CREAL Inc. (2998) AI Stock Analysis

• Market Cap: ¥30.00B
• Dividend Yield: 0.66%
• Average Volume (3M): 192.67K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.88
• Revenue Growth: 10.67%
• EPS Growth: 6.94%
• Country: JP
• Employees: 127
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 25.43
• Shares Outstanding: 36,053,200
• 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: 67 Neutral
• Price Target: ¥769.00 ▼(-17.31% Downside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is primarily supported by strong financial performance (growth, improving profitability, and cash flow strength). This is meaningfully offset by weak technical signals (price below key moving averages and negative MACD). Valuation is reasonable but not a major positive given the low dividend yield.

Positive Factors

Sustained revenue expansion

CREAL has delivered multi-year top-line expansion (33% revenue growth cited), showing meaningful market traction and scale. Durable revenue growth supports continued reinvestment, product/service expansion and provides a structural runway for margin improvement over the next 2–6 months.

Strong cash generation and conversion

Free cash flow turned positive and has grown strongly, with operating cash flow converting well relative to net income. Sustainable cash conversion enhances funding for growth, debt reduction and capital allocation without relying on external financing, strengthening fundamentals over months.

Improving capital structure and high ROE

Leverage has declined and solvency metrics improved, while ROE rose to ~25.6%, indicating efficient use of equity. These structural improvements reduce financing risk and imply management is deploying capital effectively, supporting sustainable profitability and resilience over coming quarters.

Negative Factors

Relatively low equity base / limited balance-sheet buffer

Despite improvements, the company’s equity base remains small which limits its ability to absorb shocks, finance large investments or take on cyclical downturns without raising capital. This structural constraint can restrict strategic optionality across the medium term.

Modest net profit margins

Net margins are modest (around low single digits), offering limited cushioning against revenue volatility or cost shocks. Low absolute profitability constrains retained earnings and the pace at which the equity base can be organically rebuilt, affecting resilience over several quarters.

Low dividend/income return

A very low dividend yield signals limited shareholder income and may constrain appeal to yield-focused investors. Over a structural horizon this can reduce stable investor base diversity and limit one channel of shareholder return absent consistent buybacks or improving payout policy.

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

Strong overall fundamentals driven by rapid revenue expansion and solid cash conversion. Margins and operating efficiency have improved, and leverage has trended down. The main risk is a still-low equity base, which can limit balance-sheet resilience.

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	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: Negative
• Last Price: 930.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 930 is above the 20-day moving average (MA) of 852.35, above the 50-day MA of 913.36, and below the 200-day MA of 1045.98, indicating a bearish trend. The MACD of -44.06 indicates Positive momentum. The RSI at 47.51 is Neutral, neither overbought nor oversold. The STOCH value of 40.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2998.

CREAL Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8739	78 Outperform	¥66.60B	13.14	17.21%	4.27%	7.60%	7.20%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
2998	67 Neutral	¥30.00B	13.67	―	0.66%	10.67%	6.94%
3454	63 Neutral	¥17.50B	10.00	―	2.86%	36.31%	52.62%
2134	50 Neutral	¥19.72B	-12.35	―	―	-21.88%	17.12%
3121	44 Neutral	¥7.22B	-84.41	―	0.96%	-23.90%	-146.54%

CREAL Inc. Corporate Events

CREAL Releases FY2026 Q3 Financial Results Presentation

CREAL Inc. has released its presentation materials for financial results for the third quarter of the fiscal year ending March 2026. The document outlines an executive summary, company and business overview, segment-based Q3 results and highlights, details of a third-party allotment and business alliance, as well as earnings forecasts and progress, signaling continued efforts to inform stakeholders about its performance and capital strategy.

The most recent analyst rating on (JP:2998) stock is a Hold with a Yen976.00 price target. To see the full list of analyst forecasts on CREAL Inc. stock, see the JP:2998 Stock Forecast page.

CREAL Posts Strong Nine-Month Earnings and Bolsters Balance Sheet

CREAL Inc. reported strong consolidated results for the nine months ended December 31, 2025, with net sales rising 11% year on year to ¥29.6 billion and profit attributable to owners of the parent surging 62.3% to ¥1.3 billion. Operating profit climbed 63.1%, and earnings per share increased despite a five-for-one stock split implemented on October 1, 2025, reflecting improved profitability and scale.

The company’s financial position strengthened markedly, as equity nearly doubled from March 2025 and the equity-to-asset ratio improved to 20.7% from 9.8%, aided in part by the consolidation of CREAL Asset Management Inc. CREAL maintained its full-year earnings forecast, plans a year-end dividend corresponding to ¥7 per share post-split, and signals a continued focus on shareholder returns while expanding its asset management operations.

The most recent analyst rating on (JP:2998) stock is a Hold with a Yen976.00 price target. To see the full list of analyst forecasts on CREAL Inc. stock, see the JP:2998 Stock Forecast page.