Satoh & Co., Ltd. (9996) AI Stock Analysis

• Market Cap: ¥20.42B
• Dividend Yield: 2.03%
• Average Volume (3M): 866.00
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.38
• Revenue Growth: 2.66%
• EPS Growth: 1.00%
• Country: JP
• Employees: 689
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 42.10
• Shares Outstanding: 9,152,640
• 10 Day Avg. Volume: 690
• 30 Day Avg. Volume: 866
• PEG Ratio: 1.82
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.35
• P/FCF Ratio: -16.05
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥2,165.00 ▼(-5.21% Downside)

Satoh & Co., Ltd. demonstrates strong financial performance with robust revenue growth and a solid balance sheet, though cash flow issues need attention. Technical analysis indicates a short-term bearish trend, while valuation metrics suggest the stock is reasonably priced. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates successful market penetration and product demand, supporting long-term business expansion and stability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth initiatives.

Profitability

Improved profitability through effective cost management supports sustainable earnings growth and strengthens competitive positioning.

Negative Factors

Cash Flow Issues

Negative operating cash flow suggests challenges in cash generation, potentially impacting liquidity and limiting reinvestment capabilities.

Free Cash Flow

Negative free cash flow indicates higher capital spending, which could strain financial resources and affect long-term financial health.

Operational Cash Management

Inefficient cash conversion from operations may hinder the company's ability to fund growth initiatives and manage financial obligations effectively.

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

Company Description

Satoh & Co., Ltd. (9996) is a Japanese company primarily engaged in the manufacturing and distribution of high-quality industrial materials, particularly focusing on chemicals and their applications in various sectors including automotive, electronics, and construction. The company is known for its commitment to innovation and sustainability, offering a range of products that cater to the evolving needs of its clientele in both domestic and international markets.

How the Company Makes Money

Satoh & Co., Ltd. generates revenue through multiple streams, including the sale of its chemical products to various industries, which account for a significant portion of its earnings. The company also engages in research and development, leading to the creation of specialized products that command higher margins. Additionally, strategic partnerships with other firms in complementary sectors enhance its market reach and distribution capabilities, further contributing to its financial performance. The company's focus on sustainability and eco-friendly solutions has positioned it favorably in the market, attracting clients who prioritize environmentally responsible practices.

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.44B	49.14B	47.61B	43.67B	38.85B	43.61B
Gross Profit	11.01B	10.58B	10.55B	9.74B	8.76B	8.59B
EBITDA	2.37B	2.37B	2.14B	1.68B	1.22B	1.45B
Net Income	1.32B	1.32B	1.23B	968.26M	628.02M	575.75M
Balance Sheet
Total Assets	35.70B	35.60B	37.07B	33.35B	31.31B	31.64B
Cash, Cash Equivalents and Short-Term Investments	9.37B	8.72B	13.08B	11.23B	12.38B	11.75B
Total Debt	719.15M	684.41M	684.86M	685.30M	685.72M	685.02M
Total Liabilities	9.33B	9.33B	11.76B	9.02B	7.69B	7.56B
Stockholders Equity	26.37B	26.27B	25.31B	24.32B	23.63B	24.08B
Cash Flow
Free Cash Flow	0.00	-1.07B	3.12B	569.90M	184.76M	639.71M
Operating Cash Flow	0.00	-230.14M	3.53B	1.33B	809.73M	1.06B
Investing Cash Flow	0.00	-3.78B	-1.87B	-2.23B	-99.46M	1.29B
Financing Cash Flow	0.00	-350.94M	-300.84M	-250.76M	-1.08B	-269.40M

Satoh & Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2284.00
• 50DMA: Positive
• 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:9996, the sentiment is Positive. The current price of 2284 is above the 20-day moving average (MA) of 2149.90, above the 50-day MA of 2059.22, and above the 200-day MA of 2000.74, indicating a bullish trend. The MACD of 70.46 indicates Negative momentum. The RSI at 67.21 is Neutral, neither overbought nor oversold. The STOCH value of 66.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9996.

Satoh & Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7481	78 Outperform	¥20.18B	6.83	―	4.12%	8.87%	-17.91%
8006	78 Outperform	¥29.66B	11.71	―	1.97%	3.15%	27.71%
7520	77 Outperform	¥34.16B	7.59	―	1.94%	6.11%	15.68%
7614	71 Outperform	¥10.22B	10.57	―	2.24%	7.53%	-17.97%
9996	68 Neutral	¥20.42B	14.52	―	2.03%	2.66%	1.00%
8030	68 Neutral	¥13.74B	5.13	―	3.20%	5.19%	11.04%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%