tiprankstipranks
Trending News
More News >
Star Micronics Co., Ltd (JP:7718)
:7718

Star Micronics Co., Ltd (7718) AI Stock Analysis

Compare
0 Followers

Top Page

JP:7718

Star Micronics Co., Ltd

(7718)

Select Model
Select Model
Select Model
Neutral 61 (OpenAI - 5.2)
Rating:61Neutral
Price Target:
¥2,318.00
▲(5.75% Upside)
Action:ReiteratedDate:02/18/26
The score is primarily supported by a very strong, low-risk balance sheet, but held back by weaker profitability versus prior years and sharply negative free cash flow in 2025. Technicals are neutral with only modest longer-term support, and valuation looks somewhat expensive despite an attractive dividend yield.
Positive Factors
Very strong balance sheet
Extremely low leverage and a growing equity base materially reduce solvency risk and give the company durable financial flexibility. Over the next 2–6 months this supports continued investment, dividend support and resilience to demand swings without needing external financing.
Diversified product mix (printers + precision components)
A dual focus on POS/printing hardware and precision components provides multiple end‑market exposures and distribution channels (distributors, resellers, OEMs). This structural diversification smooths revenue streams across retail refresh cycles and industrial demand over medium term.
Revenue rebound and positive growth trend
A clear revenue recovery in 2025 and above‑trend revenue growth metrics indicate improving demand and potential for scale benefits. With gross margin still relatively solid (~37%), higher sales can help stabilize operating leverage and recovery of profitability over several quarters.
Negative Factors
Sharp free cash flow deficit in 2025
A large FCF deficit in 2025 reflects heavier capex or working capital strain and reduces internally available funds for dividends, buybacks or reinvestment. Persistent negative FCF would force reliance on the balance sheet and could constrain strategic flexibility over months.
Material profitability compression vs prior peaks
Profit margins have stepped down sharply from recent peaks, reducing the company's ability to convert revenue into durable earnings. Lower margins weaken reinvestment capacity and make the business more sensitive to cost inflation or pricing pressure over the medium term.
Volatile earnings and weaker cash conversion
Increased profitability volatility and poorer cash conversion raise forecasting risk and may complicate capital allocation. For customers and partners, this uncertainty can lengthen sales cycles and hamper long‑term contracting or investment decisions across the next several quarters.

Star Micronics Co., Ltd (7718) vs. iShares MSCI Japan ETF (EWJ)

Star Micronics Co., Ltd Business Overview & Revenue Model

Company DescriptionStar Micronics Co., Ltd. produces and sells point-of-sale printers, machine tools, and precision products worldwide. It offers small printers, including thermal, dot matrix, hybrid, and portable printers; thermal and dot matrix printer mechanisms; cash drawers; control boards; peripherals; and accessories/options. The company also provides visual card readers/writers for PET/PVC cards; and machine tools comprising CNC automatic lathes. In addition, it offers thermal receipt printers; and StarXpand SDK for React Native, a software development kit that supports the control of Star printers. Star Micronics Co., Ltd. was founded in 1947 and is headquartered in Shizuoka, Japan.
How the Company Makes MoneyStar Micronics generates revenue through the sale of its hardware products, including thermal printers and POS systems, which are utilized across numerous sectors. The company also earns income from software solutions and services that complement its hardware offerings, enhancing functionality and integration. Key revenue streams include direct sales to businesses, partnerships with distributors and retailers, and ongoing support services. Additionally, the company benefits from collaborations with technology partners, enabling it to expand its product ecosystem and reach a broader customer base, thus contributing to its overall earnings.

