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SATO Technologies
(SATO)
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Rating:40Underperform
Price Target:
C$0.09
▼(-10.00% Downside)
Action:Downgraded
Date:08/29/26
The score is driven primarily by weak financial performance, highlighted by sharp TTM revenue decline, heavy losses, and significant ongoing cash burn, alongside elevated leverage. Technicals add modestly negative pressure with the stock trading below key longer-term moving averages and negative MACD. Valuation provides limited support because the company is loss-making (negative P/E) and no dividend yield is available.
Positive Factors
Digital-Asset Infrastructure Model
Operating specialized blockchain infrastructure provides a defined business model with potential revenue from both owned mining activity and infrastructure services, creating more than one operating pathway if the company can improve utilization and economics.
Negative Factors
Revenue Contraction and Losses
Contracting revenue combined with negative gross profit indicates that current operations are not covering direct costs, while the large net loss weakens retained capital. Sustained deterioration could limit reinvestment and reduce the ability to scale infrastructure.
Read all positive and negative factors
Positive Factors
Negative Factors
Digital-Asset Infrastructure Model
Operating specialized blockchain infrastructure provides a defined business model with potential revenue from both owned mining activity and infrastructure services, creating more than one operating pathway if the company can improve utilization and economics.
Read all positive factors
SATO Technologies (SATO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$8.55M
Dividend YieldN/A
Average Volume (3M)49.21K
Price to Earnings (P/E)―
Beta (1Y)2.79
Revenue Growth-31.25%
EPS Growth-30.36%
CountryCA
Employees2
SectorGeneral
Sector StrengthN/A
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)-0.06
Shares Outstanding90,050,780
10 Day Avg. Volume106,519
30 Day Avg. Volume49,213
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.83
Price to Sales (P/S)0.66
P/FCF Ratio-0.64
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. is engaged in the digital currency mining industry within Canada. The company primarily utilizes specialized computing hardware to solve intricate computational problems, thereby validating transactions on various blockchai...
How the Company Makes Money
SATO Technologies makes money primarily through (1) operating its own cryptocurrency mining equipment, where revenue is generated from block rewards and transaction fees earned on the blockchain networks it supports, and (2) providing hosting and/...
SATO Technologies Earnings Call Summary
Earnings Call Date:Nov 22, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Nov 13, 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
18
Very Negative
Balance Sheet
34
Negative
Cash Flow
9
Very Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.17M | 11.66M | 16.10M | 17.56M | 10.62M | 6.12M |
| Gross Profit | -1.06M | 189.09K | 3.05M | 5.17M | 2.33M | 2.82M |
| EBITDA | -1.40M | -480.88K | 5.06M | 4.22M | -5.67M | -391.78K |
| Net Income | -4.91M | -4.37M | 1.17M | 776.50K | -8.00M | -1.73M |
Balance Sheet | ||||||
| Total Assets | 9.08M | 10.34M | 18.01M | 21.68M | 15.51M | 12.50M |
| Cash, Cash Equivalents and Short-Term Investments | 275.31K | 123.68K | 658.49K | 583.15K | 359.39K | 794.32K |
| Total Debt | 5.49M | 5.34M | 8.75M | 11.64M | 6.37M | 1.39M |
| Total Liabilities | 6.06M | 6.13M | 9.67M | 15.06M | 10.74M | 4.68M |
| Stockholders Equity | 3.02M | 4.21M | 8.34M | 6.62M | 4.77M | 7.82M |
Cash Flow | ||||||
| Free Cash Flow | -9.82M | -12.06M | -14.76M | -13.42M | -6.64M | -6.23M |
| Operating Cash Flow | -9.81M | -12.06M | -13.96M | -8.68M | 648.79K | -2.73M |
| Investing Cash Flow | 10.36M | 15.71M | 17.06M | 4.23M | -7.28M | -3.50M |
| Financing Cash Flow | -470.41K | -4.24M | -3.11M | 4.75M | 6.30M | 6.76M |
SATO Technologies Technical Analysis
Negative
0.10
Price Trends
0.11
Negative
0.11
Negative
0.11
Negative
Market Momentum
>-0.01
Negative
51.09
Neutral
80.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SATO, the sentiment is Negative. The current price of 0.1 is above the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.11, and below the 200-day MA of 0.11, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.09 is Neutral, neither overbought nor oversold. The STOCH value of 80.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SATO.
SATO Technologies Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
56 Neutral | C$86.46M | 18.30 | 17.74% | ― | 2798.89% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | C$118.37M | -8.66 | -13.93% | ― | -13.15% | 24.49% | |
46 Neutral | C$1.45M | -4.73 | -13.26% | ― | ― | 1.75% | |
42 Neutral | C$1.29M | -0.80 | -92.13% | ― | -16.24% | 17.37% | |
40 Underperform | C$8.55M | -1.54 | -109.65% | ― | -31.25% | -30.36% | |
39 Underperform | C$1.13M | -1.01 | 71.71% | ― | -103.62% | 34.73% |
* General Sector Average
TSE:SATO
SATO Technologies
0.10
-0.02
-16.67%
TSE:DEFI
DeFi Technologies
0.83
0.00
0.00%
TSE:BITK
BlockchainK2
0.04
-0.05
-56.25%
TSE:BKMT
BlockMint Technologies
0.03
-0.03
-50.00%
TSE:DMGI
DMG Blockchain Solutions
0.55
0.24
77.42%
TSE:FRNT
FRNT Financial, Inc.
0.06
-0.33
-85.53%
SATO Technologies Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
SATO Wipes Out Secured Debt as Weak Bitcoin Quarter Accelerates AI Pivot
Negative
Aug 26, 2026
SATO Technologies reported sharply weaker second-quarter 2026 results, with revenue falling 62 per cent year over year to $1.14 million and Bitcoin production halving to 11 BTC as it down-clocked about half its mining fleet amid high network hashr...
Business Operations and StrategyPrivate Placements and Financing
SATO Wipes Out Senior Secured Debt With Loan Deal, Launches C$1.5 Million Financing
Positive
Aug 24, 2026
SATO Technologies Corp. has launched a non-brokered private placement of up to C$1.5 million, issuing as many as 15 million units at C$0.10, each comprising a common share and half a warrant exercisable at C$0.20. Proceeds will fund infrastructure...
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.