Starts Corporation Inc. (8850) AI Stock Analysis

• Market Cap: ¥212.03B
• Dividend Yield: 2.81%
• Average Volume (3M): 58.17K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.63
• Revenue Growth: -0.18%
• EPS Growth: 10.63%
• Country: JP
• Employees: 4,672
• Sector: Real Estate
• Sector Strength: 60
• Industry: Real Estate - Diversified
• EPS (TTM): 124.98
• Shares Outstanding: 53,998,203
• 10 Day Avg. Volume: 62,350
• 30 Day Avg. Volume: 58,173
• PEG Ratio: 1.68
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.34
• 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

• Rating: 78 Outperform
• Price Target: ¥4,714.00 ▲(10.40%Upside)

Starts Corporation Inc. receives a strong overall score driven by robust financial performance and attractive valuation. The positive technical indicators further support the outlook. However, stagnant revenue growth and the absence of recent corporate events or earnings call data leave room for improvement.

Starts Corporation Inc. Business Overview & Revenue Model

Company Description

Starts Corporation Inc. (8850) is a Japanese company primarily engaged in the real estate business. The company operates through various segments, including real estate brokerage, property management, and development. It offers services such as tenant recruitment, property management, real estate investment consulting, and development of residential and commercial properties.

How the Company Makes Money

Starts Corporation Inc. generates revenue through its diverse operations in the real estate sector. The company earns income from brokerage fees by facilitating property transactions and leasing agreements. It also collects management fees from overseeing residential and commercial properties, ensuring their proper maintenance and occupancy. Additionally, the development segment contributes to the company's revenue by engaging in the construction and sale of real estate projects. Significant partnerships with property owners, developers, and investors enhance its market position and contribute to its financial performance.

Starts Corporation Inc. Financial Statement Overview

Summary

Starts Corporation Inc. exhibits robust financial health across its income statement, balance sheet, and cash flow metrics. The company shows strong profitability and growth, a stable capital structure, and excellent cash flow generation. While the financials are largely positive, continued focus on liability management could further enhance financial stability.

Income Statement

Starts Corporation Inc. demonstrates robust profitability with a Gross Profit Margin of 32.68% and a Net Profit Margin of 10.85% for TTM (Trailing-Twelve-Months). The EBIT and EBITDA margins stand at 13.88% and 19.08%, respectively, indicating efficient operational performance. The Revenue Growth Rate of 1.75% from the previous annual period shows steady growth. These figures suggest strong earnings potential and cost management.

Balance Sheet

The company maintains a stable financial position with a Debt-to-Equity Ratio of 0.43, reflecting moderate leverage. Return on Equity (ROE) is impressive at 14.88%, indicating effective utilization of shareholder equity. The Equity Ratio of 52.88% highlights a solid equity base compared to assets, providing financial stability. Overall, the balance sheet reflects a well-managed capital structure, though there is room for improvement in reducing liabilities further.

Cash Flow

Cash flows are strong, with a Free Cash Flow Growth Rate of 253.43% for TTM, indicating significant improvement in liquidity. The Operating Cash Flow to Net Income Ratio of 1.51 and Free Cash Flow to Net Income Ratio of 1.08 suggest efficient cash generation relative to net income. These metrics demonstrate the company's ability to generate cash to fund operations and growth.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
237.50B	233.41B	233.87B	196.58B	198.96B	209.09B
	Gross Profit
77.63B	73.52B	68.19B	60.08B	55.94B	60.84B
	EBIT
32.96B	30.50B	28.09B	24.18B	22.07B	23.91B
	EBITDA
45.31B	39.87B	36.22B	31.24B	28.25B	27.50B
	Net Income Common Stockholders
25.76B	22.09B	20.22B	16.77B	15.60B	15.06B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
103.09B	94.04B	85.22B	74.39B	72.65B	60.04B
	Total Assets
327.35B	324.11B	293.10B	273.29B	259.04B	248.03B
	Total Debt
74.69B	73.43B	65.65B	74.78B	69.76B	71.35B
	Net Debt
-28.40B	-20.61B	-19.58B	398.00M	-2.89B	11.32B
	Total Liabilities
150.83B	158.79B	148.02B	145.61B	137.07B	141.63B
	Stockholders Equity
173.08B	162.16B	142.52B	126.06B	120.59B	104.95B
Cash Flow		Free Cash Flow
27.75B	7.86B	23.48B	7.09B	17.84B	22.86B
	Operating Cash Flow
38.95B	25.73B	34.15B	24.95B	27.25B	30.67B
	Investing Cash Flow
-12.33B	-20.77B	-10.70B	-17.82B	-10.36B	-8.31B
	Financing Cash Flow
-7.41B	3.03B	-12.95B	-5.96B	-4.87B	-9.34B

Starts Corporation Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4270.00
• 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:8850, the sentiment is Positive. The current price of 4270 is above the 20-day moving average (MA) of 4170.50, above the 50-day MA of 4005.29, and above the 200-day MA of 3700.34, indicating a bullish trend. The MACD of 74.48 indicates Negative momentum. The RSI at 66.88 is Neutral, neither overbought nor oversold. The STOCH value of 69.07 is Neutral, 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
8923	81 Outperform	$131.22B	9.57	14.87%	5.10%	12.16%	8.79%
8850	78 Outperform	¥212.03B	8.68		2.81%	-0.18%	10.63%
3010	78 Outperform	¥53.30B	13.49		1.31%	23.67%	-36.65%
3475	70 Outperform	¥32.07B	9.62		3.79%	165.16%	217.53%
8931	70 Outperform	¥15.96B	5.05		4.87%	3.36%	19.70%
8803	63 Neutral	€166.39B	15.98	7.84%	3.22%	-5.31%	19.66%
Sector *	61 Neutral	$2.83B	10.92	0.41%	8438.90%	5.75%	-21.03%

Starts Corporation Inc. Corporate Events

Starts Corporation Inc. Reports Fiscal Year 2025 Financial Results

Starts Corporation Inc. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight decrease in net sales by 0.2% to ¥232,978 million. However, the company achieved a 7.0% increase in operating profit to ¥32,622 million and a 9.9% rise in profit attributable to owners of the parent to ¥24,274 million. The company plans to increase its annual dividends per share from ¥105.00 to ¥120.00, reflecting confidence in its financial stability and commitment to shareholder returns. The forecast for the fiscal year ending March 31, 2026, anticipates a 7.3% growth in net sales and operating profit, indicating a positive outlook for the company’s future performance.

Starts Corporation Inc. Increases Year-End Dividend

Starts Corporation Inc. has announced an increase in its year-end dividend for the fiscal year ending March 31, 2025, from 55 yen to 65 yen per share, resulting in total annual dividends of 120 yen per share. This decision reflects the company’s consideration of recent business performance, financial position, and capital efficiency, potentially enhancing shareholder value and indicating a positive outlook for the company’s financial health.