Sato Holdings (6287) AI Stock Analysis

• Market Cap: $67.50B
• Dividend Yield: 5.33%
• Average Volume (3M): 85.77K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.88
• Revenue Growth: 7.92%
• EPS Growth: 100.27%
• Country: JP
• Employees: 5,744
• Sector: Industrials
• Sector Strength: 90
• Industry: Communication Equipment
• EPS (TTM): 48.00
• Shares Outstanding: 33,635,940
• 10 Day Avg. Volume: 100,860
• 30 Day Avg. Volume: 85,770
• PEG Ratio: 0.15
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.09
• 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: $2,197.82
• Price Target Upside: 5.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥2,276.00 ▲(9.21%Upside)

Sato Holdings' overall stock score reflects its strong financial performance and attractive valuation, which are the most significant factors. Despite the bearish momentum indicated by technical analysis, the company's robust earnings growth and sound cash flow generation position it well for future stability and potential appreciation.

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 presents a strong financial profile with consistent revenue and profitability improvements. The company has effectively managed its costs and leveraged its assets, resulting in improved margins and returns. While the balance sheet is healthy, further strengthening of equity could enhance stability. Overall, the company's cash flow position is robust, supporting its growth and operational needs.

Income Statement

Sato Holdings has demonstrated strong revenue growth over the years, with a notable rise from JPY 109,052 million in 2021 to JPY 154,807 million in 2025. The Gross Profit Margin is robust, consistently above 40%, indicating efficient cost management. The Net Profit Margin has improved significantly from negative in 2020 to positive figures, reaching approximately 4.6% in 2025, showcasing improved profitability. The EBIT and EBITDA margins have also seen improvements, highlighting strong operational performance.

Balance Sheet

The company's balance sheet shows a healthy equity position, with Stockholders' Equity increasing to JPY 76,552 million in 2025. The Debt-to-Equity ratio remains low, suggesting prudent financial leverage. Return on Equity has improved, reflecting better profitability and asset utilization. However, the Equity Ratio is slightly below industry norms, indicating potential room for strengthening the equity base.

Cash Flow

Cash flow generation is robust, with Free Cash Flow turning positive in recent years, reaching JPY 6,735 million in 2025. The Operating Cash Flow to Net Income ratio is strong, indicating good cash conversion from earnings. Free Cash Flow growth is evident, showing a positive trajectory and indicating sound capital expenditure management.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	154.81B	143.45B	142.82B	124.78B	109.05B
Gross Profit	63.47B	59.12B	56.69B	50.40B	45.74B
EBITDA	17.90B	11.10B	13.96B	10.86B	10.25B
Net Income	7.15B	3.56B	4.18B	3.79B	12.96B
Balance Sheet
Total Assets	139.76B	132.46B	122.86B	120.00B	109.31B
Cash, Cash Equivalents and Short-Term Investments	27.48B	25.08B	21.92B	29.85B	33.04B
Total Debt	19.49B	17.65B	15.52B	15.73B	15.35B
Total Liabilities	59.52B	58.37B	55.16B	55.50B	49.85B
Stockholders Equity	76.55B	71.30B	65.48B	63.16B	58.30B
Cash Flow
Free Cash Flow	6.74B	4.84B	-2.07B	-451.00M	1.49B
Operating Cash Flow	12.47B	12.56B	5.19B	3.30B	5.81B
Investing Cash Flow	-8.21B	-7.93B	2.29B	-3.74B	-102.00M
Financing Cash Flow	-2.08B	-1.75B	-6.31B	-3.99B	-7.13B

Sato Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2084.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 2084 is above the 20-day moving average (MA) of 2059.00, above the 50-day MA of 2035.38, and below the 200-day MA of 2086.95, indicating a neutral trend. The MACD of 16.19 indicates Negative momentum. The RSI at 58.85 is Neutral, neither overbought nor oversold. The STOCH value of 65.40 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	¥44.82B	12.40		7.66%	3.23%	-22.14%
6675	80 Outperform	¥23.86B	6.77		0.73%	7.38%	25.90%
6822	80 Outperform	¥4.15B	4.00		―	3.30%	36.77%
6835	80 Outperform	$17.88B	4.96	20.51%	1.81%	10.80%	484.38%
6287	74 Outperform	$67.50B	9.46	9.56%	5.33%	7.92%	100.27%
6820	74 Outperform	¥40.85B	13.84		5.45%	-1.34%	-14.87%
Sector *	71 Outperform	¥255.75B	13.62	8.48%	4.48%	6.34%	13.16%

Sato Holdings Corporate Events

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.