Starts Corporation Inc. (8850) AI Stock Analysis

• Market Cap: ¥236.86B
• Dividend Yield: 2.68%
• Average Volume (3M): 52.44K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.66
• Revenue Growth: 1.02%
• EPS Growth: -13.26%
• 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: 73 Outperform
• Price Target: ¥5,335.00 ▲(10.11% Upside)

Starts Corporation Inc. scores well due to its strong financial performance and attractive valuation. However, mixed technical indicators suggest caution in the short term. The absence of earnings call and corporate events data limits further insights.

Starts Corporation Inc. Business Overview & Revenue Model

Company Description

Starts Corporation Inc. (8850) is a diversified technology company that operates primarily in the software development and IT services sectors. The company specializes in creating innovative solutions for businesses, including custom software applications, cloud computing services, and data analytics tools. With a commitment to enhancing operational efficiency and driving digital transformation, Starts Corporation caters to a wide range of industries, including finance, healthcare, and manufacturing.

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	238.35B	232.98B	233.41B	233.87B	196.58B	198.96B
Gross Profit	77.88B	76.18B	73.52B	68.19B	60.08B	55.94B
EBITDA	38.82B	43.19B	39.87B	36.22B	31.24B	28.25B
Net Income	21.49B	24.27B	22.09B	20.22B	16.77B	15.60B
Balance Sheet
Total Assets	333.12B	333.65B	324.11B	293.10B	273.29B	259.04B
Cash, Cash Equivalents and Short-Term Investments	101.25B	99.08B	94.04B	85.22B	74.39B	72.65B
Total Debt	75.24B	69.65B	73.43B	65.65B	74.78B	69.76B
Total Liabilities	153.25B	155.40B	158.79B	148.02B	145.61B	137.07B
Stockholders Equity	176.27B	174.75B	162.16B	142.52B	126.06B	120.59B
Cash Flow
Free Cash Flow	25.34B	18.51B	7.86B	23.48B	7.09B	17.84B
Operating Cash Flow	32.80B	25.91B	25.73B	34.15B	24.95B	27.25B
Investing Cash Flow	-9.75B	-8.77B	-20.77B	-10.70B	-17.82B	-10.36B
Financing Cash Flow	-14.63B	-15.28B	3.03B	-12.95B	-5.96B	-4.87B

Starts Corporation Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4845.00
• 50DMA: Negative
• 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:8850, the sentiment is Neutral. The current price of 4845 is above the 20-day moving average (MA) of 4751.25, below the 50-day MA of 4880.96, and above the 200-day MA of 4318.15, indicating a neutral trend. The MACD of -18.17 indicates Negative momentum. The RSI at 47.89 is Neutral, neither overbought nor oversold. The STOCH value of 70.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥18.21B	5.10	―	4.91%	10.42%	48.21%
8850	73 Outperform	¥236.86B	10.86	―	2.68%	1.02%	-13.26%
8923	73 Outperform	¥156.16B	10.56	14.95%	2.26%	17.74%	19.41%
3010	69 Neutral	¥46.31B	12.61	―	1.52%	40.03%	-45.93%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8803	63 Neutral	€173.50B	14.62	8.95%	3.35%	28.94%	109.35%
3475	63 Neutral	¥38.47B	16.72	―	3.44%	21.25%	28.04%

Starts Corporation Inc. Corporate Events

Starts Corporation Inc. Reports Q1 2025 Financial Results with Increased Sales but Declining Profits

Starts Corporation Inc. reported its consolidated financial results for the three months ending June 30, 2025, showing a 9.9% increase in net sales compared to the previous year. Despite the rise in sales, the company experienced a decline in profit attributable to owners of the parent by 35.2%, indicating potential challenges in maintaining profitability. The company’s financial position remains stable with a slight increase in net assets and equity-to-asset ratio, suggesting a solid foundation for future growth. The earnings forecast for the fiscal year ending March 31, 2026, predicts a 7.3% increase in net sales, with a modest rise in operating and ordinary profit, although profit attributable to owners is expected to decrease by 3.2%, reflecting cautious optimism for the upcoming year.