Sato Holdings (6287) AI Stock Analysis

• Market Cap: ¥77.24B
• Dividend Yield: 3.06%
• Average Volume (3M): 86.85K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.77
• Revenue Growth: 4.82%
• EPS Growth: 55.73%
• Country: JP
• Employees: 5,744
• Sector: Industrials
• Sector Strength: 72
• Industry: Communication Equipment
• EPS (TTM): 56.71
• Shares Outstanding: 33,635,940
• 10 Day Avg. Volume: 92,120
• 30 Day Avg. Volume: 86,846
• PEG Ratio: 0.10
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 10.17
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥2,630.00 ▲(10.27% Upside)

Sato Holdings is well-positioned with strong financial performance and an attractive valuation. The technical indicators support a positive trend, though caution is advised due to potential overbought conditions. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Sato Holdings' consistent revenue growth indicates expanding market reach and product adoption, supporting long-term business sustainability.

Gross Profit Margin

A strong gross profit margin suggests effective cost management and pricing power, enhancing the company's competitive position and profitability.

Balance Sheet Health

A low debt-to-equity ratio indicates prudent leverage management, providing financial stability and flexibility for future growth initiatives.

Negative Factors

Cash Flow Management

While cash flow is positive, the relatively low free cash flow to net income ratio suggests potential inefficiencies in cash conversion, which could impact liquidity.

EBIT Margin Decline

A decline in EBIT margin may indicate rising operational costs or pricing pressures, which could affect future profitability if not addressed.

Cash Conversion Efficiency

Moderate cash conversion efficiency suggests that the company may face challenges in converting earnings into cash, impacting operational flexibility.

Sato Holdings Business Overview & Revenue Model

Company Description

Sato Holdings Corporation develops, manufactures, and sells labeling products in Japan and internationally. the company operates through Auto-ID Solutions (Japan), Auto-ID Solutions (Overseas), and Inline Digital Printing (IDP) segments. It offers printers, consumables, cloud-based preventative maintenance solution, hand labelers, barcode labels, stickers, primary labels, radio frequency identification tags, troubleshooting assistance, and maintenance services. The company also provides various solutions, such as hardware, consumables, maintenance services and software, demonstrating ROI, and other services; SATO online services, a cloud-based monitoring services for printers that enable preventive maintenance and on-the-spot troubleshooting; and consultation services, as well as develops application software and enables integration with ERP, WMS, and MDM systems. It serves retail/apparel, manufacturing, food, transport and logistics, and health care industries. The company was founded in 1940 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sato Holdings generates revenue through several key streams, primarily from the sale of hardware such as barcode printers, RFID tags, and labeling equipment. Additionally, the company earns income from software solutions that facilitate inventory tracking and data management. Maintenance services and consumables such as labels and ribbons also contribute significantly to their revenue. Sato has established partnerships with various businesses across different sectors, enabling them to integrate their solutions into a wide range of operational frameworks, thereby enhancing customer retention and driving repeat business.

Sato Holdings Financial Statement Overview

Summary

Sato Holdings shows strong revenue growth and stable profitability with a solid balance sheet. The company has effective leverage and equity utilization, but the decline in free cash flow growth poses a potential risk. Continued focus on cash flow management and profitability enhancement will be crucial for sustaining growth.

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	156.97B	154.81B	143.45B	142.82B	124.78B	109.05B
Gross Profit	63.79B	63.47B	59.12B	56.69B	50.40B	45.74B
EBITDA	16.58B	17.90B	11.10B	12.52B	10.64B	10.25B
Net Income	7.18B	7.15B	3.56B	4.18B	3.79B	12.96B
Balance Sheet
Total Assets	140.66B	139.76B	132.46B	122.86B	120.00B	109.31B
Cash, Cash Equivalents and Short-Term Investments	26.76B	27.48B	25.08B	21.92B	29.85B	33.04B
Total Debt	17.25B	20.91B	17.65B	15.52B	15.73B	15.35B
Total Liabilities	57.00B	59.52B	58.37B	55.16B	55.50B	49.85B
Stockholders Equity	79.83B	76.55B	71.30B	65.48B	63.16B	58.30B
Cash Flow
Free Cash Flow	6.89B	6.74B	4.84B	-2.07B	-451.00M	1.49B
Operating Cash Flow	12.36B	12.47B	12.56B	5.19B	3.30B	5.81B
Investing Cash Flow	-7.25B	-8.21B	-7.93B	2.29B	-3.74B	-102.00M
Financing Cash Flow	-3.48B	-2.08B	-1.75B	-6.31B	-3.99B	-7.13B

Sato Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2385.00
• 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 2385 is below the 20-day moving average (MA) of 2406.50, above the 50-day MA of 2320.42, and above the 200-day MA of 2147.42, indicating a bullish trend. The MACD of 17.10 indicates Positive momentum. The RSI at 55.77 is Neutral, neither overbought nor oversold. The STOCH value of 64.39 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
6718	81 Outperform	¥48.07B	17.96	―	4.43%	0.63%	-24.87%
6835	80 Outperform	¥29.51B	6.74	24.14%	0.77%	6.43%	368.06%
6675	79 Outperform	¥37.84B	11.74	―	2.26%	20.13%	33.43%
6287	79 Outperform	¥77.24B	10.79	9.15%	3.06%	4.82%	55.73%
6820	70 Outperform	¥42.81B	18.35	―	2.93%	-0.90%	-13.24%
6822	64 Neutral	¥5.12B	3.93	―	0.53%	4.93%	23.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Sato Holdings Corporate Events

SATO Corporation Updates Medium-term Management Plan for Strategic Growth

SATO Corporation has updated its Medium-term Management Plan for FY 2024-2028 to better align with its 2030 Vision. The company aims to strengthen its core business revenue base and focus on strategic growth areas like smart packaging. New management targets for FY 2028 include sales of JPY 186 billion and operating income of JPY 15.7 billion. The company plans to allocate 70% of its expected JPY 70 billion cash flow to business investments while maintaining a progressive dividend policy.

The most recent analyst rating on (JP:6287) stock is a Buy with a Yen2630.00 price target. To see the full list of analyst forecasts on Sato Holdings stock, see the JP:6287 Stock Forecast page.

SATO Corporation Reports Mixed Financial Results for First Half of FY 2026

SATO Corporation reported its consolidated financial results for the first half of the fiscal year ending March 31, 2026, showing a slight increase in net sales by 2.8% compared to the previous year. However, the company experienced a decline in operating and ordinary income by 11.7% and 8.7%, respectively, which may impact its profitability and market positioning. Despite these challenges, the company’s equity ratio improved, indicating a stronger financial position.

The most recent analyst rating on (JP:6287) stock is a Buy with a Yen2407.00 price target. To see the full list of analyst forecasts on Sato Holdings stock, see the JP:6287 Stock Forecast page.