Star Mica Holdings Co., Ltd. (2975) AI Stock Analysis

• Market Cap: ¥51.34B
• Dividend Yield: 2.81%
• Average Volume (3M): 258.00K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.79
• Revenue Growth: 21.69%
• EPS Growth: 30.92%
• Country: JP
• Employees: 201
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 22.17
• Shares Outstanding: 34,755,900
• 10 Day Avg. Volume: 228,250
• 30 Day Avg. Volume: 257,996
• PEG Ratio: 0.29
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.60
• P/FCF Ratio: -8.01
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥1,660.00 ▲(21.97% Upside)

The score is primarily held back by weak cash conversion and high leverage despite solid revenue growth and profitability. Technicals are supportive due to a strong uptrend, but overbought momentum raises near-term risk. Valuation is reasonable with a modest dividend yield, providing partial offset to financial-risk concerns.

Positive Factors

Revenue growth and healthy operating margins

Sustained top-line acceleration into 2024–2025 and mid-single-digit net margins indicate the core condo investment and management business is scaling. Durable revenue growth with positive operating margins supports ongoing earnings generation and reinvestment capacity in a capital-intensive sector.

Asset-backed balance sheet and rising equity

A tangible asset base and increasing equity provide a structural buffer against real-estate valuation swings. Asset backing enhances creditor comfort and gives management options—asset sales or refinancing—to manage liquidity needs over the medium term.

Focused residential condominium business model

A concentrated strategy on Japanese residential condominiums enables operational specialization, repeatable processes and local market knowledge. That focus supports steady rental and resale activity, facilitating long-term cashflow predictability versus more cyclical commercial segments.

Negative Factors

Persistent negative operating and free cash flow

Multi-year negative OCF and FCF materially increase reliance on external financing to fund operations and investments. Over 2–6 months this raises execution and refinancing risk, constrains bolt-on investments, and makes returns sensitive to funding cost moves.

High leverage and rising total debt

Elevated leverage magnifies exposure to interest-rate and asset-value shocks, reducing strategic flexibility. High debt levels increase refinancing and liquidity risk and limit capacity to pursue growth or withstand downturns without deleveraging or asset disposals.

Margin compression despite revenue gains

Falling margins while revenue rises suggest scaling is not translating into proportional profitability gains. This structural efficiency drag can reduce free cash generation and leave earnings vulnerable to cost inflation or higher financing costs over the medium term.

Star Mica Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Star Mica Holdings Co., Ltd. acquires, renovates, manages, and sells pre-owned condominiums in Japan. The company also provides brokerage services for pre-owned condominium units and other real estate properties; consulting services; real estate planning and leasing management services. In addition, it offers private banking and investment advisory services. Star Mica Holdings Co., Ltd. was incorporated in 1998 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Star Mica Holdings generates revenue through its core business of mica mining and processing, which involves extracting raw mica from its mines and refining it into finished products for various industrial applications. The company has established key revenue streams from the sale of mica flakes, powders, and other mica-related products to a diverse range of clients in the cosmetics, electronics, and construction sectors. Additionally, Star Mica Holdings benefits from strategic partnerships with manufacturers and distributors, allowing for expanded market reach and increased sales volumes. Their focus on sustainable and eco-friendly practices also attracts premium pricing for their products, contributing to higher profit margins.

Star Mica Holdings Co., Ltd. Financial Statement Overview

Summary

Strong revenue growth and solid profitability are positives (2024 net margin ~5.6%, EBIT margin ~9.8%), but the financial profile is materially weakened by persistently negative operating/free cash flow (2021–2025; 2025 OCF ~-¥5.1B, FCF ~-¥5.2B) and high leverage (debt-to-equity ~2.9x; total debt ~¥80.7B in 2025), increasing funding and execution risk.

Income Statement

Revenue growth has been solid over the past few years, with strong acceleration in 2024 and continued expansion into 2025 (annual revenue up to ~¥69.2B). Profitability remains healthy, with 2024 net margin around 5.6% and EBIT margin near 9.8%. However, margins have compressed versus 2022 (when net margin was ~7.7% and EBIT margin ~12.5%), suggesting profitability is not scaling as efficiently as revenue.

Balance Sheet

The balance sheet is asset-backed and equity has grown (to ~¥29.7B in 2025), but leverage is high for the operating profile. Debt-to-equity was ~2.9x in 2023–2024, and total debt rose to ~¥80.7B in 2025. Returns on equity were decent in 2022–2024 (roughly low-teens to mid-teens), but elevated leverage increases sensitivity to funding costs and asset-value swings.

Cash Flow

Cash generation is the key weakness: operating cash flow and free cash flow are negative in most years shown (2021–2025), including 2025 operating cash flow of about -¥5.1B and free cash flow of about -¥5.2B. While this can occur in real-estate businesses due to working-capital and investment timing, the multi-year pattern of cash outflow increases reliance on financing and raises execution risk versus earnings that remain positive.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	63.76B	69.16B	55.85B	48.88B	48.21B	36.90B
Gross Profit	11.30B	12.28B	9.82B	8.42B	9.76B	7.45B
EBITDA	6.91B	7.39B	5.55B	4.91B	6.15B	4.36B
Net Income	3.90B	4.18B	3.11B	2.66B	3.71B	2.40B
Balance Sheet
Total Assets	116.72B	115.46B	102.76B	94.98B	90.38B	80.84B
Cash, Cash Equivalents and Short-Term Investments	2.61B	3.40B	1.90B	4.20B	3.11B	3.11B
Total Debt	84.25B	80.74B	73.30B	69.11B	65.19B	56.43B
Total Liabilities	87.81B	85.76B	77.26B	71.75B	69.10B	59.58B
Stockholders Equity	28.91B	29.70B	25.50B	23.23B	21.27B	21.26B
Cash Flow
Free Cash Flow	0.00	-5.20B	-5.30B	-1.80B	-4.68B	-5.01B
Operating Cash Flow	0.00	-5.12B	-5.27B	-1.76B	-4.59B	-4.91B
Investing Cash Flow	0.00	-378.41M	-56.60M	-63.42M	-309.86M	-311.84M
Financing Cash Flow	0.00	7.00B	3.03B	2.91B	4.90B	933.55M

