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Sadot Group (SDOT)
NASDAQ:SDOT
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Sadot Group (SDOT) AI Stock Analysis

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SDOT

Sadot Group

(NASDAQ:SDOT)

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Neutral 57 (OpenAI - 4o)
Rating:57Neutral
Price Target:
$6.50
▲(7.62% Upside)
Sadot Group's overall stock score reflects its ongoing financial challenges, particularly in revenue growth and cash flow generation, despite some improvements in profitability. The technical indicators suggest a bearish trend, while the valuation indicates potential undervaluation. The earnings call provided a mixed outlook, with strategic initiatives showing promise but also highlighting operational challenges.

Sadot Group (SDOT) vs. SPDR S&P 500 ETF (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 generates revenue primarily through the trading of agricultural commodities, including grains and oilseeds, which involves purchasing products from producers and selling them to buyers in different markets. The company earns profits by capitalizing on price fluctuations and enhancing its margins through efficient logistics and supply chain management. Additionally, Sadot Group may engage in long-term contracts with suppliers and buyers, ensuring a stable revenue stream. Strategic partnerships with shipping companies and logistics firms further enhance its ability to minimize costs and maximize profitability. The company's revenue model is supported by its expertise in market analysis and its ability to navigate regulatory environments, which allows it to seize opportunities in the global commodities market.

Sadot Group Earnings Call Summary

Earnings Call Date:Aug 14, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Sadot Group's strategic transition and its ability to maintain profitability, but faced challenges with declining revenue and increased expenses. The carbon project investment and focus on higher-margin trades are positives, though the slow progress on the restaurant sale and resource allocation issues present concerns.
Q2-2025 Updates
Positive Updates
Fifth Consecutive Profitable Quarter
Sadot Group posted its fifth consecutive quarter of positive net income and positive EBITDA, marking a significant turnaround from its past as a restaurant-only concept.
Improved Gross Profit Margins
Gross profit improved by 100 basis points to 4.4% in Q2 2025 from 3.3% in Q2 2024, due to a focus on higher-margin trades.
Strategic Carbon Project Investment
Sadot Group invested in a carbon project in Indonesia, acquiring a 37.5% stake. The project is expected to generate 1.1 to 1.2 million high-integrity carbon credits in its first issuance cycle.
Negative Updates
Revenue Decline
Revenue for Sadot Agri-Foods decreased by $58.9 million to $114.4 million in Q2 2025, a 34% decrease compared to Q2 2024.
Increased SG&A Expenses
SG&A expenses increased by $1.1 million compared to last year, mainly due to reclassifying some expenses from costs of goods to SG&A.
Slow Progress on Restaurant Sale
The sale process for the restaurant business has been slow, causing resource allocation issues and potential distractions from the core agri-business.
Company Guidance
During the Sadot Group Inc. Second Quarter 2025 Conference Call, the company reported its fifth consecutive quarter of positive net income and EBITDA, reflecting a significant strategic shift from a restaurant-only concept to a global food supply chain player. In Q2 2025, revenue for Sadot Agri-Foods was $114.4 million, a 34% decrease compared to Q2 2024, attributed to the company's focus on higher-margin trades, which improved gross profit from 3.3% to 4.4%. Net income was $0.4 million, and EBITDA stood at $1.7 million, with earnings per share at $0.07. The company completed 26 transactions, shipping over 200,000 metric tons of product across seven countries. SG&A expenses increased to $2.8 million due to reclassification of certain costs. Sadot Group also highlighted its strategic investment in a carbon project in Indonesia, acquiring a 37.5% equity stake worth $13.4 million. The call underscored Sadot's strategic pillars of geographic and vertical expansion, margin optimization, technological integration, management strengthening, and sustainable growth as it transitions into a diversified, technology-enabled global agri-business.

