Starzen Company Limited (8043) AI Stock Analysis

• Market Cap: ¥73.27B
• Dividend Yield: 2.93%
• Average Volume (3M): 81.25K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.39
• Revenue Growth: 5.18%
• EPS Growth: 90.21%
• Country: JP
• Employees: 2,723
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 16.54
• Shares Outstanding: 58,567,657
• 10 Day Avg. Volume: 87,970
• 30 Day Avg. Volume: 81,253
• PEG Ratio: 0.07
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.12
• P/FCF Ratio: -5.01
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥1,269.00 ▲(1.36% Upside)

The overall stock score is driven by a solid valuation, with a low P/E ratio and reasonable dividend yield suggesting potential undervaluation. However, financial performance is mixed, with good revenue growth but challenges in profitability and cash flow management. Technical indicators show bearish momentum, which may impact short-term performance.

Positive Factors

Revenue Growth

Consistent revenue growth at 6.24% indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Operational Efficiency

Stable EBIT and EBITDA margins reflect effective cost management, ensuring sustainable profitability despite market fluctuations.

Return on Equity

A strong ROE indicates efficient use of equity capital, enhancing shareholder value and supporting long-term financial health.

Negative Factors

Profitability Margins

Pressure on profitability margins suggests challenges in maintaining cost efficiency, potentially impacting net income and long-term growth.

Cash Flow Management

Negative free cash flow indicates cash constraints, necessitating improved cash management to ensure liquidity and operational flexibility.

Debt Levels

High leverage can limit financial flexibility and increase risk, requiring careful debt management to maintain a balanced capital structure.

Starzen Company Limited Business Overview & Revenue Model

Company Description

Starzen Company Limited engages in the processing, manufacturing, and sale of meat and meat products in Japan. The company offers ham, sausage, bacon, roast beef, roast pork, and hamburgers. It also produces, processes, and trades livestock products; imports and exports meat and livestock products; and manufactures, processes, and trades food products. It sells its products to supermarkets, meat specialty stores, department stores, restaurants, fast food chains, convenience stores, co-operatives, food processing manufacturers, meat wholesale traders, and others. The company exports its products to the United States, Hong Kong, Singapore, Macau, Thailand, Taiwan, Canada, the European Union, the United Kingdom, Switzerland, Liechtenstein, Norway, Russia, Vietnam, Myanmar, the Philippines, and Mexico. Starzen Company Limited was incorporated in 1948 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Starzen generates revenue primarily through the sale of meat products, including fresh and processed meats. Its revenue model is based on direct sales to retailers, restaurants, and food manufacturers, which form the core of its customer base. Key revenue streams include wholesale distribution of beef and pork, with a significant portion of sales coming from value-added products such as marinated meats and ready-to-cook items. Additionally, the company benefits from strategic partnerships with suppliers and distributors, enhancing its supply chain and market reach. Factors contributing to its earnings include strong brand recognition, a focus on quality assurance, and an expanding portfolio of product offerings that meet consumer trends, such as organic and sustainably sourced meats.

Starzen Company Limited Financial Statement Overview

Summary

Starzen Company Limited shows steady revenue growth and operational efficiency. However, profitability margins face pressure, and cash flow management needs improvement. The balance sheet indicates reliance on debt, posing a potential risk if not managed effectively.

Income Statement

Starzen Company Limited shows a positive revenue growth trajectory with a revenue increase of 6.24% from 2024 to 2025. The gross profit margin slightly improved, indicating effective cost management. However, net profit margin remains a concern as it slightly decreased due to higher expenses. EBIT and EBITDA margins show stability, suggesting consistent operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is somewhat high, indicating significant leverage. However, the return on equity is strong at 13.75% in 2025, showing effective use of equity capital. Equity ratio is stable, reflecting a balanced capital structure despite increased debt levels.

