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Sappi (SAP.JO)

Materials · JSE · South Africa

R11.09-4.31% today

Fundamentals

Market capR6.76B
Revenue growth (YoY)-1.0%
Profit margin-12.7%
Return on equity-31.1%
52-week rangeR8.64 to R30.99
Next earnings2026-08-06

Valuation and ratings

DCF fair valueR24.51
Upside to fair value+121.0%
Analyst target (mean)R16.50
Analyst rangeR9.88 to R27.46
Analysts covering4
Consensus viewnone
Moat score13/100
Overall rating42/100, Reduce

Sappi trades at R11.09, which is 121% below the R24.51 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.

Our moat model scores it 13 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.

About Sappi

Sappi Limited, together with its subsidiaries, provides woodfiber-based renewable resources in Europe, North America, and South Africa. The company offers speciality paper; flexible packaging paper, paperboard, containerboard, release liner, label paper, functional papers, uncoated woodfree paper, coated and uncoated woodfree paper, coated mechanical paper, thinprint, inkjet paper, and label paper. It also offers dissolving pulp, graphic, packaging and speciality, casting, and release papers; forestry, and bio-energy materials. In addition, the company provides biomaterials, such as valida, lignin, and furfural, as well as engages in insurance business. Sappi Limited company was founded in 1936 and is based in Johannesburg, South Africa.

Industry: Paper & Paper ProductsHQ: South Africa

SAP.JO passes 2 of our 30 screens today

Each screen prints the exact criteria it used, and the circumstances in which it is wrong.

Undervalued on cash flow
Companies trading at least 25% below what our discounted cash flow model says the future cash is worth today.
South Africa and the JSE
A commodity and currency market wearing an equity market's clothes. The index can rise on a good day in Beijing.

Common questions

Is Sappi (SAP.JO) undervalued?

Against our discounted cash flow estimate of R24.51, SAP.JO at R11.09 is 121% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.

The full research page for SAP.JO, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.

Open SAP.JO in the appFree guides and screens

Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.