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General information

Sector: Basic Materials

The company is available at Interactive Brokers

Sappi (JSE:SAP) is a global diversified woodfibre company focused on providing dissolving pulp, packaging and speciality papers, graphic papers, as well as biomaterials and biochemicals to its direct and indirect customer base across more than 150 countries.

Sappi has over 12,800 employees in over 35 countries and manufacturing operations on three continents (ten production facilities in Western Europe, four in North America and five in Southern Africa) which produce approximately:


  • 5.7 million tons per year of paper
  • 2.6 million tons per year of paper pulp, and
  • 1.4 million tons per year of dissolving pulp



  • Dividend yield for the last twelve months 0.0%
  • Free cash flow yield -71.5% (LTM), projected -71.5%
  • Share price is 41.5% higher than minimum and 18.5% lower than maximum for the last 3 years
  • The company is overvalued by EV / LTM EBITDA multiple compared to target level (8.8x vs
    )
  • The company is overvalued by EV / projected EBITDA multiple compared to target level (47.0x vs
    )
  • Fundamental value created in LTM (estimate)

Key Financials

Share price, ZAR:  (0.0%)51.04
Share price, USD: 2.72
Common stocks: 602 272 727

Dividend Yield:  0.0%
FCF Yield LTM / expected: -71.5% / -71.5%
EV / LTM EBITDA: 8.8x
Last revenue growth (y/y):  -36.0%
Last growth of EBITDA (y/y):  -66.7%
Historical revenue growth:  +15.4%
Historical growth of EBITDA:  +76.2%
EV / expected EBITDA:
Target EV / EBITDA (hist percentile):
EV / LTM EBITDA mutiple calculation
Market Cap ($m): 1 639
Net Debt ($m): 2 266
EV (Enterprise Value): 3 904
EBITDA LTM ($m): 444
EV / LTM EBITDA: 8.8x
Price to Book: 0.66x

Revenue and EBITDA

Semi-Annual values ($m)

Change (y/y)

Cash Flow

FCF ($m)

Net Debt / Cash and Equivalents ($m)

Share price and dividends (Download history)

Share price

Payment ZAR per share

Multiple and potential

EV / EBITDA

Potential dynamics

TechCentral Headlines

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Thousands more soldiers deployed to quell violence

Riots that ensued after former President Jacob Zuma was jailed appeared to be easing following the deployment of additional soldiers to help the police restore stability, according to the government.

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Bitcoin powers through $18 000 with record high within reach

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2020-11-18 05:27 +02:00
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Reserve Bank paints grim picture of 2020 economic outlook

South Africa’s economy could contract by between 2% and 4% this year due to the coronavirus pandemic and measures to curb its spread, according to the Reserve Bank.

2020-04-06 05:10 +02:00
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South Africa’s economy has gone into reverse – again

South Africa’s economy contracted for a second quarter this year in the three months to September as farming, mining and factory output slumped. The rand extended its decline against the dollar.

2019-12-03 10:21 +02:00
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Apple’s 5G iPhone delay stings as next-gen devices hit shelves

Apple is planning to bring 5G to the iPhone next spring, more than a year behind some rivals. The company can ill afford to let the timing slip.

2019-10-15 11:32 +02:00
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Reuters Headlines

Rugby-Wales coach Pivac working on plan to match Boks

Wales coach Wayne Pivac says no-one should write off his team`s chances in their three test tour of South Africa, but concedes facing the bruising Springboks on the energy-sapping Highveld represents the "ultimate challenge" in world rugby right now.

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South African floods claim 341 lives, several thousands affected

DURBAN (Reuters) -A devastating flood in South Africa`s eastern coastal province earlier this week has left at least 341 people dead, the government said on Thursday, as rescuers continued to hunt for missing people amid forecasts of yet more rains from Friday.

2022-04-14

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"It is bad": Survivors count costs of South Africa`s devastating floods

Residents of South Africa`s coastal province of KwaZulu-Natal were picking up the pieces on Thursday after one of the worst floods in recent history ravaged the area, killing more than 300 people and displacing hundreds.

2022-04-14

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S.African leader visits flood victims as death toll rises to 306

JOHANNESBURG (Reuters) -South African President Cyril Ramaphosa pledged on Wednesday to help the victims of devastating east coast floods, as the death toll rose to 306 from heavy rains that washed out roads and disrupted shipping in one of Africa`s busiest ports.

