SATO TECHNOLOGIES CORP(TSX-V:SATO) stock Fundamental Analysis

Fundamental Rating

Taking everything into account, SATO scores 4 out of 10 in our fundamental rating. SATO was compared to 63 industry peers in the Software industry. SATO has only an average score on both its financial health and profitability. SATO has a valuation in line with the averages, but on the other hand it scores bad on growth.

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1. Profitability

1.1 Basic Checks

SATO had positive earnings in the past year.

In the past year SATO had a positive cash flow from operations.

In the past 5 years SATO reported 4 times negative net income.

In multiple years SATO reported negative operating cash flow during the last 5 years.

1.2 Ratios

SATO has a better Return On Assets (10.59%) than 85.71% of its industry peers.

SATO has a Return On Equity of 27.32%. This is amongst the best in the industry. SATO outperforms 88.89% of its industry peers.

SATO has a Return On Invested Capital of 16.70%. This is amongst the best in the industry. SATO outperforms 88.89% of its industry peers.

		Industry Rank	Sector Rank
ROA	10.59%
ROE	27.32%
ROIC	16.7%

ROA(3y)-28.91%

ROA(5y)-25.16%

ROE(3y)-78.55%

ROE(5y)-60.47%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

SATO's Profit Margin of 12.22% is amongst the best of the industry. SATO outperforms 80.95% of its industry peers.

Looking at the Operating Margin, with a value of 17.64%, SATO belongs to the top of the industry, outperforming 87.30% of the companies in the same industry.

SATO has a Gross Margin of 28.29%. This is in the lower half of the industry: SATO underperforms 65.08% of its industry peers.

		Industry Rank	Sector Rank
OM	17.64%
PM (TTM)	12.22%
GM	28.29%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SATO is creating some value.

SATO has about the same amout of shares outstanding than it did 1 year ago.

SATO has more shares outstanding than it did 5 years ago.

Compared to 1 year ago, SATO has a worse debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 1.23, we must say that SATO is in the distress zone and has some risk of bankruptcy.

SATO has a Altman-Z score of 1.23. This is comparable to the rest of the industry: SATO outperforms 52.38% of its industry peers.

SATO has a debt to FCF ratio of 5.55. This is a neutral value as SATO would need 5.55 years to pay back of all of its debts.

The Debt to FCF ratio of SATO (5.55) is better than 61.90% of its industry peers.

A Debt/Equity ratio of 0.70 indicates that SATO is somewhat dependend on debt financing.

Looking at the Debt to Equity ratio, with a value of 0.70, SATO is in line with its industry, outperforming 41.27% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.7
Debt/FCF	5.55
Altman-Z	1.23

ROIC/WACC1.76

WACC9.47%

2.3 Liquidity

A Current Ratio of 1.03 indicates that SATO should not have too much problems paying its short term obligations.

SATO has a Current ratio (1.03) which is in line with its industry peers.

A Quick Ratio of 1.03 indicates that SATO should not have too much problems paying its short term obligations.

The Quick ratio of SATO (1.03) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	1.03
Quick Ratio	1.03

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

SATO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 182.21%, which is quite impressive.

SATO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.54%.

EPS 1Y (TTM)182.21%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-117.76%

Revenue 1Y (TTM)11.54%

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%-35.8%

3.2 Future

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.

SATO is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -16.95% yearly.

EPS Next YN/A

EPS Next 2YN/A

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year-4.16%

Revenue Next 2Y-16.95%

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 8.00, which indicates a very decent valuation of SATO.

SATO's Price/Earnings ratio is rather cheap when compared to the industry. SATO is cheaper than 92.06% of the companies in the same industry.

When comparing the Price/Earnings ratio of SATO to the average of the S&P500 Index (24.21), we can say SATO is valued rather cheaply.

SATO is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.

		Industry Rank	Sector Rank
PE	8
Fwd PE	N/A

4.2 Price Multiples

SATO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SATO is cheaper than 93.65% of the companies in the same industry.

