Sato Foods Co., Ltd. (2923) AI Stock Analysis

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Sato Foods Co., Ltd.

(TSE/TYO:2923)

Select Model

Rating:53Neutral

Price Target:JPY 7,288.00▲(6.71% Upside)

Action:reiterated

Date:09/12/26

The overall score is constrained by weak technical momentum and poor cash flow generation. The stock is in a clear downtrend with oversold signals, and negative free cash flow raises liquidity risks. These significant negatives are partially offset by a solid income statement, manageable balance sheet, and reasonable valuation.

Positive Factors

Steady Revenue GrowthSteady and recently accelerating revenue growth indicates continued consumer demand for the company’s packaged food portfolio. Sustained top-line expansion can support scale benefits, reinforce retail distribution, and provide a foundation for continued investment in branded staple products over the next several quarters.

Negative Factors

Weak Cash GenerationThe sharp decline in operating cash flow and swing to negative free cash flow weaken the company’s ability to fund investment, dividends, and working-capital needs internally. If cash conversion remains inconsistent, Sato Foods may need greater reliance on balance-sheet resources.

Sato Foods Co., Ltd. (2923) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 35.00B
Dividend Yield: 1.10%
Average Volume (3M): 3,151
Price to Earnings (P/E): 18.8
Beta (1Y): 0.35
Revenue Growth: 6.18%
EPS Growth: -35.54%
Country: Japan
Employees: 717
Sector: Consumer Defensive
Sector Strength: 62
Industry: Packaged Foods

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

Company Description

Sato Foods Co., Ltd. engages in the manufacture and sale of packed mochi and rice. Its products include Satos Rice, Satos mochi, and Satos Kagami-mochi. The company was founded by Kansaku Sato in April 1950 and is headquartered in Niigata, Japan.

How the Company Makes Money

Sato Foods generates revenue primarily by manufacturing and selling branded packaged foods—especially ready-to-eat packaged rice and packaged mochi—at wholesale prices to distribution channels that supply end consumers. Its core revenue stream is dom...

Sato Foods Co., Ltd. Financial Statement Overview

Summary

Financial performance is mixed. The income statement is solid with consistent revenue growth and stable margins, and the balance sheet is reasonably leveraged with steady equity growth. However, cash flow is a significant concern due to volatile operating cash flows and deeply negative free cash flow, which drags the overall financial health score down.

Income Statement

68Positive

Balance Sheet

70Positive

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Apr 2026	Apr 2025	Apr 2024	Apr 2023	Apr 2022
Income Statement
Total Revenue	50.83B	51.78B	46.48B	42.58B	39.67B	39.05B
Gross Profit	12.86B	13.57B	11.50B	11.16B	10.01B	10.42B
EBITDA	5.49B	6.26B	5.70B	4.97B	4.42B	4.80B
Net Income	1.83B	2.80B	1.95B	2.30B	1.84B	1.94B
Balance Sheet
Total Assets	55.89B	57.95B	49.28B	44.13B	39.53B	36.54B
Cash, Cash Equivalents and Short-Term Investments	1.27B	3.86B	4.87B	2.67B	3.48B	1.67B
Total Debt	22.89B	20.44B	18.59B	15.72B	14.19B	12.25B
Total Liabilities	31.11B	33.09B	26.80B	23.54B	21.28B	20.07B
Stockholders Equity	24.78B	24.86B	22.48B	20.59B	18.26B	16.48B
Cash Flow
Free Cash Flow	0	-4.12B	164.40M	-1.93B	771.06M	-195.28M
Operating Cash Flow	0	2.02B	4.88B	2.14B	3.04B	1.59B
Investing Cash Flow	0	-4.55B	-5.18B	-4.18B	-2.92B	-2.11B
Financing Cash Flow	0	1.52B	2.50B	1.22B	1.69B	1.83B

Sato Foods Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price6830.00

Price Trends

50DMA7324.80Negative

100DMA7762.80Negative

200DMA7542.17Negative

Market Momentum

MACD-132.90Positive

RSI42.33Neutral

STOCH42.25Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2923, the sentiment is Negative. The current price of 6830.00 is below the 20-day moving average (MA) of 7075.50, below the 50-day MA of 7324.80, and below the 200-day MA of 7542.17, indicating a bearish trend. The MACD of -132.90 indicates Positive momentum. The RSI at 42.33 is Neutral, neither overbought nor oversold. The STOCH value of 42.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2923.

Sato Foods Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

JP:2923 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:2831	71Outperform	JPY 33.50B	10.00	―	1.97%	2.00%	35.75%
JP:2908	64Neutral	JPY 47.31B	34.33	1.90%	2.89%	-1.97%	-1.36%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
JP:2933	61Neutral	JPY 23.83B	26.65	―	1.91%	-0.27%	-62.67%
JP:2910	59Neutral	JPY 35.95B	171.46	―	1.77%	0.59%	-50.98%
JP:2923	53Neutral	JPY 34.95B	18.77	―	1.10%	6.18%	-35.54%
JP:2904	48Neutral	JPY 13.90B	354.72	―	1.86%	3.55%	-93.65%

* Consumer Defensive Sector Average

Performance Comparison

JP:2923 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:2923	Sato Foods Co., Ltd.	6830.00	-1521.84	-18.22%
JP:2908	Fujicco Co	1589.00	45.70	2.96%
JP:2831	Hagoromo Foods Corporation	3560.00	346.19	10.77%
JP:2904	Ichimasa Kamaboko Co., Ltd.	752.00	13.36	1.81%
JP:2910	Rock Field Co., Ltd.	1358.00	-50.18	-3.56%
JP:2933	KIBUN FOODS INC.	1048.00	-14.62	-1.38%

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 12, 2026

Sato Foods Co., Ltd. AI Stock Analysis