Is SDOT's Q3 2024 EPS growth sustainable?
4/8/2025 12:16am
**Sadot Group Inc. (SDOT) demonstrates a sustainable EPS growth trajectory**, as evidenced by the following points:
1. **Consistent Revenue Growth**: SDOT has shown a notable increase in revenue, with a year-over-year growth rate of approximately 10.74% as of Q3 2024. This consistent growth indicates a strong business performance, which is a positive indicator for EPS sustainability.
2. **Turnaround in Net Income**: The company has achieved its first-ever yearly positive net income, with a net income of $4.0 million for the year ending December 31, 2024. This significant turnaround from a $7.8 million loss in the previous year demonstrates a strong financial recovery and sets a positive precedent for future EPS growth.
3. **EBITDA Improvement**: SDOT's EBITDA has improved substantially, reaching $8.9 million for the full year 2024, up from a $6.2 million loss in the previous year. The increase in EBITDA is a strong indicator of improved profitability, which supports the notion of sustainable EPS growth.
4. **Strategic Expansion**: The company's strategic expansion into new markets, such as the pet food ingredient market, and operational efficiencies, like converting company-owned restaurants to franchise-owned locations, are likely to contribute positively to future EPS growth.
5. **Management Confidence**: The acquisition of SDOT stock by Kevin James Mohan, the Chief Investment Officer, reflects confidence in the company's future prospects. This internal investment is a positive signal for the sustainability of EPS growth.
In conclusion, SDOT's EPS growth in Q3 2024 appears to be sustainable based on the company's consistent revenue growth, turnaround in net income, improvement in EBITDA, strategic expansion, and management confidence. These factors collectively support the notion that SDOT's recent EPS growth is likely to be a sustainable trend.