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Sato Foods Industries Co., Ltd. (JP:2814)
:2814
Japanese Market
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Sato Foods Industries Co., Ltd. (2814) AI Stock Analysis

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JP:2814

Sato Foods Industries Co., Ltd.

(2814)

Rating:68Neutral
Price Target:
¥2,552.00
▲(9.06%Upside)
Sato Foods Industries Co., Ltd. receives a balanced stock score of 68, driven by solid financial stability and efficiency, as well as fair valuation metrics. While technical indicators suggest a neutral market sentiment, the financial performance underpins potential for steady growth. The absence of earnings call insights or significant corporate events limits further evaluation of future prospects.

Sato Foods Industries Co., Ltd. (2814) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionSato 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 MoneySato 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
75
Positive
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
80
Positive
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
70
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue6.36B6.10B5.88B5.64B6.08B
Gross Profit1.62B1.53B1.52B1.64B1.53B
EBITDA1.16B1.20B629.60M1.12B1.17B
Net Income596.43M773.22M384.74M727.94M292.59M
Balance Sheet
Total Assets21.16B21.85B20.49B20.32B20.05B
Cash, Cash Equivalents and Short-Term Investments9.72B9.86B9.01B9.18B8.75B
Total Debt670.00M670.00M670.00M670.00M670.00M
Total Liabilities1.87B2.10B1.45B1.58B1.67B
Stockholders Equity19.29B19.74B19.04B18.74B18.38B
Cash Flow
Free Cash Flow663.21M1.08B204.86M647.56M1.13B
Operating Cash Flow921.97M1.17B553.28M844.39M1.29B
Investing Cash Flow-464.86M140.87M-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
Negative
Last Price2340.00
Price Trends
50DMA
2350.90
Negative
100DMA
2344.11
Negative
200DMA
2201.27
Positive
Market Momentum
MACD
-1.53
Positive
RSI
47.73
Neutral
STOCH
29.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2814, the sentiment is Negative. The current price of 2340 is below the 20-day moving average (MA) of 2348.40, below the 50-day MA of 2350.90, and above the 200-day MA of 2201.27, indicating a neutral trend. The MACD of -1.53 indicates Positive momentum. The RSI at 47.73 is Neutral, neither overbought nor oversold. The STOCH value of 29.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2814.

Sato Foods Industries Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥10.34B7.84
2.55%5.40%10.69%
75
Outperform
¥16.60B10.81
2.81%-5.97%-37.27%
68
Neutral
¥13.97B15.13
1.71%4.25%-18.59%
65
Neutral
$27.20B15.73-4.29%2.57%1.03%4.90%
62
Neutral
¥14.13B25.71
1.97%4.72%20.48%
56
Neutral
¥12.03B206.60
1.39%10.29%-52.86%
56
Neutral
¥13.71B24.88
0.32%-2.04%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2814
Sato Foods Industries Co., Ltd.
2,350.00
327.09
16.17%
JP:2806
Yutaka Foods Corporation
2,039.00
63.69
3.22%
JP:2813
Wakou Shokuhin Co., Ltd.
3,760.00
-2,200.13
-36.91%
JP:2818
Pietro Co., Ltd.
1,731.00
-42.91
-2.42%
JP:2892
Nihon Shokuhin Kako Co., Ltd.
3,375.00
543.12
19.18%
JP:2901
Ishigaki Foods Co., Ltd.
631.00
419.61
198.50%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 25, 2025