Strong Balance SheetA very low debt-to-equity ratio (0.03) and a 91% equity ratio provide durable financial flexibility. This capital structure reduces refinancing risk, supports steady dividend capacity, and allows the company to fund capex or strategic moves while weathering seasonal demand swings without liquidity strain.

Healthy Operating MarginsSato's gross margin (25.42%) and EBIT margin (10.58%) reflect structural cost efficiency and pricing power in packaged rice products. Sustained margins give a buffer versus commodity cost volatility, enable reinvestment in brands and distribution, and support longer-term profitability.

Reliable Cash GenerationOperating cash flow to net income of 1.55 and FCF/net income ~1.11 show earnings largely convert to cash. Consistent cash generation underpins working capital needs, modest capex, and dividend payouts, preserving strategic optionality despite modest revenue expansion.

Bears Say

Falling Free Cash Flow GrowthA 38.5% decline in free cash flow growth is a meaningful deterioration in cash available for investment and returns. Sustained FCF weakness would constrain hiring, marketing, capex, and dividends, reducing flexibility to expand distribution or invest in product diversification.

Eroding Profitability ReturnsNet margin decline to 9.38% alongside ROE at ~3.09% signals weakening returns on sales and equity. Persisting margin and ROE erosion limits retained earnings for growth, reduces shareholder returns, and may reflect rising costs or competitive pressure on pricing.

Concentrated, Slow-growing Core MarketModest revenue growth (~4%) combined with reliance on packaged rice and mochi limits diversification and scale. Structural seasonality (year-end mochi demand) and narrow product exposure could cap market expansion and make long-term growth dependent on new products or broader channel/geographic reach.

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 80 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.