Star Flyer Inc. (9206) AI Stock Analysis

• Market Cap: ¥9.13B
• Dividend Yield: N/A
• Average Volume (3M): 6.38K
• Price to Earnings (P/E): 3.3
• Beta (1Y): 0.32
• Revenue Growth: 4.79%
• EPS Growth: 15.19%
• Country: JP
• Employees: 702
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 26.29
• Shares Outstanding: 3,784,076
• 10 Day Avg. Volume: 5,620
• 30 Day Avg. Volume: 6,376
• 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: ¥2,492.00
• Price Target Upside: 3.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥2,492.00 ▲(3.40% Upside)

Star Flyer Inc. scores well due to its strong financial performance and attractive valuation. The company's robust cash flow and profitability improvements are significant strengths. Technical analysis supports a positive short-term outlook, although longer-term trends require caution. The low P/E ratio suggests the stock is undervalued, offering potential upside.

Positive Factors

Revenue Growth

Consistent revenue growth indicates that Star Flyer is effectively capturing market share and expanding its customer base, which is crucial for long-term sustainability in the competitive airline industry.

Profitability Improvements

Improved profitability margins reflect enhanced operational efficiency and cost management, which strengthen Star Flyer's competitive position and ability to generate sustainable earnings.

Cash Flow Generation

Robust cash flow generation provides Star Flyer with the financial flexibility to invest in growth opportunities, manage debt, and weather economic downturns, enhancing its long-term viability.

Negative Factors

Market Competition

Operating in a highly competitive market with numerous low-cost carriers, Star Flyer faces ongoing pressure to maintain its niche and pricing power, which can impact long-term growth and profitability.

Debt Management

While improved, the debt level remains a concern as it can constrain financial flexibility and increase risk, especially in a capital-intensive industry like airlines.

Equity Ratio Concerns

A relatively low equity ratio suggests potential financial vulnerability, limiting Star Flyer's ability to absorb shocks and invest in growth, which could impact long-term stability.

Star Flyer Inc. Business Overview & Revenue Model

Company Description

Star Flyer Inc. (9206) is a Japanese airline company that operates as a low-cost carrier focused on providing high-quality air travel services. The company primarily services domestic routes in Japan, with a strong emphasis on the Tokyo-Kyushu corridor. Star Flyer is known for its customer-centric approach, offering a boutique experience with amenities such as more comfortable seating and in-flight services compared to typical low-cost carriers.

How the Company Makes Money

Star Flyer Inc. makes money through the sale of airline tickets, which is its primary revenue stream. The company offers competitively priced fares on its domestic flights, catering to both business and leisure travelers. Additionally, Star Flyer generates revenue through ancillary services such as baggage fees, seat selection charges, and in-flight purchases including food and beverages. The airline also benefits from partnerships with other carriers and travel agencies that help increase its distribution and reach. By maintaining operational efficiencies and offering a differentiated customer experience, Star Flyer positions itself to capture a niche market within the competitive airline industry.

Star Flyer Inc. Financial Statement Overview

Summary

Star Flyer Inc. is on a positive financial trajectory with strong revenue and profit growth, improved leverage, and robust cash flow generation. The company has shown significant improvements across income, balance sheet, and cash flow metrics. However, the moderate equity ratio presents a potential risk.

Income Statement

Star Flyer Inc. demonstrated a significant recovery in its income statement metrics. The gross profit margin improved to 10.53% from 8.13% the previous year, and the net profit margin rose to 4.48% from 2.28%. Revenue growth was strong at 7.21% year-over-year. The EBIT margin improved to 2.87% from 0.23%, and the EBITDA margin increased to 6.42% from 4.29%. These improvements indicate a positive trajectory in profitability and operational efficiency.

Balance Sheet

The balance sheet of Star Flyer Inc. shows a stable position with a debt-to-equity ratio of 0.73, improved from 1.80 the prior year, indicating better leverage management. Return on equity (ROE) improved to 44.79% from 28.33%, reflecting strong profitability relative to equity. The equity ratio is 17.50%, showing moderate financial stability. Despite improvements, the relatively low equity ratio presents a potential risk.

Cash Flow

Cash flow metrics for Star Flyer Inc. reveal robust growth. The free cash flow growth rate was an impressive 2862.07%, driven by significant operational improvements. The operating cash flow to net income ratio was 2.74, indicating strong cash generation relative to earnings. The free cash flow to net income ratio was 2.68, highlighting efficient cash management. These metrics suggest a strong cash flow position with positive growth trends.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.90B	42.90B	40.02B	32.27B	21.13B	18.29B
Gross Profit	4.42B	4.52B	3.25B	1.22B	-3.98B	-8.57B
EBITDA	2.75B	2.75B	1.90B	279.00M	-3.71B	-7.86B
Net Income	1.92B	1.92B	912.00M	73.00M	-4.99B	-10.07B
Balance Sheet
Total Assets	24.53B	24.53B	23.55B	21.37B	20.09B	32.77B
Cash, Cash Equivalents and Short-Term Investments	10.81B	10.81B	8.65B	6.14B	6.44B	16.06B
Total Debt	3.13B	3.13B	5.78B	3.58B	4.93B	10.90B
Total Liabilities	20.24B	20.24B	20.34B	19.61B	18.73B	26.49B
Stockholders Equity	4.29B	4.29B	3.22B	1.76B	1.36B	6.28B
Cash Flow
Free Cash Flow	0.00	5.16B	174.00M	-74.00M	-5.27B	-4.13B
Operating Cash Flow	0.00	5.27B	529.00M	122.00M	-5.23B	-3.72B
Investing Cash Flow	0.00	-427.00M	-267.00M	-159.00M	1.07B	520.00M
Financing Cash Flow	0.00	-2.65B	2.17B	-356.00M	-5.72B	9.04B

Star Flyer Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2410.00
• 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:9206, the sentiment is Positive. The current price of 2410 is above the 20-day moving average (MA) of 2351.25, above the 50-day MA of 2261.78, and above the 200-day MA of 2361.88, indicating a bullish trend. The MACD of 46.43 indicates Negative momentum. The RSI at 71.07 is Negative, neither overbought nor oversold. The STOCH value of 86.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9206.

Star Flyer Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9206	76 Outperform	¥9.13B	3.32		―	4.79%	15.19%
Sector *	64 Neutral	$10.84B	15.28	7.40%	1.99%	2.87%	-14.59%
JPNRF	―	$9.36B	11.60	11.76%	2.75%	―	―
9017	72 Outperform	¥8.03B	7.14		0.48%	3.28%	15.18%
9202	71 Outperform	¥1.40T	9.30		2.00%	8.62%	-0.18%
9063	70 Outperform	¥7.39B	7.25		1.92%	2.10%	-59.80%
9204	―	¥29.89B	31.44		0.60%	―	―