Starts Publishing Corporation (7849) AI Stock Analysis

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Starts Publishing Corporation

(TSE/TYO:7849)

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Rating:73Outperform

Price Target:JPY 3,212.00▲(9.07% Upside)

Action:reiterated

Date:11/09/26

The score is driven primarily by strong underlying financial quality (profitability and a very low-leverage balance sheet) and favorable valuation (low P/E and high dividend yield). These positives are partly offset by weak technicals, with price below all key moving averages and bearish momentum signals.

Positive Factors

Strong ProfitabilityTTM gross and EBIT margins of about 50.5% and 19.8% show the publishing model retains substantial profitability. This provides internally generated earnings capacity to fund content development and absorb moderate operating variability, supporting durable economic strength over the next several quarters.

Negative Factors

Margin CompressionThe decline in net margin shows that recent revenue has translated into less profit per unit of sales than during the prior peak period. If this normalization persists, it could limit earnings growth, reduce reinvestment capacity, and weaken the operating leverage of the publishing model.

Starts Publishing Corporation (7849) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 11.07B
Dividend Yield: 4.41%
Average Volume (3M): 2,378
Price to Earnings (P/E): 9.6
Beta (1Y): 0.24
Revenue Growth: 6.11%
EPS Growth: -17.91%
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

The company makes money primarily by monetizing publishing IP through sales and licensing. Key revenue streams typically include: (1) Sales of published works: Revenue from selling books (e.g., manga, novels, magazines) through physical channels (boo...

Starts Publishing Corporation Financial Statement Overview

Summary

Financials are solid overall: strong profitability for the sector (TTM gross margin ~50.5%, EBIT margin ~19.8%) and very strong TTM revenue growth (~46%). The balance sheet is a major strength with minimal leverage and solid ROE (~11% TTM). Offsetting this, margins and ROE have cooled versus 2023–2024 and cash-flow consistency is mixed (operating cash flow to net income ~0.44 TTM), tempering the score.

Income Statement

78Positive

Balance Sheet

88Very Positive

Cash Flow

72Positive

Financial statement breakdown
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 Technical Analysis

Technical Analysis SentimentNegative

Last Price2945.00

Price Trends

50DMA2995.26Negative

100DMA3121.73Negative

200DMA3433.17Negative

Market Momentum

MACD-21.66Negative

RSI46.27Neutral

STOCH53.45Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7849, the sentiment is Negative. The current price of 2945.00 is below the 20-day moving average (MA) of 2952.00, below the 50-day MA of 2995.26, and below the 200-day MA of 3433.17, indicating a bearish trend. The MACD of -21.66 indicates Negative momentum. The RSI at 46.27 is Neutral, neither overbought nor oversold. The STOCH value of 53.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7849.

Starts Publishing Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

JP:7849 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:2481	84Outperform	JPY 3.78B	7.83	―	3.22%	7.82%	20.13%
JP:9475	76Outperform	JPY 13.61B	12.19	―	0.67%	10.24%	393.94%
JP:7849	73Outperform	JPY 11.29B	9.55	―	4.41%	6.11%	-17.91%
JP:3678	68Neutral	JPY 19.40B	18.89	―	3.22%	7.90%	-53.96%
Sector *	60Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
JP:9468	54Neutral	JPY 493.62B	-86.00	―	0.84%	3.40%	-185.38%
JP:2164	43Neutral	JPY 1.95B	-4.76	―	―	5.77%	-743.22%

* Communication Services Sector Average

Performance Comparison

JP:7849 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7849	Starts Publishing Corporation	2945.00	-541.17	-15.52%
JP:2164	Chiikishinbunsha Co., Ltd.	94.00	-59.33	-38.70%
JP:2481	Townnews-Sha Co., Ltd.	683.00	31.24	4.79%
JP:3678	MEDIA DO Co., Ltd.	1241.00	-503.15	-28.85%
JP:9468	Kadokawa Corporation	3590.00	344.66	10.62%
JP:9475	Shobunsha Holdings, Inc.	749.00	326.00	77.07%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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: Nov 09, 2026

Starts Publishing Corporation AI Stock Analysis