Strike Co., Ltd. (6196) AI Stock Analysis

• Market Cap: ¥72.58B
• Dividend Yield: 2.38%
• Average Volume (3M): 88.36K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.96
• Revenue Growth: 5.21%
• EPS Growth: -13.86%
• Country: JP
• Employees: 368
• Sector: Financial
• Sector Strength: 80
• Industry: Financial - Capital Markets
• EPS (TTM): 68.74
• Shares Outstanding: 19,203,000
• 10 Day Avg. Volume: 77,670
• 30 Day Avg. Volume: 88,356
• PEG Ratio: 1.73
• Price to Book (P/B): 6.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 45.98
• 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

• Rating: 81 Outperform
• Price Target: ―

Strike Co., Ltd. demonstrates strong financial performance with impressive revenue growth and high profitability. It maintains a solid balance sheet with low leverage, supporting its financial resilience. Technical indicators suggest positive momentum, although caution is advised due to overbought signals. Valuation metrics appear reasonable, offering a balance of growth potential and income through dividends. Overall, the company's fundamentals and market position support a favorable outlook, with considerations for potential technical corrections.

Strike Co., Ltd. Business Overview & Revenue Model

Company Description

Strike Co., Ltd. (6196) is a Japanese company primarily engaged in the merger and acquisition (M&A) advisory business. The company specializes in providing comprehensive support services for small and medium-sized enterprises (SMEs) looking to expand through strategic mergers or acquisitions. With a strong focus on the Japanese market, Strike Co., Ltd. offers a range of services including M&A consulting, matching services between buyers and sellers, and post-merger integration support.

How the Company Makes Money

Strike Co., Ltd. generates revenue primarily through fees charged for its M&A advisory services. These fees typically include success fees, which are contingent upon the successful completion of a transaction, and retainer fees, which are charged for ongoing advisory services during the M&A process. The company may also earn revenue from consulting engagements, providing strategic advice and support to clients throughout the mergers and acquisitions process. Key partnerships with financial institutions, legal advisors, and industry experts enhance its ability to provide comprehensive services and contribute to its revenue growth.

Strike Co., Ltd. Financial Statement Overview

Summary

Strike Co., Ltd. showcases a robust financial position characterized by strong revenue growth, high profitability, and a solid balance sheet with low leverage. Operational efficiencies and prudent cash flow management further enhance its financial health. While the lack of detailed recent cash flow data poses a challenge, the company's historical performance suggests resilience and potential for sustained growth in the competitive capital markets sector.

Income Statement

Strike Co., Ltd. demonstrates strong financial performance with impressive growth in Total Revenue, achieving a 68.7% increase from 2022 to 2024 (TTM). The company maintains high profit margins, with a Gross Profit Margin of 60.7% and a Net Profit Margin of 24.7% for TTM. EBIT and EBITDA margins are robust at 32.9% and 33.7%, respectively, indicating operational efficiency. The company shows a consistent revenue growth trajectory, underscoring its competitiveness in the capital markets industry.

Balance Sheet

The balance sheet of Strike Co., Ltd. is solid, with a remarkable Equity Ratio of 88.8% and no recorded debt, indicating financial stability and low leverage risk. The Return on Equity (ROE) for TTM stands at a strong 26.1%, reflecting effective use of equity to generate profits. The company's substantial cash reserves bolster its financial resilience. However, the reliance on equity could be further optimized to enhance leverage for growth opportunities.

