Company Overview
Sadot Group Inc. operates within the Consumer Defensive sector, specifically focusing on the Farm Products industry, where it delivers supply chain solutions designed to mitigate global food security challenges. The company's core activities involve agri-commodity sourcing and trading for essential food and feed products, including soybean meal, wheat, and corn, alongside direct farm operations for grain production. As a market participant, the firm reports a market capitalization of $2.87M and generates annual revenue of $467.08M, though specific employee count data is unavailable in current records. The valuation metrics indicate a small-cap classification given the $2.87M market cap, suggesting the company operates with limited equity value relative to its substantial top-line revenue of $467.08M.
Financial Health
The company reports trailing twelve-month revenue of $467.08M, yet it recorded a net loss of $12,972,000 and an EBITDA of $-25,326,000 during the same period. The substantial gap between the $467.08M revenue and the negative net income of $12,972,000 reveals a cost structure where expenses significantly outweigh gross sales, resulting in a gross margin of -1.4%. Operating efficiency is further strained by an operating margin of -4960.2%, which indicates that fixed costs or operational expenses are disproportionately high relative to sales volume. Profitability is similarly challenged, as the profit margin stands at -2.8%, reflecting a scenario where the company loses money on every dollar of revenue generated. Regarding liquidity and flexibility, the firm holds $581,000 in cash while managing $11.71M in total debt, resulting in a debt-to-equity ratio of 49.42. This leverage position, combined with a negative free cash flow of $-3,687,250, suggests limited financial flexibility to cover obligations without external financing or asset liquidation. Short-term liquidity appears constrained as the current ratio is 0.97, indicating that current assets do not fully cover current liabilities. Return metrics highlight significant underperformance, with a return on equity of -49.0% and a return on assets of -13.0%, which reveals that management is currently destroying shareholder value and utilizing assets inefficiently.
Valuation Assessment
Valuation multiples present a complex picture due to the company's unprofitability, with a trailing P/E ratio listed as N/A and a forward P/E of 0.65. The discrepancy between the unavailable trailing P/E and the low forward P/E of 0.65 implies that market expectations for future earnings are based on projections that assume a turnaround or significant cost restructuring. The price-to-book ratio is 0.08, which indicates that the market values the company at a fraction of its book value, suggesting the market does not assign a premium to its assets. Alternative valuation metrics further reflect this undervaluation or distress, with a price-to-sales ratio of 0.01 and an EV/EBITDA of -0.64, which suggests the market is pricing in severe operational risks rather than growth potential. Price volatility is captured by the 52-week range, which spans from a low of $1.17 to a high of $28.90. Without a specific current price provided in the facts to calculate a percentage, the stock has demonstrated extreme volatility within this range, having previously tested the $28.90 high before falling to $1.17. The beta value is 0.83, indicating that the stock's price movements are slightly less volatile than the broader market over the 52-week period.
Growth & Income
Revenue growth year-over-year is -99.9%, while earnings growth is N/A due to the company's reported losses, indicating a severe contraction in top-line sales rather than organic expansion. The absence of earnings growth data alongside the -99.9% revenue decline implies that the company is not generating positive earnings to grow faster than its shrinking revenue base. As a non-dividend payer, the company reports a dividend yield of N/A and a payout ratio of 0.0%, meaning it reinvests its limited resources into operations rather than distributing income to shareholders. The overall growth and income profile is characterized by significant revenue contraction, negative earnings, and a lack of dividend distribution, positioning the firm as a high-risk entity with no current income generation for investors.