Sato Holdings (6287) AI Stock Analysis

• Market Cap: ¥70.51B
• Dividend Yield: 3.31%
• Average Volume (3M): 80.57K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.80
• Revenue Growth: 5.32%
• EPS Growth: 106.88%
• Country: JP
• Employees: 5,744
• Sector: Industrials
• Sector Strength: 72
• Industry: Communication Equipment
• EPS (TTM): 37.31
• Shares Outstanding: 33,635,940
• 10 Day Avg. Volume: 85,480
• 30 Day Avg. Volume: 80,566
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,583.77
• Price Target Upside: 18.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 81 Outperform
• Price Target: ¥2,584.00 ▲(18.70% Upside)

Sato Holdings scores highly due to strong technical indicators and attractive valuation metrics. Financial performance is solid, though the decline in free cash flow growth is a concern. The absence of earnings call and corporate events data does not affect the overall positive outlook.

Sato Holdings Business Overview & Revenue Model

Company Description

Sato Holdings Corporation, listed under the ticker symbol 6287, specializes in the development and manufacturing of automatic identification and data capture (AIDC) solutions. The company operates primarily in the sectors of manufacturing, retail, logistics, and healthcare, providing a wide range of products such as bar code systems, electronic tags, and RFID (Radio Frequency Identification) technology. Sato Holdings is recognized for its commitment to innovative solutions that enhance efficiency and productivity across various industries.

How the Company Makes Money

Sato Holdings generates revenue through the sale of its AIDC solutions, which include hardware such as barcode printers, labels, and RFID tags, as well as software and related services that support data management and operational efficiency. The company earns money by providing comprehensive solutions that integrate both hardware and software to facilitate seamless tracking and management of goods and information. Sato also enters into partnerships and collaborations with other technology providers and industries to expand its market reach and capabilities, contributing to its revenue growth. Additionally, the company offers maintenance and support services, which provide a recurring revenue stream.

Sato Holdings Financial Statement Overview

Summary

Sato Holdings shows strong revenue growth and stable profitability, supported by a solid balance sheet. Effective leverage and equity utilization are evident, but the decline in free cash flow growth poses a potential risk.

Income Statement

Sato Holdings demonstrates strong revenue growth with a 10% increase in TTM, supported by stable gross profit margins around 41%. The net profit margin has improved to 4.6% in TTM, indicating enhanced profitability. EBIT and EBITDA margins have also shown positive trends, reflecting operational efficiency. However, the net profit margin remains relatively low compared to industry leaders.

Balance Sheet

The company's balance sheet is solid with a manageable debt-to-equity ratio of 0.25, indicating prudent leverage. Return on equity has improved to 9.5% in TTM, showcasing effective use of equity. The equity ratio remains healthy, suggesting a strong capital structure. However, the slight increase in total debt over the periods warrants monitoring.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 6.6% in TTM, which could impact future investments. The operating cash flow to net income ratio is stable, indicating consistent cash generation relative to earnings. However, the free cash flow to net income ratio of 0.54 suggests room for improvement in cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	154.96B	154.81B	143.45B	142.82B	124.78B	109.05B
Gross Profit	63.20B	63.47B	59.12B	56.69B	50.40B	45.74B
EBITDA	16.61B	17.90B	11.10B	12.52B	10.64B	10.25B
Net Income	7.17B	7.15B	3.56B	4.18B	3.79B	12.96B
Balance Sheet
Total Assets	140.16B	139.76B	132.46B	122.86B	120.00B	109.31B
Cash, Cash Equivalents and Short-Term Investments	26.34B	27.48B	25.08B	21.92B	29.85B	33.04B
Total Debt	18.74B	19.49B	17.65B	15.52B	15.73B	15.35B
Total Liabilities	59.02B	59.52B	58.37B	55.16B	55.50B	49.85B
Stockholders Equity	77.25B	76.55B	71.30B	65.48B	63.16B	58.30B
Cash Flow
Free Cash Flow	6.29B	6.74B	4.84B	-2.07B	-451.00M	1.49B
Operating Cash Flow	11.38B	12.47B	12.56B	5.19B	3.30B	5.81B
Investing Cash Flow	-7.30B	-8.21B	-7.93B	2.29B	-3.74B	-102.00M
Financing Cash Flow	-1.58B	-2.08B	-1.75B	-6.31B	-3.99B	-7.13B

Sato Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2177.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6287, the sentiment is Positive. The current price of 2177 is below the 20-day moving average (MA) of 2266.84, below the 50-day MA of 2187.42, and above the 200-day MA of 2081.41, indicating a bullish trend. The MACD of 27.96 indicates Positive momentum. The RSI at 55.31 is Neutral, neither overbought nor oversold. The STOCH value of 21.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6287.

Sato Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6822	82 Outperform	¥5.05B	3.87	14.88%	0.51%	1.33%	13.09%
6287	81 Outperform	¥70.51B	10.27	9.51%	3.31%	5.32%	106.88%
6835	80 Outperform	¥22.30B	6.04	18.52%	0.97%	7.81%	301.96%
6718	80 Outperform	¥44.18B	18.65	5.42%	4.53%	-2.28%	-43.48%
6820	74 Outperform	¥43.49B	19.02	―	2.74%	-1.19%	-30.24%
6675	73 Outperform	¥28.65B	7.74	11.38%	2.69%	16.42%	79.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Sato Holdings Corporate Events

Sato Holdings Reports Mixed Financial Results for Q1 FY2025

Sato Holdings reported a slight increase in net sales for the first quarter of fiscal year 2025, with a 0.4% rise compared to the previous year. However, the company experienced a decline in operating and ordinary income, which fell by 17.6% and 21.8% respectively. Despite these challenges, the company maintained a stable equity ratio and announced a forecasted increase in annual dividends, signaling confidence in future growth. The financial results highlight the company’s resilience in a competitive market, though the decline in income may concern stakeholders.

SATO Corporation Increases Year-End Dividend Amid Strong Financial Performance

SATO Corporation announced an increase in its year-end dividend for the fiscal year ended March 31, 2025, due to net profits exceeding initial forecasts. The total annual dividend will be 75 yen per share, reflecting a two yen increase from the previous year, demonstrating the company’s dedication to returning profits to shareholders while supporting future business growth.

SATO Corporation Announces Extraordinary Income from Subsidiary Merger

SATO Corporation announced an extraordinary income gain of approximately 3.8 billion yen due to the absorption-type merger with its core operating subsidiary, effective April 1, 2025. This gain will appear in the non-consolidated financial statements for the first quarter of the fiscal year ending March 2026, but it will not affect the consolidated financial results.

Sato Holdings Reports Strong Financial Growth for Fiscal Year 2025

Sato Holdings reported strong financial performance for the fiscal year ending March 2025, with significant growth in net sales and income. The company achieved a 7.9% increase in net sales and a remarkable 100.6% rise in net income attributable to owners of the parent, reflecting its robust operational strategies and market positioning. The financial results indicate a solid return on equity and improved cash flows, suggesting positive implications for stakeholders and reinforcing Sato Holdings’ competitive stance in the industry.