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

• Market Cap: ¥39.09B
• Dividend Yield: 0.9%
• Average Volume (3M): 1.03K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.18
• Revenue Growth: 8.40%
• EPS Growth: -30.66%
• Country: JP
• Employees: 631
• Sector: Consumer Defensive
• Sector Strength: 69
• Industry: Packaged Foods
• EPS (TTM): 232.00
• Shares Outstanding: 5,075,500
• 10 Day Avg. Volume: 830
• 30 Day Avg. Volume: 1,030
• PEG Ratio: -1.04
• Price to Book (P/B): 1.65
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥8,177.00 ▲(5.24%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. has strong revenue growth and a robust balance sheet with moderate leverage. However, the declining net margins and free cash flow challenges pose risks to future profitability and liquidity. Operational efficiency and cash flow management need improvement.

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
	EBIT
1.92B	2.66B	2.25B	2.70B	1.93B	953.00M
	EBITDA
3.89B	5.43B	4.88B	4.99B	4.30B	3.12B
	Net Income Common Stockholders
1.75B	2.30B	1.84B	1.94B	1.49B	688.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.92B	2.67B	3.48B	1.67B	359.59M	306.48M
	Total Assets
47.27B	43.74B	39.27B	36.35B	31.76B	32.62B
	Total Debt
15.71B	15.68B	14.16B	12.18B	10.07B	12.60B
	Net Debt
13.80B	13.02B	10.69B	10.51B	9.72B	12.29B
	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: Positive
• Last Price: 7770.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2923, the sentiment is Positive. The current price of 7770 is above the 20-day moving average (MA) of 7516.00, above the 50-day MA of 7428.65, and above the 200-day MA of 7370.38, indicating a bullish trend. The MACD of 87.66 indicates Negative momentum. The RSI at 61.24 is Neutral, neither overbought nor oversold. The STOCH value of 93.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥35.94B	10.21		2.74%	11.22%	49.40%
2915	75 Outperform	¥29.91B	8.26		2.34%	3.36%	30.33%
2923	71 Outperform	¥39.09B	22.35		0.90%	8.40%	-30.66%
2918	66 Neutral	¥39.70B	14.80		3.96%	7.47%	-37.31%
Sector *	65 Neutral	$8.94B	14.98	4.76%	203.76%	3.54%	-2.49%
2910	64 Neutral	¥39.62B	50.91		1.54%	0.78%	-40.15%
2831	60 Neutral	¥30.21B	12.26		1.87%	1.56%	40.56%