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

• Market Cap: ¥205.14B
• Dividend Yield: 2.35%
• Average Volume (3M): 76.12K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.24
• Revenue Growth: 7.55%
• EPS Growth: 16.01%
• Country: JP
• Employees: 4,797
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): N/A
• 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

Steady revenue growth and stable operating profitability support a solid score, and the balance sheet is exceptionally conservative with essentially no debt and healthy, stable ROE. Offsetting this strength, margins are thin (low single-digit net margin) and free cash flow is volatile with weak recent conversion versus net income.

Income Statement

Revenue has grown steadily over the last several years, with a clear step-up in the most recent year. Profitability is consistent but modest: gross margin is stable around the mid‑20% range, while net margin sits in the low‑to‑mid 3% range, indicating a low-margin business model. Operating profitability is steady (EBIT and EBITDA margins roughly ~5–6%) but has not expanded, so earnings growth is driven more by volume than improving economics.

Balance Sheet

The balance sheet is very conservative with essentially no debt and rising equity over time, which materially lowers financial risk. Returns on equity are healthy and fairly stable (roughly around 10–14% historically), suggesting the company is generating solid profits relative to its capital base. The main limitation is that, despite strong financial safety, the asset base is growing and the business still operates on thin margins, so balance-sheet strength does not automatically translate into high earnings power.

Cash Flow

Operating cash flow is consistently positive and has increased over time, which is supportive of earnings quality. However, free cash flow is volatile (large swings year-to-year), and in the most recent year free cash flow covered only about a quarter of net income, signaling heavier reinvestment and/or working-capital pressure. Overall cash generation is adequate but less predictable than the income statement would imply.

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: Negative
• Last Price: 3340.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 3340 is above the 20-day moving average (MA) of 3320.75, above the 50-day MA of 3313.76, and above the 200-day MA of 3234.99, indicating a neutral trend. The MACD of -9.46 indicates Positive momentum. The RSI at 38.44 is Neutral, neither overbought nor oversold. The STOCH value of 35.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥670.78B	15.66	15.71%	0.96%	21.81%	67.76%
3148	75 Outperform	¥205.14B	12.63	―	2.35%	7.55%	16.01%
9989	69 Neutral	¥481.72B	15.05	11.50%	3.04%	6.32%	8.19%
3391	67 Neutral	¥1.11T	27.03	―	1.72%	―	―
3549	67 Neutral	¥387.34B	21.77	―	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 Delivers Higher First-Half Profits, Raises Dividend and Expands Group

Create SD Holdings reported solid growth for the six months ended November 30, 2025, with net sales rising 7.6% year on year to ¥241.9 billion and profit attributable to owners of the parent increasing 12.3% to ¥7.9 billion, supported by higher operating and ordinary profits and stable financial health, as evidenced by total assets of ¥245.1 billion and an equity ratio of 60.3%. The company maintained its full-year forecast, targeting ¥491.5 billion in net sales and ¥16.3 billion in profit attributable to owners of the parent, and lifted its interim dividend to ¥45 per share with an annual dividend forecast of ¥90, signaling confidence in earnings strength; it also added three companies, including SANEFU Inc. and YAOHAN group entities, as consolidated subsidiaries, underscoring an ongoing expansion strategy that could further bolster scale and competitiveness in Japan’s retail and drugstore market.

The most recent analyst rating on (JP:3148) stock is a Hold with a Yen3624.00 price target. To see the full list of analyst forecasts on Create SD Holdings Co., Ltd. stock, see the JP:3148 Stock Forecast page.