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Satoh & Co., Ltd. (JP:9996)
:9996
Japanese Market
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Satoh & Co., Ltd. (9996) AI Stock Analysis

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JP:9996

Satoh & Co., Ltd.

(9996)

Rating:74Outperform
Price Target:
¥2,330.00
▲(13.11% Upside)
Satoh & Co., Ltd. demonstrates strong financial performance with robust revenue growth and a solid balance sheet, although cash flow issues need attention. The stock's technical indicators show positive momentum, and its valuation is attractive with a reasonable P/E ratio and a good dividend yield. These factors collectively contribute to a strong overall stock score.

Satoh & Co., Ltd. (9996) vs. iShares MSCI Japan ETF (EWJ)

Satoh & Co., Ltd. Business Overview & Revenue Model

Company DescriptionSatoh & Co., Ltd. (9996) is a Japan-based company primarily engaged in the wholesale distribution of various products, including food items, household goods, and industrial supplies. The company operates across multiple sectors, focusing on leveraging its extensive supply chain network to provide high-quality products to retailers and businesses. With a commitment to customer satisfaction and efficiency, Satoh & Co., Ltd. aims to enhance its market presence through strategic partnerships and innovation in distribution methods.
How the Company Makes MoneySatoh & Co., Ltd. generates revenue primarily through its wholesale distribution model, sourcing products from manufacturers and supplying them to retailers and other businesses. Key revenue streams include the sale of food products, which forms a significant portion of their offerings, as well as household goods and industrial supplies. Additionally, the company benefits from economies of scale in its operations, allowing it to negotiate better pricing with suppliers and pass some savings on to customers. Strategic partnerships with both suppliers and customers play a crucial role in enhancing their distribution capabilities and expanding their market reach, further contributing to the company's earnings.

Satoh & Co., Ltd. Financial Statement Overview

Summary
Satoh & Co., Ltd. shows strong revenue growth and profitability, supported by a robust balance sheet with low leverage. However, recent challenges in cash flow generation indicate areas for improvement in operational cash management. The overall financial health is solid, with strengths in revenue and equity, but attention is needed to address cash flow issues to sustain long-term growth.
Income Statement
82
Very Positive
Satoh & Co., Ltd. demonstrates strong revenue growth with a consistent increase in total revenue over the years, reaching ¥49.1 billion in 2025. The gross profit margin is robust at approximately 21.5% for 2025, indicating effective cost management. Net profit margin improved to 2.68% in 2025, reflecting enhanced profitability. The EBIT and EBITDA margins are stable, showing operational efficiency. Overall, the income statement reflects a positive growth trajectory and profitability.
Balance Sheet
75
Positive
The company maintains a healthy balance sheet with a strong equity base, as evidenced by an equity ratio of 73.8% in 2025. The debt-to-equity ratio is low at 0.03, indicating minimal leverage and financial stability. Return on equity improved to 5.01% in 2025, showcasing effective use of equity. The balance sheet is solid, with a focus on maintaining low debt levels and strong equity.
Cash Flow
68
Positive
Cash flow performance is mixed, with a decline in operating cash flow to negative ¥230 million in 2025, indicating potential cash management issues. Free cash flow has also turned negative, reflecting increased capital expenditures. However, the company has historically generated positive free cash flow, suggesting potential for recovery. The operating cash flow to net income ratio is negative, highlighting a need for improved cash generation from operations.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue49.14B49.14B47.61B43.67B38.85B43.61B
Gross Profit10.97B10.58B10.55B9.74B8.76B8.59B
EBITDA2.28B2.37B2.14B1.68B1.22B1.45B
Net Income1.31B1.32B1.23B968.26M628.02M575.75M
Balance Sheet
Total Assets35.60B35.60B37.07B33.35B31.31B32.23B
Cash, Cash Equivalents and Short-Term Investments8.72B8.72B13.08B11.23B12.38B11.75B
Total Debt684.41M684.41M684.86M685.30M685.72M685.02M
Total Liabilities9.33B9.33B11.76B9.02B7.69B8.15B
Stockholders Equity26.27B26.27B25.31B24.32B23.63B24.08B
Cash Flow
Free Cash Flow0.00-1.07B3.12B569.90M184.76M639.71M
Operating Cash Flow0.00-230.14M3.53B1.33B809.73M1.06B
Investing Cash Flow0.00-3.78B-1.87B-2.23B-99.46M1.29B
Financing Cash Flow0.00-350.94M-300.84M-250.76M-1.08B-269.40M

Satoh & Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2060.00
Price Trends
50DMA
2043.52
Positive
100DMA
1983.66
Positive
200DMA
1926.44
Positive
Market Momentum
MACD
4.24
Positive
RSI
49.11
Neutral
STOCH
41.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9996, the sentiment is Neutral. The current price of 2060 is below the 20-day moving average (MA) of 2073.45, above the 50-day MA of 2043.52, and above the 200-day MA of 1926.44, indicating a neutral trend. The MACD of 4.24 indicates Positive momentum. The RSI at 49.11 is Neutral, neither overbought nor oversold. The STOCH value of 41.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9996.

Satoh & Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥31.33B7.44
2.19%5.58%10.61%
82
Outperform
¥20.38B6.95
4.00%8.07%-13.57%
81
Outperform
¥14.94B5.50
2.99%7.29%10.64%
74
Outperform
¥18.32B12.98
2.20%3.00%6.93%
73
Outperform
¥10.13B10.21
2.27%3.37%-28.80%
63
Neutral
$20.50B14.76-2.72%3.09%1.90%-4.74%
¥24.49B10.95
2.20%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9996
Satoh & Co., Ltd.
2,060.00
425.99
26.07%
JP:7481
OIE SANGYO Co., Ltd.
2,242.00
333.15
17.45%
JP:7520
Eco's Co., Ltd.
2,735.00
749.06
37.72%
JP:7614
OM2 Network Co., Ltd.
1,498.00
97.22
6.94%
JP:8006
Yuasa Funashoku Co., Ltd.
5,480.00
1,955.22
55.47%
JP:8030
Chuo Gyorui Co., Ltd.
3,740.00
823.25
28.22%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 28, 2025