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Sadot Group (SDOT)
NASDAQ:SDOT
US Market

Sadot Group (SDOT) AI Stock Analysis

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Sadot Group

(NASDAQ:SDOT)

60Neutral
Sadot Group's stock reflects a company in transition. Key strengths include significant improvements in profitability and strategic transformation efforts. However, ongoing challenges in technical indicators and cash flow generation weigh down its score. The low P/E ratio suggests an undervalued stock with potential for future gains as operational efficiencies improve. Recent leadership changes and strategic focus on agri-commodities are positive but are tempered by technical and financial challenges.

Sadot Group (SDOT) vs. S&P 500 (SPY)

Sadot Group Business Overview & Revenue Model

Company DescriptionSadot Group Inc. provides supply chain solutions that address growing food security challenges worldwide. The company is involved in the agri-commodity sourcing and trading operations for food/feed products, such as soybean meal, wheat, and corn; and farm operations, including producing grains and tree crops in Southern Africa. The company is also involved in the food service operations across the United States. The company was formerly known as Muscle Maker Inc. and changed its name to Sadot Group Inc. Sadot Group Inc. was incorporated in 2019 and is headquartered in Fort Worth, Texas.
How the Company Makes MoneySadot Group makes money through a variety of revenue streams centered around its core sectors. The company generates income by providing logistics and supply chain solutions to the agriculture and food industries, facilitating the efficient movement of goods from producers to consumers. Key revenue streams include fees for transportation services, warehousing, and supply chain management. Additionally, Sadot Group may engage in strategic partnerships with other companies to expand its market reach and enhance its service offerings, contributing to its earnings.

Sadot Group Financial Statement Overview

Summary
Sadot Group is showing signs of improvement with a positive net income, but faces challenges in revenue growth and cash flow. While leverage management has improved, financial stability remains a concern. Continued efforts are needed to enhance operational efficiency and cash flow conversion.
Income Statement
55
Neutral
The company's revenue experienced a decline of 3.54% from the previous year, indicating challenges in maintaining growth. The gross profit margin has decreased slightly to 0.73% from 1.37%, which is quite low for the industry. However, the net profit margin improved significantly to 0.57% from a negative margin, showing progress in cost management. EBIT and EBITDA margins remain negative, reflecting ongoing operational challenges.
Balance Sheet
60
Neutral
The balance sheet shows a moderate improvement in stockholders' equity, increasing from $20.82 million to $29.19 million. The debt-to-equity ratio has improved, reflecting better leverage management. However, the equity ratio remains relatively low at 17.73%, suggesting limited financial stability. Return on equity has turned positive, indicating improved profitability.
Cash Flow
50
Neutral
The company still faces challenges in generating positive operating cash flow, with a significant negative operating cash flow reported. Free cash flow remains negative, though it has improved slightly compared to the previous year. The ratio of operating cash flow to net income is unfavorable, signaling inefficiencies in translating profits into cash.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
700.94M726.69M161.70M10.35M4.47M
Gross Profit
5.12M9.93M4.39M1.29M-741.26K
EBIT
-11.46M-7.00M-8.12M-9.45M-9.96M
EBITDA
10.54M-5.78M-5.92M-6.89M-9.52M
Net Income Common Stockholders
3.99M-7.82M-7.96M-8.18M-10.10M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.79M1.35M9.90M15.77M4.20M
Total Assets
164.65M178.09M27.23M29.43M10.50M
Total Debt
7.52M8.56M3.56M1.35M1.46M
Net Debt
5.74M7.21M-6.34M-14.41M-2.74M
Total Liabilities
132.28M153.83M10.67M5.04M4.71M
Stockholders Equity
29.19M20.82M16.56M24.39M5.80M
Cash FlowFree Cash Flow
-2.81M-20.94M-795.00K-6.65M-8.57M
Operating Cash Flow
-2.77M-13.41M-198.00K-6.39M-7.79M
Investing Cash Flow
-4.00K-3.46M-5.44M-3.58M-850.33K
Financing Cash Flow
2.64M8.32M-230.00K21.54M12.35M

Sadot Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.48
Price Trends
50DMA
2.27
Negative
100DMA
2.78
Negative
200DMA
3.28
Negative
Market Momentum
MACD
-0.25
Negative
RSI
29.91
Positive
STOCH
30.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SDOT, the sentiment is Negative. The current price of 1.48 is below the 20-day moving average (MA) of 1.60, below the 50-day MA of 2.27, and below the 200-day MA of 3.28, indicating a bearish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 29.91 is Positive, neither overbought nor oversold. The STOCH value of 30.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SDOT.

