SATO Technologies (TSE:SATO)
:SATO
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SATO Technologies
(SATO)
Select Model
Select Model
Rating:42Neutral
Price Target:
C$0.11
▼(-24.29% Downside)
Action:DowngradedDate:01/29/26
The score is primarily held back by weak financial performance—loss-making operations, deteriorating margins, and negative operating/free cash flow. Technicals reinforce the risk with a clear downtrend and negative momentum indicators. Valuation provides limited support because the company is unprofitable and no dividend yield is available.
Positive Factors
Recurring revenue mix
A diversified revenue model—hardware, consumables, software and maintenance—creates durable income streams. Consumables and service contracts produce annuity-like revenue that smooths cycles, supports customer retention, and helps fund R&D and service expansion over months to years.
Negative Factors
Negative and deteriorating margins
Sustained negative gross, EBIT and net margins point to structural profitability issues—cost pressures, pricing weakness or product mix deterioration. Without margin recovery the business cannot sustainably fund operations, R&D, or service expansion, constraining long-term competitiveness.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue mix
A diversified revenue model—hardware, consumables, software and maintenance—creates durable income streams. Consumables and service contracts produce annuity-like revenue that smooths cycles, supports customer retention, and helps fund R&D and service expansion over months to years.
Read all positive factors
SATO Technologies (SATO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$5.23M
Dividend YieldN/A
Average Volume (3M)60.57K
Price to Earnings (P/E)―
Beta (1Y)2.09
Revenue Growth-30.56%
EPS Growth-189.35%
CountryCA
Employees2
SectorTechnology
Sector Strength88
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)N/A
Shares Outstanding52,336,690
10 Day Avg. Volume36,659
30 Day Avg. Volume60,574
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)1.88
Price to Sales (P/S)0.98
P/FCF Ratio-1.06
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)C$37.52M
SATO Technologies Business Overview & Revenue Model
Company Description
SATO Technologies Corp. engages in the cryptocurrency mining business in Canada. The company engages in the business of utilizing equipment to solve computational problems to validate transactions on the blockchain; and provision of compute power ...
How the Company Makes Money
SATO generates revenue through multiple streams including the sale of hardware such as barcode printers and RFID systems, along with consumables like labels and tags. The company also earns income from its software solutions, which enhance data ma...
SATO Technologies Earnings Call Summary
Earnings Call Date:Nov 22, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:May 21, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted SATO's strategic growth initiatives and operational efficiency, particularly in adapting to the AI and HPC markets. Despite facing challenges in Q3, including a revenue decline and operational disruptions, the company remains optimistic about future growth and profitability driven by increasing Bitcoin prices and a strong balance sheet.Positive Updates
Revenue Growth
For the 9 months ended, revenues were almost $13 million, marking a 5% increase from the same period in 2023.
Negative Updates
Q3 Revenue Decline
Q3 revenues were $2.6 million, down from $4 million in 2023, affected by the Bitcoin halving, increased hash rate, and a facility fire.
Read all updates
Q3-2024 Updates
Positive
Negative
Revenue Growth
For the 9 months ended, revenues were almost $13 million, marking a 5% increase from the same period in 2023.
