Sakata Seed Corporation (1377) AI Stock Analysis

• Market Cap: ¥171.72B
• Dividend Yield: 1.65%
• Average Volume (3M): 142.84K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.40
• Revenue Growth: 4.90%
• EPS Growth: -19.32%
• Country: JP
• Employees: 2,948
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): N/A
• Shares Outstanding: 45,410,750
• 10 Day Avg. Volume: 274,000
• 30 Day Avg. Volume: 142,836
• 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: ¥6,200.00
• Price Target Upside: 52.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥4,364.00 ▲(7.62% Upside)

The score is primarily supported by strong underlying financial stability and profitability, tempered by weaker cash-flow quality (negative latest-year free cash flow) and a soft near-term technical setup with the stock trading below key short- and mid-term moving averages. Valuation is reasonable (mid-teens P/E with a modest yield), providing some support but not a major catalyst.

Positive Factors

Strong Balance Sheet

Low financial leverage and a strong equity ratio provide durable financial resilience, allowing Sakata to fund R&D, absorb agricultural cycle volatility, and pursue strategic partnerships without immediate financing stress. This stability supports long-term operations and capital allocation.

Diversified Seed Franchise & R&D

A mix of direct sales, licensing royalties and strategic partnerships plus sustained R&D creates multiple durable revenue streams and proprietary IP. This business model enhances pricing power, repeatable income, and global market reach, supporting steady demand across cycles.

Strong Profit Margins

Consistent gross and net margins reflect structural cost control and product pricing strength in seed and horticulture markets. Sustainable margins underpin cash generation capacity and fund reinvestment into breeding programs, enabling long-term competitiveness and product development.

Negative Factors

Negative Latest-Year Free Cash Flow

Negative FCF after capex indicates the company struggled to convert earnings into free cash recently. Persisting FCF deficits can constrain funding for R&D, dividends, or M&A and raise reliance on external financing, weakening flexibility over the medium term.

Recent Revenue and Net Income Decline

A noted decline in revenue and net income reduces scale benefits and can slow reinvestment into breeding and market expansion. If this trend continues, it risks eroding market share and margin sustainability in core seed categories over the coming quarters.

Earnings Volatility (EPS Drop)

A sharp EPS contraction signals earnings volatility that may stem from operational or one-off issues. Large EPS declines can impair investor confidence, limit retained earnings for reinvestment, and indicate vulnerability to adverse crop cycles or execution slippages if not reversed.

Sakata Seed Corporation Business Overview & Revenue Model

Company Description

Sakata Seed Corporation produces and sells vegetable and flower seeds, bulbs, plants, and agricultural and horticultural materials in Japan and internationally. It also engages in the publication of gardening literature; plant breeding; research and development, and technical consultation of consigned seed production; and designing, management, and contract construction of landscaping, greenhouse, and horticultural facilities. The company was formerly known as T. Sakata & Company and changed its name to Sakata Seed Corporation in January 1986. Sakata Seed Corporation was founded in 1913 and is headquartered in Yokohama, Japan.

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 multiple key streams: direct sales of seeds to farmers and distributors, royalties from licensing its proprietary seed technologies, and partnerships with agricultural companies that enhance product offerings. Additionally, the company invests in research and development to create innovative seed varieties that can command higher prices in the market. Strategic collaborations and joint ventures with other agricultural firms also contribute to its earnings, allowing Sakata to expand its market reach and enhance its product portfolio.

Sakata Seed Corporation Financial Statement Overview

Summary

Strong balance sheet (low leverage, healthy ROE, strong equity ratio) and solid profitability, partially offset by a recent slowdown/decline in revenue and net income plus negative latest-year free cash flow.

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	94.94B	92.92B	88.68B	77.26B	73.05B	69.22B
Gross Profit	60.55B	58.49B	53.97B	47.52B	43.91B	38.56B
EBITDA	12.82B	18.50B	27.34B	16.45B	20.24B	12.73B
Net Income	12.22B	9.71B	16.16B	9.49B	12.26B	7.64B
Balance Sheet
Total Assets	193.67B	190.99B	192.72B	160.72B	147.42B	133.08B
Cash, Cash Equivalents and Short-Term Investments	27.72B	29.62B	37.13B	28.94B	28.07B	20.99B
Total Debt	2.21B	2.87B	3.64B	1.47B	1.49B	2.79B
Total Liabilities	29.11B	29.22B	32.19B	22.64B	21.96B	21.18B
Stockholders Equity	164.10B	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: Neutral
• Last Price: 4055.00
• 50DMA: Negative
• 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 Neutral. The current price of 4055 is below the 20-day moving average (MA) of 4141.50, below the 50-day MA of 4164.17, and above the 200-day MA of 3682.37, indicating a neutral trend. The MACD of -45.92 indicates Positive momentum. The RSI at 44.12 is Neutral, neither overbought nor oversold. The STOCH value of 42.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1377.