Sadot Group Financial Statement Overview

Summary
Sadot Group shows signs of improvement in profitability with a positive net income, but it continues to face challenges in revenue growth and cash flow generation. The balance sheet reflects progress in leverage management, yet financial stability is still a concern. Ongoing efforts are needed to enhance operational efficiency and cash flow conversion to ensure sustained growth.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue664.52M700.94M717.51M161.70M10.35M4.47M
Gross Profit13.94M5.12M9.63M4.39M88.01K-1.16M
EBITDA10.79M10.54M-5.78M-5.92M-6.89M-9.52M
Net Income3.21M3.99M-7.82M-7.96M-8.18M-10.10M
Balance Sheet
Total Assets130.63M164.65M178.09M27.23M29.43M10.50M
Cash, Cash Equivalents and Short-Term Investments422.00K1.79M1.35M9.90M15.77M4.20M
Total Debt11.43M7.52M8.56M3.56M1.35M1.46M
Total Liabilities94.69M132.28M153.83M10.67M5.04M4.71M
Stockholders Equity32.98M29.19M20.82M16.56M24.39M5.80M
Cash Flow
Free Cash Flow-19.07M-2.81M-20.94M-795.00K-6.65M-8.57M
Operating Cash Flow-19.52M-2.77M-13.41M-198.00K-6.39M-7.79M
Investing Cash Flow1.66M1.01M-3.46M-5.44M-3.58M-850.33K
Financing Cash Flow8.38M2.64M8.32M-230.00K21.54M12.35M

Sadot Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.04
Price Trends
50DMA
7.15
Negative
100DMA
9.74
Negative
200DMA
16.42
Negative
Market Momentum
MACD
-0.17
Negative
RSI
46.08
Neutral
STOCH
36.18
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 6.04 is below the 20-day moving average (MA) of 6.07, below the 50-day MA of 7.15, and below the 200-day MA of 16.42, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 46.08 is Neutral, neither overbought nor oversold. The STOCH value of 36.18 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 2 risk factors in its most recent earnings report. Sadot Group reported the most risks in the "Legal & Regulatory" 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$20.33B14.63-3.31%3.23%1.93%-12.26%
$6.99M0.9517.52%4.42%
$5.04M-0.07
$67.48M39.74%16.76%
$4.86M-0.05-146.28%-16.60%96.72%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SDOT
Sadot Group
6.04
-22.16
-78.58%
AQB
AquaBounty Technologies
1.30
0.16
14.04%
AFRI
Forafric Global
9.34
-1.05
-10.11%
LOCL
Local Bounti Corporation
2.58
0.13
5.31%
AGRI
AgriFORCE Growing Systems
3.02
-42.43
-93.36%
EDBL
Edible Garden AG , Inc.
1.59
-1.75
-52.40%

Sadot Group Corporate Events

Executive/Board ChangesPrivate Placements and Financing
Sadot Group Secures Financing and Restructures Board
Neutral
Oct 30, 2025

On October 29, 2025, Sadot Group Inc. secured financing through a Secured Promissory Note amounting to $238,986.87, with a 10% annual interest rate, due in full by October 29, 2026. The Note is secured against all company assets and includes provisions for default, which would trigger immediate repayment and increased interest rates. On the same day, the company’s Board of Directors underwent significant changes, expanding from five to six members and appointing Haggai Ravid as a director. Following the resignation of five board members, four new directors were appointed, and the board’s committees were reconstituted, potentially impacting the company’s governance and strategic direction.

The most recent analyst rating on (SDOT) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Sadot Group stock, see the SDOT Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Sadot Group Completes Stock Offering to Raise Funds
Positive
Oct 16, 2025

On October 15, 2025, Sadot Group Inc. entered into Securities Purchase Agreements with accredited investors to sell 103,577 shares of its common stock at $5.20 per share, raising approximately $538,600. The offering, which closed on October 16, 2025, was conducted under an effective shelf registration statement and involved Dawson James Securities as the sole placement agent. The company plans to use the proceeds for general corporate purposes and working capital. The agreements include a right of participation for investors in future financings and a 90-day lock-up period for the company and its directors and officers. This strategic move is expected to bolster Sadot Group’s financial position, aiding its operations in the global agri-food industry.

The most recent analyst rating on (SDOT) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Sadot Group stock, see the SDOT Stock Forecast page.

Executive/Board ChangesDelistings and Listing ChangesRegulatory Filings and Compliance
Sadot Group Regains Nasdaq Compliance After Bid Price Issue
Positive
Oct 15, 2025

On October 10, 2025, Na Yeon Hannah Oh resigned from Sadot Group‘s Board of Directors and its Sustainability Committee due to her professional commitments, not due to any disagreements with the company. On the same day, Sadot Group received confirmation from Nasdaq that it regained compliance with the bid price requirement, allowing its stock to continue trading on the Nasdaq Capital Market, and resulting in the cancellation of a scheduled hearing.

The most recent analyst rating on (SDOT) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Sadot Group stock, see the SDOT Stock Forecast page.

