Starzen Company Limited (8043) AI Stock Analysis

• Market Cap: ¥80.41B
• Dividend Yield: 2.92%
• Average Volume (3M): 81.25K
• Price to Earnings (P/E): 6.2
• 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): 62.44
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥1,450.00 ▲(15.54% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

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

Consistent revenue growth

A 6.24% revenue uplift year-on-year demonstrates sustained top-line momentum and market demand for Starzen's products. Durable revenue growth supports capacity utilization and reinvestment, reducing reliance on one-off gains and improving the company's ability to fund operations and strategic initiatives over months.

Improving gross profit and stable operating margins

A slight gross margin improvement with stable EBIT/EBITDA margins indicates effective cost management and operational discipline. Sustainable operating margins provide a buffer against input-cost swings, supporting longer-term profitability even if net margin faces short-term pressure from non-operating items.

Strong return on equity

ROE of 13.75% signals efficient use of shareholders' equity and competent capital allocation by management. Over the medium term this level of ROE supports internal capital generation, potential dividend continuity, and demonstrates that core business returns exceed simple equity cost thresholds.

Negative Factors

Elevated leverage

Higher debt-to-equity amplifies financial risk and raises interest and refinancing exposure. With material leverage, the company faces less flexibility to pursue opportunistic investments or weather demand shocks, making sustained capital expenditures and dividend policies more contingent on cash generation.

Negative free cash flow

A negative free cash flow outcome driven by rising capex reduces discretionary funding available for debt reduction or shareholder returns. Persistent FCF deficits force reliance on external financing or asset sales, increasing vulnerability to credit conditions and constraining strategic optionality over the medium term.

Pressure on net profit margin

A declining net profit margin despite stable operating margins implies rising non-operating costs or expense items eroding bottom-line profitability. If these expense pressures persist, retained earnings and cash generation will be weaker, limiting reinvestment and heightening sensitivity to revenue or cost shocks.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 1255.00
• 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 1255 is below the 20-day moving average (MA) of 1337.95, below the 50-day MA of 1299.66, and above the 200-day MA of 1195.56, indicating a bullish trend. The MACD of 15.18 indicates Positive momentum. The RSI at 54.89 is Neutral, neither overbought nor oversold. The STOCH value of 35.05 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	¥19.52B	21.79	―	2.12%	-1.97%	7.25%
8043	66 Neutral	¥80.41B	6.19	―	2.92%	5.18%	90.21%
2264	65 Neutral	¥418.77B	29.73	―	2.42%	2.33%	-8.76%
2296	64 Neutral	¥332.92B	21.19	―	2.61%	6.54%	15.08%
2892	64 Neutral	¥19.70B	16.56	―	2.98%	-0.73%	23.36%
2811	63 Neutral	¥245.91B	17.44	―	2.11%	3.69%	-50.13%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Starzen Company Limited Corporate Events

Starzen Reshapes Executive Lineup Ahead of June Shareholders’ Meeting

Starzen Co., Ltd., a TSE Prime-listed food and meat processing group, operates through production, sales, overseas, logistics, and specialized divisions, including a dedicated quality and compliance framework and a subsidiary meat processor. The company’s governance structure features both internal and independent external directors as well as audit and supervisory board members, reflecting a conventional Japanese listed-company oversight model.

Starzen announced a series of executive appointments and role changes effective April 1, 2026, including the promotion of Koichi Koike and Orie Kotaka to executive officer roles and the reassignment of responsibilities across the corporate, production, sales, and overseas divisions. The board and management structure, including supervisory responsibilities for each director, was clarified in advance of the June 26 shareholders’ meeting, where reappointment of all directors and confirmation of their titled roles are slated, signaling continuity and incremental reorganization rather than a strategic overhaul.

The most recent analyst rating on (JP:8043) stock is a Hold with a Yen1481.00 price target. To see the full list of analyst forecasts on Starzen Company Limited stock, see the JP:8043 Stock Forecast page.

Starzen Posts Higher Profit Amid Margin Pressure and Keeps FY2026 Outlook Intact

Starzen reported consolidated net sales of ¥344.1 billion for the nine months to December 31, 2025, up 3.0% year on year, while operating income fell 9.3% to ¥7.0 billion and ordinary income edged up 1.0% to ¥8.8 billion. Profit attributable to owners of parent rose 5.7% to ¥6.4 billion, and earnings per share increased to ¥111.26, reflecting solid bottom-line growth despite margin pressure.

Total assets expanded to ¥201.8 billion and net assets to ¥93.4 billion, though the equity ratio declined to 46.3% from 51.6%, indicating higher leverage or asset growth outpacing equity. The company kept its full-year forecast unchanged, targeting ¥450.0 billion in net sales and ¥8.0 billion in profit attributable to owners of parent, and plans an annual dividend of ¥43 per share post-stock split, signaling confidence in earnings while managing capital amid ongoing overseas expansion and balance sheet changes.

The most recent analyst rating on (JP:8043) stock is a Hold with a Yen1481.00 price target. To see the full list of analyst forecasts on Starzen Company Limited stock, see the JP:8043 Stock Forecast page.

Starzen Completes Treasury Shares Disposal to Employees

Starzen Company Limited has completed the payment procedure for the disposal of 38,732 treasury shares as restricted stock to 86 employees. This move, resolved in a board meeting on November 13, 2025, involves a total disposal value of 45,974,884 yen and aims to incentivize employees while ensuring the shares remain non-transferable until the company’s annual securities report is filed.

The most recent analyst rating on (JP:8043) stock is a Hold with a Yen1269.00 price target. To see the full list of analyst forecasts on Starzen Company Limited stock, see the JP:8043 Stock Forecast page.