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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)

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Outperform 75 (OpenAI - 4o)
Rating:75Outperform
Price Target:
¥2,694.00
▼(-14.75% Downside)
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. (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 prominent food manufacturing company based in Japan, specializing in the production of processed foods, including sauces, seasonings, and ready-to-eat meals. The company operates in the food and beverage sector, catering to both retail and food service markets. Sato Foods is known for its commitment to quality and innovation, offering a diverse range of products that meet the evolving tastes and preferences of consumers.
How the Company Makes MoneySato Foods Industries generates revenue primarily through the sale of its food products, which include a variety of sauces, seasonings, and convenience meals. The company markets its products to both domestic and international customers, leveraging distribution agreements with retailers and food service providers. Key revenue streams include direct sales to supermarkets, online platforms, and partnerships with restaurants and catering services. Additionally, Sato Foods may benefit from brand loyalty and repeat purchases, as well as potential collaborations with other food brands that enhance its market presence and product offerings.

Sato Foods Industries Co., Ltd. Financial Statement Overview

Summary
Sato Foods Industries Co., Ltd. exhibits strong operational efficiency and financial stability, with low leverage and robust equity ratios. However, declining net profit margin and free cash flow suggest the need for improvements in profitability and cash generation.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.56B6.36B6.10B5.88B5.64B6.08B
Gross Profit1.65B1.63B1.54B1.52B1.64B1.53B
EBITDA1.07B1.16B1.20B629.60M1.12B1.17B
Net Income676.00M596.43M773.22M384.74M727.94M292.59M
Balance Sheet
Total Assets21.60B21.16B21.85B20.49B20.32B20.05B
Cash, Cash Equivalents and Short-Term Investments8.91B9.72B9.86B9.01B9.18B8.75B
Total Debt670.00M670.00M670.00M670.00M670.00M670.00M
Total Liabilities2.03B1.87B2.10B1.45B1.58B1.67B
Stockholders Equity19.57B19.29B19.74B19.04B18.74B18.38B
Cash Flow
Free Cash Flow0.00663.21M1.08B204.86M647.56M1.13B
Operating Cash Flow0.00921.97M1.17B553.28M844.39M1.29B
Investing Cash Flow0.00-464.86M140.87M-325.52M-221.19M-176.09M
Financing Cash Flow0.00-597.10M-449.51M-404.59M-187.93M-197.69M

Sato Foods Industries Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3160.00
Price Trends
50DMA
3106.56
Positive
100DMA
2726.71
Positive
200DMA
2485.81
Positive
Market Momentum
MACD
11.49
Positive
RSI
47.25
Neutral
STOCH
31.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2814, the sentiment is Neutral. The current price of 3160 is below the 20-day moving average (MA) of 3272.20, above the 50-day MA of 3106.56, and above the 200-day MA of 2485.81, indicating a neutral trend. The MACD of 11.49 indicates Positive momentum. The RSI at 47.25 is Neutral, neither overbought nor oversold. The STOCH value of 31.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2814.

Sato Foods Industries Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥10.50B17.451.27%6.74%-10.71%
71
Outperform
¥8.44B7.193.13%3.41%-7.39%
68
Neutral
¥14.60B24.701.90%2.80%28.76%
64
Neutral
¥17.17B10.793.58%-2.63%3.18%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
61
Neutral
¥14.68B27.790.52%4.28%
56
Neutral
¥12.09B108.901.38%10.84%-18.43%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2814
Sato Foods Industries Co., Ltd.
3,160.00
1,178.49
59.47%
JP:2806
Yutaka Foods Corporation
2,101.00
37.99
1.84%
JP:2813
Wakou Shokuhin Co., Ltd.
3,090.00
-2,036.89
-39.73%
JP:2818
Pietro Co., Ltd.
1,740.00
-0.36
-0.02%
JP:2892
Nihon Shokuhin Kako Co., Ltd.
3,495.00
795.29
29.46%
JP:2901
Ishigaki Foods Co., Ltd.
658.00
22.37
3.52%
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 26, 2025