Starts Corporation Inc. (8850) AI Stock Analysis

• Market Cap: ¥245.30B
• Dividend Yield: 2.43%
• Average Volume (3M): 65.13K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.63
• 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): 106.42
• Shares Outstanding: 53,998,203
• 10 Day Avg. Volume: 75,410
• 30 Day Avg. Volume: 65,133
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥5,677.00
• Price Target Upside: 15.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥5,677.00 ▲(15.04% Upside)

Starts Corporation Inc. receives a strong overall stock score of 78, driven primarily by its robust financial performance and solid technical indicators. The company's stable profitability, efficient operations, and effective cash management are key strengths. While the valuation is attractive, the lack of recent earnings call data or notable corporate events limits further insights into future prospects.

Starts Corporation Inc. Business Overview & Revenue Model

Company Description

Starts Corporation Inc. (8850) is a Japanese company primarily engaged in the real estate sector. The company offers a wide range of services including real estate leasing, property management, and the development and sale of residential and commercial properties. Starts Corporation is also involved in construction, brokerage, and insurance services, providing comprehensive real estate solutions to its clients.

How the Company Makes Money

Starts Corporation Inc. generates revenue through its diverse real estate operations. The primary revenue streams include rental income from residential and commercial properties, fees from property management services, and profits from the sale and development of real estate projects. Additionally, the company earns income from construction contracts and commissions from real estate brokerage services. Strategic partnerships with other real estate firms and financial institutions also play a significant role in supporting its financial growth and expanding its market presence.

Starts Corporation Inc. Financial Statement Overview

Summary

Starts Corporation Inc. shows strong financial performance with solid profitability, a stable balance sheet, and robust cash flow generation. The company maintains a healthy gross profit margin and net profit margin, with efficient operational management reflected in its EBIT and EBITDA margins. The balance sheet is stable with moderate leverage and a strong return on equity. Cash flow generation is robust, with significant free cash flow growth and effective cash management.

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: Positive
• Last Price: 4935.00
• 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:8850, the sentiment is Positive. The current price of 4935 is below the 20-day moving average (MA) of 4939.75, above the 50-day MA of 4713.60, and above the 200-day MA of 4086.17, indicating a bullish trend. The MACD of 84.29 indicates Positive momentum. The RSI at 59.67 is Neutral, neither overbought nor oversold. The STOCH value of 32.41 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
8850	78 Outperform	¥245.30B	11.32		2.43%	1.02%	-13.26%
Sector *	63 Neutral	$7.02B	13.41	-0.50%	6.86%	4.08%	-25.24%
TOETF	―	$1.05B	11.12	14.91%	―	―	―
HZJ	―	€1.01B	15.12	8.80%	―	―	―
3475	85 Outperform	¥45.97B	11.10		2.72%	196.25%	562.84%
8931	78 Outperform	¥17.89B	4.93		4.39%	17.62%	60.92%
3010	74 Outperform	¥50.99B	12.93		1.48%	40.03%	-45.93%

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.