Executive/Board ChangesRegulatory Filings and Compliance
Sadot Group Director Resigns Amid Role Demands
Neutral
Sep 29, 2025

On September 23, 2025, Ray Shankar resigned from Sadot Group Inc.’s Board of Directors, citing increased demands from his full-time professional role. His departure was not due to any disagreements with the company. Sadot Group plans to appoint a new director to maintain compliance with NASDAQ listing requirements regarding committee composition and independence.

The most recent analyst rating on (SDOT) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Sadot Group stock, see the SDOT Stock Forecast page.

Private Placements and Financing
Sadot Group Completes Direct Offering of Common Stock
Neutral
Sep 25, 2025

On September 23, 2025, Sadot Group Inc. completed a registered direct offering of common stock and pre-funded warrants, raising approximately $500,000 before expenses. The proceeds are intended for general corporate purposes and working capital. The company also entered into an Engagement Agreement with Digital Offering LLC as a placement agent and a Securities Purchase Agreement with Helena Global Investment Opportunities I Ltd. Additionally, Sadot Group established a Purchase Agreement allowing the issuance of up to $10 million in common stock, subject to certain conditions and limitations.

The most recent analyst rating on (SDOT) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Sadot Group stock, see the SDOT Stock Forecast page.

Delistings and Listing ChangesStock Split
Sadot Group Announces Reverse Stock Split to Comply with Nasdaq
Neutral
Sep 15, 2025

Sadot Group Inc. announced a reverse stock split of its common stock at a ratio of one-for-ten, effective September 15, 2025, in an effort to raise the per share bid price above $1.00 and comply with Nasdaq Listing Rule 5550(a)(2). This move comes after the company received a delisting notice from Nasdaq due to its stock price falling below $1.00, and the company plans to request a hearing with the Nasdaq Hearings Panel to address this issue.

The most recent analyst rating on (SDOT) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Sadot Group stock, see the SDOT Stock Forecast page.

Delistings and Listing ChangesStock Split
Sadot Group Faces Nasdaq Delisting Notice
Negative
Sep 11, 2025

On September 9, 2025, Sadot Group Inc. received a notification from the Nasdaq Stock Market LLC indicating that the company’s common stock had a closing bid price of less than $1.00 per share over the previous 30 consecutive business days, violating the Nasdaq Listing Rule 5550(a)(2). Due to a reverse stock split on October 18, 2024, the company is not eligible for the usual 180-day compliance period. Consequently, Sadot Group’s stock faces potential delisting from the Nasdaq Capital Market unless a hearing is requested. The company plans to request a hearing, which will temporarily stay any suspension or delisting actions pending the outcome.

The most recent analyst rating on (SDOT) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Sadot Group stock, see the SDOT Stock Forecast page.

Executive/Board Changes
Sadot Group Appoints New Audit Committee Member
Neutral
Sep 5, 2025

On September 4, 2025, Sadot Group Inc. appointed David Errington to the Audit Committee following Paul Sansom’s resignation to become the Chief Financial Officer. Additionally, Kenn Miller resigned as Chief Operating Officer effective September 25, 2025, with his departure not linked to any disagreements with the company’s operations or policies.

The most recent analyst rating on (SDOT) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Sadot Group stock, see the SDOT Stock Forecast page.

Sadot Group’s Earnings Call: Strategic Shifts Amid Challenges
Sep 1, 2025

Sadot Group Inc. recently held its earnings call, revealing a mixed sentiment among stakeholders. The company is navigating a strategic transition, maintaining profitability while grappling with declining revenue and increased expenses. Positives include their carbon project investment and a focus on higher-margin trades, though challenges persist with the slow progress on the restaurant sale and resource allocation issues.

Sadot Group Reports Positive Q2 2025 Results
Aug 16, 2025

Sadot Group Inc., headquartered in Burleson, Texas, is an emerging company in the global food supply chain sector, providing innovative and sustainable solutions for food security challenges. The company operates in key verticals including agri-commodity origination and trading, as well as farm operations in Southern Africa.

Executive/Board ChangesRegulatory Filings and Compliance
Sadot Group Appoints New CFO Amid Board Changes
Neutral
Aug 1, 2025

On August 1, 2025, Sadot Group Inc. appointed Paul Sansom as its Chief Financial Officer following the resignation of Jennifer Black. Mr. Sansom, who has extensive experience in finance and operations across multiple sectors, resigned from the company’s Board of Directors to assume the CFO role. The company is currently non-compliant with Nasdaq’s audit committee requirements due to Mr. Sansom’s resignation from the Board, but plans to appoint a new independent director within the allowed cure period. The company also entered into a Separation Agreement with Ms. Black, providing her with severance and other benefits.

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: Oct 31, 2025