Sato Holdings (6287) AI Stock Analysis

• Market Cap: $72.68B
• Dividend Yield: 3.38%
• Average Volume (3M): 74.20K
• Price to Earnings (P/E): 10.2
• 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: 65,450
• 30 Day Avg. Volume: 74,196
• 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: 0.87
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 1.00
• Enterprise Value/Ebitda: 3.81
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥2,407.00 ▲(8.47% Upside)

Sato Holdings' strong financial performance and attractive valuation are the primary strengths, supporting a favorable stock score. However, technical indicators suggest potential bearish momentum, which slightly offsets the positive aspects. The absence of recent earnings call insights or significant corporate events means these factors do not influence the score.

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, 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: 2219.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 2219 is above the 20-day moving average (MA) of 2206.20, below the 50-day MA of 2229.85, and above the 200-day MA of 2090.31, indicating a neutral trend. The MACD of -2.94 indicates Negative momentum. The RSI at 50.68 is Neutral, neither overbought nor oversold. The STOCH value of 52.01 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	¥43.34B	16.19	―	4.61%	0.63%	-24.87%
6835	81 Outperform	¥22.94B	6.16	21.29%	0.96%	7.81%	301.96%
6675	80 Outperform	¥32.12B	8.40	―	2.41%	16.42%	79.16%
6820	74 Outperform	¥46.07B	20.25	―	2.57%	-1.19%	-30.24%
6287	73 Outperform	$72.68B	10.17	9.51%	3.38%	5.32%	106.88%
6822	73 Outperform	¥4.93B	3.79	―	0.44%	4.93%	23.91%
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.