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

• Market Cap: ¥81.02B
• Dividend Yield: 4.32%
• Average Volume (3M): 118.54K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.90
• Revenue Growth: 11.99%
• EPS Growth: -4.74%
• Country: JP
• Employees: 368
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 97.22
• Shares Outstanding: 19,203,000
• 10 Day Avg. Volume: 114,000
• 30 Day Avg. Volume: 118,536
• PEG Ratio: -3.80
• Price to Book (P/B): 3.96
• Price to Sales (P/S): 4.18
• P/FCF Ratio: 23.60
• 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: 82 Outperform
• Price Target: ¥4,838.00 ▲(16.58% Upside)

The score is driven primarily by strong financial performance (robust long-term growth, high margins, and very low leverage). Valuation is supportive with a solid dividend yield and reasonable P/E, while technicals are moderately positive with price above key moving averages and healthy (not extreme) momentum indicators.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.

Balance Sheet Strength

A strong balance sheet with minimal debt enhances financial flexibility and reduces risk, supporting sustainable operations.

Strategic Transition

The transition to a holding company structure aims to enhance market positioning and governance, potentially driving long-term growth.

Negative Factors

Profit Margin Decline

Declining profit margins suggest cost pressures or less favorable revenue mix, which could impact profitability if not addressed.

Cash Flow Volatility

Volatile cash flow can challenge funding capacity and operational stability, potentially affecting long-term strategic initiatives.

Earnings Growth Concerns

Declining earnings growth may signal operational challenges or market pressures, impacting future financial performance.

Strike Co., Ltd. Business Overview & Revenue Model

Company Description

Strike Company,Limited provides mergers and acquisitions brokerage services in Japan. It offers M&A mediation/advice, corporate valuation, financial due diligence and consulting, pre-marketing service, financial consulting, and corporate revitalization support services. The company was incorporated in 1997 and is headquartered in Tokyo, Japan.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.31B	20.31B	18.14B	13.83B	10.73B	8.34B
Gross Profit	11.31B	11.74B	11.61B	9.25B	7.16B	5.23B
EBITDA	6.03B	6.55B	6.94B	5.30B	4.29B	3.24B
Net Income	4.50B	4.72B	4.96B	3.87B	2.96B	2.21B
Balance Sheet
Total Assets	22.82B	24.76B	22.69B	18.29B	12.81B	10.96B
Cash, Cash Equivalents and Short-Term Investments	18.26B	20.15B	18.36B	14.10B	8.54B	8.57B
Total Debt	0.00	0.00	1.14B	0.00	0.00	0.00
Total Liabilities	3.23B	3.29B	4.22B	3.78B	1.56B	1.88B
Stockholders Equity	19.59B	21.47B	18.47B	14.50B	11.25B	9.08B
Cash Flow
Free Cash Flow	0.00	3.60B	5.62B	6.42B	1.60B	1.22B
Operating Cash Flow	0.00	3.85B	6.28B	6.81B	1.70B	1.50B
Investing Cash Flow	0.00	-314.30M	-1.05B	-636.24M	-936.00M	-400.35M
Financing Cash Flow	0.00	-1.74B	-979.01M	-612.70M	-791.35M	-404.10M

Strike Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4150.00
• 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 4150 is above the 20-day moving average (MA) of 4136.25, above the 50-day MA of 4040.00, and above the 200-day MA of 3741.76, indicating a bullish trend. The MACD of 48.22 indicates Negative momentum. The RSI at 61.69 is Neutral, neither overbought nor oversold. The STOCH value of 81.25 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
6196	82 Outperform	¥81.02B	17.37	―	4.32%	11.99%	-4.74%
2127	76 Outperform	¥245.85B	18.67	26.65%	4.00%	10.37%	18.68%
6080	75 Outperform	¥110.84B	21.86	―	1.54%	17.13%	23.53%
9552	68 Neutral	¥63.41B	24.43	―	0.45%	0.32%	-48.88%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Strike Co., Ltd. Corporate Events

Strike Co., Ltd. Reshapes Top Management Titles to Strengthen Governance

Strike Co., Ltd. has announced changes to its director titles following a board resolution on December 23, 2025, promoting Kazuya Kaneda to Senior Managing Director and Executive Officer in charge of the Consulting Division, and elevating Koichi Nakamura to Managing Director and Executive Officer in charge of the Administration Department. The updated leadership structure, which maintains Kunihiko Arai as Representative Director and President and reinforces the roles overseeing consulting and administration, signals a tightening of the management lineup and may support more focused oversight of core business functions under a strengthened governance framework that includes multiple audit and supervisory committee members.

Strike Co., Ltd. Announces Transition to Holding Company Structure

Strike Co., Ltd. announced its transition to a holding company structure, renaming itself to Strike Group Co., Ltd., effective April 1, 2026. This strategic move involves amendments to its Articles of Incorporation to align with the new business structure, focusing on expanding its business purposes and enhancing its market positioning. The changes are subject to approval at the upcoming Ordinary General Shareholders’ Meeting on December 23, 2025.

Strike Co., Ltd. Announces Director Reappointments and Retirements

Strike Co., Ltd. has announced the reappointment of several directors at its upcoming 29th Annual General Meeting of Shareholders. The company will see the reappointment of key figures including Kunihiko Arai as President & CEO, and changes in the Audit and Supervisory Committee with some directors retiring.

Strike Co., Ltd. Reports FY2025 Financial Results with Increased Sales but Lower Profits

Strike Co., Ltd. reported its non-consolidated financial results for the fiscal year ending September 30, 2025, showing a 12% increase in net sales to 20,314 million yen. However, the company experienced a decline in operating and ordinary profits by 6.5% and 6.4%, respectively. Despite these declines, the company increased its dividend per share from 91 yen to 180 yen, reflecting a higher payout ratio. The financial position improved with an increase in total assets and equity ratio, indicating a stronger balance sheet. The company forecasts further growth in the fiscal year ending September 30, 2026, with expected increases in net sales and profits.

Strike Co., Ltd. to Transition to Holding Company Structure

Strike Co., Ltd. has announced its transition to a holding company structure, effective April 1, 2026, through an absorption-type company split with its wholly owned subsidiary. This strategic move aims to enhance corporate value by enabling prompt decision-making and focusing on M&A strategy and governance, while the operating company will concentrate on business growth and expansion.