The average target price of 6196.T is 5890 and suggests 54% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 6800.0. This translates into 77% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 4870.0. This suggests 27% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

Strike Company,Limited provides mergers and acquisitions brokerage services in Japan. It offers M&A mediation/advice, corporate valuation, financial due diligence and consulting, pre-marketing service, financial consulting, and corporate revitalization support services. The company was incorporated in 1997 and is headquartered in Tokyo, Japan.

Japan

Strike Company,Limited

Financial Services

The company has a track record of regular dividend payments. It has paid dividends in each of the past ten years. Dividend per share (DPS) has grown yearly, and there is an evident trend. In the past 12 months, the dividend yield has been good and slightly above its peers. At the same time, the average five-year yield has been significantly lower, at very close to zero. On average, the company pays dividends annually. 

6196.T reported revenue of JPY 17 859mn in the last 12 months, down 1% from FY24. The dynamics of cash flow, as measure by free cash flow (FCF), were rather similar. EPS fell 5% from FY24 to JPY 221.54. Market expects EPS to reach JPY 256.54 in FY25.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Within the past six months, its performance has trailed this peer group's by 2ppts and its growth accelerated by 3ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

The company has reported strong EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 31.7% in the last 12 months, a decline from 39.0% in FY23. 

Historically, 6196.T has reported very strong net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 23.8%, down from 28.3% in FY23. 

Strike Company,Limited reported a return on equity (RoE) of 25.9% in the last 12 months, down from 34.6% in FY23. The market consensus projects an RoE of 34.6% in FY24, again ahead of its peers. 

In the last 12 months, the return on capital employed (RoCE) declined to 25.4%, below the peers. The consensus estimate for FY24 for RoCE is 45.9%, again behind the peers. 

Another important profitability metric, return on assets (RoA), amounted to 22.2% in the last 12 months, a decrease from 31.0% in FY23. The market analysts predict that RoA will be 30.2% in FY24, again stronger than its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 7.7 in the past several years. This ratio implies a excellent shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

6196.T has above average trading liquidity. The average private investor can sell his common position in the stock almost immediately. Liquidity is usually stable and remains favourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. The stock has a small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note resilient historical revenue growth, robust profitability, solid return on capital, and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry, excessive margin volatility, poor working capital management, and inadequate interest coverage.

In highly turbulent market conditions, 6196.T is volatile. In other words, the stock will fall much more than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be large. 

In normal market circumstances, 6196.T is volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move much wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from moderate to notable. 

Considering past and projected metrics, the stock is neither 'expensive' nor 'cheap' compared to its peers. In particular, the stock is reasonably priced on P/E, 'cheap' on EV/EBITD. 

Log in

Strike Company,Limited

¥ 3850

5

Strike Company,Limited

¥ 3850

5

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

¥ 3850

About

About

About

About