Create SD Holdings Co., Ltd. (3148) AI Stock Analysis

• Market Cap: ¥212.10B
• Dividend Yield: 2.35%
• Average Volume (3M): 76.12K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.26
• Revenue Growth: 7.55%
• EPS Growth: 16.01%
• Country: JP
• Employees: 4,797
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 61.85
• Shares Outstanding: 66,819,340
• 10 Day Avg. Volume: 114,270
• 30 Day Avg. Volume: 76,116
• PEG Ratio: 1.03
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 34.23
• 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: 75 Outperform
• Price Target: ¥3,758.00 ▲(12.51% Upside)

The score is driven primarily by strong financial safety (debt-free balance sheet and stable ROE) alongside steady growth, tempered by thin margins and volatile free-cash-flow conversion. Technicals add support with price above key moving averages and moderate positive momentum, while valuation is reasonable with a moderate P/E and a ~2.4% dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Balance Sheet Health

A low debt-to-equity ratio enhances financial flexibility and reduces risk, allowing for strategic investments and resilience against economic downturns.

Cash Generation

Improved cash generation capabilities provide the company with the resources to invest in growth opportunities and return value to shareholders.

Negative Factors

Free Cash Flow Conversion

Inefficient cash conversion may limit the company's ability to reinvest in operations or distribute returns, potentially hindering growth.

Profit Margin Pressure

While current margins are positive, further improvement is needed to enhance profitability and competitiveness in a challenging retail environment.

Free Cash Flow Management

Suboptimal free cash flow management can affect the company's ability to fund new projects and manage unexpected expenses, impacting long-term growth.

Create SD Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Create SD Holdings Co., Ltd., through its subsidiaries, engages in drug store, dispensing pharmacy, and nursing care businesses in Japan. The company sells pharmaceuticals, cosmetics, food products, daily goods, etc. It also operates and manages nursing homes and functional training type day service centers, as well as provides cleaning services for shops and administrative assistance work, etc. The company was founded in 1998 and is headquartered in Yokohama, Japan.

How the Company Makes Money

Create SD Holdings Co., Ltd. generates revenue primarily through the sale of products in its chain of drugstores. The company earns money by purchasing goods from suppliers at wholesale prices and selling them at retail prices to consumers. Key revenue streams include the sale of pharmaceuticals, cosmetics, and daily necessities, which are staples for consumer spending. Create SD Holdings may also engage in partnerships with suppliers to offer exclusive or private-label products, enhancing their product offerings and profit margins. The company's earnings are influenced by factors such as consumer demand, pricing strategies, and its ability to efficiently manage supply chain and operational costs.

Create SD Holdings Co., Ltd. Financial Statement Overview

Summary

Create SD Holdings Co., Ltd. exhibits strong financial performance with consistent revenue growth, robust margins, and prudent balance sheet management. The company has a low debt-to-equity ratio, high equity ratio, and significant cash reserves, indicating financial stability and flexibility. However, there is room for improvement in free cash flow conversion.

Income Statement

Create SD Holdings Co., Ltd. has shown strong revenue growth with a Revenue Growth Rate of 10.85% in the latest year. The Gross Profit Margin is robust at 24.95%, indicating efficient cost management. The Net Profit Margin is healthy at 3.24%. Both EBIT Margin (4.79%) and EBITDA Margin (5.97%) reflect operational efficiency and profitability. Overall, the company demonstrates solid performance in generating profit from its revenues.

Balance Sheet

The company maintains a very low Debt-to-Equity Ratio, suggesting prudent leverage management. With a Return on Equity of 10.51%, the company is effectively utilizing its equity base to generate profits. The Equity Ratio stands at 60.17%, indicating a strong equity position relative to total assets. The high cash reserves further strengthen the balance sheet, providing stability and flexibility for future investments.

Cash Flow

The Free Cash Flow Growth Rate has been significant, increasing 94.66% from the previous year, signaling improved cash generation capabilities. The Operating Cash Flow to Net Income Ratio of 1.54 indicates strong cash flow generation relative to net income. However, the Free Cash Flow to Net Income Ratio of 0.38 suggests room for improvement in cash conversion efficiency. Overall, the cash flow position is stable with strong operational cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	464.78B	457.09B	422.33B	380.96B	350.74B	338.48B
Gross Profit	119.47B	119.22B	110.19B	102.99B	95.58B	93.37B
EBITDA	28.94B	28.30B	25.22B	23.27B	22.16B	21.73B
Net Income	16.26B	15.69B	13.69B	12.93B	12.60B	12.38B
Balance Sheet
Total Assets	234.51B	236.56B	216.48B	194.94B	176.91B	163.82B
Cash, Cash Equivalents and Short-Term Investments	35.44B	37.75B	38.21B	37.53B	42.07B	39.28B
Total Debt	0.00	0.00	1.00M	6.00M	25.00M	63.00M
Total Liabilities	90.67B	93.84B	86.24B	78.53B	70.59B	67.19B
Stockholders Equity	143.85B	142.72B	130.24B	116.41B	106.32B	96.64B
Cash Flow
Free Cash Flow	0.00	5.97B	5.22B	2.68B	8.42B	3.59B
Operating Cash Flow	0.00	23.63B	21.03B	18.98B	16.10B	11.57B
Investing Cash Flow	0.00	-20.70B	-20.21B	-20.49B	-10.81B	-10.42B
Financing Cash Flow	0.00	-3.39B	-140.00M	-3.03B	-2.91B	-2.65B

Create SD Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3340.00
• 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:3148, the sentiment is Positive. The current price of 3340 is below the 20-day moving average (MA) of 3340.50, above the 50-day MA of 3264.59, and above the 200-day MA of 3193.04, indicating a bullish trend. The MACD of 19.27 indicates Positive momentum. The RSI at 57.92 is Neutral, neither overbought nor oversold. The STOCH value of 54.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3148.

Create SD Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7649	75 Outperform	$695.85B	15.80	15.71%	0.96%	21.81%	67.76%
3148	75 Outperform	¥212.10B	13.33	―	2.35%	7.55%	16.01%
9989	69 Neutral	¥491.31B	15.48	11.50%	3.04%	6.32%	8.19%
3391	67 Neutral	¥1.16T	28.80	―	1.72%	―	―
3549	67 Neutral	¥428.36B	23.99	―	0.41%	15.81%	27.05%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Create SD Holdings Co., Ltd. Corporate Events

Create SD Holdings Reports Strong Q1 Financial Performance and Positive Outlook

Create SD Holdings Co., Ltd. reported a positive financial performance for the first quarter ending August 31, 2025, with a notable increase in net sales and profits compared to the previous year. The company saw a 6.7% rise in net sales and a 16.7% increase in profit attributable to owners of the parent, indicating strong operational efficiency and market demand. The financial forecast for the fiscal year ending May 31, 2026, suggests continued growth, with expected increases in net sales and profits, reflecting the company’s solid market positioning and strategic growth initiatives.

The most recent analyst rating on (JP:3148) stock is a Buy with a Yen3621.00 price target. To see the full list of analyst forecasts on Create SD Holdings Co., Ltd. stock, see the JP:3148 Stock Forecast page.