Sato Technologies Corp. (CAK.H) 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

Pason Systems, Inc.

NameSilo Technologies Corp.

Bitfarms Ltd. (Canada)

Digihost Technology, Inc.

Minehub Technologies, Inc.

Sato Technologies Corp.

TrueContext Corp.

Hut 8 Mining Corp.

EQ, Inc.

Infinitii ai, Inc.

Venzee Technologies, Inc.

Why is Sato Technologies Corp. ?

Poor Management Efficiency with a low ROCE of 4.53%

The company has been able to generate a Return on Capital Employed (avg) of 4.53% signifying low profitability per unit of total capital (equity and debt)

Flat results in Sep 25

NET PROFIT(9M) At CAD -1.5 MM has Grown at -240.73%
OPERATING CASH FLOW(Y) Lowest at CAD -24.96 MM
NET SALES(9M) At CAD 9.32 MM has Grown at -27.17%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -28.57%, its profits have fallen by -292%

Below par performance in long term as well as near term

Along with generating -28.57% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

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 Commercial Services & Supplies)

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

Is Sato Technologies Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sato Technologies Corp.

-100.0%

-0.47

131.43%

S&P/TSX 60

21.87%

1.42

15.41%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

67.69%

EBIT Growth (5y)

-216.65%

EBIT to Interest (avg)

-1.07

Debt to EBITDA (avg)

0.69

Net Debt to Equity (avg)

0.43

Sales to Capital Employed (avg)

1.15

Tax Ratio

2.75%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.53%

ROE (avg)

7.40%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.70

EV to EBIT

-2.22

EV to EBITDA

-7.28

EV to Capital Employed

0.80

EV to Sales

0.61

PEG Ratio

Dividend Yield

ROCE (Latest)

-35.75%

ROE (Latest)

-29.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

No Trend

Mildly Bearish

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

12What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -147.69% (YoY

NET SALES(Q)

Highest at CAD 3.34 MM

OPERATING PROFIT(Q)

Highest at CAD 0.3 MM

OPERATING PROFIT MARGIN(Q)

Highest at 8.95 %

PRE-TAX PROFIT(Q)

Highest at CAD -0.22 MM

NET PROFIT(Q)

Highest at CAD -0.22 MM

-9What is not working for the Company

NET PROFIT(9M)

At CAD -1.5 MM has Grown at -240.73%

OPERATING CASH FLOW(Y)

Lowest at CAD -24.96 MM

NET SALES(9M)

At CAD 9.32 MM has Grown at -27.17%

Here's what is working for Sato Technologies Corp.

Net Sales

Highest at CAD 3.34 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 0.3 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 8.95 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CAD -0.22 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Pre-Tax Profit

At CAD -0.22 MM has Grown at 85.15%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD -0.22 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Net Profit

At CAD -0.22 MM has Grown at 85.15%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Raw Material Cost

Fallen by -147.69% (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 Technologies Corp.

Operating Cash Flow

Lowest at CAD -24.96 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)