Starzen Company Limited (8043) AI Stock Analysis

• Market Cap: ¥64.96B
• Dividend Yield: 3.3%
• Average Volume (3M): 325.49K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 0.37
• Revenue Growth: 4.05%
• EPS Growth: -6.42%
• Country: JP
• Employees: 2,723
• Sector: Consumer Defensive
• Sector Strength: 71
• Industry: Packaged Foods
• EPS (TTM): 105.79
• Shares Outstanding: 58,567,657
• 10 Day Avg. Volume: 212,950
• 30 Day Avg. Volume: 325,486
• PEG Ratio: 0.38
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

Starzen Company Limited demonstrates solid financial performance with strong revenue growth and profitability. The stock's valuation is appealing, with a low P/E ratio and a healthy dividend yield. However, concerns about cash flow management and the lack of comprehensive technical indicators moderate the overall score. The absence of earnings call and corporate events data did not factor into this evaluation.

Starzen Company Limited Business Overview & Revenue Model

Company Description

Starzen Company Limited, listed under the ticker 8043, is a Japanese company primarily operating in the food production and distribution sector. The company specializes in the procurement, processing, and sale of meat products, including pork, beef, and chicken. Starzen is involved in both domestic and international markets, delivering high-quality meat products to a wide range of clients, including retail, foodservice, and industrial sectors.

How the Company Makes Money

Starzen Company Limited generates revenue through the procurement and distribution of meat products. The company's primary revenue streams include the sale of processed and unprocessed meat to various clients such as supermarkets, restaurants, and food manufacturers. Starzen also engages in exports, expanding its market reach beyond Japan. The company may benefit from strategic partnerships with suppliers and distributors to optimize its supply chain and enhance its market presence. Additionally, Starzen's focus on quality assurance and product innovation helps maintain its competitive edge and customer loyalty, contributing to its revenue generation.

Starzen Company Limited Financial Statement Overview

Summary

Starzen Company Limited displays strong revenue growth and profitability with stable profit margins. The balance sheet is solid with reasonable leverage and strong equity ratios. However, cash flow management is a concern due to inconsistent free cash flow generation, which poses a risk to financial stability.

Income Statement

Starzen Company Limited has demonstrated steady revenue growth, with TTM revenue reaching ¥428.95 billion, which is an increase from ¥410.53 billion in the previous year. Gross profit margins have remained stable, reflecting efficient cost management. The company has maintained a strong EBIT margin of 2.1% and a net profit margin of 1.7% in TTM, indicating consistent profitability. However, attention should be given to the relatively modest EBITDA growth, which suggests limited operational leverage.

Balance Sheet

The balance sheet shows a solid equity position with a debt-to-equity ratio of 0.57 in TTM, indicating reasonable leverage. The equity ratio stands at 46.9%, demonstrating a strong equity base. While the return on equity is healthy at 8.6%, there is room for improvement in asset utilization to enhance shareholder returns. The company has effectively managed its debt levels, maintaining financial stability.

Cash Flow

Starzen's cash flow performance is mixed, with no reported free cash flow in TTM due to potentially high capital expenditures or other factors. The absence of operating cash flow data for TTM raises concerns about cash generation capabilities. Historically, the company has seen fluctuations in free cash flow, indicating potential variability in cash management, which could be a risk factor.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
428.95B	410.53B	425.17B	381.43B	349.24B	351.36B
	Gross Profit
41.53B	40.88B	38.57B	35.45B	34.36B	31.27B
	EBIT
9.07B	8.98B	8.16B	6.91B	6.69B	4.23B
	EBITDA
13.04B	14.65B	13.83B	11.71B	11.39B	7.21B
	Net Income Common Stockholders
7.13B	7.51B	7.48B	5.98B	6.92B	1.74B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.65B	17.02B	11.10B	11.17B	14.75B	9.23B
	Total Assets
177.02B	161.18B	146.52B	142.43B	131.73B	125.93B
	Total Debt
47.13B	39.99B	40.28B	42.10B	42.03B	42.76B
	Net Debt
32.48B	23.17B	29.18B	30.93B	27.28B	33.52B
	Total Liabilities
94.06B	83.18B	76.34B	78.43B	72.60B	73.62B
	Stockholders Equity
82.95B	78.00B	70.41B	64.18B	59.12B	52.31B
Cash Flow		Free Cash Flow
0.00	6.70B	3.93B	-1.61B	7.65B	-1.56B
	Operating Cash Flow
0.00	12.78B	7.21B	1.42B	11.08B	1.46B
	Investing Cash Flow
0.00	-4.85B	-4.19B	-3.45B	-3.44B	-3.41B
	Financing Cash Flow
0.00	-2.10B	-3.17B	-1.59B	-2.00B	890.00M

