Starts Publishing Corp

Starts Publishing Corp maintains a strong liquidity position with JPY 5,059,169,000 in cash and equivalents, representing 46.5% of total assets. The company's liquidity FPT score of 9.2 indicates robust short-term financial flexibility, supported by a current ratio of 4.4. With no long-term debt and a debt-to-equity ratio of 0, the capital structure is entirely equity-funded, reducing refinancing risk.

Profitability metrics show a return on equity (ROE) of 5.64% and return on assets (ROA) of 4.44%, both below the industry median of 7.2% and 5.8% respectively. The gross margin of 57.3% (JPY 1,271,687,000 gross profit on JPY 2,218,311,000 revenue) is in line with the sector average, but operating margin of 30.1% (JPY 667,344,000 operating income) lags behind the 34.5% median. Net income of JPY 482,772,000 represents 21.8% of revenue, below the 25.3% industry median.

Geographically, the company's revenue is concentrated in Japan, with no disclosed international operations. Segment-wise, the business operates as a single reporting unit, with no material diversification across product lines or customer bases. This concentration increases exposure to domestic economic cycles and regulatory changes.

Looking ahead, revenue is projected to grow from JPY 2,218,311,000 to JPY 9,300,000,000, representing a 319% increase. However, this projection is based on analyst estimates rather than historical growth rates. The company's free cash flow of JPY 254,385,000 is modest relative to revenue, with capital expenditures of JPY 18,172,000 primarily for maintenance. The absence of long-term debt and low dilution risk (score: low) suggests conservative capital management.

Recent filings show no material changes in business operations or risk profile. The company's stock price of JPY 3,500 implies a price-to-earnings ratio of 27.84, significantly above the industry median of 18.5. The price-to-book ratio of 1.57 is in line with the sector average. Analysts estimate FY revenue will grow from JPY 8,143,370,000 to JPY 9,300,000,000, with EPS expected to rise from JPY 358.70 to JPY 416.70.

Starts Publishing maintains zero long-term debt, providing a pristine balance sheet with no leverage risk.

Revenue grew at a 9.8% CAGR over the four-year period ending in fiscal 2026.

Cash conversion ratio of 0.95 is well above the 0.61 cohort median.

Net income declined 24.6% year-over-year to 1.38 billion JPY in fiscal 2026.

Revenue contracted 5.1% year-over-year to 8.14 billion JPY in fiscal 2026.

Operating income fell 24.9% year-over-year to 1.76 billion JPY in fiscal 2026.

Revenue ¥2.47B, +8,3% YoY; Operating income −6,5% YoY.

• ▍Revenue ¥2.47B, +8,3% YoY
• ▍Operating income −6,5% YoY
• ▍Net income −13,5% YoY
• ▍Free cash flow −12,5% YoY
• ▍Net margin 18.5%

Revenue ¥1.90B, −5,9% YoY; Operating income −22,7% YoY.

• ▍Revenue ¥1.90B, −5,9% YoY
• ▍Operating income −22,7% YoY
• ▍Net income −21,2% YoY
• ▍Free cash flow −53,1% YoY
• ▍Net margin 13.9%

Revenue ¥1.84B, −11,0% YoY; Operating income −39,5% YoY.

• ▍Revenue ¥1.84B, −11,0% YoY
• ▍Operating income −39,5% YoY
• ▍Net income −36,2% YoY
• ▍Free cash flow −38,6% YoY
• ▍Net margin 16.7%

Revenue ¥1.94B, −12,7% YoY; Operating income −33,9% YoY.

• ▍Revenue ¥1.94B, −12,7% YoY
• ▍Operating income −33,9% YoY
• ▍Net income −27,6% YoY
• ▍Free cash flow −80,4% YoY
• ▍Net margin 18.1%

Revenue ¥2.28B; Operating income ¥678.6M.

• ▍Revenue ¥2.28B
• ▍Operating income ¥678.6M
• ▍Net margin 23.2%

Revenue ¥2.02B; Operating income ¥483.5M.

• ▍Revenue ¥2.02B
• ▍Operating income ¥483.5M
• ▍Net margin 16.5%

Revenue ¥2.06B; Operating income ¥508.8M.

• ▍Revenue ¥2.06B
• ▍Operating income ¥508.8M
• ▍Net margin 23.3%

Revenue ¥2.22B; Operating income ¥667.3M.

• ▍Revenue ¥2.22B
• ▍Operating income ¥667.3M
• ▍Net margin 21.8%

Revenue ¥8.14B, −5,1% YoY; Operating income −24,9% YoY.

• ▍Revenue ¥8.14B, −5,1% YoY
• ▍Operating income −24,9% YoY
• ▍Net income −24,6% YoY
• ▍Free cash flow −38,7% YoY
• ▍Net margin 16.9%

Revenue ¥8.58B, +2,9% YoY; Operating income +2,9% YoY.

• ▍Revenue ¥8.58B, +2,9% YoY
• ▍Operating income +2,9% YoY
• ▍Net income +2,7% YoY
• ▍Free cash flow −10,1% YoY
• ▍Net margin 21.3%

Revenue ¥8.34B, +18,8% YoY; Operating income +44,0% YoY.

• ▍Revenue ¥8.34B, +18,8% YoY
• ▍Operating income +44,0% YoY
• ▍Net income +52,3% YoY
• ▍Free cash flow +54,0% YoY
• ▍Net margin 21.3%

Revenue ¥7.02B, +25,6% YoY; Operating income +95,6% YoY.

• ▍Revenue ¥7.02B, +25,6% YoY
• ▍Operating income +95,6% YoY
• ▍Net income +106,1% YoY
• ▍Free cash flow +87,0% YoY
• ▍Net margin 16.6%