Board Change • Jul 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. 4 highly experienced directors. Executive Officer, VP of Oversees Human Resources & Director Yoshinori Sasahara was the last director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. New Risk • May 20
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 3.1% Last year net profit margin: 4.6% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. This is currently the only risk that has been identified for the company. Reported Earnings • May 20
Full year 2026 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2026 results: EPS: JP¥157 (down from JP¥220 in FY 2025). Revenue: JP¥163.4b (up 5.6% from FY 2025). Net income: JP¥5.09b (down 29% from FY 2025). Profit margin: 3.1% (down from 4.6% in FY 2025). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.3%. Earnings per share (EPS) missed analyst estimates by 24%. Revenue is forecast to grow 3.1% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • May 15
Sato Corporation, Annual General Meeting, Jun 25, 2026 Sato Corporation, Annual General Meeting, Jun 25, 2026. Price Target Changed • May 13
Price target increased by 7.7% to JP¥2,800 Up from JP¥2,600, the current price target is provided by 1 analyst. New target price is 31% above last closing price of JP¥2,136. Stock is up 4.2% over the past year. The company is forecast to post earnings per share of JP¥205 for next year compared to JP¥220 last year. Announcement • Apr 14
Sato Corporation to Report Fiscal Year 2026 Results on May 15, 2026 Sato Corporation announced that they will report fiscal year 2026 results on May 15, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥38.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 26 June 2026. Payout ratio is a comfortable 37% and this is well supported by cash flows. Trailing yield: 3.4%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.0%). Reported Earnings • Feb 14
Third quarter 2026 earnings: EPS in line with analyst expectations despite revenue beat Third quarter 2026 results: EPS: JP¥63.24 (down from JP¥78.98 in 3Q 2025). Revenue: JP¥43.5b (up 8.4% from 3Q 2025). Net income: JP¥2.05b (down 20% from 3Q 2025). Profit margin: 4.7% (down from 6.4% in 3Q 2025). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 5.9%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 2.7% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Announcement • Jan 14
Sato Corporation Announces Resignation of Hiroshi Nagumo as External Director, Effective March 31, 2026 Sato Corporation announced the resignation of Hiroshi Nagumo as external director. Date of Resignation: March 31, 2026. The resignation is due to personal reasons. Announcement • Dec 27
Sato Corporation to Report Q3, 2026 Results on Feb 12, 2026 Sato Corporation announced that they will report Q3, 2026 results on Feb 12, 2026 Declared Dividend • Dec 09
First half dividend of JP¥38.00 announced Shareholders will receive a dividend of JP¥38.00. Ex-date: 30th March 2026 Payment date: 26th June 2026 Dividend yield will be 3.3%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is covered by both earnings (34% earnings payout ratio) and cash flows (75% cash payout ratio). The dividend has increased by an average of 6.1% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 37% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 15
Second quarter 2026 earnings: EPS and revenues exceed analyst expectations Second quarter 2026 results: EPS: JP¥56.71 (up from JP¥56.42 in 2Q 2025). Revenue: JP¥40.4b (up 5.2% from 2Q 2025). Net income: JP¥1.84b (flat on 2Q 2025). Profit margin: 4.6% (down from 4.8% in 2Q 2025). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) also surpassed analyst estimates by 44%. Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Price Target Changed • Oct 02
Price target increased by 13% to JP¥2,250 Up from JP¥2,000, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of JP¥2,173. Stock is up 3.7% over the past year. The company is forecast to post earnings per share of JP¥232 for next year compared to JP¥220 last year. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥38.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 09 December 2025. Payout ratio is a comfortable 34% and the cash payout ratio is 87%. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.1%). Reported Earnings • Aug 13
First quarter 2026 earnings: EPS exceeds analyst expectations First quarter 2026 results: EPS: JP¥37.30 (up from JP¥36.93 in 1Q 2025). Revenue: JP¥37.8b (flat on 1Q 2025). Net income: JP¥1.21b (up 1.2% from 1Q 2025). Profit margin: 3.2% (in line with 1Q 2025). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 6.6%. Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Jul 24
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 5.3% to JP¥2,150. The fair value is estimated to be JP¥1,770, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.8% over the last 3 years. Earnings per share has grown by 7.0%. For the next 3 years, revenue is forecast to grow by 3.1% per annum. Earnings are also forecast to grow by 13% per annum over the same time period. Declared Dividend • Jul 09
