Consistent Revenue GrowthSato Foods' recurring revenue expansion demonstrates steady end-market demand and increasing product adoption across channels. Over 2-6 months this supports scale benefits, predictable top-line that can fund incremental investment, absorb cost shocks and underpin strategic initiatives.

Healthy Gross Margin & Stable Operating MarginsA roughly 24.7% gross margin and stable EBIT/EBITDA margins indicate durable pricing power and operational control in production. This margin base supports reinvestment and resilience to input cost volatility, helping preserve profitability over the medium term.

Diversified Channels & Distribution PartnershipsBroad retailer, foodservice and industrial distribution plus major supermarket partnerships create diversified revenue streams and scale economics. This structural market access enhances bargaining power, steadier demand and lowers per-unit costs, strengthening long-term competitive positioning.

Bears Say

Higher LeverageAn elevated D/E of 0.83 raises financing risk and reduces balance sheet flexibility. Over months, higher interest or refinancing needs could constrain capital allocation, amplify earnings sensitivity to rates, and limit the firm's ability to fund growth or deleverage quickly.

Negative Free Cash FlowPersistent negative free cash flow, despite better operating cash generation, suggests heavy capex or working capital strain. This restricts capacity to repay debt, invest organically or return capital, making financing and operational choices more constrained over the medium term.

Declining Net Profit Margin And ROEFalling net margin and lower ROE point to weakening profitability on shareholder capital. Over 2-6 months this reduces internal funding for growth, weakens returns expectations and magnifies the impact of leverage and cash flow issues on long-term financial health.

2923 FAQ

What was Sato Foods Co., Ltd.’s price range in the past 12 months?

Sato Foods Co., Ltd. lowest stock price was ¥6500.00 and its highest was ¥9680.00 in the past 12 months.

What is Sato Foods Co., Ltd.’s market cap?

Sato Foods Co., Ltd.’s market cap is ¥37.83B.

When is Sato Foods Co., Ltd.’s upcoming earnings report date?

Sato Foods Co., Ltd.’s upcoming earnings report date is Mar 05, 2026 which is in 17 days.

How were Sato Foods Co., Ltd.’s earnings last quarter?

Sato Foods Co., Ltd. released its earnings results on Dec 10, 2025. The company reported ¥167.96 earnings per share for the quarter, beating the consensus estimate of N/A by ¥167.96.

Is Sato Foods Co., Ltd. overvalued?

According to Wall Street analysts Sato Foods Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Sato Foods Co., Ltd. pay dividends?

Sato Foods Co., Ltd. pays a Annually dividend of ¥65 which represents an annual dividend yield of 0.8%. See more information on Sato Foods Co., Ltd. dividends here

What is Sato Foods Co., Ltd.’s EPS estimate?

Sato Foods Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Sato Foods Co., Ltd. have?

Sato Foods Co., Ltd. has 5,075,500 shares outstanding.

What happened to Sato Foods Co., Ltd.’s price movement after its last earnings report?

Sato Foods Co., Ltd. reported an EPS of ¥167.96 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 0.872%.

Which hedge fund is a major shareholder of Sato Foods Co., Ltd.?

Currently, no hedge funds are holding shares in JP:2923

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 Co., Ltd.

Sato Foods Co., Ltd. produces and sells packaged mochi rice cakes and packaged cooked rice in Japan. It offers products under the Sato no Gohan, Kirimochi, and Usagimochi brands. The company was founded in 1950 and is headquartered in Niigata, Japan.