Starts Corporation Inc. (8850) AI Stock Analysis

• Market Cap: ¥240.59B
• Dividend Yield: 2.67%
• Average Volume (3M): 52.44K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.64
• Revenue Growth: 2.29%
• EPS Growth: -4.12%
• Country: JP
• Employees: 4,672
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 118.54
• Shares Outstanding: 53,998,203
• 10 Day Avg. Volume: 58,690
• 30 Day Avg. Volume: 52,436
• PEG Ratio: 0.75
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.83
• P/FCF Ratio: 10.46
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥5,134.00 ▲(5.53% Upside)

Starts Corporation Inc. has a solid financial foundation with strong profitability and operational efficiency. However, the technical indicators suggest a bearish trend, which could pose short-term risks. The valuation is attractive, with a reasonable P/E ratio and a good dividend yield, making it appealing for value and income-focused investors.

Positive Factors

Strong Profitability

The company's strong profitability and operational efficiency indicate a robust business model capable of sustaining long-term growth and competitiveness.

Balanced Leverage

A moderate debt-to-equity ratio suggests prudent financial management, providing flexibility for future investments and stability in economic downturns.

Strong Gross Profit Margin

A strong gross profit margin reflects efficient cost management, enhancing the company's ability to reinvest in growth and innovation.

Negative Factors

Decline in Free Cash Flow

A significant decline in free cash flow could limit the company's ability to fund new projects and respond to market opportunities, impacting long-term growth.

Earnings Growth Decline

A decline in earnings growth suggests potential challenges in maintaining profitability, which could affect investor confidence and future valuation.

Slow Revenue Growth

Modest revenue growth indicates limited expansion in market share, which could hinder the company's ability to capitalize on industry opportunities.

Starts Corporation Inc. Business Overview & Revenue Model

Company Description

Starts Corporation Inc. engages in the construction, real estate management, and tenant recruitment businesses in Japan and internationally. It is involved in the design and construction management of seismic isolated buildings; and the provision of real estate brokerage services, including the sale of buildings, condominiums, and single-family houses, as well as CRE solutions and housing management services for corporate customers. The company also manages residential buildings, parking lots, office buildings, commercial facilities, etc.; develops card key/home security services; and offers asset management consulting and J-REIT management services, as well as undertakes urban redevelopment and PFI projects. In addition, it publishes lifestyle monthly and free magazines, and cellphone novels, as well as operates OZmall website; promotes events; develops hotels, Japanese inns, golf courses, etc.; and manages and operates approximately 100 nursing homes, elderly housing facilities, and licensed nursery schools. Further, the company provides elderly facility introduction and childcare support services; and sells and installs housing fixtures and fittings. Starts Corporation Inc. was founded in 1969 and is based in Tokyo, Japan.

How the Company Makes Money

Starts Corporation generates revenue through multiple streams including software licensing fees, subscription models for its cloud services, and project-based consulting fees. The company also earns income from long-term contracts with clients for ongoing IT support and system maintenance. Significant partnerships with major technology firms enhance its product offerings and expand its market reach, contributing to stable revenue growth. Additionally, the company invests in research and development to innovate its services, which helps attract new clients and retain existing ones.

Starts Corporation Inc. Financial Statement Overview

Summary

Starts Corporation Inc. exhibits strong financial performance with solid profitability, a stable balance sheet, and robust cash flow generation. The company maintains a healthy net profit margin and effective cash management, although revenue growth is modest.

Income Statement

Starts Corporation Inc. demonstrates strong profitability with a consistent gross profit margin of around 32.7% and a net profit margin of 10.4% in the TTM period. Revenue growth is modest at 2.3% TTM, indicating steady performance. The EBIT and EBITDA margins are healthy at 14.97% and 16.15% respectively, reflecting efficient operational management.

Balance Sheet

The company maintains a solid financial position with a debt-to-equity ratio of 0.40, indicating moderate leverage. The return on equity is robust at 14.15%, showcasing effective use of equity to generate profits. The equity ratio stands at 52.9%, suggesting a stable capital structure with a significant portion of assets financed by equity.

Cash Flow

The cash flow statement reflects strong cash generation capabilities, with a significant free cash flow growth rate of 39.8% TTM. The operating cash flow to net income ratio is 1.53, indicating healthy cash conversion. The free cash flow to net income ratio of 0.70 suggests effective cash management and reinvestment strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	242.71B	232.98B	233.41B	233.87B	196.58B	198.96B
Gross Profit	78.29B	76.18B	73.52B	68.19B	60.08B	55.94B
EBITDA	39.84B	43.19B	39.87B	36.22B	31.24B	28.25B
Net Income	23.08B	24.27B	22.09B	20.22B	16.77B	15.60B
Balance Sheet
Total Assets	335.88B	333.65B	324.11B	293.10B	273.29B	259.04B
Cash, Cash Equivalents and Short-Term Investments	93.41B	99.08B	94.04B	85.22B	74.39B	72.65B
Total Debt	66.44B	69.65B	73.43B	65.65B	74.78B	69.76B
Total Liabilities	149.97B	155.40B	158.79B	148.02B	145.61B	137.07B
Stockholders Equity	182.28B	174.75B	162.16B	142.52B	126.06B	120.59B
Cash Flow
Free Cash Flow	13.76B	18.51B	7.86B	23.48B	7.09B	17.84B
Operating Cash Flow	21.95B	25.91B	25.73B	34.15B	24.95B	27.25B
Investing Cash Flow	-10.72B	-8.77B	-20.77B	-10.70B	-17.82B	-10.36B
Financing Cash Flow	-13.69B	-15.28B	3.03B	-12.95B	-5.96B	-4.87B

Starts Corporation Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4865.00
• 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:8850, the sentiment is Positive. The current price of 4865 is above the 20-day moving average (MA) of 4795.75, above the 50-day MA of 4766.00, and above the 200-day MA of 4468.42, indicating a bullish trend. The MACD of 20.60 indicates Negative momentum. The RSI at 56.04 is Neutral, neither overbought nor oversold. The STOCH value of 81.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8850.

Starts Corporation Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8931	78 Outperform	¥18.53B	5.21	―	4.71%	10.42%	48.21%
8923	73 Outperform	¥164.59B	11.11	14.95%	2.95%	17.74%	19.41%
8850	68 Neutral	¥240.59B	10.24	―	2.67%	2.29%	-4.12%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3010	65 Neutral	¥43.98B	14.34	―	1.60%	116.30%	-0.08%
8803	63 Neutral	¥167.52B	14.17	8.95%	3.39%	28.94%	109.35%
3475	54 Neutral	¥35.43B	22.51	―	3.75%	-8.66%	-53.57%

Starts Corporation Inc. Corporate Events

Starts Corporation Inc. Reports Mixed Financial Results for H1 2025

Starts Corporation Inc. reported its consolidated financial results for the six months ended September 30, 2025, showing an increase in net sales by 8.9% and ordinary profit by 11.4% compared to the previous year. However, the profit attributable to owners of the parent decreased by 9.9%, indicating challenges in maintaining profitability despite revenue growth. The company also announced a forecast for the fiscal year ending March 31, 2026, with expectations of continued growth in net sales and operating profit, although a slight decline in profit attributable to owners is anticipated.