Cash Flow

The cash flow analysis reveals challenges, with a negative free cash flow in 2025 due to increased capital expenditures. The operating cash flow to net income ratio is negative, suggesting cash flow difficulties. The free cash flow to net income ratio also indicates cash constraints, prompting a need for better cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	439.61B	436.11B	410.53B	425.17B	381.43B	349.24B
Gross Profit	42.11B	41.88B	40.88B	38.57B	35.45B	34.36B
EBITDA	22.08B	21.67B	14.65B	13.83B	11.71B	11.39B
Net Income	12.31B	12.20B	7.51B	7.48B	5.98B	6.92B
Balance Sheet
Total Assets	178.47B	171.92B	161.18B	146.52B	142.43B	131.73B
Cash, Cash Equivalents and Short-Term Investments	18.20B	16.29B	17.02B	11.10B	11.17B	14.75B
Total Debt	46.33B	42.56B	39.99B	40.28B	42.10B	42.03B
Total Liabilities	91.34B	83.17B	83.18B	76.34B	78.43B	72.60B
Stockholders Equity	87.13B	88.74B	78.00B	70.41B	64.18B	59.12B
Cash Flow
Free Cash Flow	0.00	-10.85B	6.70B	3.93B	-1.61B	7.65B
Operating Cash Flow	0.00	-2.26B	12.78B	7.21B	1.42B	11.08B
Investing Cash Flow	0.00	613.00M	-4.85B	-4.19B	-3.45B	-3.44B
Financing Cash Flow	0.00	811.00M	-2.10B	-3.17B	-1.59B	-2.00B

Starzen Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1252.00
• 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:8043, the sentiment is Positive. The current price of 1252 is above the 20-day moving average (MA) of 1232.50, above the 50-day MA of 1196.18, and above the 200-day MA of 1138.52, indicating a bullish trend. The MACD of 17.29 indicates Negative momentum. The RSI at 60.01 is Neutral, neither overbought nor oversold. The STOCH value of 70.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8043.

Starzen Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2204	67 Neutral	¥18.24B	23.02	―	2.12%	-1.97%	7.25%
8043	66 Neutral	¥73.27B	5.85	―	2.93%	5.18%	90.21%
2811	66 Neutral	¥230.62B	19.82	―	2.11%	3.69%	-50.13%
2264	65 Neutral	¥327.76B	29.55	―	2.44%	2.33%	-8.76%
2892	64 Neutral	¥19.65B	14.12	―	2.98%	-0.73%	23.36%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2296	62 Neutral	¥298.99B	19.69	―	2.61%	6.54%	15.08%

Starzen Company Limited Corporate Events

Starzen Completes Strategic Treasury Share Acquisition

Starzen Co., Ltd. has completed the acquisition of 330,000 treasury shares through an off-auction own share repurchase trade on the Tokyo Stock Exchange, as per the resolution by its Board of Directors. This strategic move is aimed at enabling the company to maintain an agile equity policy to better navigate future business environment changes.

Starzen Co., Ltd. Announces Treasury Share Acquisition Plan

Starzen Co., Ltd. has announced a resolution to acquire up to 330,000 of its own shares through an off-auction repurchase on the Tokyo Stock Exchange. This strategic move is aimed at enabling a more agile equity policy to better adapt to future business environment changes, potentially impacting the company’s market positioning and shareholder value.

Starzen Announces Treasury Share Disposal to Employees

Starzen Company Limited has announced a plan to dispose of treasury shares as restricted stock to 86 employees, aiming to incentivize them and align their interests with shareholders. This move is part of a broader strategy to enhance corporate value and involves the allocation of 38,732 shares at a total value of 45,974,884 yen, with restrictions on share transfer until the annual securities report is filed.

Starzen Co., Ltd. Unveils Long-Term Vision and Medium-Term Management Plan 2030

Starzen Co., Ltd. has announced a Long-Term Vision and a Medium-Term Management Plan 2030 to adapt to the changing business environment and stakeholder expectations. The company plans to enhance its global supply chain, expand market share, and strengthen its business foundation and corporate functions. The plan includes significant investments aimed at achieving record-high profits by 2030, driven by overseas market expansion and product capability enhancements.

Starzen Co., Ltd. Reports Increased Sales and Profit Amid Stock Split

Starzen Co., Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing a 3.1% increase in net sales to 220,081 million yen. Despite a decline in operating income by 10.8%, the company saw an 11.6% rise in profit attributable to owners of the parent, reaching 2,791 million yen. The company also announced a stock split and maintained its financial forecast for the fiscal year ending March 31, 2026, indicating stable future expectations.

Starzen Completes Treasury Stock Disposal for Employee Incentive

Starzen Co., Ltd. announced the completion of payment procedures related to the disposal of treasury stock as part of a ‘Restricted Stock Incentive’ for its Employee Shareholding Association. The number of shares disposed of was adjusted due to partial forfeiture, reflecting the final number of consenting members. This change will not affect the company’s business forecast for the fiscal term ending March 2026.

Starzen Introduces Restricted Stock Incentive for Employees

Starzen Company Limited has announced the disposal of treasury stock as part of a new restricted stock incentive system aimed at enhancing employee motivation and corporate value. This initiative involves granting restricted stock to employees who are members of the Starzen Employee Shareholding Association, encouraging greater participation and investment in the company’s future growth.