2022-04-13

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UPDATE 4-S.African leader visits flood victims as death toll rises to 306

South African President Cyril Ramaphosa pledged on Wednesday to help the victims of devastating east coast floods, as the death toll rose to 306 from heavy rains that washed out roads and disrupted shipping in one of Africa`s busiest ports.

2022-04-13

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Exclusive-How the illicit copper trade is sapping South Africa

South Africa`s economic woes are being compounded by the theft of massive amounts of copper from state firms Eskom and Transnet, much of which is smuggled overseas, costing the country billions of rand a year, according to market sources.

2021-10-15

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UPDATE 1-South African stocks fall on weaker metals prices

South African stocks fell on Thursday, led by mining companies as gold fell to test the pivotal $1,800 support level after hawkish comments from a key Federal Reserve official raised early tapering bets.

2021-08-05

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South Africa`s Eskom invites bids to plug short-term power gap

South Africa`s struggling state power utility Eskom offered on Monday to buy surplus electricity from existing generating plants, an indication it thinks it will continue to struggle to meet demand on its own in the short term.

2020-03-23

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South Africa`s Ramaphosa cheers $24 billion more for investment drive

South African President Cyril Ramaphosa secured around 360 billion rand ($24 billion) of investment pledges from businesses on Wednesday, saying these would spur economic growth and reduce unemployment.

2019-11-06

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UPDATE 2-South Africa`s Ramaphosa cheers $24 bln more for investment drive

* Analysts say some pledges just operating costs (Updates after more investment pledges)

2019-11-06

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South Africa`s Ramaphosa gets $13.5 bln of investment pledges at summit

South African President Cyril Ramaphosa secured about 200 billion rand ($13.5 billion) of investment pledges, mainly from domestic companies, on Wednesday as part of his drive to boost flagging economic growth.

2019-11-06

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UPDATE 1-South Africa`s rand firms, stocks flat

* Sasol results delayed on Lake Charles project (Updates prices, adds stocks)

2019-08-16

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South Africa`s Sappi buys Canadian paper mill, third-quarter profit falls

South African paper and pulp maker Sappi said on Thursday its Canadian division was buying Matane hardwood pulp mill in Canada to increase pulp integration and cut costs after reporting a 84% decline in profit for the third quarter.

2019-08-01

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UPDATE 1-South African rand, stocks weaker on renewed trade war

South Africa`s rand gave up its earlier gains on Thursday as another round of risk selling in global markets fuelled by the U.S.-China trade talks outweighed local election positives.

2019-05-09

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UPDATE 1-South African rand falls on firm dollar, stocks up

South Africa`s rand fell on Wednesday, in line with broad weakness in emerging market currencies, as the dollar settled near a two-week high after U.S. President Donald Trump`s State of the Union speech failed to surprise currency traders.

2019-02-06

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UPDATE 1-South African rand retreats, Naspers lifts stocks

South Africa`s rand eased on Monday as the dollar neared a two-week high, while Naspers boosted stocks on expectations of positive news about the spin-off of its pay-TV business, which duly emerged after the market close.

2019-01-21

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UPDATE 1-South Africa`s Sappi takes short term pain for long term gain

South African paper and pulp maker Sappi said on Thursday that its profit for the full year fell 4.4 percent as it ramped up investment to modernise plants and shift production to more profitable products.

2018-11-15

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Releases

2022-08-15
Changes to the Board of Directors
2022-08-04
Third quarter results for the period ended June 2022
2022-06-14
Disclosure of significant holding of Sappi ordinary shares
2022-06-09
Disclosure of significant holding of Sappi ordinary shares
2022-05-26
Dealings in securities by a director of a major subsidiary
2022-05-12
Second quarter results for the period ended March 2022
2022-04-21
Impact of adverse weather and flooding in KwaZulu Natal province, South Africa on Sappi’s South African operations
2022-04-21
Disclosure of significant holding of Sappi ordinary shares
2022-04-13
Impact of adverse weather and flooding in KwaZulu Natal province, South Africa on Sappi’s South African operations
2022-03-01
Change in sponsor
2022-02-10
Results of the 85th Annual General Meeting of Sappi
2022-02-09
First quarter results for the period ended December 2021
2021-12-20
TRP121 : notification of acquisition of beneficial interest in securities
2021-12-17
Annual Integrated Report 2021, “no change” statement, notice of AGM and availability of BEE compliance report
2021-12-17
Dealings in securities by director of a listed company
2021-12-08
Dealing in securities by directors and company secretaries
2021-11-23
Dealing in securities by directors and company secretaries
2021-11-11
Fourth quarter results for the period ended September 2021

