Sao Ta Foods JSC

Sao Ta Foods JSC maintains a relatively balanced capital structure, with a debt-to-equity ratio of 0.55, indicating moderate leverage. The company's liquidity position is characterized as medium, with a current ratio of 1.73, suggesting it can cover its short-term obligations but with limited excess capacity. Despite a negative net cash position after subtracting total debt, the company has a cash and equivalents balance of 221.5 billion VND, which provides some flexibility in managing short-term liquidity needs.

Profitability metrics for Sao Ta Foods JSC show a return on equity (ROE) of 3.35% and a return on assets (ROA) of 1.84%, both of which are below the typical thresholds for high-performing food processing firms. The company's operating income of 83.88 billion VND and net income of 66.28 billion VND reflect a solid but not exceptional performance in a competitive industry. Gross profit of 140.55 billion VND indicates a healthy margin, but the operating cash flow of -347.79 billion VND suggests significant working capital demands or operational inefficiencies.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification, which increases exposure to regional economic fluctuations. This lack of diversification could pose a risk if local demand for processed food products declines or if supply chain disruptions occur.

Looking ahead, Sao Ta Foods JSC is expected to maintain a stable revenue trajectory, with no significant growth or contraction projected in the current or next fiscal year. The company's capital expenditure of -69.42 billion VND and free cash flow of 142.46 billion VND suggest a focus on maintaining operations rather than aggressive expansion. This conservative approach may limit growth potential but also reduces financial risk.

The risk assessment for Sao Ta Foods JSC highlights a medium liquidity risk and a low dilution risk. The company's negative net cash position after subtracting total debt is a key flag, indicating potential challenges in meeting long-term obligations. However, the low dilution risk suggests that the company is not likely to issue additional shares in the near term, preserving shareholder value.

Recent events and disclosures for Sao Ta Foods JSC include analyst estimates that suggest a mean price target of 42,050 VND per share, with a median price target of 42,000 VND. The mean recommendation of 2.25 indicates a generally positive outlook, with three buy ratings and one hold rating. These analyst sentiments reflect confidence in the company's ability to maintain its market position and deliver modest returns to investors.

Analysts project 19.1% upside to a mean price target of 42,050 VND, signaling strong market confidence in future performance.

Revenue grew 18.4% year-over-year to 8.19 trillion VND in FY2026, demonstrating robust top-line expansion capabilities.

Net margin of 5.33% outperforms the cohort median of 3.95%, reflecting effective cost management and profitability.

Free cash flow surged to 350.15 billion VND in FY2026, providing significant liquidity for debt reduction or reinvestment.

High credit risk and a debt-to-equity ratio of 1.62 signal significant leverage concerns and potential solvency issues.

Return on equity of 3.35% trails the Food Processing cohort median of 4.99%, indicating inefficient capital utilization.

Long-term debt increased to 1.53 trillion VND in FY2026, raising concerns about rising interest expenses and financial flexibility.

Cash conversion ratio of -5.25% places the company in the bottom quartile of its peer cohort.

Operating income declined 2.9% year-over-year despite revenue growth, suggesting margin compression or rising operational costs.

Revenue VND 1.40T, −29,7% YoY; Operating income +41,6% YoY.

• ▍Revenue VND 1.40T, −29,7% YoY
• ▍Operating income +41,6% YoY
• ▍Net income +37,9% YoY
• ▍Free cash flow +86,7% YoY
• ▍Net margin 2.9%

Revenue VND 8.19T, +18,4% YoY; Operating income −2,9% YoY.

• ▍Revenue VND 8.19T, +18,4% YoY
• ▍Operating income −2,9% YoY
• ▍Net income +14,1% YoY
• ▍Free cash flow +2,6% YoY
• ▍Net margin 4.3%

Revenue VND 6.91T, +35,9% YoY; Operating income +39,0% YoY.

• ▍Revenue VND 6.91T, +35,9% YoY
• ▍Operating income +39,0% YoY
• ▍Net income +10,7% YoY
• ▍Free cash flow +215,8% YoY
• ▍Net margin 4.4%

Revenue VND 5.09T, −10,8% YoY; Operating income −6,2% YoY.

• ▍Revenue VND 5.09T, −10,8% YoY
• ▍Operating income −6,2% YoY
• ▍Net income −10,7% YoY
• ▍Free cash flow +167,9% YoY
• ▍Net margin 5.4%

Revenue VND 5.70T, +9,7% YoY; Operating income +13,3% YoY.

• ▍Revenue VND 5.70T, +9,7% YoY
• ▍Operating income +13,3% YoY
• ▍Net income +15,7% YoY
• ▍Free cash flow −2 709,7% YoY
• ▍Net margin 5.4%

Revenue VND 5.20T; Operating income VND 285.77B.

• ▍Revenue VND 5.20T
• ▍Operating income VND 285.77B
• ▍Net margin 5.1%