Sato Foods Industries Co., Ltd. (2814) AI Stock Analysis

• Market Cap: ¥15.73B
• Dividend Yield: 1.54%
• Average Volume (3M): 1.39K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.23
• Revenue Growth: 6.74%
• EPS Growth: -10.71%
• Country: JP
• Employees: 164
• Sector: Consumer Defensive
• Sector Strength: 64
• Industry: Packaged Foods
• EPS (TTM): 77.38
• Shares Outstanding: 9,027,460
• 10 Day Avg. Volume: 2,940
• 30 Day Avg. Volume: 1,386
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,694.00
• Price Target Upside: 3.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥2,694.00 ▲(3.54% Upside)

Sato Foods Industries Co., Ltd. shows strong technical indicators and financial stability, contributing significantly to its overall score. While the valuation is fair, profitability metrics and cash flow constraints slightly temper the outlook. Attention to improving net profit and free cash flow could further enhance financial health.

Sato Foods Industries Co., Ltd. Business Overview & Revenue Model

Company Description

Sato Foods Industries Co., Ltd. (2814) is a Japanese company that specializes in the production and distribution of food products. The company operates in the food manufacturing sector, focusing primarily on the production of instant foods, such as freeze-dried and retort pouch products. Sato Foods Industries is known for its high-quality food offerings that cater to both domestic and international markets, aiming to meet the needs of modern consumers seeking convenience and taste.

How the Company Makes Money

Sato Foods Industries Co., Ltd. generates revenue through the sale of its diverse range of food products. The company's primary revenue stream is the production and distribution of instant and convenient food items, including freeze-dried foods and retort pouch meals. These products are sold to both retail and commercial customers, with a significant portion of sales occurring through supermarkets, convenience stores, and online platforms. Additionally, Sato Foods Industries may engage in partnerships with other food companies or retailers to expand its market reach and enhance distribution channels. The company's earnings are further supported by its efforts in product innovation and maintaining high standards of quality, which help to attract and retain customers.

Sato Foods Industries Co., Ltd. Financial Statement Overview

Summary

Sato Foods Industries Co., Ltd. showcases strong operational efficiency with a robust balance sheet characterized by low leverage and strong equity ratios. However, profitability metrics such as net profit margin and ROE have room for improvement, and attention to enhancing net income and free cash flow is recommended.

Income Statement

The company demonstrates a strong gross profit margin (25.42%) and EBIT margin (10.58%), indicating cost efficiency and effective operations. However, the net profit margin has decreased to 9.38%, reflecting a decline in profitability. Revenue growth is modest at 4.25%, showing steady, albeit slow, expansion.

Balance Sheet

Sato Foods maintains a robust balance sheet with a low debt-to-equity ratio of 0.03, highlighting financial stability. The equity ratio stands at 91.17%, which underscores strong equity financing. However, ROE has decreased to 3.09%, suggesting room for improvement in profitability relative to equity.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth, down by 38.52%. The operating cash flow to net income ratio is 1.55, indicating strong cash generation relative to earnings. However, the free cash flow to net income ratio of 1.11 suggests potential constraints in free cash flow growth.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.36B	6.10B	5.88B	5.64B	6.08B
Gross Profit	1.62B	1.53B	1.52B	1.64B	1.53B
EBITDA	1.16B	1.20B	629.60M	1.12B	1.17B
Net Income	596.43M	773.22M	384.74M	727.94M	292.59M
Balance Sheet
Total Assets	21.16B	21.85B	20.49B	20.32B	20.05B
Cash, Cash Equivalents and Short-Term Investments	9.72B	9.86B	9.01B	9.18B	8.75B
Total Debt	670.00M	670.00M	670.00M	670.00M	670.00M
Total Liabilities	1.87B	2.10B	1.45B	1.58B	1.67B
Stockholders Equity	19.29B	19.74B	19.04B	18.74B	18.38B
Cash Flow
Free Cash Flow	663.21M	1.08B	204.86M	647.56M	1.13B
Operating Cash Flow	921.97M	1.17B	553.28M	844.39M	1.29B
Investing Cash Flow	-464.86M	140.87M	-325.52M	-221.19M	-176.09M
Financing Cash Flow	-597.10M	-449.51M	-404.59M	-187.93M	-197.69M

Sato Foods Industries Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2602.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2814, the sentiment is Positive. The current price of 2602 is above the 20-day moving average (MA) of 2438.20, above the 50-day MA of 2386.60, and above the 200-day MA of 2234.84, indicating a bullish trend. The MACD of 65.79 indicates Negative momentum. The RSI at 83.52 is Negative, neither overbought nor oversold. The STOCH value of 92.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2814.

Sato Foods Industries Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2814	75 Outperform	¥15.73B	14.55		1.54%	6.74%	-10.71%
2892	75 Outperform	¥17.76B	11.16		2.63%	-2.63%	3.18%
2813	71 Outperform	¥8.76B	7.47		2.56%	3.41%	-7.39%
Sector *	63 Neutral	$20.98B	14.59	-8.07%	3.13%	2.83%	-9.85%
2806	62 Neutral	¥14.00B	23.69		1.98%	2.80%	28.76%
2818	61 Neutral	¥12.10B	109.02		1.38%	10.84%	-18.43%
2901	56 Neutral	¥13.92B	24.90		0.32%	4.29%	―