CREAL Inc. (2998) AI Stock Analysis

• Market Cap: ¥33.80B
• Dividend Yield: 0.53%
• Average Volume (3M): 75.47K
• Price to Earnings (P/E): 24.7
• Beta (1Y): 0.64
• Revenue Growth: 98.73%
• EPS Growth: 104.12%
• Country: JP
• Employees: 127
• Sector: Financial
• Sector Strength: 74
• Industry: Asset Management
• EPS (TTM): 90.66
• Shares Outstanding: 6,025,400
• 10 Day Avg. Volume: 83,810
• 30 Day Avg. Volume: 75,466
• PEG Ratio: 0.98
• Price to Book (P/B): 6.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.45
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ¥6,570.00 ▲(10.05%Upside)

CREAL Inc. shows strong financial performance with significant revenue growth and improved margins, which are key strengths. Technical indicators suggest a positive trend, though valuation metrics are moderate. These combined factors lead to a solid overall stock score, with financial performance being the most significant contributor.

CREAL Inc. Business Overview & Revenue Model

Company Description

CREAL Inc. (2998) is a technology company specializing in augmented reality (AR) solutions. The company develops and markets advanced AR display systems that are used in various sectors, including consumer electronics, automotive, and industrial applications. CREAL Inc. is recognized for its innovative light-field technology, which enhances depth perception and visual realism in AR experiences.

How the Company Makes Money

CREAL Inc. generates revenue primarily through the sale of its proprietary AR display systems and related technologies. The company's key revenue streams include direct sales to manufacturers and developers in the consumer electronics and automotive industries, as well as licensing agreements for its patented technologies. CREAL Inc. may also engage in strategic partnerships with other technology firms to integrate its AR solutions into broader product ecosystems, thereby expanding its market reach and driving additional revenue through collaborative innovation.

CREAL Inc. Financial Statement Overview

Summary

CREAL Inc. demonstrates strong financial performance with significant revenue and profit growth, improved margins, and effective cash flow management. The improved debt-to-equity ratio and return on equity indicate solid financial health, though the low equity base presents 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
33.61B	41.82B	21.04B	16.44B	10.58B	7.14B
	Gross Profit
4.70B	5.65B	3.56B	2.21B	1.55B	1.17B
	EBIT
1.40B	1.97B	980.39M	547.37M	313.70M	183.89M
	EBITDA
1.44B	2.01B	1.04B	609.73M	372.49M	219.95M
	Net Income Common Stockholders
1.01B	1.35B	647.57M	336.17M	172.42M	50.23M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.88B	19.21B	9.54B	6.20B	1.46B	2.04B
	Total Assets
47.87B	52.94B	35.75B	21.49B	10.93B	9.05B
	Total Debt
7.94B	4.76B	5.94B	3.03B	1.18B	2.27B
	Net Debt
969.00M	-10.94B	-1.92B	-3.17B	-282.28M	229.97M
	Total Liabilities
43.19B	47.66B	31.94B	18.38B	9.88B	8.17B
	Stockholders Equity
4.68B	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	10.98B	-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: Positive
• Last Price: 5970.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2998, the sentiment is Positive. The current price of 5970 is above the 20-day moving average (MA) of 5782.50, above the 50-day MA of 5196.30, and above the 200-day MA of 3831.61, indicating a bullish trend. The MACD of 134.42 indicates Positive momentum. The RSI at 57.60 is Neutral, neither overbought nor oversold. The STOCH value of 37.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2998.

CREAL Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2998	70 Outperform	¥33.80B	24.69		0.53%	98.73%	104.12%
7347	68 Neutral	¥14.64B	29.93		2.91%	-4.73%	-51.89%
Sector *	64 Neutral	$12.86B	9.79	7.84%	78.10%	12.05%	-7.99%
6620	63 Neutral	¥45.78B	127.17		―	-6.47%	-13.48%
3772	62 Neutral	¥19.81B	17.95		1.94%	-36.03%	-39.21%
3454	61 Neutral	¥14.04B	9.88		6.79%	-22.99%	-50.67%
4310	33 Underperform	¥22.36B	122.54		26.31%	24.41%	-108.84%