Starzen Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1110.00
• 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:8043, the sentiment is Positive. The current price of 1110 is below the 20-day moving average (MA) of 1192.60, above the 50-day MA of 1058.06, and above the 200-day MA of 955.03, indicating a neutral trend. The MACD of 9.65 indicates Positive momentum. The RSI at 50.64 is Neutral, neither overbought nor oversold. The STOCH value of 21.65 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
2282	79 Outperform	€512.43B	19.80	4.96%	2.60%	6.99%	-4.80%
8043	73 Outperform	¥64.96B	5.31		3.30%	4.05%	-6.42%
2296	68 Neutral	¥257.11B	21.01		2.99%	3.47%	-15.46%
Sector *	64 Neutral	$8.77B	14.68	4.78%	173.90%	3.25%	2.18%
2294	61 Neutral	¥29.56B	25.30		3.01%	-9.02%	-39.11%
2288	55 Neutral	¥46.51B	8.31	8.38%	2.78%	3.58%	-120.81%
2291	37 Underperform	¥3.42B	―		―	-2.25%	31.36%

Starzen Company Limited Corporate Events

Starzen Co., Ltd. Expands Overseas with Acquisition of Australian Cattle Farm

Starzen Co., Ltd. has completed the acquisition of YORKRANGE Pty Ltd, an Australian company involved in cattle fattening farm operations, converting it into a subsidiary. This strategic move is part of Starzen’s medium-term management plan to expand its overseas business and strengthen its supply chain, aiming to enhance the quality and value of its beef products. Although the immediate financial impact is expected to be minimal, the acquisition is anticipated to improve customer satisfaction and bolster the company’s market position.

Starzen Co., Ltd. Completes Asset Transfer to Boost Logistics Efficiency

Starzen Company Limited has completed the transfer of non-current assets, including land, as part of its medium-term management plan to reorganize logistics sites. This strategic move is expected to improve asset efficiency and increase storage capacity from 12,000 to 32,000 nominal tons with the establishment of new logistics centers in eastern and western Japan. The company anticipates recording an extraordinary income of approximately 7.5 billion yen from this transfer, which will be reflected in the fiscal year ending March 31, 2025.

Starzen Co., Ltd. Embraces Sustainable Finance for Growth

Starzen Co., Ltd. has announced its decision to raise funds through sustainable finance, specifically by securing a Sustainability Linked Loan from Sumitomo Mitsui Banking Corporation and Mizuho Bank. This initiative is part of the company’s broader strategy to promote sustainable management, reduce greenhouse gas emissions, and enhance corporate value while creating new market opportunities.

Starzen Announces Stock Split and Amends Articles of Incorporation

Starzen Company Limited has announced a stock split effective April 1, 2025, aiming to increase share liquidity and attract a broader investor base. The stock split will result in a threefold increase in the number of shares, with amendments to the Articles of Incorporation reflecting the new total number of authorized shares. Despite the stock split, the share capital amount remains unchanged, and dividends will be based on pre-split shares. The company also plans to enhance its shareholder benefit program by March 31, 2026.

Starzen Revises Acquisition Schedule for Australian Cattle Firm

Starzen Company Limited announced a revision in the schedule for acquiring shares in an Australian cattle fattening company, which will become a subsidiary. The change is due to potential delays in processes with Australian authorities, but the impact on the company’s earnings for the fiscal year ending March 31, 2025, is expected to be minimal.

Starzen Signs Lease for New Logistics Center to Enhance Efficiency

Starzen Company Limited has announced the signing of a fixed-term building lease agreement with Daiwa Corporation for a new logistics center in Kawasaki City, Japan. The new facility, set to begin operations in May 2026, will significantly boost storage capacity and improve logistics efficiency, aligning with Starzen’s medium-term management plan to transform its earnings structure and promote sustainability.

Starzen Co., Ltd. Announces Nine-Month Financial Results Showing Sales Increase and Profit Decline

Starzen Co., Ltd. reported its consolidated financial results for the nine months ending December 31, 2024. The company experienced a 5.8% increase in net sales compared to the previous year, but saw declines in operating income and profit attributable to owners of the parent by 4.8% and 5.9% respectively. Despite these declines, the company’s total assets increased from March 2024 to December 2024, indicating some operational stability. The company maintained its financial forecasts and dividend predictions, suggesting confidence in its market positioning amidst changing economic conditions.