Sadot Group Risk Analysis

Sadot Group disclosed 55 risk factors in its most recent earnings report. Sadot Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Sadot Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$6.93B11.842.89%3.91%2.59%-21.68%
60
Neutral
$8.68M1.9023.53%-3.54%
47
Neutral
$25.87M-2448.28%38.40%9.06%
AQAQB
43
Neutral
$2.93M-53.80%-46.91%-174.16%
41
Neutral
$11.11M-61.92%-31.59%-350.70%
39
Underperform
$3.41M-580.71%-1.37%79.50%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SDOT
Sadot Group
1.33
-1.99
-59.94%
SANW
S&W Seed Company
5.72
-1.12
-16.37%
AQB
AquaBounty Technologies
0.70
-1.34
-65.69%
LOCL
Local Bounti Corporation
2.59
-0.41
-13.67%
AGRI
AgriFORCE Growing Systems
1.65
-7.64
-82.24%
EDBL
Edible Garden AG , Inc.
2.33
-104.42
-97.82%

Sadot Group Earnings Call Summary

Earnings Call Date:May 14, 2025
(Q4-2024)
|
% Change Since: -51.95%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call was predominantly positive, focusing on the company's first profitable full year, significant revenue growth, and successful strategic transformation into agri commodities. Despite challenges such as lower Q4 margins, delayed restaurant sales, and the impact of drought, the company's strategic achievements and financial improvements were emphasized.
Q4-2024 Updates
Positive Updates
First Profitable Full Year
Sadot Group achieved positive net income for the first time in its history, with a full-year net income of $4 million and EBITDA of $8.9 million, marking an improvement of $11.8 million and $15.1 million respectively over 2023.
Record Revenue Growth
For Q4 2024, the company generated consolidated revenue of $216.2 million and for the full year $700.9 million, reflecting substantial improvements from the previous year.
Strategic Shift to Agri Commodities
The strategic transformation into an emerging player in the global agri commodities market was validated by improved financial performance.
Successful Cost Management
SG&A expenses were reduced by $1.3 million to $9 million, primarily due to reclassifying food service expenses to discontinued operations and converting restaurants to franchises.
Strong Forward Sales and Hedging Performance
The mark-to-market gain on derivative transactions contributed approximately $5.1 million in income for Q4 and $17.1 million for the year.
Negative Updates
Lower Margin Transactions in Q4
The fourth quarter had lower margins potentially due to the commodities traded and geographic mix, though specific commentary on the reasons was limited.
Delayed Restaurant Group Sale
The sale process of the restaurant group has taken longer than expected, although it is moving forward with multiple parties in advanced negotiations.
Impact of Severe Drought on African Operations
Due to severe drought, there was no crop planting in Africa, impacting operational decisions for the period.
Company Guidance
During the Sadot Group Inc. Q4 2024 Earnings Conference Call, CEO Catia Jorge announced that the company achieved a milestone by reporting its first full-year positive net income of $4 million, with a Q4 net income of $0.7 million. The full-year consolidated revenue reached $700.9 million, with Q4 contributing $216.2 million. EBITDA for Q4 was $2.2 million, leading to a full-year EBITDA of $8.9 million, marking substantial improvements of $4.3 million and $15.1 million over the respective periods in 2023. The company also reported a basic earnings per share increase to $1.28 from a negative $1.45 in 2023, while SG&A expenses were reduced by $1.3 million in Q4, totaling $9 million for the year. Sadot Group completed 144 trade-related transactions across 33 countries for the year, with 75 transactions in Q4 alone. The company ended the year with a cash balance of $1.8 million and a working capital surplus of $20.5 million.

Sadot Group Corporate Events

Executive/Board Changes
Sadot Group CEO Catia Jorge Resigns
Neutral
May 8, 2025

On May 7, 2025, Sadot Group Inc. announced the resignation of CEO Catia Jorge, effective June 1, 2025, due to personal reasons. David Hanna, the current Executive Vice President of Sadot Canada, will step in as Interim CEO starting June 2, 2025, for a 90-day period while the company searches for a new CEO. Hanna brings over two decades of management experience in the global agri-food industry, having previously held senior roles at BroadGrain Commodities and Global Food and Ingredients Inc. The transition is expected to be smooth, with the company negotiating a potential consulting agreement with Jorge for strategic advisory services post-resignation.

Spark’s Take on SDOT Stock

According to Spark, TipRanks’ AI Analyst, SDOT is a Neutral.

Sadot Group’s stock score reflects a company in transition. Significant improvements in profitability and strategic transformation efforts are offset by ongoing challenges in revenue growth and cash flow. The stock appears undervalued, providing potential for future gains, especially if operational efficiencies continue to improve. However, bearish technical indicators and financial stability concerns remain.

To see Spark’s full report on SDOT stock, click here.

