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SATO

SATO Technologies TSXV:SATO Stock Report

Last Price

CA$0.25

Market Cap

CA$17.7m

7D

0%

1Y

n/a

Updated

15 Aug, 2022

Data

Company Financials +
SATO fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance0/6
Financial Health3/6
Dividends0/6

SATO Stock Overview

Canada Computational Unlimited Corp. engages in the cryptocurrency mining in Quebec, Canada.

SATO Technologies Competitors

Price History & Performance

Summary of all time highs, changes and price drops for SATO Technologies
Historical stock prices
Current Share PriceCA$0.25
52 Week HighCA$2.20
52 Week LowCA$0.17
Beta0
1 Month Change0%
3 Month Change-35.07%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-86.84%

Recent News & Updates

Shareholder Returns

SATOCA SoftwareCA Market
7D0%1.1%3.0%
1Yn/a-25.9%0.7%

Return vs Industry: Insufficient data to determine how SATO performed against the Canadian Software industry.

Return vs Market: Insufficient data to determine how SATO performed against the Canadian Market.

Price Volatility

Is SATO's price volatile compared to industry and market?
SATO volatility
SATO Average Weekly Movement16.2%
Software Industry Average Movement13.0%
Market Average Movement10.6%
10% most volatile stocks in CA Market18.9%
10% least volatile stocks in CA Market4.3%

Stable Share Price: SATO is more volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 16% a week.

Volatility Over Time: SATO's weekly volatility (16%) has been stable over the past year, but is still higher than 75% of Canadian stocks.

About the Company

FoundedEmployeesCEOWebsite
n/a3Romain Nouzarethhttps://www.ccu.ai

Canada Computational Unlimited Corp. engages in the cryptocurrency mining in Quebec, Canada. The company operates a data center to support blockchain infrastructure cryptocurrency mining, AI deployments, and other computationally intensive processes. It also hosts mining equipment for other miners.

SATO Technologies Fundamentals Summary

How do SATO Technologies's earnings and revenue compare to its market cap?
SATO fundamental statistics
Market CapCA$17.70m
Earnings (TTM)-CA$4.38m
Revenue (TTM)CA$6.73m

2.6x

P/S Ratio

-4.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SATO income statement (TTM)
RevenueCA$6.73m
Cost of RevenueCA$3.53m
Gross ProfitCA$3.20m
Other ExpensesCA$7.58m
Earnings-CA$4.38m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.062
Gross Margin47.52%
Net Profit Margin-65.14%
Debt/Equity Ratio4.5%

How did SATO perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is SATO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SATO?

Other financial metrics that can be useful for relative valuation.

SATO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.8x
Enterprise Value/EBITDA-15.1x
PEG Ration/a

Price to Sales Ratio vs Peers

How does SATO's PS Ratio compare to its peers?

SATO PS Ratio vs Peers
The above table shows the PS ratio for SATO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average14.1x
TTGI Turnium Technology Group
3.8xn/aCA$18.7m
HP Hello Pal International
0.7x6.0%CA$18.3m
NFTX Looking Glass Labs
34.8xn/aCA$18.5m
ONE 01 Communique Laboratory
17.1xn/aCA$16.7m
SATO SATO Technologies
2.6x31.8%CA$17.7m

Price-To-Sales vs Peers: SATO is good value based on its Price-To-Sales Ratio (2.6x) compared to the peer average (14.1x).


Price to Earnings Ratio vs Industry

How does SATO's PE Ratio compare vs other companies in the CA Software Industry?

Price-To-Sales vs Industry: SATO is good value based on its Price-To-Sales Ratio (2.6x) compared to the Canadian Software industry average (4.3x)


Price to Sales Ratio vs Fair Ratio

What is SATO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SATO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.6x
Fair PS Ratio1.7x

Price-To-Sales vs Fair Ratio: SATO is expensive based on its Price-To-Sales Ratio (2.6x) compared to the estimated Fair Price-To-Sales Ratio (1.7x).


Share Price vs Fair Value

What is the Fair Price of SATO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate SATO's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate SATO's fair value for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is SATO Technologies forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


137.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SATO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: SATO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SATO is expected to become profitable in the next 3 years.

Revenue vs Market: SATO's revenue (31.8% per year) is forecast to grow faster than the Canadian market (6.5% per year).

High Growth Revenue: SATO's revenue (31.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SATO's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has SATO Technologies performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-46.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SATO is currently unprofitable.

Growing Profit Margin: SATO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SATO is unprofitable, and losses have increased over the past 5 years at a rate of 46.4% per year.

Accelerating Growth: Unable to compare SATO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SATO is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (26.3%).


Return on Equity

High ROE: SATO has a negative Return on Equity (-43.39%), as it is currently unprofitable.


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Financial Health

How is SATO Technologies's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: SATO's short term assets (CA$5.4M) exceed its short term liabilities (CA$2.6M).

Long Term Liabilities: SATO's short term assets (CA$5.4M) exceed its long term liabilities (CA$1.3M).


Debt to Equity History and Analysis

Debt Level: SATO has more cash than its total debt.

Reducing Debt: Insufficient data to determine if SATO's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SATO has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: SATO has less than a year of cash runway if free cash flow continues to reduce at historical rates of 66.1% each year


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Dividend

What is SATO Technologies's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate SATO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SATO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SATO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SATO's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SATO has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Romain Nouzareth

0.92

Tenure

CA$441,173

Compensation

Mr. Romain Nouzareth is a Co-Founder of SATO Technologies Corp. (formerly known as Canada Computational Unlimited Corp.) since 2017 and also serves as its Chairman. He serves as Director & Chief Executive...


CEO Compensation Analysis

Compensation vs Market: Romain's total compensation ($USD342.01K) is above average for companies of similar size in the Canadian market ($USD186.79K).

Compensation vs Earnings: Romain's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: SATO's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: SATO's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: SATO only recently listed within the past 12 months.


Top Shareholders

Company Information

SATO Technologies Corp.'s employee growth, exchange listings and data sources


Key Information

  • Name: SATO Technologies Corp.
  • Ticker: SATO
  • Exchange: TSXV
  • Founded: NaN
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: CA$17.696m
  • Shares outstanding: 70.78m
  • Website: https://www.ccu.ai

Number of Employees


Location

  • SATO Technologies Corp.
  • 289 Dugas Street
  • Joliette
  • Quebec
  • J6E 4H1
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/15 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.