| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1706.26 | 54326 |
| Intrinsic value (DCF) | 30751.87 | 980821 |
| Graham-Dodd Method | 107.24 | 3321 |
| Graham Formula | 50.82 | 1521 |
Sadot Group Inc. (NASDAQ: SDOT) is a dynamic player in the agricultural supply chain, specializing in agri-commodity sourcing, trading, and farm operations to tackle global food security challenges. Headquartered in Fort Worth, Texas, the company focuses on key food and feed products such as soybean meal, wheat, and corn, while also managing farm operations in Southern Africa. Additionally, Sadot operates food service businesses across the U.S., diversifying its revenue streams. Formerly known as Muscle Maker Inc., the company rebranded in 2019 to align with its strategic shift toward agri-commodities. With a market cap of approximately $7.7 million, Sadot leverages its supply chain expertise to capitalize on rising global food demand, positioning itself as a niche provider in the Consumer Defensive sector. Its operations span multiple geographies, enhancing resilience against regional market fluctuations.
Sadot Group presents a high-risk, high-reward opportunity for investors focused on the agri-commodity and food security sectors. The company's revenue of $700.9 million in its latest fiscal year suggests significant scale, though its modest net income ($3.99 million) and negative operating cash flow (-$2.78 million) raise concerns about profitability and liquidity. With a beta of 0.96, SDOT exhibits market-aligned volatility, but its small market cap and debt load ($7.52 million) could amplify risks in downturns. The lack of dividends may deter income-focused investors, but growth-oriented stakeholders might find value in Sadot's global supply chain positioning and exposure to food security trends. Investors should weigh its niche market advantages against financial sustainability risks.
Sadot Group operates in the highly competitive agricultural commodities and food supply chain sector, where scale, logistics efficiency, and global reach are critical. Its primary competitive advantage lies in its diversified operations, combining agri-trading, farming, and U.S. food services, which mitigates reliance on any single revenue stream. However, the company faces stiff competition from larger agribusinesses with deeper capital reserves and established distribution networks. Sadot’s small size limits its bargaining power with suppliers and buyers, though its focus on Southern African farming provides regional differentiation. The company’s ability to navigate volatile commodity pricing and geopolitical risks in sourcing regions will be key to maintaining margins. While its food service segment adds stability, it operates in a saturated market with low differentiation. Sadot’s long-term success hinges on scaling its trading operations profitably while managing debt and cash flow constraints.