SENS Announcements

2024-04-09
Partial Capital Reduction
2024-04-09
Listings of New Financial Instruments
2024-03-19
Disclosure of significant holding in Sappi shares
2024-03-15
Correction announcement: disclosure of significant holding of Sappi ordinary shares
2024-03-08
Interest payment notification
2024-03-08
CANCELLATION OF S486592 Interest payment notification
2024-03-07
Interest payment notification
2024-02-29
Disclosure of significant holding of Sappi ordinary shares
2024-02-26
Voluntary reminder to bondholders of the early redemption of the residual ZAR1,164,690,000 5.25% convertible bonds
2024-02-13
Voluntary reminder of the early redemption of the residual ZAR1,164,690,000 5.25% Convertible Bonds due 2025
2024-02-12
Amendments to the information statement in respect of the ZAR5,000,000,000 Domestic Medium Term Note Programme
2024-02-08
Report on proceedings at the annual general meeting
2024-02-07
Results for the first quarter ended December 2023
2024-01-18
Notice of early redemption of the residual ZAR1,164,690,000 5.25% Convertible Bonds issued by Sappi Southern Africa
2024-01-12
Sappi concludes consultation process at Sappi Lanaken Mill; ceases paper production
2023-12-14
No change statement, notice of AGM, availability of Annual Report, BEE compliance report and changes to the board
2023-12-12
Listing of New Financial Instrument
2023-12-11
Interest Payment Notification
2023-11-23
Dealings in securities by directors and directors of major subsidiaries and the company secretaries
2023-11-17
Disclosure of significant holding of Sappi ordinary shares
2023-11-09
Changes to the Board of Directors
2023-11-09
Results for the fourth quarter and year ended September 2023 and cash dividend declaration
2023-10-10
Sappi concludes consultation process at Stockstadt Mill and commences consultation process on Lanaken Mill
2023-09-18
Interest Payment Notification
2023-08-03
Third quarter results for the period ended June 2023
2023-07-06
Sappi to commence consultation process on possible closure of Stockstadt Mill
2023-06-20
Interest Payment Notification
2023-06-20
Interest payment notification
2023-05-17
Purchase of securities by a director of a major subsidiary
2023-05-11
Second quarter results for the period ended March 2023
2023-05-02
Interest Payment Notification
2023-04-14
Sale of three European mills by Sappi to Aurelius will not proceed. Agreement on suspensive conditions not reached
2023-03-24
Interest payment notification
2023-03-06
Disclosure of significant holding of Sappi ordinary shares - Acquisition of securities by clients of Allan Gray
2023-02-09
Report on proceedings at the annual general meeting
2023-02-08
First quarter results for the period ended December 2022
2023-02-07
Interest payment notification
2022-12-23
Purchase of securities by a director of a major subsidiary
2022-12-15
Distribution of AIR, availability of AFS, No Change Statement, Notice of AGM, availability of BEE Compliance Report
2022-12-15
Interest payment notification
2022-11-25
Change to the board of directors
2022-11-24
Dealings in securities by directors and directors of major subsidiaries and the company secretaries
2022-11-11
Dealings in securities by director of a major subsidiary of Sappi Limited
2022-11-10
Fourth quarter results for the period ended September 2022 and cash dividend declaration
2022-11-08
Interest payment notification
2022-10-13
Sappi Papier Holding GmbH announces final results of cash tender offer for its 3.125% Senior Notes due 2026
2022-10-13
Sappi Papier Holding GmbH announces indicative results of cash tender offer for its 3.125% Senior Notes due 2026
2022-10-12
Disclosure of significant holding of Sappi ordinary shares
2022-10-10
Sappi Papier Holding GmbH announces extension of cash tender offer for its 3.125% Senior Notes due 2026
2022-10-10
Sappi provides updated outlook for fourth financial quarter ended 30 September 2022
2022-10-04
Sappi Papier Holding GmbH announces cash tender offer for its 3.125% Senior Notes due 2026
2022-09-29
Sappi concludes an agreement to sell three European Graphic Paper mills
2022-09-22
Interest payment notification
2022-08-15
Changes to the Board of Directors
2022-08-04
Third quarter results for the period ended June 2022
2022-08-03
Interest payment notification
2022-06-24
Interest payment notification
2022-06-14
Disclosure of significant holding of Sappi ordinary shares
2022-06-09
Disclosure of significant holding of Sappi ordinary shares
2022-06-02
Credit rating announcement
2022-05-26
Dealings in securities by a director of a major subsidiary
2022-05-12
Second quarter results for the period ended March 2022
2022-05-09
Interest payment notification