Financials Starts Corporation Inc.

Equities

8850

JP3399200009

Real Estate Services

Market Closed - Japan Exchange Other stock markets 07:00:00 02/05/2024 BST			5-day change	1st Jan Change
3,520 ^JPY	+0.14%		+0.57%	+20.10%

2023	Starts Corporation Inc. Reports Earnings Results for the Full Year Ended March 31, 2023	CI
2022	Starts Proceed Investment Corporation completed the acquisition of 5 Domestic Real Estate properties from Starts Corporation Inc., Starts Development Corporation and Shinozaki-eki Nishiguchi Koeki Fukugo Shisetsu K.K.	CI

Valuation

Fiscal Period: Marzo	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	124,311	105,478	152,967	119,131	126,300	174,839	-	-
Enterprise Value (EV) ¹	154,311	116,796	150,080	119,529	106,724	174,839	174,839	174,839
P/E ratio	8.14 x	7 x	9.81 x	7.21 x	6.25 x	8 x	7.79 x	7.28 x
Yield	2.92%	3.24%	2.13%	3.04%	3.66%	2.98%	3.05%	3.13%
Capitalization / Revenue	0.64 x	0.5 x	0.77 x	0.61 x	0.54 x	0.74 x	0.71 x	0.68 x
EV / Revenue	0.64 x	0.5 x	0.77 x	0.61 x	0.54 x	0.74 x	0.71 x	0.68 x
EV / EBITDA	4.61 x	3.7 x	5.71 x	4.07 x	3.73 x	4.73 x	4.6 x	-
EV / FCF	7.7 x	5.1 x	8.52 x	16.7 x	5.39 x	8.92 x	11.6 x	21.5 x
FCF Yield	13%	19.6%	11.7%	5.99%	18.6%	11.2%	8.62%	4.66%
Price to Book	1.32 x	1 x	1.27 x	0.95 x	0.89 x	1.1 x	1 x	-
Nbr of stocks (in thousands)	52,607	52,607	52,656	49,659	49,666	49,670	-	-
Reference price ²	2,363	2,005	2,905	2,399	2,543	3,520	3,520	3,520
Announcement Date	13/05/19	19/05/20	10/05/21	10/05/22	12/05/23	-	-	-

¹JPY in Million²JPY

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: Marzo	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	195,177	209,091	198,963	196,578	233,871	235,500	245,500	258,500
EBITDA ¹	26,987	28,528	26,802	29,304	33,838	37,000	38,000	-
EBIT ¹	22,821	23,912	22,068	24,182	28,095	31,500	32,500	35,000
Operating Margin	11.69%	11.44%	11.09%	12.3%	12.01%	13.38%	13.24%	13.54%
Earnings before Tax (EBT) ¹	23,709	22,358	23,025	25,611	30,227	32,550	33,550	36,600
Net income ¹	15,264	15,059	15,599	16,772	20,218	21,850	22,450	24,000
Net margin	7.82%	7.2%	7.84%	8.53%	8.64%	9.28%	9.14%	9.28%
EPS ²	290.2	286.3	296.3	332.8	407.1	439.9	452.0	483.2
Free Cash Flow ¹	16,139	20,698	17,962	7,132	23,447	19,600	15,075	8,150
FCF margin	8.27%	9.9%	9.03%	3.63%	10.03%	8.32%	6.14%	3.15%
FCF Conversion (EBITDA)	59.8%	72.55%	67.02%	24.34%	69.29%	52.97%	39.67%	-
FCF Conversion (Net income)	105.73%	137.45%	115.15%	42.52%	115.97%	89.7%	67.15%	33.96%
Dividend per Share ²	69.00	65.00	62.00	73.00	93.00	105.0	107.5	110.0
Announcement Date	13/05/19	19/05/20	10/05/21	10/05/22	12/05/23	-	-	-

