Star Micronics Co., Ltd (7718) AI Stock Analysis

• Market Cap: ¥79.66B
• Dividend Yield: 3.9%
• Average Volume (3M): 145.60K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.81
• Revenue Growth: 2.04%
• EPS Growth: -2.41%
• Country: JP
• Employees: 1,642
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 15.59
• Shares Outstanding: 48,481,335
• 10 Day Avg. Volume: 152,260
• 30 Day Avg. Volume: 145,603
• PEG Ratio: -0.46
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 1.00
• P/FCF Ratio: 54.19
• 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: ¥1,801.00 ▲(7.14% Upside)

The overall stock score is driven primarily by a solid financial foundation, with a strong balance sheet and reasonable valuation metrics. However, technical indicators suggest a bearish trend, and declining revenue and free cash flow growth pose risks to future profitability. The absence of recent earnings call data and corporate events limits additional insights.

Star Micronics Co., Ltd Business Overview & Revenue Model

Company Description

Star Micronics Co., Ltd (7718) is a leading manufacturer of printers and point-of-sale (POS) solutions, headquartered in Japan. The company operates primarily in the sectors of printing technology and POS systems, providing innovative products for various industries including retail, hospitality, and healthcare. Core offerings include thermal printers, receipt printers, and mobile printing solutions, designed to enhance transaction efficiency and customer experience.

How the Company Makes Money

Star Micronics generates revenue through the sale of its hardware products, including thermal printers and POS systems, which are utilized across numerous sectors. The company also earns income from software solutions and services that complement its hardware offerings, enhancing functionality and integration. Key revenue streams include direct sales to businesses, partnerships with distributors and retailers, and ongoing support services. Additionally, the company benefits from collaborations with technology partners, enabling it to expand its product ecosystem and reach a broader customer base, thus contributing to its overall earnings.

Star Micronics Co., Ltd Financial Statement Overview

Summary

Star Micronics Co., Ltd demonstrates a solid financial foundation with strong balance sheet metrics, minimal leverage, and effective cash flow management. However, declining revenue and free cash flow growth pose risks to future profitability and liquidity. Overall, the company maintains a stable financial position but with some areas needing attention for sustained growth.

Income Statement

The company has shown strong gross profit margins, with consistent EBIT and EBITDA margins over the years, indicating stable operational efficiency. However, recent revenue has declined significantly from previous years, affecting the net profit margin and growth trajectory. This mixed performance results in a moderate score.

Balance Sheet

The balance sheet is robust with a very low debt-to-equity ratio, indicating minimal leverage and strong financial stability. The company also maintains a healthy equity ratio, showcasing its ability to sustain operations without excessive debt. The strong asset base and equity position contribute to a high score.

Cash Flow

Operating cash flow remains positive, but there is a noticeable decline in free cash flow, primarily due to increased capital expenditures. The operating cash flow to net income ratio is reasonable, showing effective cash conversion, but the free cash flow trajectory suggests potential liquidity constraints, leading to a moderate score.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	67.61B	64.99B	78.20B	87.37B	64.36B	45.67B
Gross Profit	25.58B	23.44B	30.72B	33.84B	22.60B	15.32B
EBITDA	7.96B	7.12B	13.84B	16.66B	10.11B	5.16B
Net Income	3.24B	1.86B	8.18B	10.30B	5.74B	1.73B
Balance Sheet
Total Assets	114.60B	92.78B	93.40B	99.54B	82.36B	71.62B
Cash, Cash Equivalents and Short-Term Investments	35.46B	23.62B	29.72B	30.10B	27.58B	25.26B
Total Debt	59.68M	2.07B	104.18M	67.69M	81.24M	10.58B
Total Liabilities	16.90B	18.35B	13.05B	26.45B	20.63B	21.80B
Stockholders Equity	97.60B	74.32B	80.24B	72.98B	61.47B	49.27B
Cash Flow
Free Cash Flow	0.00	1.20B	4.81B	5.35B	8.55B	4.89B
Operating Cash Flow	0.00	6.15B	7.13B	7.52B	9.60B	6.84B
Investing Cash Flow	0.00	-5.46B	-2.04B	-2.63B	740.48M	-1.25B
Financing Cash Flow	0.00	-10.28B	-5.05B	-4.62B	-7.56B	-2.14B

Star Micronics Co., Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1681.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7718, the sentiment is Negative. The current price of 1681 is below the 20-day moving average (MA) of 1682.30, below the 50-day MA of 1687.36, and below the 200-day MA of 1738.34, indicating a bearish trend. The MACD of -2.86 indicates Positive momentum. The RSI at 45.65 is Neutral, neither overbought nor oversold. The STOCH value of 13.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7718.

Star Micronics Co., Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6517	79 Outperform	¥56.68B	12.05	―	2.63%	-6.68%	-11.92%
6237	76 Outperform	¥55.86B	12.84	―	2.86%	2.55%	1.34%
6381	75 Outperform	¥60.41B	14.54	―	2.96%	0.52%	-8.88%
6490	75 Outperform	¥121.53B	14.42	―	2.35%	-0.98%	-18.48%
6363	69 Neutral	¥54.71B	22.42	―	2.93%	9.31%	-62.88%
7718	65 Neutral	¥79.66B	17.97	3.84%	3.90%	2.04%	-2.41%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Star Micronics Co., Ltd Corporate Events

Star Micronics Revises FY2025 Financial Forecast Amid Market Challenges

Star Micronics Co., Ltd has revised its financial forecast for FY2025, indicating a decrease in expected net sales and operating income across its machine tools and special products segments. The adjustments reflect a challenging market environment, impacting the company’s profitability and potentially influencing investor confidence.

Star Micronics Adjusts 2025 Earnings Forecast Amid Market Challenges

Star Micronics Co., Ltd reported a positive deviation in its financial results for the first half of 2025, surpassing previous forecasts due to strong domestic demand in China and favorable currency exchange trends. However, the company revised its full-year earnings forecast downward, citing delayed market recovery and the impact of U.S. trade policies, leading to anticipated declines in net sales and profits.

Star Micronics Reports Strong First-Half Earnings and Increased Dividends

Star Micronics Co., Ltd. reported a significant improvement in its financial performance for the first half of fiscal 2025, with an 8.4% increase in net sales and a substantial rise in net income attributable to owners of the parent by 236.6% compared to the previous year. The company also announced a projected increase in dividends for the fiscal year, reflecting its strong financial position and commitment to shareholder returns.