Balance Sheet StrengthExtremely low leverage and a 91% equity ratio provide durable financial resilience. This capital structure lowers default risk, preserves borrowing capacity for expansion or shocks, and supports steady operations through commodity cycles without requiring frequent external financing.

Sustainable Operating MarginsHealthy gross and EBIT margins indicate efficient production and pricing power in packaged rice products. These margins create a structural cushion against input cost volatility and enable reinvestment in quality, marketing, or productivity improvements that support long-term profitability.

Strong Cash GenerationOperating cash conversion above one indicates the company reliably turns earnings into cash, supporting capex, working capital needs and dividends without heavy external funding. Persistent cash generation enhances strategic flexibility and resilience over multiple quarters.

Bears Say

Free Cash Flow DeclineA sharp drop in free cash flow growth reduces available internal funds for reinvestment, dividends, or deleveraging. If sustained, this constrains strategic initiatives, heightens sensitivity to capex or inventory needs, and could force reliance on external financing.

Weak Return On EquityA low and falling ROE signals limited effectiveness in generating profits from shareholders' equity. Over time this can impede returns for investors and suggest operational or pricing limits in improving profitability relative to the capital base.

Modest Revenue GrowthLow single-digit top-line growth implies limited expansion of market share or product reach. In a mature packaged-foods market, modest revenue gains may not outpace cost inflation, constraining sustainable earnings growth and the ability to scale margins meaningfully.

2814 FAQ

What was Sato Foods Industries Co., Ltd.’s price range in the past 12 months?

Sato Foods Industries Co., Ltd. lowest stock price was ¥2000.00 and its highest was ¥3595.00 in the past 12 months.

What is Sato Foods Industries Co., Ltd.’s market cap?

Sato Foods Industries Co., Ltd.’s market cap is ¥13.18B.

When is Sato Foods Industries Co., Ltd.’s upcoming earnings report date?

Sato Foods Industries Co., Ltd.’s upcoming earnings report date is May 08, 2026 which is in 74 days.

How were Sato Foods Industries Co., Ltd.’s earnings last quarter?

Sato Foods Industries Co., Ltd. released its earnings results on Feb 06, 2026. The company reported ¥62.615 earnings per share for the quarter, beating the consensus estimate of N/A by ¥62.615.

Is Sato Foods Industries Co., Ltd. overvalued?

According to Wall Street analysts Sato Foods Industries Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Sato Foods Industries Co., Ltd. pay dividends?

Sato Foods Industries Co., Ltd. pays a Semiannually dividend of ¥22 which represents an annual dividend yield of 1.19%. See more information on Sato Foods Industries Co., Ltd. dividends here

What is Sato Foods Industries Co., Ltd.’s EPS estimate?

Sato Foods Industries Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Sato Foods Industries Co., Ltd. have?

Sato Foods Industries Co., Ltd. has 8,885,206 shares outstanding.

What happened to Sato Foods Industries Co., Ltd.’s price movement after its last earnings report?

Sato Foods Industries Co., Ltd. reported an EPS of ¥62.615 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -0.156%.

Which hedge fund is a major shareholder of Sato Foods Industries Co., Ltd.?

Currently, no hedge funds are holding shares in JP:2814

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Sato Foods Industries Co., Ltd.

Sato Foods Industries Co., Ltd. engages in manufacture and sale of tea extracts, plant extracts, naturally derived flavorings, and powdered alcohol in Japan and internationally. Its powdered alcohol is used in snacks, premixes, drinks, soups, processed seafood and livestock foods, prepared meals, pickles, foods boiled in soy sauce, processed agricultural foods, etc.; and plant extracts are used in fruit juice powders, vegetable powders, and coffee extracts. The company's powdered tea extracts are used in instant teas, tea machines and cup vending machines, health foods, cakes, and various types of general food processing; and naturally derived flavorings are used in noodle broths, sauces, soups, dressings, Chinese noodles, snacks, oden, pickles, prepared dishes, etc. Sato Foods Industries Co., Ltd. was founded in 1950 and is headquartered in Komaki, Japan.