Final dividend of JP¥38.00 announced Shareholders will receive a dividend of JP¥38.00. Ex-date: 29th September 2025 Payment date: 9th December 2025 Dividend yield will be 3.7%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is covered by both earnings (55% earnings payout ratio) and cash flows (72% cash payout ratio). The dividend has increased by an average of 6.1% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 41% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Jun 30
Now 20% overvalued Over the last 90 days, the stock has fallen 2.4% to JP¥2,067. The fair value is estimated to be JP¥1,715, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.8% over the last 3 years. Earnings per share has grown by 7.0%. For the next 3 years, revenue is forecast to grow by 3.1% per annum. Earnings are also forecast to grow by 13% per annum over the same time period. Buy Or Sell Opportunity • May 22
Now 22% overvalued Over the last 90 days, the stock has fallen 3.4% to JP¥2,026. The fair value is estimated to be JP¥1,666, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.8% over the last 3 years. Earnings per share has grown by 7.0%. Revenue is forecast to grow by 5.8% in 2 years. Earnings are forecast to grow by 31% in the next 2 years. Announcement • May 21
Loftware and SATO Corporation Unveil Cloud-Connected Label Printing Solution for Supply Chain Efficiency and Agility Loftware and SATO Corporation announced the availability of their cloud-connected label printing solution for AEP-equipped SATO printers1. This comes at a time when the adoption of cloud-based technologies is on the rise, with the Loftware/SATO partnership supporting this shift to streamline business processes and enhance supply chain agility. The joint solution, which connects Loftware Cloud with SATO's cloud-connected printers, eliminates printer driver dependencies, allowing IT teams to avoid installation, troubleshooting, updates, and management. This significantly reduces maintenance and support costs, while enabling businesses to print from any PC browser, providing flexibility to scale or adapt operations without technical constraints. It also enhances in-plant labeling for better process control within factories, ensures retail labeling consistency with industry standards, and streamlines third-party logistics (3PL) labeling for seamless integration with logistics providers. Loftware Cloud expands labeling capabilities across internal stakeholders, external suppliers, co-manufacturers, and co-packers, who all play a role in the complex supply chain process. With seamless integration into both on-premise and cloud-based business applications such as ERP, WMS, and PLM, Loftware Cloud optimizes workflows for greater efficiency and accuracy. SATO's cloud-connected printer further enhance this solution with effortless installation and mobility. Simply connecting a LAN cable ensures the printer is ready for immediate use. This plug-and-play functionality makes it easy to relocate printers as needed, giving businesses the flexibility to adapt to changing operational demands. Reported Earnings • May 20
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: JP¥220 (up from JP¥110 in FY 2024). Revenue: JP¥154.8b (up 7.9% from FY 2024). Net income: JP¥7.15b (up 101% from FY 2024). Profit margin: 4.6% (up from 2.5% in FY 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 3.0%. Revenue is forecast to grow 2.8% p.a. on average during the next 2 years, compared to a 4.0% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 7% per year whereas the company’s share price has increased by 3% per year. Announcement • May 15
Sato Corporation, Annual General Meeting, Jun 25, 2025 Sato Corporation, Annual General Meeting, Jun 25, 2025. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥1,791, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 13x in the Commercial Services industry in Japan. Total returns to shareholders of 15% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,078 per share. Announcement • Mar 29
Sato Holdings Corporation to Report Fiscal Year 2025 Results on May 15, 2025 Sato Holdings Corporation announced that they will report fiscal year 2025 results on May 15, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥37.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 24 June 2025. Payout ratio is a comfortable 55% and this is well supported by cash flows. Trailing yield: 3.4%. Lower than top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.1%). Major Estimate Revision • Feb 26
Consensus EPS estimates increase by 11% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from JP¥196 to JP¥217. Revenue forecast steady at JP¥155.0b. Net income forecast to grow 79% next year vs 10% growth forecast for Commercial Services industry in Japan. Consensus price target of JP¥2,200 unchanged from last update. Share price fell 2.9% to JP¥2,044 over the past week. Buy Or Sell Opportunity • Feb 14
Now 21% undervalued Over the last 90 days, the stock has risen 5.4% to JP¥2,223. The fair value is estimated to be JP¥2,829, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.4% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 5.5% in 2 years. Earnings are forecast to grow by 93% in the next 2 years. Reported Earnings • Feb 13
