Sato Holdings (6287) AI Stock Analysis

• Market Cap: ¥80.90B
• Dividend Yield: 3.06%
• Average Volume (3M): 86.85K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.73
• Revenue Growth: 4.82%
• EPS Growth: 55.73%
• Country: JP
• Employees: 5,744
• Sector: Industrials
• Sector Strength: 72
• Industry: Communication Equipment
• EPS (TTM): 63.23
• 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): 212.75
• Revenue Forecast (FY): ¥159.10B

• Rating: 71 Outperform
• Price Target: ¥2,632.00 ▲(10.36% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by solid financial performance (low leverage, improving cash generation, and stable margins), supported by favorable valuation (P/E ~11.3 and ~3.15% dividend yield). Technicals are neutral-to-mildly constructive, with price near short-term averages and only modest momentum indicators.

Positive Factors

Cash generation

Improved operating cash flow and positive free cash flow indicate the business now generates durable internal funding for capex, consumables inventory and software development. This strengthens self-funded growth, supports consistent dividends and gives flexibility for strategic investments over the next 2–6 months.

Low leverage

Conservative leverage provides financial flexibility to withstand demand swings and pursue opportunistic investments or M&A. Low debt reduces refinancing and covenant risk, supporting stable capital allocation (dividends, buybacks, capex) and resilience across industry cycles.

Stable gross & operating margins

High gross margin reflects structural pricing power in labels, printers and consumables, while positive operating margins show recurring profitability. These margins underpin sustainable cash conversion and competitiveness in AIDC solutions, supporting steady operating performance over months.

Negative Factors

Modest net margin

A modest net margin limits retained earnings and the firm's ability to translate revenue growth into shareholder returns. It increases sensitivity to SG&A, material or FX pressures and constrains capital for R&D or acquisitions without external funding, affecting long-term profitability expansion.

FCF volatility

Historical swings to negative free cash flow and below‑par FCF conversion versus net income signal execution and working‑capital risks. This volatility can stress reinvestment plans and payouts during downturns and makes future cash planning and sustained investment less predictable.

Moderate ROE

ROE near 9% denotes only moderate capital efficiency, implying the company needs higher growth or margin expansion to deliver above‑market shareholder returns. Limited return on equity reduces optionality for rapid capital deployment to high‑return projects without diluting owners.

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

Solid fundamentals supported by strong TTM revenue growth, stable ~40.6% gross margin, improving operating cash flow (¥13.1B) and positive free cash flow (¥8.3B), plus conservative leverage (debt-to-equity ~0.22). The score is tempered by modest net margin (~4.6%) and historical cash-flow volatility (negative FCF in FY2022–FY2023) with TTM FCF only ~56% of net income.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew strongly (+2.157 in the dataset) with solid gross margin (~40.6%) and healthy operating profitability (EBIT margin ~6.9%, EBITDA margin ~10.6%). However, net margin remains modest (~4.6%) and profitability has been somewhat inconsistent over the cycle (notably weaker net margin in FY2024 vs FY2025/TTM), suggesting earnings can be sensitive to costs and mix.

Balance Sheet

Leverage is conservative with low debt relative to equity (debt-to-equity ~0.22 in TTM (Trailing-Twelve-Months), improved vs FY2025), providing balance-sheet flexibility. Equity has grown over time and returns on equity are steady around ~9% recently (TTM ~9.3%), though not exceptionally high—indicating a solid but not standout efficiency profile.

