Sato Foods Industries Co., Ltd. /Aichi/ (2814) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Oenon Holdings, Inc.

Kirin Holdings Co., Ltd.

St. Cousair Co., Ltd.

Sapporo Holdings Ltd.

Sato Foods Industries Co., Ltd. /Aichi/

Takara Holdings, Inc.

Asahi Group Holdings Ltd.

Why is Sato Foods Industries Co., Ltd. /Aichi/ ?

Poor Management Efficiency with a low ROE of 3.23%

The company has been able to generate a Return on Equity (avg) of 3.23% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 1.76% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 3.23% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 1.59% and Operating profit at 1.76% over the last 5 years

Flat results in Mar 26

CASH AND EQV(HY) Lowest at JPY 16,702.28 MM
DEBT-EQUITY RATIO (HY) Highest at -38.48 %
INTEREST(Q) Highest at JPY 2.49 MM

With ROE of 3.27%, it has a expensive valuation with a 1.15 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 22.06%, its profits have fallen by -13%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Beverages)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Sato Foods Industries Co., Ltd. /Aichi/ for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sato Foods Industries Co., Ltd. /Aichi/

-100.0%

1.75

24.35%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.59%

EBIT Growth (5y)

1.76%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.47

Sales to Capital Employed (avg)

0.32

Tax Ratio

28.37%

Dividend Payout Ratio

24.66%

Pledged Shares

Institutional Holding

ROCE (avg)

6.48%

ROE (avg)

3.23%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.15

EV to EBIT

21.46

EV to EBITDA

15.77

EV to Capital Employed

1.25

EV to Sales

2.31

PEG Ratio

Dividend Yield

ROCE (Latest)

5.82%

ROE (Latest)

3.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 5.8 times

NET PROFIT(Q)

At JPY 275.79 MM has Grown at 187.32%

RAW MATERIAL COST(Y)

Fallen by 1.22% (YoY

DIVIDEND PER SHARE(HY)

Highest at JPY 5.8

PRE-TAX PROFIT(Q)

At JPY 326.62 MM has Grown at 105.25%

-13What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 16,702.28 MM

DEBT-EQUITY RATIO (HY)

Highest at -38.48 %

INTEREST(Q)

Highest at JPY 2.49 MM

Here's what is working for Sato Foods Industries Co., Ltd. /Aichi/

Net Profit

At JPY 275.79 MM has Grown at 187.32%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Debtors Turnover Ratio

Highest at 5.8 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Pre-Tax Profit

At JPY 326.62 MM has Grown at 105.25%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Dividend per share

Highest at JPY 5.8

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by 1.22% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Sato Foods Industries Co., Ltd. /Aichi/

Interest

At JPY 2.49 MM has Grown at 14.36%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 2.49 MM

in the last five periods and Increased by 14.36% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 16,702.28 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -38.48 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio