Starts Corporation Inc. (8850) AI Stock Analysis

• Market Cap: ¥243.07B
• Dividend Yield: 2.42%
• Average Volume (3M): 63.86K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.63
• Revenue Growth: 1.02%
• EPS Growth: -13.26%
• Country: JP
• Employees: 4,672
• Sector: Real Estate
• Sector Strength: 48
• Industry: Real Estate - Diversified
• EPS (TTM): 106.42
• Shares Outstanding: 53,998,203
• 10 Day Avg. Volume: 57,880
• 30 Day Avg. Volume: 63,863
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥5,332.00
• Price Target Upside: 7.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 82 Outperform
• Price Target: ¥5,332.00 ▲(7.61% Upside)

Starts Corporation Inc. scores highly due to its attractive valuation, strong technical indicators, and solid financial performance. The low P/E ratio and decent dividend yield make it appealing for value and income investors. While technical indicators show a strong upward trend, overbought conditions are a slight risk factor to consider. The stable financial health further supports the confidence in its future performance.

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. presents a solid financial profile with strong profitability, a robust balance sheet, and excellent cash flow generation. The company benefits from high margins and a stable equity position, although revenue growth has been stagnant. Strategic initiatives to boost revenue while maintaining balance sheet strength and cash flow efficiency could further enhance financial performance.

Income Statement

Starts Corporation Inc. demonstrated a steady performance with a gross profit margin of 32.68% and a net profit margin of 10.42% for the latest year. Revenue growth is a concern with a slight decrease of 0.18% from the previous year. However, profitability metrics like EBIT margin (14.00%) and EBITDA margin (18.54%) indicate strong operational efficiency. Overall, the company maintains robust profitability but should focus on reigniting revenue growth.

Balance Sheet

The company exhibits a healthy balance sheet with a debt-to-equity ratio of 0.40, reflecting moderate leverage. The return on equity is strong at 13.89%, indicating efficient use of equity to generate profit. The equity ratio stands at 52.38%, showcasing a stable financial structure with a good proportion of assets financed by equity. While the balance sheet is solid, careful management of debt levels is essential.

Cash Flow

The cash flow statement shows an impressive free cash flow growth rate of 135.79%, driven by effective capital expenditure management. The operating cash flow to net income ratio is 1.07, suggesting healthy cash generation relative to profits. The free cash flow to net income ratio of 0.76 highlights a strong ability to convert net income into free cash flow. The cash flow performance is robust, supporting future investment and debt obligations.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	232.98B	233.41B	233.87B	196.58B	198.96B
Gross Profit	76.18B	73.52B	68.19B	60.08B	55.94B
EBITDA	43.19B	39.87B	36.22B	31.24B	28.25B
Net Income	24.27B	22.09B	20.22B	16.77B	15.60B
Balance Sheet
Total Assets	333.65B	324.11B	293.10B	273.29B	259.04B
Cash, Cash Equivalents and Short-Term Investments	99.08B	94.04B	85.22B	74.39B	72.65B
Total Debt	69.65B	73.43B	65.65B	74.78B	69.76B
Total Liabilities	155.40B	158.79B	148.02B	145.61B	137.07B
Stockholders Equity	174.75B	162.16B	142.52B	126.06B	120.59B
Cash Flow
Free Cash Flow	18.51B	7.86B	23.48B	7.09B	17.84B
Operating Cash Flow	25.91B	25.73B	34.15B	24.95B	27.25B
Investing Cash Flow	-8.77B	-20.77B	-10.70B	-17.82B	-10.36B
Financing Cash Flow	-15.28B	3.03B	-12.95B	-5.96B	-4.87B

Starts Corporation Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4955.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 4955 is above the 20-day moving average (MA) of 4654.25, above the 50-day MA of 4505.10, and above the 200-day MA of 3974.75, indicating a bullish trend. The MACD of 115.72 indicates Negative momentum. The RSI at 75.75 is Negative, neither overbought nor oversold. The STOCH value of 89.81 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
3475	85 Outperform	¥41.67B	10.06		2.87%	196.25%	562.84%
8850	82 Outperform	¥243.07B	11.14		2.42%	1.02%	-13.26%
8931	78 Outperform	¥18.00B	5.01		4.29%	17.62%	60.92%
8923	76 Outperform	¥150.11B	10.62	14.91%	2.35%	7.63%	13.95%
3010	74 Outperform	¥54.70B	14.90		1.28%	40.03%	-45.93%
Sector *	71 Outperform	¥233.75B	15.23	10.65%	3.48%	20.27%	28.19%
8803	70 Outperform	€178.11B	16.16	8.80%	3.02%	11.59%	86.58%

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.