¹JPY in Million²JPY

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: March	2020 S1	2020 S2	2021 S1	2021 S2	2022 Q2	2022 S1	2022 Q3	2022 Q4	2022 S2	2023 Q1	2023 Q2	2023 S1	2023 Q3	2023 Q4	2023 S2	2024 Q1	2024 Q2	2024 S1	2024 Q3	2024 Q4	2024 S2
Net sales ¹	91,718	117,373	94,027	104,936	45,313	90,927	48,384	57,267	105,651	46,869	51,729	98,598	69,277	65,996	135,273	51,510	53,473	104,983	58,500	72,517	131,017
EBITDA	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
EBIT ¹	10,046	13,866	9,557	12,511	4,966	10,166	6,050	7,966	14,016	5,201	6,663	11,864	8,546	7,685	16,231	6,128	6,534	12,662	8,406	10,932	19,338
Operating Margin	10.95%	11.81%	10.16%	11.92%	10.96%	11.18%	12.5%	13.91%	13.27%	11.1%	12.88%	12.03%	12.34%	11.64%	12%	11.9%	12.22%	12.06%	14.37%	15.08%	14.76%
Earnings before Tax (EBT) ¹	9,932	12,426	9,552	13,473	5,423	10,846	6,339	8,426	14,765	6,809	7,578	14,387	7,972	7,868	15,840	7,331	7,189	14,520	7,808	11,177	19,017
Net income ¹	6,739	8,320	6,628	8,971	3,613	7,153	4,181	5,438	9,619	4,603	4,983	9,586	4,861	5,771	10,632	4,859	4,658	9,517	5,052	7,931	12,983
Net margin	7.35%	7.09%	7.05%	8.55%	7.97%	7.87%	8.64%	9.5%	9.1%	9.82%	9.63%	9.72%	7.02%	8.74%	7.86%	9.43%	8.71%	9.07%	8.64%	10.94%	9.91%
EPS	128.1	-	125.9	-	-	139.9	83.94	-	-	92.69	-	193.0	97.87	-	-	97.85	-	191.6	101.7	-	-
Dividend per Share	35.00	-	30.00	-	-	33.00	-	-	-	-	-	43.00	-	-	-	-	-	50.00	-	-	-
Announcement Date	11/11/19	19/05/20	10/11/20	10/05/21	08/11/21	08/11/21	08/02/22	10/05/22	10/05/22	08/08/22	07/11/22	07/11/22	07/02/23	12/05/23	12/05/23	09/08/23	09/11/23	09/11/23	08/02/24	-	-

¹JPY in Million

Estimates

Balance Sheet Analysis

Fiscal Period: March	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt	30,000	11,318	-	398	-	-	-	-
Net Cash position	-	-	2,887	-	19,576	-	-	-
Leverage (Debt/EBITDA)	1.112 x	0.3967 x	-	0.0136 x	-	-	-	-
Free Cash Flow ¹	16,139	20,698	17,962	7,132	23,447	19,600	15,075	8,150
ROE (net income / shareholders' equity)	17.4%	15.2%	13.8%	13.6%	15.1%	14.1%	13.1%	-
ROA (Net income/ Total Assets)	10.1%	9.91%	9.2%	9.69%	10.6%	7.1%	7%	-
Assets ¹	150,425	151,991	169,570	173,101	190,841	307,746	320,714	-
Book Value Per Share ²	1,784	1,995	2,290	2,539	2,870	3,191	3,521	-
Cash Flow per Share	369.0	374.0	386.0	434.0	517.0	-	-	-
Capex ¹	12,035	9,969	9,286	18,254	16,368	10,000	15,000	18,000
Capex / Sales	6.17%	4.77%	4.67%	9.29%	7%	4.25%	6.11%	6.96%
Announcement Date	13/05/19	19/05/20	10/05/21	10/05/22	12/05/23	-	-	-

¹JPY in Million²JPY

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for Starts Corporation Inc.

Trading Rating

Investor Rating

ESG Refinitiv

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

OUTPERFORM

Number of Analysts

Last Close Price

3,520 JPY

Average target price

3,750 JPY

Spread / Average Target

+6.53%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Other Real Estate Services

	1st Jan change	Capi.
STARTS CORPORATION INC.	+20.10%	1.14B
CBRE GROUP, INC.	-6.96%	26.19B
KE HOLDINGS INC.	+7.77%	20.5B
CAPITALAND INVESTMENT LIMITED	-17.72%	9.56B
ZILLOW GROUP, INC.	-29.36%	9.37B
JONES LANG LASALLE INCORPORATED	-1.76%	8.74B
FIRSTSERVICE CORPORATION	-4.57%	6.75B
COLLIERS INTERNATIONAL GROUP INC.	-11.95%	5.24B
MAKKAH CONSTRUCTION AND DEVELOPMENT COMPANY	+48.05%	4.83B
CUSHMAN & WAKEFIELD PLC	-7.22%	2.27B

Other Real Estate Services