Star Micronics Co., Ltd Financial Statement Overview

Summary
Balance sheet strength is a major positive (very low leverage and strong equity base), but operating results are mixed: revenue rebounded in 2025 while profitability remains materially below prior peaks, and cash flow quality weakened with 2025 free cash flow turning sharply negative.
Income Statement
62
Positive
Revenue rebounded in 2025 (+10.3% YoY) after declines in 2023–2024, but profitability has compressed materially versus the 2021–2022 peak. Net margin fell to ~4.8% in 2025 (vs. ~11.8% in 2022 and ~10.5% in 2023), and operating profitability similarly stepped down (EBIT margin ~7.3% in 2025 vs. ~16.3% in 2022). Gross margin remains relatively solid (~37.3% in 2025), but the earnings profile shows higher volatility and weaker conversion of sales into bottom-line profit recently.
Balance Sheet
92
Very Positive
The balance sheet is a clear strength, highlighted by extremely low leverage in recent years (debt-to-equity ~0.1% in 2025 and ~0.1% in 2023, and ~2.8% in 2024). Equity is substantial and has grown versus earlier years, supporting financial flexibility. A notable watch item is that leverage was meaningfully higher in 2020 (debt-to-equity ~21.5%), but the subsequent deleveraging suggests materially reduced balance sheet risk today.
Cash Flow
45
Neutral
Cash generation has weakened versus prior years and turned more volatile. Operating cash flow declined to ~¥3.5B in 2025 (from ~¥6.2B in 2024 and ~¥7.1–9.6B in 2021–2023), and free cash flow swung to a large deficit in 2025 (about -¥8.1B) after being positive in 2021–2024. This indicates heavier investment or working-capital pressure in the latest year, and cash conversion is less dependable than the balance sheet would suggest.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue67.61B74.57B64.99B78.20B87.37B64.36B
Gross Profit25.58B27.80B23.44B30.72B33.84B22.60B
EBITDA7.96B8.67B7.12B13.84B16.66B10.11B
Net Income3.24B3.55B1.86B8.18B10.30B5.74B
Balance Sheet
Total Assets114.60B126.27B92.78B93.40B99.54B82.36B
Cash, Cash Equivalents and Short-Term Investments35.46B34.56B23.62B29.72B30.10B27.58B
Total Debt81.68M126.42M2.07B104.18M402.06M81.24M
Total Liabilities16.90B22.69B18.35B13.05B26.45B20.63B
Stockholders Equity97.60B103.47B74.32B80.24B72.98B61.47B
Cash Flow
Free Cash Flow0.00-8.12B1.20B4.81B5.35B8.55B
Operating Cash Flow0.003.54B6.15B7.13B7.52B9.60B
Investing Cash Flow0.00-13.04B-5.46B-2.04B-2.63B740.48M
Financing Cash Flow0.0019.67B-10.28B-5.05B-4.62B-7.56B

Star Micronics Co., Ltd Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2192.00
Price Trends
50DMA
2196.84
Positive
100DMA
2073.60
Positive
200DMA
1881.69
Positive
Market Momentum
MACD
1.45
Positive
RSI
53.38
Neutral
STOCH
2.78
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7718, the sentiment is Neutral. The current price of 2192 is below the 20-day moving average (MA) of 2197.80, below the 50-day MA of 2196.84, and above the 200-day MA of 1881.69, indicating a neutral trend. The MACD of 1.45 indicates Positive momentum. The RSI at 53.38 is Neutral, neither overbought nor oversold. The STOCH value of 2.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7718.

Star Micronics Co., Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥75.79B15.502.63%-6.00%-13.74%
76
Outperform
¥203.34B22.582.50%-2.46%-10.72%
76
Outperform
¥62.19B14.882.79%2.85%3.17%
75
Outperform
¥68.69B16.943.95%-1.67%-4.39%
70
Outperform
¥70.88B14.833.09%6.35%-34.20%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
61
Neutral
¥105.11B26.313.59%2.94%4.76%4.33%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7718
Star Micronics Co., Ltd
2,197.00
285.79
14.95%
JP:6237
Iwaki Co. Ltd.
2,839.00
439.36
18.31%
JP:6363
Torishima Pump Mfg.Co., Ltd.
2,700.00
554.77
25.86%
JP:6381
ANEST IWATA Corp.
1,726.00
529.36
44.24%
JP:6490
Nippon Pillar Packing Co., Ltd.
8,600.00
5,170.73
150.78%
JP:6517
Denyo Co., Ltd.
3,815.00
1,228.02
47.47%

Star Micronics Co., Ltd Corporate Events

Star Micronics Posts FY2025 Results and Confirms 2026 Delisting Plan
Feb 12, 2026

Star Micronics has released its financial results for the fiscal year ended December 2025, detailing consolidated operating performance, segment results for machine tools and special products, capital investment, R&D spending, and key financial indicators. The company has also provided quarterly sales and order trends, as well as long-term performance data across its core business areas.

Following the completion of procedures related to a share consolidation, abolition of share unit provisions, and amendments to its Articles of Incorporation, Star Micronics is scheduled to delist on March 13, 2026. In light of this planned delisting, the company has decided not to provide a consolidated earnings forecast for the fiscal year ending December 2026, signaling a transition phase that may affect visibility for investors and other stakeholders.

The most recent analyst rating on (JP:7718) stock is a Buy with a Yen2439.00 price target. To see the full list of analyst forecasts on Star Micronics Co., Ltd stock, see the JP:7718 Stock Forecast page.