Third quarter 2025 earnings released: EPS: JP¥78.98 (vs JP¥86.86 in 3Q 2024) Third quarter 2025 results: EPS: JP¥78.98 (down from JP¥86.86 in 3Q 2024). Revenue: JP¥40.1b (up 6.6% from 3Q 2024). Net income: JP¥2.56b (down 8.9% from 3Q 2024). Profit margin: 6.4% (down from 7.5% in 3Q 2024). Revenue is forecast to grow 2.7% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Announcement • Jan 03
Sato Holdings Corporation to Report Q3, 2025 Results on Feb 12, 2025 Sato Holdings Corporation announced that they will report Q3, 2025 results on Feb 12, 2025 Declared Dividend • Dec 10
First half dividend of JP¥37.00 announced Shareholders will receive a dividend of JP¥37.00. Ex-date: 28th March 2025 Payment date: 24th June 2025 Dividend yield will be 3.2%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is covered by both earnings (52% earnings payout ratio) and cash flows (36% cash payout ratio). The dividend has increased by an average of 6.9% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 80% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 19
Second quarter 2025 earnings released: EPS: JP¥56.42 (vs JP¥21.20 in 2Q 2024) Second quarter 2025 results: EPS: JP¥56.42 (up from JP¥21.20 in 2Q 2024). Revenue: JP¥38.4b (up 7.3% from 2Q 2024). Net income: JP¥1.83b (up 167% from 2Q 2024). Profit margin: 4.8% (up from 1.9% in 2Q 2024). Revenue is forecast to grow 2.9% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Announcement • Oct 09
Sato Holdings Corporation to Report Fiscal Year 2024 Results on Nov 13, 2024 Sato Holdings Corporation announced that they will report fiscal year 2024 results at 12:00 PM, Tokyo Standard Time on Nov 13, 2024 Announcement • Oct 08
Sato Corporation Announces New Collaboration with Konica Minolta, Inc SATO Corporation announced a new collaboration with Konica Minolta, Inc., as it will now build its flagship CL4NX Plus and CL6NX Plus printers using recycled plastics that Konica Minolta has developed for its multifunctional printers. SATO’s industrial printers made from recycled materials will soon be available on the market. Product development at SATO adheres to eight principles it defines as SATO universal printer design, which expresses its commitment to creating printers that offer equitable use, reliable operation and lasting quality. Its products support multiple languages and function regardless of the workplace environment and available infrastructure. SATO’s collaboration with Konica Minolta is a new step toward environmental stewardship, which is integral to SATO universal printer design. SATO currently offers linerless labels as part of its efforts to use resources sustainably and reduce carbon emissions, but it now takes this commitment further by incorporating recycled plastics into select printer models starting Fiscal Year 2024. Konica Minolta’s recycled plastics meet SATO’s stringent quality standards for flame retardancy, flexural strength, density and mold shrinkage rate. The recycled plastics are used in 40% of the housing components of CL4NX Plus and CL6NX Plus, and SATO expects to reduce carbon emissions by 65% in parts where recycled plastic is used, compared to conventional parts without compromising the quality that virgin materials provide. Using recycled plastics in its flagship printers sold worldwide not only supports SATO’s global sustainability efforts but also allows its customers to contribute to reducing carbon emissions. The material developed by Konica Minolta is a recycled ABS plastic, a flame-retardant, durable and easy-to-mold synthetic resin. Used in Konica Minolta’s multifunctional printers, these plastics are collected from used game machines that are separated, dismantled, crushed and washed. The processed material is then melted and compounded into plastic pellets for horizontal recycling. In line with corporate mission, SATO will seek ever more sustainable manufacturing practices by incorporating recycled materials in products. Announcement • Oct 01
Sato Holdings Corporation to Report Q2, 2025 Results on Nov 13, 2024 Sato Holdings Corporation announced that they will report Q2, 2025 results on Nov 13, 2024 Upcoming Dividend • Sep 20
Upcoming dividend of JP¥37.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 11 December 2024. Payout ratio is a comfortable 68% and this is well supported by cash flows. Trailing yield: 3.7%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (2.0%). Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥1,733, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 12x in the Commercial Services industry in Japan. Total loss to shareholders of 32% over the past three years. Declared Dividend • Jul 11
Final dividend of JP¥37.00 announced Shareholders will receive a dividend of JP¥37.00. Ex-date: 27th September 2024 Payment date: 11th December 2024 Dividend yield will be 3.3%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is covered by both earnings (60% earnings payout ratio) and cash flows (50% cash payout ratio). The dividend has increased by an average of 6.9% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 73% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jul 06
