Star Flyer Inc. (9206) AI Stock Analysis

• Market Cap: ¥7.56B
• Dividend Yield: N/A
• Average Volume (3M): 4.36K
• Price to Earnings (P/E): 194.9
• Beta (1Y): 0.35
• Revenue Growth: 3.80%
• EPS Growth: -59.73%
• Country: JP
• Employees: 702
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 2.56
• Shares Outstanding: 3,784,076
• 10 Day Avg. Volume: 2,690
• 30 Day Avg. Volume: 4,356
• PEG Ratio: 0.04
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 1.74
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥2,283.00 ▲(10.83% Upside)
• Action: Downgraded Date: 11/05/25
• Date: Action: Downgraded 11/05/25

Star Flyer Inc. receives an overall stock score of 65, driven primarily by strong financial performance with robust revenue and cash flow growth, alongside an attractive valuation with a low P/E ratio of 6.56. However, bearish technical indicators, including a price below key moving averages and a low RSI, weigh on the score, signaling short-term downward pressure. Financial risks from thin margins and liability reliance are also noted as concerns.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and effective pricing strategies, supporting long-term business sustainability.

Cash Flow Generation

Robust cash flow growth enhances financial flexibility, enabling strategic investments and debt management, strengthening long-term stability.

Profitability Improvement

Improved profitability margins reflect operational efficiency and cost management, contributing to sustainable financial health.

Negative Factors

Equity Ratio Concerns

A relatively low equity ratio indicates potential vulnerability to financial instability, limiting the company's ability to absorb shocks.

Earnings Volatility

Significant EPS decline suggests earnings volatility, which can undermine investor confidence and affect long-term financial planning.

Leverage Management

While leverage has improved, maintaining it at a manageable level is crucial to avoid financial strain and ensure long-term viability.

Star Flyer Inc. Business Overview & Revenue Model

Company Description

Star Flyer Inc. provides air transportation services in Japan and internationally. The company offers passenger handling services, such as ticketing, boarding information, and baggage storage for airline passengers; and ground handling services comprising aircraft takeoff and landing guidance, aircraft monitoring, and checked baggage and cargo loading and unloading. It is also involved in the call center operations, such as accepting reservations for its flights; and contracted airport handling, advertising, product sales, and facility rental businesses. The company was formerly knowns as Kobe Airlines Co., Ltd. and changed its name to Star Flyer Inc. in May 2003. Star Flyer Inc. incorporated in 2002 and is headquartered in Kitakyushu, Japan.

How the Company Makes Money

Star Flyer Inc. generates revenue primarily through ticket sales for its passenger flights. The company utilizes a dynamic pricing model, adjusting fares based on demand, seasonality, and competition. In addition to passenger revenue, Star Flyer earns money through cargo services, transporting goods between various destinations. Ancillary revenue streams include in-flight sales, such as meals and beverages, as well as fees for additional services like seat selection and baggage handling. Strategic partnerships with travel agencies and online booking platforms also contribute to ticket sales and marketing efforts, enhancing customer reach and increasing overall revenues.

Star Flyer Inc. Financial Statement Overview

Summary

Star Flyer Inc. demonstrates strong financial health with a 7.2% revenue growth, improved net profit margin to 4.5%, and exceptional free cash flow growth of 2863.2% from 2024 to 2025. However, thin margins and a reliance on liabilities with an equity ratio of 17.5% temper the outlook, indicating potential risks in volatile market conditions.

Income Statement

Star Flyer Inc. shows strong revenue growth of 7.2% from 2024 to 2025, reflecting a positive trajectory in the airline industry recovery. The Net Profit Margin improved significantly to 4.5% in 2025 from 2.3% in 2024, alongside a Gross Profit Margin of 10.5%. EBIT and EBITDA Margins also rose to 2.9% and 6.4%, respectively, indicating better operational efficiency. However, margins remain relatively thin, suggesting limited buffer against cost pressures or demand fluctuations.

Balance Sheet

The company's balance sheet reflects moderate stability with a low Debt-to-Equity Ratio of 0.73 in 2025, down from 1.79 in 2024, indicating reduced leverage risk. Return on Equity is strong at 44.8%, showcasing effective use of equity to generate profits. However, the Equity Ratio of 17.5% suggests a reliance on liabilities, which could pose risks if financial conditions tighten.

Cash Flow

Star Flyer demonstrates robust cash flow performance with a Free Cash Flow Growth Rate of 2863.2% from 2024 to 2025, reflecting exceptional improvement in cash generation. The Operating Cash Flow to Net Income Ratio of 2.74 and Free Cash Flow to Net Income Ratio of 2.68 highlight strong cash conversion from profits. While this indicates financial health, such rapid growth may not be sustainable and could face volatility in the airline sector.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	43.22B	42.90B	40.02B	32.27B	21.13B	18.30B
Gross Profit	5.36B	4.33B	3.03B	979.00M	-4.27B	-8.86B
EBITDA	2.78B	1.80B	701.00M	-672.00M	-5.50B	-9.48B
Net Income	2.62B	1.92B	912.00M	73.00M	-4.99B	-10.07B
Balance Sheet
Total Assets	24.82B	24.56B	23.82B	21.57B	20.09B	32.77B
Cash, Cash Equivalents and Short-Term Investments	11.63B	10.81B	8.65B	6.14B	6.44B	16.06B
Total Debt	2.90B	3.13B	5.78B	3.58B	4.93B	10.90B
Total Liabilities	20.53B	20.27B	20.60B	19.80B	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	409.00M	64.00M	-5.25B	-3.82B
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: Negative
• Last Price: 2060.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9206, the sentiment is Negative. The current price of 2060 is above the 20-day moving average (MA) of 2036.35, below the 50-day MA of 2076.32, and below the 200-day MA of 2179.30, indicating a bearish trend. The MACD of -20.11 indicates Positive momentum. The RSI at 39.28 is Neutral, neither overbought nor oversold. The STOCH value of 36.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9206.

Star Flyer Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9202	73 Outperform	¥1.36T	5.50	―	1.97%	9.28%	2.58%
9017	72 Outperform	¥7.78B	7.03	―	0.47%	3.15%	4.75%
9201	71 Outperform	¥1.12T	6.85	11.50%	3.11%	11.16%	49.16%
9206	65 Neutral	¥7.56B	194.86	―	―	3.80%	-59.73%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9173	50 Neutral	¥6.61B	19.26	―	0.30%	-0.38%	413.00%