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Starts Corporation Inc.
(8850)
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Rating:66Neutral
Price Target:
¥4,963.00
▲(4.93% Upside)
Action:Reiterated
Date:08/10/26
The score is supported primarily by strong profitability and a generally healthy leverage profile, plus attractive valuation (low P/E and ~3% dividend yield). Offsetting these positives are weak and volatile cash-flow conversion and bearish-to-neutral technical signals (below key moving averages with negative MACD), which reduce near-term confidence despite solid fundamentals.
Positive Factors
Strong profitability and margins
Sustained gross margin expansion to ~33% and mid-teens operating margin indicate durable pricing power and operational efficiency in the core real-estate businesses. These margins support internal funding for upkeep, selective investment and shareholder returns across a 2–6 month horizon and beyond.
Negative Factors
Weak operating cash conversion
Very low cash conversion versus reported earnings indicates earnings quality issues: profits are not translating into cash. This constrains the company’s ability to fund dividends, capex or pay down debt organically and raises reliance on external financing over time.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and margins
Sustained gross margin expansion to ~33% and mid-teens operating margin indicate durable pricing power and operational efficiency in the core real-estate businesses. These margins support internal funding for upkeep, selective investment and shareholder returns across a 2–6 month horizon and beyond.
Read all positive factors
Starts Corporation Inc. (8850) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥232.39B
Dividend Yield3%
Average Volume (3M)52.44K
Price to Earnings (P/E)8.7
Beta (1Y)0.59
Revenue Growth6.86%
EPS Growth22.72%
CountryJP
Employees4,715
SectorGeneral
Sector StrengthN/A
IndustryReal Estate - Diversified
Share Statistics
EPS (TTM)537.50
Shares Outstanding53,998,203
10 Day Avg. Volume58,690
30 Day Avg. Volume52,436
Financial Highlights & Ratios
PEG Ratio1.29
Price to Book (P/B)1.21
Price to Sales (P/S)0.91
P/FCF Ratio109.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)570.3
Revenue Forecast (FY)¥286.00B
Starts Corporation Inc. Business Overview & Revenue Model
Company Description
Starts Corporation Inc. (8850) is a Japan-based company primarily engaged in real estate-related businesses. null...
How the Company Makes Money
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Starts Corporation Inc. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 254.71B | 251.91B | 232.98B | 233.41B | 233.87B | 196.58B |
| Gross Profit | 84.48B | 83.74B | 76.18B | 73.52B | 68.19B | 60.08B |
| EBITDA | 45.36B | 45.58B | 43.19B | 39.87B | 36.22B | 31.24B |
| Net Income | 25.74B | 25.31B | 24.27B | 22.09B | 20.22B | 16.77B |
Balance Sheet | ||||||
| Total Assets | 351.82B | 352.75B | 333.65B | 324.11B | 293.10B | 273.29B |
| Cash, Cash Equivalents and Short-Term Investments | 86.94B | 84.51B | 99.08B | 94.04B | 85.22B | 74.39B |
| Total Debt | 72.34B | 67.69B | 69.65B | 73.43B | 65.65B | 74.78B |
| Total Liabilities | 155.80B | 160.17B | 155.40B | 158.79B | 148.02B | 145.61B |
| Stockholders Equity | 190.84B | 188.75B | 174.75B | 162.16B | 142.52B | 126.06B |
Cash Flow | ||||||
| Free Cash Flow | 1.80B | 2.08B | 18.51B | 9.71B | 25.13B | 8.13B |
| Operating Cash Flow | 16.29B | 17.22B | 25.91B | 25.73B | 34.15B | 24.95B |
| Investing Cash Flow | -19.08B | -19.14B | -8.77B | -20.77B | -10.70B | -17.82B |
| Financing Cash Flow | -12.32B | -12.30B | -15.28B | 3.03B | -12.95B | -5.96B |
Starts Corporation Inc. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ¥173.82B | 10.55 | 15.40% | 2.86% | 26.43% | 15.36% | |
66 Neutral | ¥232.39B | 8.68 | ― | 2.67% | 6.86% | 22.72% | |
66 Neutral | ¥956.15B | 8.29 | 20.25% | 2.32% | 5.94% | 21.18% | |
62 Neutral | ¥947.70B | 10.24 | 11.33% | 3.42% | 6.21% | 2.93% | |
58 Neutral | ¥156.03B | 15.00 | 8.95% | 3.39% | 9.27% | 7.27% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | ¥46.34B | 23.29 | ― | 3.75% | -4.27% | -53.05% |
* General Sector Average
JP:8850
Starts Corporation Inc.
4,665.00
-149.02
-3.10%
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Starts Corporation Inc. Corporate Events
Starts Corporation Posts Higher Q1 Profit and Raises Full-Year Revenue Outlook
Aug 7, 2026
Starts Corporation Inc. reported consolidated net sales of ¥62.2 billion for the quarter ended June 30, 2026, up 4.7% year on year, with operating profit down 4.2% to ¥8.0 billion but ordinary profit up 3.3% to ¥8.5 billion. Profit ...
Starts Publishing Subsidiary Cuts Forecast After Weaker Interim Earnings
Aug 6, 2026
Starts Corporation Inc. announced that its subsidiary Starts Publishing Corporation has released an updated non-consolidated earnings forecast for the fiscal year ending December 2026, reaffirming that these changes do not affect the parent compan...
Starts Corporation Promotes Hiraide to Managing Director
Jun 26, 2026
Starts Corporation Inc. has announced a board-approved change in its director lineup, elevating Kazuya Hiraide from director to managing director effective June 26, 2026. The appointment reflects ongoing adjustments in the company’s executiv...
Starts Corporation Announces Health-Related Retirement of Vice Chairman and Representative Director
Jun 19, 2026
Starts Corporation Inc. has announced that Vice Chairman and Representative Director Kazuo Isozaki will retire from his position when his current term ends at the conclusion of the 54th Ordinary General Meeting of Shareholders scheduled for June 2...
Starts Corporation to Promote Executive Officer Kazuya Hiraide to Director
Jun 1, 2026
Starts Corporation Inc. has announced a planned change in its board lineup, reflecting ongoing adjustments to its governance structure as the company manages its real estate and related services portfolio. At a board meeting on June 1, the company...
Starts Corp Corrects Effective Date for Year-End Dividend Payment
May 11, 2026
Starts Corporation Inc. has corrected an error in its previously announced notice on dividends of surplus for the fiscal year ending March 2026. The company clarified that the effective date for the year-end dividend payment should be June 29, 202...
Starts Corporation Earnings Surge on Higher Dividends and One-Off Gains
May 11, 2026
Starts Corporation Inc. reported a strong year-on-year rise in non-consolidated results for the fiscal year ended March 31, 2026, with net sales climbing 18.4% to ¥28.9 billion and operating profit advancing 25.6%. Ordinary profit grew 33.4% ...
Starts Corporation Lifts Profit, Assets and Dividend as It Forecasts Further Growth
May 11, 2026
Starts Corporation Inc. reported consolidated net sales of ¥251.9 billion for the fiscal year ended March 31, 2026, up 8.1% year on year, with operating profit rising 11.2% to ¥36.3 billion and profit attributable to owners of parent inc...
Starts Corporation Raises Year-End Dividend, Boosts Annual Payout to ¥140
May 11, 2026
Starts Corporation Inc. said its board has approved an increase in the year-end dividend for the fiscal year ended March 31, 2026, reflecting its assessment of recent business performance, financial position and capital efficiency. The company aim...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.