CREAL Inc. (2998) AI Stock Analysis

• Market Cap: ¥33.23B
• Dividend Yield: 0.66%
• Average Volume (3M): 192.67K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 0.85
• Revenue Growth: 10.67%
• EPS Growth: 6.94%
• Country: JP
• Employees: 127
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 11.09
• Shares Outstanding: 36,037,200
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥1,049.00 ▲(12.80% Upside)

CREAL Inc. shows strong financial performance with robust revenue and profit growth, but technical indicators suggest bearish momentum. The valuation appears high, which may limit upside potential. The lack of earnings call and corporate event data means these factors do not influence the score.

Positive Factors

Strong revenue growth

Sustained, large-scale revenue expansion over multiple years indicates durable customer adoption of CREAL's proptech platform and fractional ownership marketplace. Persistent top-line growth supports scale economics, reinvestment in product, and long-term competitive positioning in real estate services.

Robust cash generation

Consistent conversion of earnings into positive free cash flow gives CREAL financial flexibility to fund organic growth, product development, and working capital without heavy external financing. Strong cash generation improves resilience across real estate cycles and supports strategic initiatives over months to years.

High return on equity

A elevated ROE reflects effective use of shareholder capital and operational leverage in CREAL's business model. High capital efficiency can translate into superior long-run value creation, enabling profitable reinvestment and strengthening the firm’s ability to scale services across properties and investor segments.

Negative Factors

Relatively low equity base

Despite improvements, a low absolute equity base leaves limited buffer against asset shocks or large losses, increasing solvency risk. This structural vulnerability can constrain strategic moves, increase refinancing risk, and magnify downside during property market stress over the medium term.

Modest net profit margin

A single-digit net margin around ~3% limits internal funding for growth and heightens sensitivity to fee compression or cost inflation. Low absolute profitability makes earnings volatile relative to revenue swings and reduces margin of safety versus peers, impacting resilience across cycles.

Revenue cyclicality from transaction fees

Heavy reliance on transaction and commission-based revenue ties performance to real estate market activity, creating structural cyclicality. While subscriptions add recurring revenue, the core model remains volume-sensitive, exposing cash flows and growth to property market downturns over multi-month to multi-year horizons.

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. generates revenue through multiple key streams. Primarily, the company earns income from transaction fees charged on real estate investments facilitated through its platform. This includes commissions on property sales and management fees for properties under its management. Additionally, CREAL Inc. may receive revenue from subscription services provided to investors seeking advanced analytics and market insights. The company also explores partnerships with financial institutions, which can enhance its service offerings and provide additional revenue opportunities through co-branded products or joint ventures.

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 balance sheet shows improvement, but the relatively low equity base may present 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	245.05M
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: Positive
• Last Price: 930.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 930 is below the 20-day moving average (MA) of 937.55, above the 50-day MA of 888.80, and below the 200-day MA of 1046.23, indicating a neutral trend. The MACD of 17.14 indicates Negative momentum. The RSI at 63.18 is Neutral, neither overbought nor oversold. The STOCH value of 79.21 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
3772	69 Neutral	¥20.20B	108.95	―	1.85%	-40.77%	-91.81%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
2998	64 Neutral	¥33.23B	24.44	―	0.66%	10.67%	6.94%
3454	63 Neutral	¥16.94B	9.68	―	2.86%	36.31%	52.62%
4310	―	¥24.29B	21.03	―	18.63%	21.38%	―
7347	62 Neutral	¥15.92B	232.33	―	2.52%	1.35%	-91.61%
6620	55 Neutral	¥35.25B	157.63	―	―	-33.10%	-49.56%

CREAL Inc. Corporate Events

CREAL Inc. Reports Decline in Semi-Annual Financial Results

CREAL Inc. reported a significant decline in its financial performance for the six months ended September 30, 2025, with net sales decreasing by 22.5% compared to the previous year. The company’s operating profit, ordinary profit, and profit attributable to owners also saw substantial decreases. Despite these challenges, the company has maintained its financial forecast for the fiscal year ending March 31, 2026, indicating its confidence in future recovery and growth.

The most recent analyst rating on (JP:2998) stock is a Hold with a Yen1015.00 price target. To see the full list of analyst forecasts on CREAL Inc. stock, see the JP:2998 Stock Forecast page.