Sato Foods Industries Co., Ltd. (2814) AI Stock Analysis

• Market Cap: ¥11.10B
• Dividend Yield: 1.2%
• Average Volume (3M): 4.30K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.25
• Revenue Growth: 6.74%
• EPS Growth: -10.71%
• Country: JP
• Employees: 164
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 77.38
• Shares Outstanding: 8,077,460
• 10 Day Avg. Volume: 2,550
• 30 Day Avg. Volume: 4,303
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥2,694.00
• Price Target Upside: -19.34% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥2,694.00 ▼(-19.34% Downside)

Sato Foods Industries Co., Ltd. shows strong technical indicators and financial stability, contributing significantly to its overall score. While the valuation is fair, profitability metrics and cash flow constraints slightly temper the outlook. Attention to improving net profit and free cash flow could further enhance financial health.

Sato Foods Industries Co., Ltd. Business Overview & Revenue Model

Company Description

Sato Foods Industries Co., Ltd. (2814) is a Japanese company that specializes in the production and distribution of food products. The company operates in the food manufacturing sector, focusing primarily on the production of instant foods, such as freeze-dried and retort pouch products. Sato Foods Industries is known for its high-quality food offerings that cater to both domestic and international markets, aiming to meet the needs of modern consumers seeking convenience and taste.

How the Company Makes Money

Sato Foods Industries Co., Ltd. generates revenue through the sale of its diverse range of food products. The company's primary revenue stream is the production and distribution of instant and convenient food items, including freeze-dried foods and retort pouch meals. These products are sold to both retail and commercial customers, with a significant portion of sales occurring through supermarkets, convenience stores, and online platforms. Additionally, Sato Foods Industries may engage in partnerships with other food companies or retailers to expand its market reach and enhance distribution channels. The company's earnings are further supported by its efforts in product innovation and maintaining high standards of quality, which help to attract and retain customers.

Sato Foods Industries Co., Ltd. Financial Statement Overview

Summary

Sato Foods Industries Co., Ltd. exhibits strong operational efficiency and financial stability, with low leverage and robust equity ratios. However, declining net profit margin and free cash flow suggest the need for improvements in profitability and cash generation.

Income Statement

The company demonstrates a strong gross profit margin (25.42%) and EBIT margin (10.58%), indicating cost efficiency and effective operations. However, the net profit margin has decreased to 9.38%, reflecting a decline in profitability. Revenue growth is modest at 4.25%, showing steady, albeit slow, expansion.

Balance Sheet

Sato Foods maintains a robust balance sheet with a low debt-to-equity ratio of 0.03, highlighting financial stability. The equity ratio stands at 91.17%, which underscores strong equity financing. However, ROE has decreased to 3.09%, suggesting room for improvement in profitability relative to equity.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth, down by 38.52%. The operating cash flow to net income ratio is 1.55, indicating strong cash generation relative to earnings. However, the free cash flow to net income ratio of 1.11 suggests potential constraints in free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.36B	6.36B	6.10B	5.88B	5.64B	6.08B
Gross Profit	1.62B	1.63B	1.54B	1.52B	1.64B	1.53B
EBITDA	1.05B	1.16B	1.20B	629.60M	1.12B	1.17B
Net Income	596.00M	596.43M	773.22M	384.74M	727.94M	292.59M
Balance Sheet
Total Assets	21.16B	21.16B	21.85B	20.49B	20.32B	20.05B
Cash, Cash Equivalents and Short-Term Investments	9.72B	9.72B	9.86B	9.01B	9.18B	8.75B
Total Debt	670.00M	670.00M	670.00M	670.00M	670.00M	670.00M
Total Liabilities	1.87B	1.87B	2.10B	1.45B	1.58B	1.67B
Stockholders Equity	19.29B	19.29B	19.74B	19.04B	18.74B	18.38B
Cash Flow
Free Cash Flow	0.00	663.21M	1.08B	204.86M	647.56M	1.13B
Operating Cash Flow	0.00	921.97M	1.17B	553.28M	844.39M	1.29B
Investing Cash Flow	0.00	-464.86M	140.87M	-325.52M	-221.19M	-176.09M
Financing Cash Flow	0.00	-597.10M	-449.51M	-404.59M	-187.93M	-197.69M

Sato Foods Industries Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3340.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2814, the sentiment is Positive. The current price of 3340 is above the 20-day moving average (MA) of 3196.50, above the 50-day MA of 2821.46, and above the 200-day MA of 2396.12, indicating a bullish trend. The MACD of 153.62 indicates Negative momentum. The RSI at 71.09 is Negative, neither overbought nor oversold. The STOCH value of 44.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2814.

Sato Foods Industries Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2814	75 Outperform	¥11.10B	18.45		1.20%	6.74%	-10.71%
2892	75 Outperform	18.08B	11.28	5.37%	2.59%	-2.63%	3.18%
2813	71 Outperform	8.76B	7.43	14.13%	3.01%	3.41%	-7.39%
2806	68 Neutral	14.31B	24.18	2.46%	1.94%	2.80%	28.76%
2901	64 Neutral	14.86B	27.42	16.13%	0.51%	4.29%	0.00%
2818	61 Neutral	12.32B	110.78	0.91%	1.35%	10.84%	-18.43%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%