Low Leverage / Strong EquitySato's extremely low debt-to-equity (0.03) and ~91% equity ratio provide durable financial flexibility. Over the next 2–6 months this supports capital spending, working-capital needs, stable supplier terms and the ability to absorb shocks without relying on external financing, preserving strategic optionality.

Healthy Operating MarginsSustained gross (25.4%) and EBIT (10.6%) margins indicate cost-efficient operations and pricing discipline in packaged foods. These margins create a durable buffer against commodity or input-cost swings, help sustain operating cash flow and allow reinvestment in product quality and distribution over multiple quarters.

Solid Cash GenerationAn OCF-to-net-income ratio of 1.55 shows the business reliably converts profits into cash, supporting internal funding for capex, working capital and distributions. Over time this reduces reliance on external financing and supports steady operations despite seasonal sales fluctuations common in packaged foods.

Bears Say

Declining Free Cash Flow GrowthA 38.5% drop in free cash flow growth materially reduces internal liquidity available for investment, dividends or debt reduction. If the decline stems from higher working capital or capex, it constrains financial flexibility and may force tougher capital-allocation choices across the next several quarters.

Low/declining ROEROE down to ~3.1% indicates the company is generating low returns on shareholders' equity. Persistently weak ROE limits the ability to finance growth from retained earnings, suggests inefficiencies in converting capital to profits, and may hinder long-term shareholder value creation.

Modest Revenue GrowthTop-line growth around 4% is modest for a consumer-packaged-goods player. Over multiple quarters this pace limits scale economies and margin leverage, reducing capacity to invest in product innovation, marketing and distribution expansion needed to gain retail share versus competitors.

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 ¥13.30B.

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 57 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.