Sato Holdings Corporation to Report Q1, 2025 Results on Aug 08, 2024 Sato Holdings Corporation announced that they will report Q1, 2025 results on Aug 08, 2024 Reported Earnings • Jun 28
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: JP¥110 (down from JP¥127 in FY 2023). Revenue: JP¥143.4b (flat on FY 2023). Net income: JP¥3.57b (down 15% from FY 2023). Profit margin: 2.5% (down from 2.9% in FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 35%. Revenue is forecast to grow 4.1% p.a. on average during the next 3 years, compared to a 3.8% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 48% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Reported Earnings • May 19
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: JP¥110 (down from JP¥127 in FY 2023). Revenue: JP¥143.4b (flat on FY 2023). Net income: JP¥3.57b (down 15% from FY 2023). Profit margin: 2.5% (down from 2.9% in FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 35%. Revenue is forecast to grow 4.5% p.a. on average during the next 3 years, compared to a 3.6% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 48% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Announcement • May 17
Sato Holdings Corporation, Annual General Meeting, Jun 21, 2024 Sato Holdings Corporation, Annual General Meeting, Jun 21, 2024. Price Target Changed • Apr 03
Price target increased by 9.5% to JP¥2,300 Up from JP¥2,100, the current price target is provided by 1 analyst. New target price is approximately in line with last closing price of JP¥2,304. Stock is up 4.9% over the past year. The company is forecast to post earnings per share of JP¥185 for next year compared to JP¥127 last year. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥36.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 21 June 2024. Payout ratio is a comfortable 60% and the cash payout ratio is 84%. Trailing yield: 3.0%. Lower than top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (1.8%). Announcement • Mar 02
Sato Holdings Corporation to Report Fiscal Year 2024 Results on May 15, 2024 Sato Holdings Corporation announced that they will report fiscal year 2024 results on May 15, 2024 Reported Earnings • Feb 10
Third quarter 2024 earnings released: EPS: JP¥86.86 (vs JP¥57.43 in 3Q 2023) Third quarter 2024 results: EPS: JP¥86.86 (up from JP¥57.43 in 3Q 2023). Revenue: JP¥37.6b (flat on 3Q 2023). Net income: JP¥2.82b (up 49% from 3Q 2023). Profit margin: 7.5% (up from 5.0% in 3Q 2023). Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Announcement • Feb 10
Sato Holdings Corporation, Annual General Meeting, Mar 21, 2024 Sato Holdings Corporation, Annual General Meeting, Mar 21, 2024, at 13:00 Central European Standard Time. Location: Panuntie 4, FI-00610 Helsinki Finland Agenda: To consider the Opening of the meeting; to consider the Calling the meeting to order; to consider the Election of examiner of the minutes and a person to supervise the counting of votes; to consider the Recording the legality of the meeting; to consider the Recording of the participants and adoption of the list of votes; to consider the Presentation of the financial statements, report of the Board of Directors and auditor’s report for the year 2023; to consider the Adoption of the financial statements; and to discuss other matters. New Risk • Nov 10
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 2.1% Last year net profit margin: 3.8% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.1% net profit margin). Reported Earnings • Nov 10
Second quarter 2024 earnings released: EPS: JP¥21.20 (vs JP¥61.16 in 2Q 2023) Second quarter 2024 results: EPS: JP¥21.20 (down from JP¥61.16 in 2Q 2023). Revenue: JP¥35.8b (down 2.7% from 2Q 2023). Net income: JP¥687.0m (down 66% from 2Q 2023). Profit margin: 1.9% (down from 5.5% in 2Q 2023). Revenue is forecast to grow 4.0% p.a. on average during the next 3 years, compared to a 3.8% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Announcement • Oct 07
Sato Holdings Corporation to Report Q2, 2024 Results on Nov 09, 2023 Sato Holdings Corporation announced that they will report Q2, 2024 results on Nov 09, 2023 Upcoming Dividend • Sep 21
Upcoming dividend of JP¥36.00 per share at 3.4% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 12 December 2023. Payout ratio is a comfortable 55% but the company is not cash flow positive. Trailing yield: 3.4%. Within top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (1.9%). Announcement • Aug 30
Sato Holdings Corporation to Report Q2, 2024 Results on Feb 09, 2024 Sato Holdings Corporation announced that they will report Q2, 2024 results on Feb 09, 2024 Reported Earnings • Aug 10
First quarter 2024 earnings released: EPS: JP¥40.26 (vs JP¥35.64 in 1Q 2023) First quarter 2024 results: EPS: JP¥40.26 (up from JP¥35.64 in 1Q 2023). Revenue: JP¥34.0b (flat on 1Q 2023). Net income: JP¥1.30b (up 9.1% from 1Q 2023). Profit margin: 3.8% (up from 3.5% in 1Q 2023). Revenue is forecast to grow 2.8% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Board Change • Jun 29
High number of new directors Audit & Supervisory Board Member Kiyohiko Yoshii was the last director to join the board, commencing their role in 2022. Reported Earnings • Jun 24