Sakata Seed Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1379	75 Outperform	¥62.43B	9.75	―	2.44%	5.74%	76.28%
1381	72 Outperform	¥23.84B	10.98	―	2.81%	5.47%	44.78%
1377	69 Neutral	¥171.72B	15.06	―	1.65%	4.90%	-19.32%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1383	62 Neutral	¥5.17B	106.23	―	0.32%	2.94%	19.68%
7555	59 Neutral	¥3.80B	29.79	―	1.61%	-4.26%	-25.43%
1380	57 Neutral	¥4.24B	44.06	―	1.00%	9.52%	―

Sakata Seed Corporation Corporate Events

Sakata Seed Lifts Full-Year Forecast After Strong First-Half Earnings Boosted by Weaker Yen

Sakata Seed Corporation reported that its consolidated results for the six months ended November 30, 2025 significantly outperformed prior forecasts, driven by stronger-than-expected sales of vegetable and flower seeds and the benefit of a weaker yen. Net sales were 4.9% above guidance, while operating profit and profit attributable to owners of parent exceeded forecasts by 37.9% and 55.4%, respectively, aided by improved gross margins, better foreign exchange gains and a higher gain on sales of investment securities. Reflecting this strong interim performance and updated assumptions for a weaker yen against the US dollar, euro, Brazilian real and Asian currencies, the company raised its full-year fiscal 2026 forecasts, now projecting higher net sales, operating profit, ordinary profit and profit attributable to owners of parent than previously expected, signaling improved earnings prospects for shareholders.

The most recent analyst rating on (JP:1377) stock is a Buy with a Yen4729.00 price target. To see the full list of analyst forecasts on Sakata Seed Corporation stock, see the JP:1377 Stock Forecast page.

Sakata Seed Posts Double-Digit Profit Growth on Weaker Yen and Higher Sales

Sakata Seed Corporation reported strong consolidated results for the six months ended November 30, 2025, with sales rising 12.8% year on year to ¥47.7 billion and gross profit increasing 13.3%, maintaining a stable gross margin of 65.0%. Operating profit climbed 21.6% to ¥6.9 billion, while ordinary profit and net profit surged 37.2% and 36.4% respectively, aided in part by a weaker yen against the U.S. dollar and euro, which boosts overseas earnings when converted into yen. The company also raised or reaffirmed its full-year FY2026 forecasts, indicating expectations of continued profit growth and underscoring a positive operating momentum that may strengthen its competitive position and return prospects for shareholders.

The most recent analyst rating on (JP:1377) stock is a Buy with a Yen4729.00 price target. To see the full list of analyst forecasts on Sakata Seed Corporation stock, see the JP:1377 Stock Forecast page.

Sakata Seed Delivers Strong First-Half Earnings and Lifts Full-Year Forecast

For the six months ended November 30, 2025, Sakata Seed Corporation reported solid growth, with net sales rising 12.8% year on year to ¥47.7 billion and profit attributable to owners of parent climbing 36.4% to ¥7.0 billion, reflecting margin improvements and stronger profitability. Operating profit increased 21.6%, ordinary profit jumped 37.2%, and total assets expanded to ¥204.5 billion while maintaining a high equity-to-asset ratio of 83.2%, underscoring a robust balance sheet; alongside this, the company confirmed an annual dividend plan totaling ¥75 per share and revised its full-year forecast upward to ¥101.0 billion in sales and ¥10.0 billion in profit attributable to owners, signaling confidence in continued earnings growth and stable shareholder returns.

The most recent analyst rating on (JP:1377) stock is a Buy with a Yen4729.00 price target. To see the full list of analyst forecasts on Sakata Seed Corporation stock, see the JP:1377 Stock Forecast page.

Sakata Seed Details Cyberattack, Says Business Operations Unharmed as Data Risk Probed

Sakata Seed Corporation has disclosed further details of a previously announced cybersecurity incident involving unauthorized access to one of its servers by a third party, confirming that data tied to customers, distributors, business partners, campaign applicants, job candidates and employees—up to roughly 56,500 records in total, including contact information but no credit card or highly sensitive identifiers—may have been accessed and potentially leaked. The company reports no evidence so far of public disclosure, secondary misuse of personal data, impact on its mail-order and online store systems, or disruption to business operations or overseas subsidiaries, and says it has contained the breach route, tightened security tools, and is rolling out 24-hour monitoring, stricter administrator privilege management, and staff training while notifying affected individuals and regulators, underscoring the reputational and compliance stakes around data protection for its stakeholder base.

The most recent analyst rating on (JP:1377) stock is a Hold with a Yen4665.00 price target. To see the full list of analyst forecasts on Sakata Seed Corporation stock, see the JP:1377 Stock Forecast page.

Sakata Seed Corporation Reports Security Breach with No Operational Impact

Sakata Seed Corporation announced a security breach involving unauthorized access to its servers. The company is investigating the incident with IT security specialists and has reported it to authorities. Despite the breach, there is no impact on its operations or overseas subsidiaries, and the company will provide updates on its website.

The most recent analyst rating on (JP:1377) stock is a Buy with a Yen4452.00 price target. To see the full list of analyst forecasts on Sakata Seed Corporation stock, see the JP:1377 Stock Forecast page.

Sakata Seed Completes Tender Offer for Own Shares

Sakata Seed Corporation has successfully completed a tender offer for its own shares, which was resolved by the Board of Directors on October 7, 2025. This acquisition of shares is part of the company’s strategic financial management, potentially impacting its market positioning and shareholder value.

The most recent analyst rating on (JP:1377) stock is a Buy with a Yen4452.00 price target. To see the full list of analyst forecasts on Sakata Seed Corporation stock, see the JP:1377 Stock Forecast page.