Based on the Price/Free Cash Flow ratio, SATO is valued cheaper than 92.06% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	6.73
EV/EBITDA	2.63

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2YN/A

EPS Next 3YN/A

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5. Dividend

5.1 Amount

SATO does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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SATO TECHNOLOGIES CORP

TSX-V:SATO (5/9/2025, 7:00:00 PM)

0.16

+0.01 (+3.23%)

Chartmill FA Rating

GICS SectorInformation Technology

GICS IndustryGroupSoftware & Services

GICS IndustrySoftware

Earnings (Last)03-05 2025-03-05/amc

Earnings (Next)N/A N/A

Inst OwnersN/A

Inst Owner ChangeN/A

Ins Owners27.7%

Ins Owner ChangeN/A

Market Cap11.72M

Analysts45.71

Price TargetN/A

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Yearly DividendN/A

Dividend Growth(5Y)N/A

DPN/A

Div Incr Years0

Div Non Decr Years0

Ex-DateN/A

Surprises & Revisions

EPS beat(2)2

Avg EPS beat(2)25.74%

Min EPS beat(2)0.99%

Max EPS beat(2)50.5%

EPS beat(4)N/A

Avg EPS beat(4)N/A

Min EPS beat(4)N/A

Max EPS beat(4)N/A

EPS beat(8)N/A

Avg EPS beat(8)N/A

EPS beat(12)N/A

Avg EPS beat(12)N/A

EPS beat(16)N/A

Avg EPS beat(16)N/A

Revenue beat(2)1

Avg Revenue beat(2)2.19%

Min Revenue beat(2)-16.54%

Max Revenue beat(2)20.93%

Revenue beat(4)3

Avg Revenue beat(4)9.91%

Min Revenue beat(4)-16.54%

Max Revenue beat(4)20.93%

Revenue beat(8)N/A

Avg Revenue beat(8)N/A

Revenue beat(12)N/A

Avg Revenue beat(12)N/A

Revenue beat(16)N/A

Avg Revenue beat(16)N/A

PT rev (1m)0%

PT rev (3m)0%

EPS NQ rev (1m)0%

EPS NQ rev (3m)0%

EPS NY rev (1m)0%

EPS NY rev (3m)0%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)0%

Revenue NY rev (1m)0%

Revenue NY rev (3m)0%

Valuation

		Industry Rank	Sector Rank
PE	8
Fwd PE	N/A
P/S	0.65
P/FCF	6.73
P/OCF	4.34
P/B	1.44
P/tB	1.46
EV/EBITDA	2.63

EPS(TTM)0.02

EY12.5%

EPS(NY)-0.11

Fwd EYN/A

FCF(TTM)0.02

FCFY14.86%

OCF(TTM)0.04

OCFY23.05%

SpS0.25

BVpS0.11

TBVpS0.11

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	10.59%
ROE	27.32%
ROCE	23.19%
ROIC	16.7%
ROICexc	20.54%
ROICexgc	20.75%
OM	17.64%
PM (TTM)	12.22%
GM	28.29%
FCFM	9.59%

ROA(3y)-28.91%

ROA(5y)-25.16%

ROE(3y)-78.55%

ROE(5y)-60.47%

ROIC(3y)N/A

ROIC(5y)N/A

ROICexc(3y)N/A

ROICexc(5y)N/A

ROICexgc(3y)N/A

ROICexgc(5y)N/A

ROCE(3y)N/A

ROCE(5y)N/A

ROICexcg growth 3YN/A

ROICexcg growth 5YN/A

ROICexc growth 3YN/A

ROICexc growth 5YN/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3YN/A

GM growth 5YN/A

F-Score8

Asset Turnover0.87

Health

		Industry Rank	Sector Rank
Debt/Equity	0.7
Debt/FCF	5.55
Debt/EBITDA	0.92
Cap/Depr	31.84%
Cap/Sales	5.28%
Interest Coverage	3.82
Cash Conversion	43.45%
Profit Quality	78.46%
Current Ratio	1.03
Quick Ratio	1.03
Altman-Z	1.23

F-Score8

WACC9.47%

ROIC/WACC1.76

Cap/Depr(3y)333.19%

Cap/Depr(5y)N/A

Cap/Sales(3y)N/A

Cap/Sales(5y)N/A

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)182.21%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-117.76%

EPS Next YN/A

EPS Next 2YN/A

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)11.54%

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%-35.8%

Revenue Next Year-4.16%

Revenue Next 2Y-16.95%

Revenue Next 3YN/A

Revenue Next 5YN/A

EBIT growth 1Y1209.07%

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next Year996.71%

EBIT Next 3YN/A

EBIT Next 5YN/A

FCF growth 1Y117.39%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y182.45%

OCF growth 3YN/A

OCF growth 5YN/A

SATO TECHNOLOGIES CORP (SATO.CA) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

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4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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