Starts Corp., Inc. (8850) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Tokyu Fudosan Holdings Corp.

Ichigo, Inc.

Daito Trust Construction Co. Ltd.

Sekisui House, Ltd.

Starts Corp., Inc.

Relo Group, Inc.

Nomura Real Estate Holdings, Inc.

AEON Mall Co., Ltd.

Hulic Co., Ltd.

Sumitomo Realty & Development Co., Ltd.

Tokyo Tatemono Co., Ltd.

Why is Starts Corp., Inc. ?

High Management Efficiency with a high ROE of 13.88%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 99.03

Poor long term growth as Operating profit has grown by an annual rate 6.41% of over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

INTEREST COVERAGE RATIO(Q) Lowest at 6,664.67
ROCE(HY) Lowest at 12.52%
INVENTORY TURNOVER RATIO(HY) Lowest at 5.95%

With ROE of 13.89%, it has a very attractive valuation with a 1.31 Price to Book Value

Over the past year, while the stock has generated a return of 29.53%, its profits have risen by 10% ; the PEG ratio of the company is 1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Starts Corp., Inc. should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Starts Corp., Inc. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Starts Corp., Inc.

29.53%

1.72

21.09%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.20%

EBIT Growth (5y)

6.41%

EBIT to Interest (avg)

99.03

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

30.88%

Dividend Payout Ratio

24.38%

Pledged Shares

Institutional Holding

ROCE (avg)

20.92%

ROE (avg)

13.88%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.31

EV to EBIT

6.10

EV to EBITDA

5.05

EV to Capital Employed

1.37

EV to Sales

0.85

PEG Ratio

0.95

Dividend Yield

0.01%

ROCE (Latest)

22.45%

ROE (Latest)

13.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 32,795 MM

RAW MATERIAL COST(Y)

Fallen by 0.52% (YoY

CASH AND EQV(HY)

Highest at JPY 200,336 MM

-17What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 6,664.67

ROCE(HY)

Lowest at 12.52%

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.95%

INTEREST(Q)

Highest at JPY 150 MM

Here's what is working for Starts Corp., Inc.

Operating Cash Flow

Highest at JPY 32,795 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Cash and Eqv

Highest at JPY 200,336 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.52% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Starts Corp., Inc.

Interest Coverage Ratio

Lowest at 6,664.67 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At JPY 150 MM has Grown at 11.94%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 150 MM

in the last five periods and Increased by 11.94% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 5.95%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio