Sakata Seed Corporation (1377) AI Stock Analysis

• Market Cap: ¥145.43B
• Dividend Yield: 2.25%
• Average Volume (3M): 104.87K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.45
• Revenue Growth: 15.82%
• EPS Growth: 128.09%
• Country: JP
• Employees: 2,948
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Agricultural Farm Products
• EPS (TTM): 43.93
• Shares Outstanding: 46,410,750
• 10 Day Avg. Volume: 144,280
• 30 Day Avg. Volume: 104,866
• PEG Ratio: 2.18
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -158.46
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥5,300.00
• Price Target Upside: 58.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: ¥3,936.00 ▲(17.84%Upside)

Sakata Seed Corporation's overall stock score reflects strong financial performance, particularly in revenue growth and profitability, balanced by liquidity challenges due to cash flow issues. The stock's technical indicators and attractive valuation further bolster its investment appeal.

Sakata Seed Corporation Business Overview & Revenue Model

Company Description

Sakata Seed Corporation, established in 1913 and headquartered in Yokohama, Japan, is a leading global horticultural company specializing in the research, production, and distribution of vegetable and flower seeds. The company operates in the agriculture sector, providing high-quality seeds for commercial farmers and home gardeners worldwide. Sakata is known for its innovation in seed technology, robust breeding programs, and a diverse product portfolio that addresses the needs of different climates and growing conditions.

How the Company Makes Money

Sakata Seed Corporation makes money primarily through the sale of vegetable and flower seeds. The company's revenue streams include direct sales to commercial growers, who require consistent and high-yielding seed varieties, as well as sales to distributors and retailers serving home gardeners. Sakata invests heavily in research and development to create new seed varieties that offer improved disease resistance, higher yields, and better adaptability to various climates, which helps maintain its competitive edge and customer loyalty. Additionally, Sakata's strategic partnerships with agricultural organizations and collaborations with research institutions enhance its product offerings and market reach, further contributing to its earnings.

Sakata Seed Corporation Financial Statement Overview

Summary

Sakata Seed Corporation exhibits strong financial performance with robust revenue and profit growth, impressive margins, and a solid balance sheet with low leverage. However, cash flow challenges, due to high capital expenditures, highlight potential liquidity issues.

Income Statement

Sakata Seed Corporation demonstrates strong income statement metrics with robust revenue growth of 14.8% from 2023 to 2024 and an impressive net profit margin of 18.2% in 2024. The gross profit margin of 60.8% and a healthy EBITDA margin of 30.8% indicate strong operational efficiency and profitability. However, a slight decrease in EBIT margin from previous years is noted.

Balance Sheet

The company maintains a stable financial position with a low debt-to-equity ratio of 0.02, indicating minimal leverage. The equity ratio is strong at 83.1%, reflecting financial stability and a solid capital structure. Return on equity is impressive at 10.1%, showcasing effective utilization of shareholder funds.

Cash Flow

Cash flow analysis reveals challenges with negative free cash flow in 2024, primarily due to high capital expenditures. However, the operating cash flow to net income ratio of 0.43 suggests some ability to convert net income into cash. The decline in free cash flow from previous years is a concern, highlighting potential liquidity issues.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	88.68B	77.26B	73.05B	69.22B	61.67B
Gross Profit	53.97B	47.52B	43.91B	38.56B	34.35B
EBITDA	27.34B	16.45B	20.24B	12.73B	9.83B
Net Income	16.16B	9.49B	12.26B	7.64B	6.09B
Balance Sheet
Total Assets	192.72B	160.72B	147.42B	133.08B	123.60B
Cash, Cash Equivalents and Short-Term Investments	37.13B	28.94B	28.07B	20.99B	17.48B
Total Debt	3.64B	1.47B	1.49B	2.79B	4.71B
Total Liabilities	32.19B	22.64B	21.96B	21.18B	21.81B
Stockholders Equity	160.08B	137.68B	125.13B	111.66B	101.60B
Cash Flow
Free Cash Flow	-328.00M	2.15B	5.25B	6.67B	114.00M
Operating Cash Flow	6.97B	8.35B	10.04B	11.36B	3.44B
Investing Cash Flow	-4.25B	-8.11B	468.00M	-5.17B	-1.32B
Financing Cash Flow	-4.22B	-2.83B	-4.58B	-4.00B	-1.76B

Sakata Seed Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3340.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1377, the sentiment is Negative. The current price of 3340 is below the 20-day moving average (MA) of 3436.75, below the 50-day MA of 3397.46, and below the 200-day MA of 3413.03, indicating a bearish trend. The MACD of -18.05 indicates Positive momentum. The RSI at 40.49 is Neutral, neither overbought nor oversold. The STOCH value of 14.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1377.

Sakata Seed Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1377	80 Outperform	¥145.43B	15.01		2.25%	15.82%	128.09%
1381	76 Outperform	¥16.66B	11.33		3.32%	1.44%	4.93%
1379	74 Outperform	¥57.86B	12.96		2.72%	4.63%	27.74%
7555	64 Neutral	¥3.79B	17.07		1.61%	-6.93%	21.65%
1383	61 Neutral	¥4.82B	129.99		0.34%	3.08%	-111.11%
Sector *	61 Neutral	HK$21.08B	12.39	0.81%	4.52%	2.72%	-47.45%
1380	57 Neutral	¥4.21B	150.13		0.99%	7.64%	-71.33%

Sakata Seed Corporation Corporate Events

Sakata Seed Corporation Reports Strong Q3FY2025 Financial Performance

Sakata Seed Corporation reported a strong financial performance for the third quarter of fiscal year 2025, with a notable increase in sales and net profit compared to the previous year. The company’s sales rose by 11.2% to 66,409 million yen, and net profit surged by 47.3% to 7,817 million yen, indicating robust growth and improved profitability. This performance highlights Sakata Seed’s effective operational strategies and its strengthened position in the agriculture industry.

Sakata Seed Corporation Reports Strong Financial Growth

Sakata Seed Corporation reported a significant increase in its financial performance for the nine months ended February 28, 2025, with net sales rising by 11.2% and profit attributable to owners of the parent increasing by 47.3%. The company’s improved financial results highlight its strong market positioning and operational efficiency, which may positively impact stakeholders and reinforce its competitive edge in the agriculture sector.