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

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Sato Foods Industries Co., Ltd.

(TSE/TYO:2814)

Select Model

Rating:67Neutral

Price Target:JPY 1,887.00▲(4.43% Upside)

Action:downgraded

Date:09/15/26

The score is driven primarily by solid financial resilience (low leverage and steady revenue growth), partially offset by profitability/cash-flow consistency concerns. Technicals weigh meaningfully on the result due to the weak price trend versus major moving averages and overbought momentum signals. Valuation is supportive but not compelling.

Positive Factors

Steady Revenue GrowthSteady multi-year revenue growth indicates ongoing demand for the company’s packaged staple foods and suggests its retail distribution remains effective. Continued expansion of the revenue base can support operating scale, brand presence, and reinvestment over the next several quarters.

Negative Factors

Margin CompressionThe decline in operating and EBITDA margins signals pressure on profitability, whether from costs or a less favorable product mix. If sustained, margin compression could limit earnings growth even while revenue expands and reduce the cash available for reinvestment.

Sato Foods Industries Co., Ltd. (2814) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 12.97B
Dividend Yield: 1.38%
Average Volume (3M): 5,261
Price to Earnings (P/E): 16.4
Beta (1Y): 0.22
Revenue Growth: 5.92%
EPS Growth: 34.15%
Country: Japan
Employees: 168
Sector: Consumer Defensive
Sector Strength: 62
Industry: Packaged Foods

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

Company Description

Sato Foods Industries Co., Ltd. engages in the manufacture and sale of tea extracts, plant extracts, natural seasonings, and powdered alcohol in Japan and internationally. Its powdered alcohol is used in snacks, premixes, drinks, soups, processed sea...

How the Company Makes Money

Sato Foods Industries makes money mainly by manufacturing and selling packaged food products, with its core revenue stream coming from sales of packaged cooked rice (a ready-to-eat/heat staple sold under the company’s brands). Revenue is generated th...

Sato Foods Industries Co., Ltd. Financial Statement Overview

Summary

Financials are solid overall, supported by steady revenue growth and a conservative balance sheet. Offsetting this strength are margin compression since 2024, volatile net income, and uneven cash conversion/free cash flow volatility.

Income Statement

74Positive

Balance Sheet

90Very Positive

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	6.95B	6.83B	6.36B	6.10B	5.88B	5.64B
Gross Profit	1.78B	1.65B	1.62B	1.53B	1.50B	1.62B
EBITDA	1.22B	1.01B	945.67M	913.92M	856.38M	1.02B
Net Income	799.79M	736.50M	596.43M	773.22M	384.74M	727.94M
Balance Sheet
Total Assets	23.71B	22.90B	21.16B	22.32B	20.90B	20.62B
Cash, Cash Equivalents and Short-Term Investments	8.34B	8.44B	9.72B	9.86B	9.01B	9.18B
Total Debt	670.00M	670.00M	670.00M	670.00M	670.00M	670.00M
Total Liabilities	2.94B	2.70B	1.87B	2.57B	1.86B	1.88B
Stockholders Equity	20.77B	20.20B	19.29B	19.74B	19.04B	18.74B
Cash Flow
Free Cash Flow	0	770.75M	663.21M	1.08B	204.86M	647.56M
Operating Cash Flow	0	1.10B	921.97M	1.17B	553.28M	844.39M
Investing Cash Flow	0	-1.38B	-464.86M	140.87M	-325.52M	-221.19M
Financing Cash Flow	0	-996.80M	-597.10M	-449.51M	-404.59M	-187.93M

Sato Foods Industries Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price1807.00

Price Trends

50DMA1839.39Negative

100DMA1692.65Positive

200DMA1626.20Positive

Market Momentum

MACD0.79Negative

RSI48.12Neutral

STOCH47.88Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2814, the sentiment is Neutral. The current price of 1807.00 is above the 20-day moving average (MA) of 1801.35, below the 50-day MA of 1839.39, and above the 200-day MA of 1626.20, indicating a neutral trend. The MACD of 0.79 indicates Negative momentum. The RSI at 48.12 is Neutral, neither overbought nor oversold. The STOCH value of 47.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2814.

Sato Foods Industries Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

JP:2814 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:2819	69Neutral	JPY 23.73B	10.99	―	1.96%	5.01%	120.83%
JP:2814	67Neutral	JPY 19.81B	16.36	―	1.38%	5.92%	34.15%
JP:3392	63Neutral	JPY 11.63B	9.09	―	3.50%	3.66%	9.21%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
JP:2910	59Neutral	JPY 35.66B	169.32	―	1.79%	0.59%	-50.98%
JP:2806	54Neutral	JPY 13.74B	161.87	―	2.02%	7.83%	-85.62%
JP:2923	52Neutral	JPY 34.65B	18.89	―	1.09%	6.18%	-35.54%

* Consumer Defensive Sector Average

Performance Comparison

JP:2814 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:2814	Sato Foods Industries Co., Ltd.	1807.00	426.77	30.92%
JP:2806	Yutaka Foods Corporation	1978.00	-90.16	-4.36%
JP:2819	Ebara Foods Industry, Inc.	2546.00	110.51	4.54%
JP:2910	Rock Field Co., Ltd.	1341.00	-51.47	-3.70%
JP:2923	Sato Foods Co., Ltd.	6870.00	-848.52	-10.99%
JP:3392	DELICA FOODS HOLDINGS CO. LTD.	715.00	-69.23	-8.83%

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: Sep 15, 2026

Sato Foods Industries Co., Ltd. AI Stock Analysis

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