Sappi Ltd. ADRSPP

Morningstar Rating

Stock Research and Analysis

by Daniel Rohr, CFA

South Africa-based Sappi is a global leader in coated paper, a category of papers used for magazines, brochures, and catalogs. In the good old days, makers of these glossy grades could count on demand increasing in line with advertising spending and Read more

Bulls Say

Industry capacity cuts in Europe should afford producers like Sappi greater scope for price increases, which should boost profit margins.

Sappi's South African chemical cellulose business looks primed for growth because of significant capital investment and a good low-cost source of pulp.

The North American coated paper industry has consolidated significantly during the last couple years, which should afford the remaining players tighter control over industry output and increased pricing power. Read more

Bears Say

The long-term outlook for retail catalogs is far from rosy. A substantial drop-off in demand from catalog publishers would seriously hurt Sappi.

Sappi's profitability is wedded to often-volatile commodity prices. Boom times can go bust in relatively short order.

Low-priced Asian competition remains a threat to domestic coated paper producers, and the U.S. government's stance on import duties has been inconsistent. Read more

Strategy

Sappi aims to consolidate its leadership position in the coated fine paper market through efficiency improvements and, where possible, further cost-cutting. The company intends to be a player in the Read more

Management

Ralph Boettger assumed the reins as CEO in 2007, taking over for acting CEO Eugene van As. Boettger joined Sappi from Imperial Holdings, a diversified South African firm with operations ranging from transportation logistics to car dealerships. Boettger's Read more

Profile

South Africa-based Sappi is among the world's largest producers of coated paper, a category of papers used for magazines, brochures, and catalogs. The company operates paper Read more

First Name

Last Name

Email Address

Zip Code

Create Password

Verify Password

(6-15 characters; case sensitive)

What is your occupation or job title?

Select...

Your registration indicates agreement to the terms of use.

Making the Brand
Watch more