Read all positive updates
Company Guidance
During the earnings call for Q3 2024, SATO Technologies provided a comprehensive overview of their strategic vision and financial performance. The company reported a 5% increase in revenue for the first nine months of 2024, totaling nearly $13 million, despite facing challenges such as a Bitcoin halving event, an increase in hash rate, and a fire incident affecting 10% of operations. They mined 31 Bitcoin in Q3 and 161 over nine months, and their net profit reached $1.269 million with an adjusted EBITDA of over $4.2 million, demonstrating resilience and operational efficiency. SATO emphasized their focus on transforming energy into computing power, leveraging their 20-megawatt data center in Quebec for both Bitcoin mining and AI/HPC applications. They highlighted their plans for scalable expansion in North America, eyeing operations ranging from 12 to 200 megawatts, and are considering additional listings and capital strategies to support long-term growth. With a strong cash position of $972,000 and digital assets valued at just under $3 million, the company remains optimistic about future opportunities, particularly in light of the increasing price of Bitcoin.SATO Technologies Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
50
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Mar 2025 | Dec 2023 | Mar 2023 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.62M | 16.10M | 17.56M | 10.62M | 6.12M | 1.86M |
| Gross Profit | 1.08M | 3.05M | 5.17M | 2.33M | 2.82M | 695.35K |
| EBITDA | 1.25M | 5.06M | 4.22M | -5.67M | -391.78K | 658.94K |
| Net Income | -2.03M | 1.17M | 776.50K | -8.00M | -1.73M | -855.42K |
Balance Sheet | ||||||
| Total Assets | 12.73M | 18.01M | 21.68M | 15.51M | 12.50M | 3.13M |
| Cash, Cash Equivalents and Short-Term Investments | 640.62K | 658.49K | 583.15K | 359.39K | 794.32K | 294.02K |
| Total Debt | 5.62M | 8.75M | 11.64M | 6.37M | 1.39M | 2.13M |
| Total Liabilities | 6.05M | 9.67M | 15.06M | 10.74M | 4.68M | 2.29M |
| Stockholders Equity | 6.68M | 8.34M | 6.62M | 4.77M | 7.82M | 834.50K |
Cash Flow | ||||||
| Free Cash Flow | -24.99M | -14.76M | -13.42M | -6.64M | -6.23M | 89.61K |
| Operating Cash Flow | -24.96M | -13.96M | -8.68M | 648.79K | -2.73M | 350.95K |
| Investing Cash Flow | 29.85M | 17.06M | 4.23M | -7.28M | -3.50M | -247.68K |
| Financing Cash Flow | -4.67M | -3.11M | 4.75M | 6.30M | 6.76M | 81.54K |
SATO Technologies Technical Analysis
Positive
0.14
Price Trends
0.09
Positive
0.11
Negative
0.13
Negative
Market Momentum
<0.01
Negative
57.34
Neutral
88.89
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SATO, the sentiment is Positive. The current price of 0.14 is above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.09, and above the 200-day MA of 0.13, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.34 is Neutral, neither overbought nor oversold. The STOCH value of 88.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SATO.
SATO Technologies Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
51 Neutral | C$86.46M | 5.80 | -136.30% | ― | 972.76% | -192.94% | |
51 Neutral | C$1.45M | -20.49 | 3.27% | ― | ― | ― | |
50 Neutral | C$6.43M | -3.12 | -66.57% | ― | -51.53% | 3.62% | |
45 Neutral | C$3.40M | -1.60 | 103.61% | ― | ― | ― | |
44 Neutral | C$49.53M | -5.39 | -8.68% | ― | 39.64% | -70.96% | |
42 Neutral | C$5.23M | -9.98 | -27.43% | ― | -30.56% | -189.35% |
* Technology Sector Average
TSE:SATO
SATO Technologies
0.10
>-0.01
-5.00%
TSE:DEFI
DeFi Technologies
0.83
0.00
0.00%
TSE:BITK
BlockchainK2
0.09
0.02
20.00%
TSE:BKMT
BlockMint Technologies
0.03
-0.02
-33.33%
TSE:DMGI
DMG Blockchain Solutions
0.24
0.02
11.90%
TSE:FRNT
FRNT Financial, Inc.
0.20
-0.14
-41.18%
SATO Technologies Corporate Events
Business Operations and StrategyFinancial Disclosures
SATO Technologies Reports Q3 2025 Results and Advances AI Transition
Positive
Dec 2, 2025
SATO Technologies Corp. reported improved financial performance for Q3 2025, despite challenges from the April 2024 Bitcoin Halving and increased network difficulty. The company achieved a 28% increase in revenue compared to Q3 2024, reduced its n...
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.