ScoreWhy is Sato Holdings Corp. ?
1
Weak Long Term Fundamental Strength with a 8.26% CAGR growth in Net Sales over the last 5 years
2
Poor long term growth as Net Sales has grown by an annual rate of 8.26% over the last 5 years
3
Negative results in Mar 26
- OPERATING PROFIT MARGIN(Q) Lowest at 9.49 %
- PRE-TAX PROFIT(Q) Lowest at JPY 1,791 MM
- NET PROFIT(Q) Lowest at JPY -88.34 MM
4
With ROE of 7.82%, it has a very attractive valuation with a 0.91 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 17.49%, its profits have fallen by -11.3%
- At the current price, the company has a high dividend yield of 0
5
Underperformed the market in the last 1 year
- The stock has generated a return of 17.49% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Sato Holdings Corp. should be less than 10%
- Overall Portfolio exposure to IT - Hardware should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Sato Holdings Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Sato Holdings Corp.
-100.0%
0.84
23.50%
Japan Nikkei 225
59.79%
2.03
29.50%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.26%
EBIT Growth (5y)
14.43%
EBIT to Interest (avg)
25.45
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.16
Sales to Capital Employed (avg)
1.69
Tax Ratio
37.24%
Dividend Payout Ratio
48.51%
Pledged Shares
0
Institutional Holding
1.64%
ROCE (avg)
16.53%
ROE (avg)
12.03%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
0.91
EV to EBIT
5.53
EV to EBITDA
3.63
EV to Capital Employed
0.89
EV to Sales
0.38
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
16.05%
ROE (Latest)
7.82%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 13,273 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 3.35 times
RAW MATERIAL COST(Y)
Fallen by 0.1% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at -12.95 %
-13What is not working for the Company
OPERATING PROFIT MARGIN(Q)
Lowest at 9.49 %
PRE-TAX PROFIT(Q)
Lowest at JPY 1,791 MM
NET PROFIT(Q)
Lowest at JPY -88.34 MM
EPS(Q)
Lowest at JPY -0.59
Here's what is working for Sato Holdings Corp.
Inventory Turnover Ratio
Highest at 3.35 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Operating Cash Flow
Highest at JPY 13,273 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Debt-Equity Ratio
Lowest at -12.95 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by 0.1% (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
Depreciation
Highest at JPY 1,585 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Sato Holdings Corp.
Net Profit
At JPY -88.34 MM has Fallen at -105.49%
over average net sales of the previous four periods of JPY 1,609.39 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Operating Profit Margin
Lowest at 9.49 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 1,791 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Pre-Tax Profit
At JPY 1,791 MM has Fallen at -29.18%
over average net sales of the previous four periods of JPY 2,529 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY -88.34 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY -0.59
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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