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Starts Publishing Corporation (7849) AI Stock Analysis
Starts Publishing Corporation
(TSE/TYO:7849)
Starts Publishing scores a moderate 58, reflecting a tug-of-war between fundamental strengths and technical weakness. The most significant drag is the severe technical deterioration — the stock trades well below all key moving averages with deeply oversold momentum indicators, signaling persistent selling pressure. Financially, the company benefits from an exceptionally clean, debt-free balance sheet and historically strong profitability, though recent margin compression and a sharp decline in cash flow generation are concerning trends. On the positive side, the valuation is attractive at a 10.4x P/E with a 3.8% dividend yield, offering a margin of safety and income support. The low beta provides defensive qualities. Investors should watch for margin stabilization and cash flow recovery as potential catalysts, but the current technical picture suggests caution in the near term.
Starts Publishing Corporation (7849) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 11.20B
- Dividend Yield
- 4.42%
- Average Volume (3M)
- 3,248
- Price to Earnings (P/E)
- 9.7
- Beta (1Y)
- 0.25
- Revenue Growth
- 2.17%
- EPS Growth
- -22.98%
- Country
- Japan
- Employees
- 240
- Sector
- Communication Services
- Sector Strength
- 60
- Industry
- Publishing
Starts Publishing Corporation Business Overview & Revenue Model
Company Description
Starts Publishing Corporation is a Japanese media enterprise primarily active in the publishing domain. The company produces a variety of magazines, such as Oz magazine, Oz magazine trip, Metro Minutes, and Aerde. Complementing its print offerings, i...
How the Company Makes Money
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Starts Publishing Corporation Financial Statement Overview
Summary
Starts Publishing has a pristine, debt-free balance sheet (score 92) with steadily growing equity, which is a major strength. Revenue growth has been strong historically, though recent margin compression across all profitability levels and a sharp ~48% decline in operating cash flow from peak levels are notable concerns. The income statement score (62) reflects solid but deteriorating profitability, while the cash flow score (58) highlights volatile and declining cash generation despite excellent FCF-to-net-income conversion. Blending these three sub-scores with heavy weight on the exceptional balance sheet yields a moderately positive overall financial assessment.
Income Statement
62PositiveBalance Sheet
92Very PositiveCash Flow
58Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.25B | 8.14B | 8.58B | 8.34B | 7.02B | 5.52B |
| Gross Profit | 4.10B | 4.18B | 4.74B | 4.55B | 3.59B | 2.59B |
| EBITDA | 1.59B | 1.83B | 2.41B | 2.34B | 1.67B | 940.27M |
| Net Income | 1.17B | 1.38B | 1.83B | 1.78B | 1.17B | 566.48M |
Balance Sheet | ||||||
| Total Assets | 12.97B | 12.90B | 12.34B | 10.59B | 8.83B | 6.84B |
| Cash, Cash Equivalents and Short-Term Investments | 7.66B | 7.07B | 7.72B | 6.34B | 4.85B | 3.79B |
| Total Debt | 120.24M | 0 | 0 | 0 | 0 | 0 |
| Total Liabilities | 2.17B | 2.13B | 2.58B | 2.42B | 2.44B | 1.56B |
| Stockholders Equity | 10.80B | 10.77B | 9.77B | 8.17B | 6.39B | 5.28B |
Cash Flow | ||||||
| Free Cash Flow | 869.79M | 791.56M | 1.63B | 1.63B | 1.15B | 1.17B |
| Operating Cash Flow | 873.96M | 798.75M | 1.69B | 1.70B | 1.25B | 1.21B |
| Investing Cash Flow | -2.87B | -985.10M | 33.00M | -92.53M | -103.65M | -54.05M |
| Financing Cash Flow | -459.83M | -459.41M | -344.00M | -115.72M | -76.66M | -67.12M |
Starts Publishing Corporation Peers Comparison
Overall Rating
JP:248184Outperform
JP:947570Outperform
JP:367865Neutral- JP:784958Neutral
JP:946854Neutral
JP:216443Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:2481 | 84Outperform | JPY 3.99B | 8.23 | ― | 3.10% | 7.82% | 20.13% |
| JP:9475 | 70Outperform | JPY 10.09B | 8.29 | ― | 0.90% | 10.53% | 1379.90% |
| JP:3678 | 65Neutral | JPY 19.24B | 18.65 | ― | 3.26% | 7.90% | -53.96% |
| Sector * | 60Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
| JP:7849 | 58Neutral | JPY 11.25B | 9.66 | ― | 4.42% | 2.17% | -22.98% |
| JP:9468 | 54Neutral | JPY 498.81B | -86.58 | ― | 0.83% | 3.40% | -185.38% |
| JP:2164 | 43Neutral | JPY 2.10B | -5.01 | ― | ― | 5.77% | -743.22% |
* Communication Services Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:7849 | Starts Publishing Corporation | 2944.00 | -898.98 | -23.39% | |
| JP:2164 | Chiikishinbunsha Co., Ltd. | 99.00 | -68.78 | -40.99% | |
| JP:2481 | Townnews-Sha Co., Ltd. | 710.00 | 47.57 | 7.18% | |
| JP:3678 | MEDIA DO Co., Ltd. | 1228.00 | -513.22 | -29.47% | |
| JP:9468 | Kadokawa Corporation | 3606.00 | 166.19 | 4.83% | |
| JP:9475 | Shobunsha Holdings, Inc. | 555.00 | 133.00 | 31.52% |
Starts Publishing Corporation Corporate Events
Starts Publishing Posts Higher Sales but Weaker Profits, Raises Interim Dividend
Starts Publishing Corporation reported a modest 2.8% year-on-year increase in net sales to ¥3,876 million for the six months ended June 2026, but profitability declined sharply, with operating profit down 33.1% to ¥501 million and ordinary...
Starts Publishing Posts Higher Sales but Profit Declines in Q1 2026
Starts Publishing Corporation reported net sales of ¥2,003 million for the first quarter ended March 2026, a 3.5% increase from the previous year, indicating modest revenue growth in its publishing operations. Despite this uptick, profitability...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Aug 08, 2026