Sadot Group (SDOT, Financial) has announced a strategic move through its subsidiary, Sadot Canada, by entering into a management services agreement with Big Sky Milling. This collaboration is designed to enhance the operational efficiency and growth potential of Big Sky Milling by providing comprehensive management services.
Under the terms of the agreement, Sadot Canada will assist in managing the operations at Big Sky Milling, receiving a monthly service fee in return. This partnership not only facilitates operational support but also grants Sadot access to Big Sky's facility in Bowden, Alberta. This location is crucial for Sadot as it will be used for transloading and toll processing activities that bolster its expanding export operations.
The arrangement is structured to benefit both parties financially. Sadot is set to receive a monthly management fee along with procurement commissions. Meanwhile, Big Sky Milling stands to gain revenue from toll processing associated with Sadot's export dealings. This partnership aims to leverage operational synergies and pave the way for mutual growth within the industry.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Sadot Group Inc (SDOT, Financial) is $15.00 with a high estimate of $15.00 and a low estimate of $15.00. The average target implies an upside of 795.52% from the current price of $1.68. More detailed estimate data can be found on the Sadot Group Inc (SDOT) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Sadot Group Inc's (SDOT, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Sadot Group Inc (SDOT, Financial) in one year is $9.94, suggesting a upside of 493.43% from the current price of $1.675. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Sadot Group Inc (SDOT) Summary page.
SDOT Key Business Developments
Release Date: March 12, 2025
- Q4 2024 Revenue: $216.2 million.
- Full Year 2024 Revenue: $700.9 million.
- Q4 2024 Net Income: $0.7 million.
- Full Year 2024 Net Income: $4 million.
- Q4 2024 EBITDA: $2.2 million.
- Full Year 2024 EBITDA: $8.9 million.
- Basic Earnings Per Share: $1.28 per share, improved from negative $1.45 in 2023.
- Dilutive Earnings Per Share: $1.26 per share, improved from negative $1.45 in 2023.
- SG&A Expenses: Reduced by $1.3 million to $0.9 million in Q4.
- Cash Balance: $1.8 million.
- Working Capital Surplus: $20.5 million.
- Mark-to-Market Gain on Derivatives: $5.1 million in Q4, $17.1 million for the year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Sadot Group Inc (SDOT, Financial) achieved positive net income for the full year 2024 for the first time in the company's history.
- The company reported substantial revenue growth, with Q4 2024 revenue at $216.2 million and full-year revenue at $700.9 million.
- Net income improved significantly, with a $2.6 million increase in Q4 2024 over Q4 2023 and an $11.8 million increase for the full year over 2023.
- EBITDA showed strong growth, improving by $4.3 million in Q4 2024 over Q4 2023 and by $15.1 million for the full year over 2023.
- Sadot Group Inc (SDOT) successfully reduced SG&A expenses by $1.3 million in Q4 2024, contributing to improved profitability.
Negative Points
- The restaurant sale process has taken longer than expected, although it is progressing with multiple parties in advanced negotiations.
- The company faced challenges with its African farm operations due to a severe drought, leading to a decision not to plant crops in the fall.
- Margins in Q4 2024 were lower than earlier in the year, attributed to the mix of commodities traded and geographic factors.
- The company is exposed to market risk due to volatility in food and feed commodity prices, requiring careful management of forward sales contracts and hedges.
- Despite positive financial results, Sadot Group Inc (SDOT) acknowledges the need to enhance investor relations and public relations efforts to increase awareness and perceived value.