Cash Flow

While the cash flow data for TTM lacks detail, historical data shows positive trends. The Free Cash Flow displayed steady growth, notably increasing by 251.2% from 2022 to 2023. The Operating Cash Flow to Net Income ratio was strong in 2023 at 1.76, indicating efficient cash conversion from operations. Despite the absence of current cash flow metrics, historical figures suggest sound cash flow management, though transparency in recent periods is necessary for comprehensive analysis.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	18.13B	18.14B	13.83B	10.73B	8.34B	6.92B
Gross Profit	11.04B	11.61B	9.25B	7.16B	5.23B	4.52B
EBITDA	6.11B	6.94B	5.30B	4.29B	3.21B	3.02B
Net Income	4.47B	4.96B	3.87B	2.96B	2.21B	2.20B
Balance Sheet
Total Assets	19.31B	22.69B	18.29B	12.81B	10.96B	9.05B
Cash, Cash Equivalents and Short-Term Investments	15.35B	18.36B	14.10B	8.54B	8.57B	7.87B
Total Debt	0.00	1.14B	0.00	0.00	0.00	0.00
Total Liabilities	2.16B	4.22B	3.78B	1.56B	1.88B	1.95B
Stockholders Equity	17.15B	18.47B	14.50B	11.25B	9.08B	7.09B
Cash Flow
Free Cash Flow	0.00	5.62B	6.42B	1.60B	1.22B	2.83B
Operating Cash Flow	0.00	6.28B	6.81B	1.70B	1.50B	2.89B
Investing Cash Flow	0.00	-1.05B	-636.24M	-936.00M	-400.35M	-133.12M
Financing Cash Flow	0.00	-979.01M	-612.70M	-791.35M	-404.10M	-277.58M

Strike Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3825.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6196, the sentiment is Positive. The current price of 3825 is above the 20-day moving average (MA) of 3672.00, above the 50-day MA of 3621.40, and above the 200-day MA of 3597.13, indicating a bullish trend. The MACD of 75.15 indicates Negative momentum. The RSI at 68.21 is Neutral, neither overbought nor oversold. The STOCH value of 87.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6196.

Strike Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6088	81 Outperform	¥103.06B	22.76		1.77%	17.33%	35.52%
6196	81 Outperform	¥72.58B	17.26		2.38%	5.21%	-13.86%
2127	77 Outperform	$236.68B	20.71	23.83%	3.35%	-0.13%	4.25%
6080	76 Outperform	¥93.81B	15.06		1.35%	54.92%	172.49%
2130	68 Neutral	¥15.85B	43.39		2.69%	9.10%	156.17%
Sector *	68 Neutral	¥724.27B	10.74	7.55%	3.29%	7.97%	15.90%
2459	42 Neutral	¥1.94B	―		―	-29.86%	-88.54%

Strike Co., Ltd. Corporate Events

Strike Co., Ltd. Increases Dividend Payout Ratio and Forecast

Strike Co., Ltd. has announced a revision to its dividend policy, increasing the payout ratio from 35% to 50% of profit to enhance shareholder returns. The company plans to set the dividend per share at ¥180 for the next three years, with the potential for further increases if the payout ratio falls below 50%, reflecting a significant increase from the previous forecast.

Strike Co., Ltd. Reports Decline in Q2 FY2025/9 Financial Results but Increases Dividend Forecast

Strike Co., Ltd. reported a decline in its financial performance for the six months ending March 31, 2025, with net sales decreasing by 3% and operating profit dropping by 34.2% compared to the previous year. Despite the downturn, the company revised its dividend forecast upwards, indicating a potential increase in dividend payout for the fiscal year ending September 30, 2025, which may positively impact shareholder returns.

Strike Co., Ltd. Revises Financial Forecast Amid Deal Delays

Strike Co., Ltd. has revised its financial forecast for the first half of the fiscal year ending September 30, 2025, due to slower-than-expected deal closures and postponed large transactions. The company anticipates lower net sales and profits, attributed to extended deal timelines and increased upfront expenses. However, no changes have been made to the full-year forecast as significant sales from postponed deals are expected in the third quarter, and new contract volumes are exceeding expectations.

Strike Co., Ltd. Announces Executive Appointment and Organizational Change

Strike Co., Ltd. has announced an organizational change with the appointment of Shinichiro Yoshiwara as the new Executive Officer of the Corporate Planning Department, effective April 1, 2025. This change signifies the establishment of a new Corporate Planning Department, aiming to enhance the company’s strategic operations and potentially improve its market positioning.