Restar Corporation (3156) AI Stock Analysis

• Market Cap: ¥94.72B
• Dividend Yield: 4.31%
• Average Volume (3M): 43.83K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 1.03
• Revenue Growth: 4.77%
• EPS Growth: -36.62%
• Country: JP
• Employees: 3,232
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 75.29
• Shares Outstanding: 30,072,643
• 10 Day Avg. Volume: 43,590
• 30 Day Avg. Volume: 43,833
• PEG Ratio: 0.88
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 3.66
• 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: 76 Outperform
• Price Target: ¥3,560.00 ▲(27.37% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

Restar Corporation's strong financial performance, characterized by consistent revenue growth and robust cash flow, is the most significant factor driving the stock score. The valuation is reasonable, with an attractive dividend yield. Technical analysis presents mixed signals, with a slight bearish trend offset by neutral momentum indicators.

Positive Factors

Free Cash Flow Strength

A 53% jump in free cash flow and strong operating cash conversion (OCF/net income 2.74) indicate durable cash generation. This bolsters the company's ability to fund capex, R&D, dividends or debt reduction through cycles, enhancing financial flexibility over months.

Consistent Revenue Growth

Sustained top-line expansion (9.47% YoY and positive multi-period revenue growth) reflects ongoing demand or market share gains in semiconductors. Persistent revenue growth supports scale benefits, steady cash flow generation and continued investment in product development.

Manageable Leverage and Equity Base

A moderate debt-to-equity ratio with a near-28% equity ratio shows a stable capital structure. Combined with positive ROE, this implies the company can leverage growth while retaining a reasonable equity cushion, supporting operations and strategic investments over the medium term.

Negative Factors

Thin Net Profit Margins

Very low net and EBITDA margins indicate limited ability to convert revenue into retained earnings. Structurally thin profitability reduces capacity to absorb cost inflation, fund expanded R&D or raise returns to shareholders without improving operational efficiency.

Declining EPS

An ~18% decline in EPS points to pressure on per-share earnings, which can constrain retained earnings growth and reduce flexibility for share-based capital actions. Sustained EPS deterioration raises questions about earnings quality and long-term shareholder returns.

Limited Equity Cushion Risk

A sub-30% equity ratio and moderate leverage mean the company has a narrower capitalization buffer. In a cyclical semiconductor downturn or if refinancing conditions tighten, the balance sheet could face strain, increasing financial risk over the medium term.

Restar Corporation Business Overview & Revenue Model

Company Description

Restar Holdings Corporation operates as an electronics trading company in Japan and internationally. The company offers semiconductor and electronic components, system engineering, and reliability test services; and electronic and measuring equipment, as well as engages in the EMS, procurement, system equipment, and technology business. It is also involved in vegetable factory business; and renewable energy business, and produces and supplies power. The company was incorporated in 2009 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Restar Corporation generates revenue through multiple key streams. Primarily, the company earns income from the sale of its telecommunications infrastructure products, which include routers, switches, and wireless communication devices. Additionally, Restar provides software solutions for data management and analytics, which are offered through subscription models or one-time licensing fees. The company has established significant partnerships with major telecommunications providers and enterprises, allowing for collaborative projects and expanding its customer base. Furthermore, Restar benefits from ongoing maintenance and support contracts, ensuring a steady stream of recurring revenue. The company's commitment to innovation and the development of cutting-edge technology also positions it to capitalize on emerging trends in the tech industry, contributing to its overall earnings.

Restar Corporation Financial Statement Overview

Summary

Restar Corporation shows a strong financial position with consistent revenue growth and effective cash flow management. While profitability ratios indicate areas for improvement, the company's stable balance sheet and robust cash generation provide a solid foundation for future growth.

Income Statement

Restar Corporation's income statement demonstrates strong financial performance with a consistent upward trajectory in revenue, evidenced by a 9.47% revenue growth from 2024 to 2025. The gross profit margin stands at 8.25%, indicating efficient cost management. However, the net profit margin of 1.33% suggests room for improvement in profitability, possibly due to higher operating expenses. The EBITDA margin of 2.34% and EBIT margin of 2.53% further underscore the need to optimize operational efficiencies.

Balance Sheet

The balance sheet reveals a stable financial structure with a debt-to-equity ratio of 1.34, indicating moderate leverage. The equity ratio is 27.72%, reflecting a solid equity base. Return on equity (ROE) is 8.70%, showing reasonable profitability relative to equity. While the company's debt level is manageable, continuous monitoring is advisable to prevent potential financial strain.