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: JP¥127 (up from JP¥113 in FY 2022). Revenue: JP¥142.8b (up 14% from FY 2022). Net income: JP¥4.18b (up 10% from FY 2022). Profit margin: 2.9% (in line with FY 2022). Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) also missed analyst estimates by 5.9%. Revenue is forecast to grow 2.7% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Major Estimate Revision • Jun 08
Consensus EPS estimates fall by 18% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from JP¥144.3b to JP¥141.0b. EPS estimate also fell from JP¥191 per share to JP¥157 per share. Net income forecast to grow 25% next year vs 7.2% growth forecast for Commercial Services industry in Japan. Consensus price target down from JP¥2,450 to JP¥2,100. Share price was steady at JP¥1,904 over the past week. Price Target Changed • Jun 07
Price target decreased by 16% to JP¥2,100 Down from JP¥2,500, the current price target is an average from 2 analysts. New target price is 7.6% above last closing price of JP¥1,951. Stock is up 0.6% over the past year. The company is forecast to post earnings per share of JP¥191 for next year compared to JP¥127 last year. Announcement • May 25
Sato Holdings Corporation Provides Consolidated Earnings Forecast for Six Months and Full Year 2023 Sato Holdings Corporation provided consolidated earnings forecast for six months and full year 2023. For the six months, The company expects the net sales of JPY 68,000 million. Operating Income of JPY 3,300 million. Net Income attributable to owners of parents of JPY 2,000 million. Basic earnings per share of JPY 61.75 per share. For the full year, The company expects the net sales of JPY 140,000 million. Operating Income of JPY 8,000 million. Net Income attributable to owners of parents of JPY 5,000 million. Basic earnings per share of JPY 154.37 per share. Reported Earnings • May 19
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: JP¥127 (up from JP¥113 in FY 2022). Revenue: JP¥142.8b (up 14% from FY 2022). Net income: JP¥4.18b (up 10% from FY 2022). Profit margin: 2.9% (in line with FY 2022). Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) also missed analyst estimates by 5.9%. Revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • May 19
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥1,967, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 15x in the Commercial Services industry in Japan. Total loss to shareholders of 7.3% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥2,696 per share. Announcement • May 17
Sato Holdings Corporation, Annual General Meeting, Jun 20, 2023 Sato Holdings Corporation, Annual General Meeting, Jun 20, 2023. Buying Opportunity • May 16
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 8.4%. The fair value is estimated to be JP¥2,584, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.1% over the last 3 years. Earnings per share has grown by 29%. For the next 3 years, revenue is forecast to grow by 3.8% per annum. Earnings is also forecast to grow by 19% per annum over the same time period. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥36.00 per share at 3.2% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 20 June 2023. Payout ratio is a comfortable 40% but the company is not cash flow positive. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.2%). Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥57.42 (vs JP¥32.79 in 3Q 2022) Third quarter 2023 results: EPS: JP¥57.42 (up from JP¥32.79 in 3Q 2022). Revenue: JP¥37.9b (up 18% from 3Q 2022). Net income: JP¥1.89b (up 71% from 3Q 2022). Profit margin: 5.0% (up from 3.4% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.1% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Announcement • Nov 27
Sato Holdings Corporation to Report Q3, 2023 Results on Feb 10, 2023 Sato Holdings Corporation announced that they will report Q3, 2023 results on Feb 10, 2023 Reported Earnings • Nov 16
Second quarter 2023 earnings released: EPS: JP¥61.16 (vs JP¥22.66 in 2Q 2022) Second quarter 2023 results: EPS: JP¥61.16 (up from JP¥22.66 in 2Q 2022). Revenue: JP¥36.8b (up 22% from 2Q 2022). Net income: JP¥2.03b (up 167% from 2Q 2022). Profit margin: 5.5% (up from 2.5% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has fallen by 17% per year, which means it is significantly lagging earnings. Price Target Changed • Nov 11
Price target decreased to JP¥2,400 Down from JP¥2,700, the current price target is an average from 2 analysts. New target price is 26% above last closing price of JP¥1,911. Stock is down 22% over the past year. The company is forecast to post earnings per share of JP¥122 for next year compared to JP¥113 last year. Reported Earnings • Nov 11
Second quarter 2023 earnings released: EPS: JP¥61.16 (vs JP¥22.66 in 2Q 2022) Second quarter 2023 results: EPS: JP¥61.16 (up from JP¥22.66 in 2Q 2022). Revenue: JP¥36.8b (up 22% from 2Q 2022). Net income: JP¥2.03b (up 167% from 2Q 2022). Profit margin: 5.5% (up from 2.5% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Commercial Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has fallen by 17% per year, which means it is significantly lagging earnings.