (Paper Products, South Africa) shares have above-average financial characteristics compared with similar stocks. Shares of Sappi are a good value (attractively priced) with a consolidated Value Rank of 100 (better than 100% of alternatives) but show below-average growth (Growth Rank of 25), and are riskily financed (Safety Rank of 48), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 72, is a buy recommendation based on Sappi's financial characteristics. As the company Sappi's key financial metrics exhibit good value (Obermatt Value Rank of 100) but low growth (Obermatt Growth Rank of 25) and risky financing practices (Obermatt Safety Rank of 48), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 100% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	100
Growth Rank	25
Safety Rank	48
Combined Rank	72

Country	South Africa
Industry	Paper Products
Index	Energy Efficient, Good Governace Growth Markets, Human Rights, Independent Boards Growth Markets, Timber Industry, JSE All Shares
Size class	X-Large

This stock has achievements: Top 10 Stock.

27-Mar-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Sappi

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	93	98	100	100
GROWTH
GROWTH	69	23	45	25
SAFETY
SAFETY	35	55	50	48
SENTIMENT
SENTIMENT	72	20	72	^new
360° VIEW
360° VIEW	93	49	82	^new

Most recent update of the stock research: 27-Mar-2025. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Sappi is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	93	98	100	100
GROWTH
GROWTH	69	23	45	25
SAFETY
SAFETY	35	55	50	48
COMBINED
COMBINED	83	70	82	72

Last update of combined financial performance: 27-Mar-2025. Stock analysis on combined financial performance: The higher the rank of Sappi the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 100 (better than 100% compared with alternatives) for 2025, Sappi shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Sappi. Price-to-Sales is 91 which means that the stock price compared with what market professionals expect for future sales is lower than for 91% of comparable companies, indicating a good value for Sappi's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 95% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 94. Compared with other companies in the same industry, dividend yields of Sappi are expected to be higher than for 92% of all competitors (a Dividend Yield rank of 92). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 100, is a buy recommendation based on Sappi's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Sappi based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	97	97	91	91
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	89	97	97	95
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	89	95	92	94
DIVIDEND YIELD
DIVIDEND YIELD	78	85	91	92
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	93	98	100	100

Last update of Value Rank: 27-Mar-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Sappi; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 25 (better than 25% compared with alternatives), Sappi shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four metrics below average for Sappi. While Profit Growth has a good rank of 58, as professionals currently expect the company to grow its profits more than 58% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 45, which means that currently professionals expect the company to grow less than 55% of its competitors, while Capital Growth has a rank of 10 and Stock Returns have been below market median, with a rank of 33 (67% of alternative investments were better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 25, is a hold recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	17	37	41	45
PROFIT GROWTH
PROFIT GROWTH	84	28	68	58
CAPITAL GROWTH
CAPITAL GROWTH	100	54	16	10
STOCK RETURNS
STOCK RETURNS	33	23	55	33
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	69	23	45	25

Last update of Growth Rank: 27-Mar-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Sappi.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 48 (better than 48% compared with alternatives), the company Sappi has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Sappi is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Sappi and the other two below average. Refinancing is at 80, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 80% of its competitors. But Leverage is high with a rank of 29, meaning the company has an above-average debt-to-equity ratio. It has more debt than 71% of its competitors. Liquidity is also on the riskier side with a rank of 42, meaning the company generates less profit to service its debt than 58% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 48 (worse than 52% compared with alternatives), Sappi has a financing structure that is riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Sappi are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Sappi and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	12	28	29	29
REFINANCING
REFINANCING	100	89	84	80
LIQUIDITY
LIQUIDITY	14	41	42	42
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	35	55	50	48

Last update of Safety Rank: 27-Mar-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Sappi and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	53	51	^new
OPINIONS CHANGE
OPINIONS CHANGE	79	50	40	^new
PRO HOLDINGS
PRO HOLDINGS	78	32	74	^new
MARKET PULSE
MARKET PULSE	14	7	64	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	72	20	72	^new

Last update of Sentiment Rank: 27-Mar-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Sappi.
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