Executive/Board Changes
Sadot Group Announces Board Member’s Passing
Negative
Apr 30, 2025

On April 27, 2025, Sadot Group Inc. announced the unexpected passing of Marvin Yeo, a member of its Board of Directors and Sustainability Committee. The company expressed condolences to his family and plans to evaluate candidates to fill the board vacancy.

Spark’s Take on SDOT Stock

According to Spark, TipRanks’ AI Analyst, SDOT is a Neutral.

Sadot Group’s overall stock score reflects a company in transition. The major strengths include significant improvements in profitability and strategic transformation efforts, as highlighted in the earnings call and corporate events. However, technical indicators show bearish momentum, and challenges in revenue growth and cash flow remain. The company’s low P/E ratio suggests an undervalued stock, offering potential for future gains as operational efficiencies improve.

To see Spark’s full report on SDOT stock, click here.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Sadot Group Highlights Strategic Focus in New Presentation
Positive
Apr 28, 2025

On April 28, 2025, Sadot Group Inc. released an updated investor presentation highlighting its strategic focus on agri-commodities trading and farming, while divesting from its restaurant unit. The company reported a net income of $4.0 million for 2024, marking a turnaround from previous losses, and emphasized the usefulness of non-GAAP measures like EBITDA for evaluating operational efficiency. Sadot Group’s strategic pivot, initiated in November 2022, aims to leverage its global operations to capitalize on shifting trade dynamics and improve profitability, positioning itself as a potential hedge against global tariffs.

Spark’s Take on SDOT Stock

According to Spark, TipRanks’ AI Analyst, SDOT is a Neutral.

Sadot Group’s stock score reflects a company in transition, with positive developments in profitability and leadership, yet significant challenges remain in operational performance and market positioning. The technical indicators suggest caution, but the valuation appears attractive. The recent earnings call and corporate events indicate strategic progress and leadership enhancements, supporting a moderate potential for future growth.

To see Spark’s full report on SDOT stock, click here.

Executive/Board Changes
Sadot Group CIO Kevin Mohan Resigns
Neutral
Apr 17, 2025

On April 11, 2025, Kevin Mohan announced his resignation as Chief Investment Officer of Sadot Group Inc., effective May 5, 2025. His departure was not due to any disagreements with the company, and he will continue to serve on the Board of Directors. The company is in discussions with Mr. Mohan about a potential consulting agreement for strategic advisory services, although no terms have been finalized.

Spark’s Take on SDOT Stock

According to Spark, TipRanks’ AI Analyst, SDOT is a Neutral.

Sadot Group’s overall score reflects a mix of improving profitability and strategic growth initiatives, balanced by ongoing operational and cash flow challenges. The positive outlook from recent earnings and strategic leadership appointments provide a supportive backdrop for potential future performance, while bearish technical indicators suggest caution in the short term. The valuation remains attractive, indicating potential upside as the company continues its transformation.

To see Spark’s full report on SDOT stock, click here.

Executive/Board ChangesBusiness Operations and Strategy
Sadot Group Appoints Claudio Torres as Vice Chairman
Positive
Mar 31, 2025

On March 25, 2025, Sadot Group Inc. appointed Claudio Torres as Vice Chairman of the Board of Directors, enhancing its leadership team to support its global expansion strategy. Torres, with over 30 years of experience in agriculture and food production, is expected to leverage his expertise to accelerate Sadot’s growth across emerging and established markets, reinforcing the company’s commitment to reshaping the global food supply chain.

Executive/Board ChangesBusiness Operations and Strategy
Sadot Group Appoints Claudio Torres to Board
Positive
Feb 20, 2025

On February 20, 2025, Sadot Group Inc. appointed Claudio Torres to its Board of Directors, acknowledging his independence as per NASDAQ’s requirements. Mr. Torres, with over 25 years of experience in the agriculture sector and leadership roles at companies like Syngenta and Monsanto, is expected to significantly contribute to Sadot’s growth strategy and operational efficiency. His expertise is seen as pivotal for Sadot’s positioning in the global agriculture market, aiming to enhance shareholder value and capitalize on growth opportunities.

Executive/Board ChangesBusiness Operations and Strategy
Sadot Group Appoints New CEO to Lead Expansion
Positive
Feb 13, 2025

On February 10, 2025, Sadot Group Inc. appointed Catia Jorge as the new Chief Executive Officer, succeeding Michael Roper who will transition to Chief Governance and Compliance Officer. Ms. Jorge, with nearly 30 years of experience in agricultural markets and commodity trading, aims to lead Sadot’s global expansion and growth strategy. The appointment signifies a strategic leadership change for Sadot Group as it positions itself for the next stage of growth in the global food supply chain, with a focus on operational excellence and revenue maximization. Mr. Roper will continue to contribute to the company’s strategic initiatives, including overseeing regulatory compliance and divesting restaurant operations.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.