Cash Flow

Cash generation has improved meaningfully: TTM (Trailing-Twelve-Months) operating cash flow is strong (¥13.1B) and free cash flow is positive (¥8.3B) with robust growth (per dataset). That said, free cash flow is only about ~56% of net income in TTM (Trailing-Twelve-Months), and the business has shown volatility historically (negative free cash flow in FY2022–FY2023), which tempers confidence in consistency.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	160.35B	154.81B	143.45B	142.82B	124.78B	109.05B
Gross Profit	64.10B	63.47B	59.12B	56.69B	50.40B	45.74B
EBITDA	15.94B	17.90B	11.10B	12.52B	10.64B	10.25B
Net Income	6.66B	7.15B	3.56B	4.18B	3.79B	12.96B
Balance Sheet
Total Assets	149.47B	139.76B	132.46B	122.86B	120.00B	109.31B
Cash, Cash Equivalents and Short-Term Investments	29.26B	27.48B	25.08B	21.92B	29.85B	33.04B
Total Debt	21.55B	20.91B	17.65B	15.52B	15.73B	15.35B
Total Liabilities	60.41B	59.52B	58.37B	55.16B	55.50B	49.85B
Stockholders Equity	84.71B	76.55B	71.30B	65.48B	63.16B	58.30B
Cash Flow
Free Cash Flow	8.26B	6.74B	4.84B	-2.07B	-451.00M	1.49B
Operating Cash Flow	13.15B	12.47B	12.56B	5.19B	3.30B	5.81B
Investing Cash Flow	-6.61B	-8.21B	-7.93B	2.29B	-3.74B	-102.00M
Financing Cash Flow	-5.73B	-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: Negative
• RSI: Neutral
• STOCH: Negative

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 2414.85, below the 50-day MA of 2396.42, and above the 200-day MA of 2214.98, indicating a bullish trend. The MACD of 31.35 indicates Negative momentum. The RSI at 64.95 is Neutral, neither overbought nor oversold. The STOCH value of 87.29 is Negative, 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	¥46.00B	18.70	―	4.43%	0.63%	-24.87%
6287	71 Outperform	¥80.90B	12.18	9.15%	3.06%	4.82%	55.73%
6820	70 Outperform	¥46.57B	22.04	―	2.93%	-0.90%	-13.24%
6835	68 Neutral	¥30.98B	10.78	24.14%	0.77%	6.43%	368.06%
6703	67 Neutral	¥287.08B	15.67	7.16%	2.31%	-2.36%	-61.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6771	60 Neutral	¥5.08B	7.48	―	2.01%	13.56%	―

Sato Holdings Corporate Events

SATO Posts Higher Sales but Lower Profits, Keeps Full-Year Outlook and Dividend

SATO Corporation reported consolidated net sales of ¥121.8 billion for the nine months to December 31, 2025, up 4.8% year on year, but operating income fell 12.1% to ¥8.7 billion and net income attributable to owners of the parent declined 8.7% to ¥5.1 billion. Despite the profit slowdown, total assets and net assets increased, the equity ratio improved to 56.7%, and the company maintained its full-year forecast, including a slight year-on-year decline in earnings and a stable annual dividend of ¥76 per share, signaling cautious confidence and continued shareholder returns.

The most recent analyst rating on (JP:6287) stock is a Buy with a Yen2589.00 price target. To see the full list of analyst forecasts on Sato Holdings stock, see the JP:6287 Stock Forecast page.

SATO Revamps Board and Audit Structure With New External and Oversight Appointments

SATO Corporation has announced a slate of board and governance changes, including the reappointment of its current president and key internal directors, alongside the addition of two new external directors, governance specialist Yukari Sakai and medical-sector expert Katsuyuki Kondo, while one external director, Ryoji Itoh, will retire. The company is also reshaping its oversight framework by appointing long-time SATO executive Yoshimi Abe and former audit-firm professional Masato Ito as full-time Audit & Supervisory Board members, replacing retiring member Kiyohiko Yoshii, moves that collectively signal an effort to strengthen corporate governance, deepen external expertise—particularly in healthcare and compliance—and reinforce internal control as SATO navigates its strategic and regulatory environment.

The most recent analyst rating on (JP:6287) stock is a Buy with a Yen2589.00 price target. To see the full list of analyst forecasts on Sato Holdings stock, see the JP:6287 Stock Forecast page.

SATO External Director Hiroshi Nagumo to Resign at End of March 2026

SATO Corporation has announced that External Director Hiroshi Nagumo will resign from the board effective March 31, 2026, citing personal reasons. The company emphasized that, even after his departure, it will continue to satisfy the legal and statutory requirements regarding the number of directors, indicating that corporate governance and board functionality are expected to remain intact for shareholders and other stakeholders.

The most recent analyst rating on (JP:6287) stock is a Buy with a Yen2589.00 price target. To see the full list of analyst forecasts on Sato Holdings stock, see the JP:6287 Stock Forecast page.

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.