Sato Foods Co., Ltd. (2923) AI Stock Analysis

• Market Cap: ¥35.91B
• Dividend Yield: 10.26%
• Average Volume (3M): 1.57K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.17
• Revenue Growth: 8.40%
• EPS Growth: -30.66%
• Country: JP
• Employees: 631
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Packaged Foods
• EPS (TTM): 232.00
• Shares Outstanding: 5,075,500
• 10 Day Avg. Volume: 2,210
• 30 Day Avg. Volume: 1,566
• PEG Ratio: 0.00
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.18
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥8,177.00 ▲(14.85%Upside)

Sato Foods Co., Ltd. shows strengths in revenue growth and a solid balance sheet with moderate leverage, which supports its position in the industry. However, declining net profit margins and free cash flow indicate potential risks to profitability and liquidity. The technical indicators reflect a stable trend with cautious momentum, while the valuation suggests moderate market expectations. These factors collectively result in a balanced overall stock score.

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

Company Description

Sato Foods Co., Ltd. is a Japanese company engaged in the production and distribution of food products. The company specializes in the development of instant and processed foods, with a strong focus on rice-based products. Sato Foods offers a wide range of convenient, high-quality food items that cater to the needs of busy consumers seeking quick and easy meal solutions.

How the Company Makes Money

Sato Foods Co., Ltd. generates revenue through the manufacturing and sale of its diverse range of food products. The company's primary revenue streams include retail sales of its instant and processed foods, which are distributed through various channels such as supermarkets, convenience stores, and online platforms. Additionally, Sato Foods may engage in strategic partnerships with other food companies for product development and distribution, further enhancing its market reach and revenue potential. The company's focus on innovation and quality helps maintain a loyal customer base and drives sales growth.

Sato Foods Co., Ltd. Financial Statement Overview

Summary

Sato Foods Co., Ltd. demonstrates solid revenue growth and a robust balance sheet with moderate leverage. However, challenges are present with declining net margins and free cash flow issues, which may impact future profitability and liquidity.

Income Statement

Sato Foods Co., Ltd. has shown steady growth in revenue with a TTM (Trailing-Twelve-Months) revenue of ¥45.04 billion, a 5.77% increase from ¥42.58 billion in the previous annual report. The gross profit margin is strong at 24.34%, though slightly down from the previous year. Net profit margin decreased to 3.89% from 5.39%, indicating rising operational challenges. EBIT and EBITDA margins are 4.27% and 8.64%, respectively, showing stable operating efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.71, showing moderate leverage. The equity ratio stands at 46.89%, indicating a substantial portion of assets financed by equity. Return on equity (ROE) has decreased slightly to 7.91% from 11.15% in the previous year, suggesting declining profitability from an equity perspective.

Cash Flow

The cash flow statement indicates challenges, with free cash flow growth showing volatility. The previous year reported negative free cash flow, and the TTM data shows no free cash flow, highlighting potential liquidity issues. Operating cash flow to net income ratio is not available due to missing operating cash flow data, pointing to potential operational inefficiencies.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	45.04B	42.58B	39.67B	39.05B	46.94B	44.89B
Gross Profit	10.96B	11.16B	10.01B	10.42B	19.04B	17.54B
EBITDA	3.89B	5.43B	4.88B	4.99B	4.30B	3.12B
Net Income	1.75B	2.30B	1.84B	1.94B	1.49B	688.00M
Balance Sheet
Total Assets	47.27B	43.74B	39.27B	36.35B	31.76B	32.62B
Cash, Cash Equivalents and Short-Term Investments	1.92B	2.67B	3.48B	1.67B	359.59M	306.48M
Total Debt	15.71B	15.68B	14.16B	12.18B	10.07B	12.60B
Total Liabilities	25.11B	23.15B	21.01B	19.87B	16.89B	19.15B
Stockholders Equity	22.16B	20.59B	18.26B	16.48B	14.87B	13.47B
Cash Flow
Free Cash Flow	0.00	-1.93B	393.62M	-398.92M	2.76B	-1.91B
Operating Cash Flow	0.00	2.16B	3.04B	1.60B	4.85B	2.30B
Investing Cash Flow	0.00	-4.12B	-2.88B	-2.09B	-2.17B	-4.15B
Financing Cash Flow	0.00	1.15B	1.65B	1.80B	-2.63B	1.81B

Sato Foods Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7120.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2923, the sentiment is Negative. The current price of 7120 is below the 20-day moving average (MA) of 7414.50, below the 50-day MA of 7456.94, and below the 200-day MA of 7355.85, indicating a bearish trend. The MACD of -114.46 indicates Positive momentum. The RSI at 36.87 is Neutral, neither overbought nor oversold. The STOCH value of 31.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2923.

Sato Foods Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3139	79 Outperform	¥36.99B	10.46		2.70%	11.22%	49.40%
2915	75 Outperform	¥27.59B	7.65		2.24%	3.36%	29.57%
2923	71 Outperform	¥35.91B	18.42		10.26%	8.40%	-30.66%
Sector *	68 Neutral	S$3.36B	16.76	-11.82%	6.07%	5.14%	-8.01%
2831	68 Neutral	¥30.40B	12.36		1.85%	1.56%	40.56%
2918	66 Neutral	¥42.26B	15.78		3.73%	7.47%	-37.31%
2910	64 Neutral	¥41.29B	123.34		262.11%	0.78%	-40.15%