Sakata Seed Corporation (1377) AI Stock Analysis

• Market Cap: ¥156.69B
• Dividend Yield: 1.78%
• Average Volume (3M): 80.73K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.41
• Revenue Growth: 4.78%
• EPS Growth: -39.32%
• Country: JP
• Employees: 2,948
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 43.93
• Shares Outstanding: 45,410,750
• 10 Day Avg. Volume: 76,040
• 30 Day Avg. Volume: 80,726
• PEG Ratio: -0.40
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 1.62
• P/FCF Ratio: -79.34
• 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: ¥5,700.00
• Price Target Upside: 56.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥4,042.00 ▲(10.89% Upside)

Sakata Seed Corporation's overall stock score is driven by its strong financial performance and positive technical indicators. The company's solid balance sheet and profitability are significant strengths, although recent challenges in cash flow management need attention. The stock's reasonable valuation and positive market momentum further support its attractiveness.

Sakata Seed Corporation Business Overview & Revenue Model

Company Description

Sakata Seed Corporation (1377) is a leading global seed company based in Japan, specializing in the research, development, production, and sale of vegetable and flower seeds. The company operates in various sectors, including agriculture and horticulture, providing a diverse range of products that cater to the needs of farmers, growers, and the agricultural industry. Sakata's core offerings include a wide variety of vegetable seeds such as tomatoes, cucumbers, and peppers, along with ornamental flower seeds, contributing to its reputation as a key player in the global seed market.

How the Company Makes Money

Sakata Seed Corporation generates revenue primarily through the sale of its seeds and related products. The company's revenue model is built on several key streams, including the sales of vegetable seeds, flower seeds, and breeding technologies. Additionally, Sakata engages in research and development to produce high-yield, disease-resistant seed varieties, which can command premium pricing. Significant partnerships with agricultural distributors and collaborations with research institutions further enhance its market reach and innovation capabilities, contributing positively to its earnings. The company also benefits from expanding agricultural markets and increasing demand for sustainable food production, which drives growth in its core business.

Sakata Seed Corporation Financial Statement Overview

Summary

Sakata Seed Corporation demonstrates strong financial health with robust profitability and a solid balance sheet. However, recent challenges in revenue growth and free cash flow generation could pose risks if not addressed. The company should focus on improving cash flow management to sustain its financial stability.

Income Statement

Sakata Seed Corporation has shown a consistent revenue growth over the years, although there was a slight decline in the most recent year. The company maintains strong gross and net profit margins, indicating efficient cost management and profitability. However, the decline in revenue growth rate and net income in the latest year could be a concern if it continues.

Balance Sheet

The company has a strong balance sheet with a low debt-to-equity ratio, indicating low financial leverage and a solid equity base. The return on equity is healthy, reflecting efficient use of shareholders' funds. The equity ratio is also strong, suggesting financial stability and low risk.

Cash Flow

Cash flow from operations has been positive, but the free cash flow has been negative in the latest year, which could indicate challenges in generating cash after capital expenditures. The free cash flow growth rate is positive, but the negative free cash flow to net income ratio suggests potential cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	92.92B	92.92B	88.68B	77.26B	73.05B	69.22B
Gross Profit	58.39B	58.49B	53.97B	47.52B	43.91B	38.56B
EBITDA	16.69B	18.50B	27.34B	16.45B	20.24B	12.73B
Net Income	9.71B	9.71B	16.16B	9.49B	12.26B	7.64B
Balance Sheet
Total Assets	190.99B	190.99B	192.72B	160.72B	147.42B	133.08B
Cash, Cash Equivalents and Short-Term Investments	29.62B	29.62B	37.13B	28.94B	28.07B	20.99B
Total Debt	2.87B	2.87B	3.64B	1.47B	1.49B	2.79B
Total Liabilities	29.22B	29.22B	32.19B	22.64B	21.96B	21.18B
Stockholders Equity	161.30B	161.30B	160.08B	137.68B	125.13B	111.66B
Cash Flow
Free Cash Flow	0.00	-1.90B	641.00M	2.73B	6.09B	8.56B
Operating Cash Flow	0.00	5.10B	6.97B	8.35B	10.04B	11.36B
Investing Cash Flow	0.00	4.07B	-4.25B	-8.11B	468.00M	-5.17B
Financing Cash Flow	0.00	-6.67B	-4.22B	-2.83B	-4.58B	-4.00B

Sakata Seed Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3645.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1377, the sentiment is Positive. The current price of 3645 is below the 20-day moving average (MA) of 3656.00, above the 50-day MA of 3572.30, and above the 200-day MA of 3447.47, indicating a neutral trend. The MACD of 26.95 indicates Positive momentum. The RSI at 50.19 is Neutral, neither overbought nor oversold. The STOCH value of 49.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1377.

Sakata Seed Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1381	80 Outperform	¥16.96B	9.86	7.96%	3.73%	2.28%	38.82%
1379	74 Outperform	¥61.30B	11.69	7.82%	2.57%	4.23%	18.36%
1377	74 Outperform	¥156.69B	16.62	―	1.78%	4.78%	-39.32%
7555	60 Neutral	¥3.80B	20.43	4.26%	1.61%	-6.47%	9.73%
1383	59 Neutral	¥4.86B	446.18	1.93%	0.33%	5.14%	-85.96%
1380	57 Neutral	¥4.30B	69.11	1.29%	0.97%	9.41%	453.87%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

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.