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

• Market Cap: ¥31.65B
• Dividend Yield: 3.24%
• Average Volume (3M): 201.90K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.76
• Revenue Growth: 21.59%
• EPS Growth: 41.67%
• Country: JP
• Employees: 201
• Sector: Real Estate
• Sector Strength: 56
• Industry: Real Estate - Services
• EPS (TTM): 30.07
• Shares Outstanding: 34,755,900
• 10 Day Avg. Volume: 195,500
• 30 Day Avg. Volume: 201,899
• PEG Ratio: 0.34
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.02K
• 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: ¥1,102.00
• Price Target Upside: 19.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ¥1,071.00 ▲(15.66%Upside)

The overall stock score of 68 reflects strong valuation metrics and robust revenue growth, offset by potential liquidity risks due to negative cash flow and high leverage. Technical indicators present a mixed picture, contributing to a moderately positive outlook.

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

Company Description

Star Mica Holdings Co., Ltd. (2975) is a Japanese company engaged primarily in the real estate sector. The company specializes in the acquisition, leasing, and resale of residential and commercial properties, with a focus on providing high-quality living spaces and real estate solutions. Star Mica Holdings aims to enhance the value of the properties it manages, catering to a wide range of clients, including individual investors and corporate entities.

How the Company Makes Money

Star Mica Holdings Co., Ltd. generates revenue primarily through the buying, leasing, and selling of real estate properties. The company acquires properties that have the potential for value appreciation, renovates or improves them, and then sells or leases them at a profit. Rental income from leased properties provides a steady cash flow, while the resale of upgraded properties contributes to significant revenue gains. Additionally, the company may engage in property management services, adding another stream of revenue by managing assets on behalf of property owners. Strategic partnerships with real estate developers and investors can also enhance their market reach and operational efficiency, further contributing to their earnings.

Star Mica Holdings Co., Ltd. Financial Statement Overview

Summary

Star Mica Holdings shows strong revenue growth and improved profitability metrics but struggles with high leverage and negative cash flow indicators. The robust equity ratio and ROE are positive, yet cash flow concerns highlight potential liquidity issues.

Income Statement

Star Mica Holdings has exhibited strong revenue growth over the past years, with a notable increase of 14.25% from 2023 to 2024. The gross profit margin has improved, reaching 17.58% in 2024, suggesting efficient cost management. The net profit margin has also increased to 5.56%, indicating enhanced profitability. However, EBIT and EBITDA margins show moderate improvement, indicating room for operational efficiency enhancement.

Balance Sheet

The company's debt-to-equity ratio remains high at 2.87, reflecting significant leverage, which is common in the real estate industry but poses financial risk. The equity ratio is relatively stable at 24.81%, showing a healthy level of equity financing. Return on equity has increased to 12.19%, indicating improved efficiency in using shareholders' funds to generate profits.

Cash Flow

Star Mica Holdings has faced challenges with negative free cash flow growth, reflecting an increase in capital expenditures and operating cash outflows. The operating cash flow to net income ratio is negative, indicating issues in converting profits into cash. The free cash flow to net income ratio is also negative due to the high level of capital expenditures, suggesting potential liquidity constraints.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.85B	48.88B	48.21B	36.90B	39.57B
Gross Profit	9.82B	8.42B	9.76B	7.45B	5.97B
EBITDA	5.55B	4.91B	6.15B	4.36B	3.34B
Net Income	3.11B	2.66B	3.71B	2.40B	1.73B
Balance Sheet
Total Assets	102.76B	94.98B	90.38B	80.84B	76.76B
Cash, Cash Equivalents and Short-Term Investments	1.90B	4.20B	3.11B	3.11B	7.41B
Total Debt	73.30B	69.11B	65.19B	56.43B	54.42B
Total Liabilities	77.26B	71.75B	69.10B	59.58B	57.05B
Stockholders Equity	25.50B	23.23B	21.27B	21.26B	19.71B
Cash Flow
Free Cash Flow	-5.30B	-1.80B	-4.68B	-5.01B	4.50B
Operating Cash Flow	-5.27B	-1.76B	-4.59B	-4.91B	4.77B
Investing Cash Flow	-56.60M	-63.42M	-309.86M	-311.84M	-378.46M
Financing Cash Flow	3.03B	2.91B	4.90B	933.55M	-1.31B