Star Micronics Posts Earnings Rebound as It Prepares to Delist from Tokyo Exchange
Feb 12, 2026

Star Micronics reported a strong rebound in consolidated results for the fiscal year ended December 31, 2025, with net sales up 14.7% to ¥74.6 billion and net income attributable to owners of the parent nearly doubling to ¥3.55 billion. Profitability metrics improved, as the operating margin rose to 7.3%, while shareholders’ equity increased and the equity ratio climbed to 81.8%, reflecting a healthier balance sheet supported by robust financing cash inflows.

The company cut its annual dividend to ¥35 per share for 2025 from ¥60 a year earlier, paying no year-end dividend, as it prepares to delist its shares from the Tokyo Stock Exchange on March 13, 2026. In line with this transition, Star Micronics has withdrawn earnings and dividend forecasts for 2026 and plans to seek an exemption from filing future securities reports, signaling a shift away from public capital markets and changing the risk-return profile for existing shareholders.

The most recent analyst rating on (JP:7718) stock is a Buy with a Yen2439.00 price target. To see the full list of analyst forecasts on Star Micronics Co., Ltd stock, see the JP:7718 Stock Forecast page.

Star Micronics to Cancel Entire Treasury Shareholdings Ahead of Planned Share Consolidation
Jan 28, 2026

Star Micronics Co., Ltd. has resolved at its board meeting to retire all treasury shares it holds as of March 16, 2026, subject to shareholder approval of a planned share consolidation at an extraordinary shareholders’ meeting on February 26, 2026. The cancellation will apply to the company’s entire treasury stock position, which stood at 530,202 shares out of 48,481,334 issued shares as of January 15, 2026, and forms part of a broader capital structure overhaul that may streamline the share base and potentially enhance capital efficiency and shareholder value.

The most recent analyst rating on (JP:7718) stock is a Buy with a Yen2439.00 price target. To see the full list of analyst forecasts on Star Micronics Co., Ltd stock, see the JP:7718 Stock Forecast page.

Star Micronics Moves Toward Privatization With Share Consolidation and TSE Delisting
Jan 28, 2026

Star Micronics has resolved to convene an extraordinary shareholders meeting on February 26, 2026 to seek approval for a share consolidation, abolition of the share unit system, and related amendments to its Articles of Incorporation, steps that will result in its common shares meeting delisting criteria on the Tokyo Stock Exchange. The move follows a tender offer by Solsticia Corporation, which has acquired a majority voting stake as part of a broader privatization plan, and will see Star Micronics shares designated as a delisted issue from February 26 to March 12, 2026, before being removed from trading on the Prime Market on March 13, fundamentally changing liquidity and market access for existing shareholders.

The most recent analyst rating on (JP:7718) stock is a Buy with a Yen2439.00 price target. To see the full list of analyst forecasts on Star Micronics Co., Ltd stock, see the JP:7718 Stock Forecast page.

Star Micronics’ Tender Offer Completion Triggers Shift in Largest Shareholder
Dec 26, 2025

Star Micronics has announced the successful completion of a tender offer for its shares and share options launched on November 13, 2025 by Solsticia Corporation, with 24,789,003 share certificates tendered, exceeding the minimum threshold and ensuring full acceptance. Following settlement on January 6, 2026, Solsticia’s voting stake will surpass 20%, making it the new largest and a major shareholder of Star Micronics, while the current largest shareholder, Taiyo Unleash Acrux Holdings, LP, will cease to hold that position. This transaction marks a significant change in the company’s ownership structure, consolidating influence under Solsticia, which was recently incorporated and is itself wholly owned by Taiyo Unleash Acrux, signaling a reorganization of control within the existing investor group rather than the entry of an entirely new external owner.

The most recent analyst rating on (JP:7718) stock is a Hold with a Yen2302.00 price target. To see the full list of analyst forecasts on Star Micronics Co., Ltd stock, see the JP:7718 Stock Forecast page.

Star Micronics Sets Record Date for Potential Extraordinary Shareholders’ Meeting Tied to Solsticia Tender Offer
Dec 25, 2025

Star Micronics has set January 15, 2026 as the record date to determine which shareholders will be eligible to vote at an extraordinary shareholders’ meeting expected to be held in late February 2026, with notice to be given via electronic public announcement on the company’s website. The planned meeting, which will only be convened if Solsticia Co., Ltd.’s tender offer for Star Micronics’ shares and share options is successfully completed but does not result in full ownership, is expected to include proposals for a share consolidation and related amendments to the articles of incorporation, potentially enabling the Offeror to streamline the shareholder structure and effect a squeeze-out of remaining minority investors; if the tender offer fails, the extraordinary meeting and this record date will not be used.

The most recent analyst rating on (JP:7718) stock is a Hold with a Yen2302.00 price target. To see the full list of analyst forecasts on Star Micronics Co., Ltd stock, see the JP:7718 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 18, 2026