Cash Flow

Cash flow analysis shows a robust 53.35% growth in free cash flow, highlighting effective cash generation capabilities. The operating cash flow to net income ratio of 2.74 suggests strong operational cash flow relative to earnings. The free cash flow to net income ratio of 2.44 further cements the company's ability to generate cash beyond its net earnings. Overall, cash flow management appears healthy and supports the company's operations and growth strategies.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	559.11B	561.00B	512.48B	487.13B	399.59B	323.81B
Gross Profit	44.82B	46.27B	45.27B	40.48B	30.18B	25.12B
EBITDA	15.15B	13.13B	20.05B	18.54B	12.73B	9.90B
Net Income	4.81B	7.47B	7.00B	7.08B	5.96B	4.05B
Balance Sheet
Total Assets	305.80B	310.02B	291.70B	269.43B	241.96B	190.38B
Cash, Cash Equivalents and Short-Term Investments	44.46B	44.42B	39.92B	32.99B	33.44B	40.20B
Total Debt	111.45B	115.31B	118.29B	106.77B	93.28B	54.77B
Total Liabilities	207.33B	209.96B	200.68B	184.33B	160.30B	114.13B
Stockholders Equity	84.46B	85.94B	84.33B	80.88B	77.65B	73.41B
Cash Flow
Free Cash Flow	0.00	18.20B	11.87B	-5.32B	-35.19B	13.95B
Operating Cash Flow	0.00	20.20B	15.67B	-363.00M	-26.63B	20.13B
Investing Cash Flow	0.00	61.00M	-6.61B	-5.60B	-16.17B	13.54B
Financing Cash Flow	0.00	-16.11B	-3.00B	3.71B	34.49B	-15.34B

Restar Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2795.00
• 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:3156, the sentiment is Positive. The current price of 2795 is below the 20-day moving average (MA) of 3064.75, below the 50-day MA of 2937.40, and above the 200-day MA of 2647.23, indicating a bullish trend. The MACD of 64.02 indicates Negative momentum. The RSI at 64.84 is Neutral, neither overbought nor oversold. The STOCH value of 57.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3156.

Restar Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6387	79 Outperform	¥50.69B	29.27	14.31%	1.36%	18.44%	26.68%
3156	76 Outperform	¥94.72B	15.06	―	4.31%	4.77%	-36.62%
6966	75 Outperform	¥160.27B	15.58	―	2.45%	4.60%	-21.64%
6871	71 Outperform	¥468.61B	39.16	―	1.02%	29.60%	24.39%
3445	69 Neutral	¥110.10B	11.80	―	0.93%	28.52%	43.16%
6627	66 Neutral	¥89.06B	26.44	―	1.85%	3.60%	-17.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Restar Corporation Corporate Events

Restar’s Nine-Month Profit Falls Despite Higher Sales, Full-Year Outlook and Dividend Plan Unchanged

Restar Corporation reported consolidated net sales of ¥436.98 billion for the nine months ended December 31, 2025, up 4.8% year on year, while operating profit slipped 6.0% to ¥9.41 billion and profit attributable to owners of parent fell 29.9% to ¥3.79 billion, translating into basic earnings per share of ¥134.92. The company’s total assets rose to ¥341.58 billion and net assets to ¥104.80 billion, though its equity ratio eased to 26.0%, and it maintained a solid shareholder return stance with an annual dividend forecast of ¥125 per share for the fiscal year ending March 31, 2026.

For the full fiscal year, Restar is forecasting 7.0% growth in net sales to ¥600 billion and a 12.9% rise in operating profit to ¥16 billion, with ordinary profit projected to climb 30.8% and profit attributable to owners of parent to edge up 0.4%, signaling expectations of profit recovery despite the interim earnings decline. Recent consolidation changes, including adding RESTAR FRAMOS Technologies Inc. and removing two smaller entities, suggest a strategic realignment of its group structure, while stable dividend guidance and unchanged earnings forecasts indicate management’s confidence in the medium‑term earnings trajectory and continued commitment to shareholder returns.

The most recent analyst rating on (JP:3156) stock is a Buy with a Yen3377.00 price target. To see the full list of analyst forecasts on Restar Corporation stock, see the JP:3156 Stock Forecast page.

Restar Discloses Strong Fiscal 2025 Results and Ownership Structure of Parent KMF Corporation

Restar Corporation announced the finalized financial results for its unlisted parent company, KMF Corporation, for the fiscal year ended September 30, 2025, highlighting KMF’s solid financial position and profitability. KMF reported total assets of ¥9.10 billion, total liabilities of ¥4.79 billion, and net assets of ¥4.30 billion, alongside sales of ¥831 million, operating profit of ¥764 million, and net profit of ¥641 million, underscoring healthy margins for an asset management business. The shareholder structure shows that KMF’s common shares are fully held by five individual shareholders, while all Class A shares, which carry no voting rights, are held by a single corporate shareholder, clarifying the control profile and governance framework of Restar’s parent company for stakeholders and investors.

The most recent analyst rating on (JP:3156) stock is a Buy with a Yen2913.00 price target. To see the full list of analyst forecasts on Restar Corporation stock, see the JP:3156 Stock Forecast page.