Star Mica Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 926.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 926 is below the 20-day moving average (MA) of 957.40, below the 50-day MA of 971.15, and above the 200-day MA of 819.87, indicating a bullish trend. The MACD of -10.87 indicates Negative momentum. The RSI at 56.46 is Neutral, neither overbought nor oversold. The STOCH value of 39.83 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
3486	80 Outperform	¥34.16B	7.76		6.11%	89.94%	65.68%
3452	76 Outperform	¥27.70B	6.66		4.29%	67.30%	35.56%
8935	72 Outperform	¥39.19B	6.06		4.00%	11.98%	0.42%
8860	69 Neutral	¥24.33B	5.16		3.85%	2.94%	4.03%
2975	68 Neutral	¥31.65B	8.47		3.24%	21.59%	41.67%
3457	67 Neutral	¥22.45B	8.03		4.21%	3.93%	26.84%
Sector *	59 Neutral	C$1.25B	-1.04	-8.19%	4.97%	10.83%	-22.67%

Star Mica Holdings Co., Ltd. Corporate Events

Star Mica Holdings Announces Treasury Share Acquisition

Star Mica Holdings Co., Ltd. has announced the acquisition of 10,000 of its own common shares for a total of 9,933,100 yen, as part of a broader buyback program authorized by its board of directors. This move, conducted through open market purchases on the Tokyo Stock Exchange, is part of a larger plan to acquire up to 450,000 shares, potentially enhancing shareholder value and optimizing the company’s capital structure.

Star Mica Holdings Reports Strong Financial Growth in H1 2025

Star Mica Holdings Co., Ltd. reported a significant increase in its financial performance for the six months ending May 31, 2025, with revenue rising by 23.7% and net profit attributable to owners of the parent increasing by 45.8% compared to the previous year. The company’s strong performance reflects its strategic positioning in the real estate market, and the increased dividend forecast indicates a positive outlook for stakeholders.

Star Mica Holdings Reports No Treasury Share Acquisitions in May 2025

Star Mica Holdings Co., Ltd. announced that no treasury shares were acquired during the period from May 1 to May 31, 2025, despite a board resolution allowing for the purchase of up to 450,000 shares. This lack of acquisition may impact the company’s financial strategy and shareholder value, as the planned buyback was intended to optimize capital structure and enhance shareholder returns.

Star Mica Holdings Increases Dividend Forecast Amid Strong Q1 Performance

Star Mica Holdings Co., Ltd. has announced a revision in its dividend forecast, increasing the annual dividend per share from 26.00 yen to 30.00 yen for the fiscal year ending November 2025. This decision follows a record-high revenue and profit performance in the first quarter of 2025, driven by successful purchase and sale activities. The company emphasizes shareholder returns, aiming for a 40% total shareholder return through dividends and flexible share buybacks when the stock is undervalued.

Star Mica Holdings Completes New Share Issuance to Boost Capital

Star Mica Holdings Co., Ltd. has completed the payment procedure for issuing new shares through a third-party allotment to the Development Bank of Japan Inc., raising approximately 699.96 million yen. This move increases the company’s capital and number of issued shares, potentially strengthening its financial position and market presence.

Star Mica Holdings Reports Zero Treasury Share Acquisition

Star Mica Holdings Co., Ltd. announced the status of its treasury share acquisition, revealing that no shares were acquired during the period from April 1 to April 30, 2025, despite a prior resolution to acquire up to 450,000 shares. This lack of acquisition could impact the company’s stock market strategy and investor relations, as the planned share buyback was intended to optimize capital structure and potentially increase shareholder value.

Star Mica Holdings Announces Strategic Alliance with Development Bank of Japan

Star Mica Holdings Co., Ltd. has announced a capital and business alliance with the Development Bank of Japan (DBJ), involving the issuance of new shares to DBJ through a third-party allotment. This alliance is intended to support the company’s medium-term management plan, ‘Find the Value 2026,’ by promoting fund creation and improving corporate value. The partnership with DBJ, a government-owned financial institution, is expected to provide multifaceted support, including financial and advisory services, to enhance the company’s operations and long-term market positioning.