Star Mica Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1361.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2975, the sentiment is Positive. The current price of 1361 is below the 20-day moving average (MA) of 1470.25, above the 50-day MA of 1357.58, and above the 200-day MA of 1118.14, indicating a bullish trend. The MACD of 34.72 indicates Positive momentum. The RSI at 66.65 is Neutral, neither overbought nor oversold. The STOCH value of 77.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2975.

Star Mica Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8935	77 Outperform	¥55.57B	7.55	―	3.64%	15.82%	22.32%
8860	74 Outperform	¥29.22B	5.47	―	4.20%	6.26%	-4.41%
3457	70 Neutral	¥22.09B	9.92	―	4.31%	-6.89%	7.72%
3452	67 Neutral	¥29.84B	8.10	―	3.99%	3.72%	-27.94%
3486	66 Neutral	¥34.24B	5.48	―	6.11%	81.19%	250.41%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2975	64 Neutral	¥51.34B	12.07	―	2.81%	21.69%	30.92%

Star Mica Holdings Co., Ltd. Corporate Events

Star Mica Holdings Outlines FY2025 Results and Mid-Term Strategy Progress

Star Mica Holdings presented its FY2025 financial results as part of a broader update on the progress of its mid-term plan, “Find the Value 2026,” and shared its outlook for FY2026. The company also discussed the landscape of the pre-owned and renovated condominium market, its view on its current stock price, and key themes from recent shareholder Q&A, signaling an effort to align strategic execution, investor communication, and market positioning around its mid-term growth objectives.

The most recent analyst rating on (JP:2975) stock is a Hold with a Yen1351.00 price target. To see the full list of analyst forecasts on Star Mica Holdings Co., Ltd. stock, see the JP:2975 Stock Forecast page.

Star Mica Holdings Delivers Double-Digit Profit Growth and Hikes Dividends, Signals Further Gains in FY2026

Star Mica Holdings reported strong consolidated results for the fiscal year ended November 30, 2025, with revenue rising 23.8% year on year to ¥69.16 billion and net profit attributable to owners of the parent climbing 34.7% to ¥4.18 billion, supported by higher operating and recurring profits. Profitability and financial soundness improved, as ROE increased to 15.2%, the equity ratio edged up to 25.6%, and cash and cash equivalents nearly doubled to ¥3.4 billion, enabling the company to raise its annual dividend from ¥23.00 to ¥37.00 per share. Looking ahead to the fiscal year ending November 30, 2026, the company forecasts further double-digit growth, projecting revenue of ¥84.72 billion and net profit of ¥5.10 billion, and plans to continue enhancing shareholder returns with a higher expected annual dividend of ¥45.00 per share and a dividend payout ratio of around 30%.

The most recent analyst rating on (JP:2975) stock is a Hold with a Yen1351.00 price target. To see the full list of analyst forecasts on Star Mica Holdings Co., Ltd. stock, see the JP:2975 Stock Forecast page.

Star Mica Holdings Cancels Treasury Share Acquisition, Boosts Dividend

Star Mica Holdings Co., Ltd. announced the cancellation of its planned acquisition of treasury shares, initially resolved in February 2025, due to strong business performance and favorable market conditions. The company decided to reallocate the unused funds of approximately 100 million yen to enhance the year-end dividend, reflecting a strategic shift in capital management to benefit shareholders.

The most recent analyst rating on (JP:2975) stock is a Hold with a Yen1230.00 price target. To see the full list of analyst forecasts on Star Mica Holdings Co., Ltd. stock, see the JP:2975 Stock Forecast page.

Star Mica Holdings Announces Increased Dividend Forecast Amid Strong Performance

Star Mica Holdings Co., Ltd. announced a revision to its dividend forecast, increasing the fiscal year-end dividend per share from 18.00 yen to 22.00 yen, resulting in an annual dividend increase from 33.00 yen to 37.00 yen. This decision reflects the company’s strong business performance, including record-high revenue and profit, and its commitment to shareholder returns, as it reallocates funds from a canceled treasury share acquisition to dividends.

The most recent analyst rating on (JP:2975) stock is a Hold with a Yen1230.00 price target. To see the full list of analyst forecasts on Star Mica Holdings Co., Ltd. stock, see the JP:2975 Stock Forecast page.

Star Mica Holdings Updates on Treasury Share Acquisition

Star Mica Holdings Co., Ltd. announced the status of its treasury share acquisition, revealing that no shares were acquired in October 2025 despite a resolution to acquire up to 450,000 shares. As of October 31, 2025, the company had acquired 217,700 shares at a total cost of 206,039,700 yen, reflecting a strategic move to manage its capital structure and shareholder value.

The most recent analyst rating on (JP:2975) stock is a Hold with a Yen1230.00 price target. To see the full list of analyst forecasts on Star Mica Holdings Co., Ltd. stock, see the JP:2975 Stock Forecast page.