Restar Corporation (3156) AI Stock Analysis

• Market Cap: ¥88.28B
• Dividend Yield: 4.31%
• Average Volume (3M): 43.83K
• Price to Earnings (P/E): 17.4
• 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): 47.24
• 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: ¥3,318.00 ▲(18.71% Upside)

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

Strong free cash flow generation

A 53% jump in free cash flow and an operating cash flow to net income ratio of 2.74 indicate high cash conversion quality. Durable FCF supports capex, dividend coverage, deleveraging, and strategic investment, improving long-term financial flexibility across cycles.

Consistent revenue growth

Nearly 9.5% year-on-year revenue growth reflects persistent demand and market traction in semiconductors. Sustained top-line expansion provides room to scale operations, absorb fixed costs, and fund R&D, supporting durable competitive positioning over the medium term.

Stable balance sheet with manageable leverage

A moderate debt-to-equity of 1.34 alongside a 27.7% equity ratio indicates a stable capital structure with adequate equity buffer. Reasonable leverage and positive ROE support financing of growth while maintaining solvency, helping sustain operations through industry cycles.

Negative Factors

Very thin net profitability margins

Low gross and net margins signal limited pricing power or elevated operating costs. Persistently thin margins constrain internal reinvestment, amplify the impact of cost inflation or revenue shocks, and make long-term earnings growth dependent on structural margin improvement.

Material decline in EPS

A roughly 36% drop in EPS indicates earnings volatility or one-off pressures reducing profitability. Over the medium term, declining EPS can weaken retained earnings, limit capital allocation flexibility, and pressure dividend sustainability unless operational performance recovers.

Moderate leverage could constrain flexibility

Debt-to-equity above 1.0 implies reliance on external financing; in a capital-intensive, cyclical semiconductor industry this reduces maneuverability. Higher leverage raises refinancing and interest risks and can limit capacity for opportunistic investments during downturns.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Positive
• 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 2886.25, above the 50-day MA of 2791.72, and above the 200-day MA of 2554.82, indicating a bullish trend. The MACD of 47.06 indicates Positive momentum. The RSI at 61.16 is Neutral, neither overbought nor oversold. The STOCH value of 63.69 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
3156	76 Outperform	¥88.28B	17.35	―	4.31%	4.77%	-36.62%
3445	73 Outperform	¥101.05B	9.56	―	0.93%	28.52%	43.16%
7826	68 Neutral	¥105.76B	14.45	―	2.86%	29.99%	-8.10%
7420	66 Neutral	¥26.94B	9.22	―	4.88%	3.32%	31.11%
7510	66 Neutral	¥36.40B	12.90	―	3.02%	7.09%	13.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6875	50 Neutral	¥138.12B	52.66	1.86%	0.76%	-16.19%	-50.21%

Restar Corporation Corporate Events

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.

Restar Corporation Reports Mixed Financial Results Amid Strategic Adjustments

Restar Corporation reported its consolidated financial results for the six months ending September 30, 2025, showing a slight increase in net sales by 1.8% compared to the previous year. However, the company experienced a significant decline in operating profit, ordinary profit, and profit attributable to owners of the parent, indicating challenges in maintaining profitability. Despite these setbacks, Restar Corporation forecasts a positive outlook for the fiscal year ending March 31, 2026, with expected growth in net sales and profits, suggesting strategic adjustments to enhance its market positioning.

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.