CREAL Inc. (2998) AI Stock Analysis

• Market Cap: ¥35.03B
• Dividend Yield: 0.52%
• Average Volume (3M): 192.67K
• Price to Earnings (P/E): 36.8
• Beta (1Y): 0.71
• Revenue Growth: 30.12%
• EPS Growth: -10.51%
• Country: JP
• Employees: 127
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 6.19
• Shares Outstanding: 30,273,000
• 10 Day Avg. Volume: 202,250
• 30 Day Avg. Volume: 192,670
• PEG Ratio: 0.18
• Price to Book (P/B): 4.67
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 2.25
• 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: ¥1,315.00
• Price Target Upside: 13.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ¥1,315.00 ▲(13.66% Upside)

CREAL Inc. demonstrates strong financial performance with significant revenue and profit growth, improved margins, and effective cash flow management, which are the most significant factors driving the score. Technical analysis presents mixed signals with short-term weakness but longer-term bullish momentum. The valuation indicates the stock may be overvalued, which slightly detracts from the overall score.

CREAL Inc. Business Overview & Revenue Model

Company Description

CREAL Inc. operates an asset management platform in Japan. It operates CREAL, a real estate fund online market for individuals; CREAL PB, an asset management service platform for individuals; and CREAL Pro, a platform that provides real estate investment management services to institutional investors and high-net-worth investors. The company also provides asset management services through investment in physical real estate; and rental management services. CREAL Inc. was incorporated in 2011 and is headquartered in Tokyo, Japan.

How the Company Makes Money

CREAL Inc. makes money through a diversified revenue model primarily centered around real estate investments and management services. The company's key revenue streams include property acquisition, development, and leasing, which generate rental income and capital appreciation. Additionally, CREAL Inc. offers real estate investment trusts (REITs) and other financial products, earning fees for asset management and performance. Strategic partnerships with financial institutions and real estate developers further bolster its revenue by expanding its portfolio and investment opportunities. The company also utilizes technology to optimize property operations and enhance customer experiences, contributing to its competitive edge and profitability.

CREAL Inc. Financial Statement Overview

Summary

CREAL Inc. exhibits strong financial performance with significant revenue and profit growth, improved margins, and effective cash flow management. The balance sheet shows improvement, but the relatively low equity base poses some risk.

Income Statement

CREAL Inc. shows strong revenue growth, increasing from ¥3.77 billion in 2020 to ¥41.82 billion in 2025, reflecting robust business expansion. The gross profit margin improved to 13.5% in 2025, up from 26.9% in 2020, indicating efficient cost management. The net profit margin also rose to 3.23% in 2025 from 4.02% in 2020, demonstrating enhanced profitability. EBIT and EBITDA margins have improved, showcasing operational efficiency.

Balance Sheet

The company's debt-to-equity ratio decreased over time, reflecting improved capital structure and reduced leverage risk. The equity ratio improved to 9.96% in 2025 from 5.05% in 2020, indicating stronger solvency. Return on equity (ROE) increased to 25.62% in 2025, highlighting effective use of equity. However, the overall equity base remains relatively low, suggesting potential financial vulnerability.

Cash Flow

CREAL Inc. demonstrates strong cash flow management, with free cash flow turning positive and exhibiting substantial growth over the years. The operating cash flow to net income ratio and free cash flow to net income ratio both indicate strong cash generation relative to profitability. The company has effectively converted earnings into cash, supporting its business operations and growth initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.07B	41.82B	21.04B	16.44B	10.58B	7.14B
Gross Profit	5.41B	5.65B	3.56B	2.21B	1.55B	1.17B
EBITDA	2.69B	2.01B	1.04B	609.73M	372.49M	219.95M
Net Income	938.46M	1.35B	647.57M	336.17M	172.42M	50.23M
Balance Sheet
Total Assets	51.11B	52.94B	35.75B	21.49B	10.93B	9.05B
Cash, Cash Equivalents and Short-Term Investments	17.95B	19.21B	9.54B	7.55B	1.99B	2.04B
Total Debt	5.35B	4.76B	5.94B	3.03B	1.18B	2.27B
Total Liabilities	45.80B	47.66B	31.94B	18.38B	9.88B	8.17B
Stockholders Equity	5.32B	5.27B	3.81B	3.11B	1.04B	871.30M
Cash Flow
Free Cash Flow	0.00	10.96B	-1.26B	1.27B	196.17M	-745.75M
Operating Cash Flow	0.00	10.02B	-1.21B	1.29B	274.83M	-513.92M
Investing Cash Flow	0.00	-1.17B	-134.78M	-122.80M	237.44M	-239.15M
Financing Cash Flow	0.00	-1.11B	2.91B	3.57B	-1.09B	1.41B

CREAL Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1157.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2998, the sentiment is Neutral. The current price of 1157 is below the 20-day moving average (MA) of 1238.45, below the 50-day MA of 1246.56, and above the 200-day MA of 954.36, indicating a neutral trend. The MACD of -19.79 indicates Positive momentum. The RSI at 43.41 is Neutral, neither overbought nor oversold. The STOCH value of 19.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2998.

CREAL Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2998	68 Neutral	¥35.03B	36.83	―	0.52%	30.12%	-10.51%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7347	65 Neutral	¥16.27B	236.19	―	2.62%	11.20%	-93.41%
6620	63 Neutral	¥36.41B	150.47	―	―	-19.44%	-55.35%
3454	61 Neutral	¥16.67B	10.59	―	5.63%	36.31%	52.62%
3772	60 Neutral	¥19.83B	12.70	―	1.93%	-30.94%	26.14%
4310	33 Underperform	¥23.99B	24.50	―	18.65%	15.20%	―

CREAL Inc. Corporate Events

CREAL Inc. Reports Decline in Q2 2025 Financial Performance Amid Strategic Adjustments

CREAL Inc. reported a significant decline in its financial performance for the three months ended June 30, 2025, with net sales dropping by 27.2% year-on-year and a substantial decrease in profits. Despite this downturn, the company plans a stock split and maintains its dividend forecast, indicating a strategic move to enhance shareholder value and market positioning.