CREEMA LTD. (4017) AI Stock Analysis

• Market Cap: ¥1.52B
• Dividend Yield: N/A
• Average Volume (3M): 26.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: -0.97%
• EPS Growth: -6.95%
• Country: JP
• Employees: 80
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -6.72
• Shares Outstanding: 6,742,100
• 10 Day Avg. Volume: 25,170
• 30 Day Avg. Volume: 26,266
• PEG Ratio: 0.58
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 80.65
• 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): ¥3.27B

• Rating: 61 Neutral
• Price Target: ¥238.00 ▼(-6.30% Downside)
• Action: Downgraded Date: 11/13/25
• Date: Action: Downgraded 11/13/25

CREEMA LTD.'s strong financial performance is the primary driver of its overall score, supported by robust revenue and profit margins. However, the bearish technical indicators and moderate valuation limit the stock's appeal. The absence of earnings call insights and corporate events means these factors did not influence the score.

Positive Factors

Improving margins (gross, EBIT, EBITDA)

Sustained improvement in gross, EBIT and EBITDA margins indicates better cost control and operational leverage. Over the next 2-6 months this supports higher cash generation per sale, funds reinvestment in the marketplace, and strengthens resilience against revenue variability.

Solid balance sheet and equity growth

A healthy equity ratio and improving ROE point to financial stability and manageable leverage. This durable strength provides financial flexibility to fund growth, withstand shocks, and pursue strategic initiatives without materially increasing short-term default or refinancing risk.

Positive operating cash flow and improving FCF

Consistent positive operating cash flow and improving free cash flow enhance self-funding capacity and reduce external financing dependence. Over several months this supports working capital, platform investment, and seller support programs that sustain marketplace health.

Negative Factors

Large reported revenue decline

An ~85% reported revenue contraction is a structurally significant weakness: it undermines network effects, reduces transaction fee income, and stresses unit economics. If persistent, it impedes reinvestment in product and marketing, threatening medium-term market position.

Sharp EPS contraction

A roughly 67% fall in EPS signals material earnings volatility or one-off pressures that weaken profitability resilience. This constrains retained earnings for reinvestment, raises execution risk for margin recovery, and can limit strategic spending during recovery periods.

Volatile cash flows and profit margins

Intermittent cash flow and margin swings make budgeting and long-term investments harder, increasing reliance on conservative planning. Even with positive OCF, volatility raises the risk that temporary shocks could force cost cuts or delay platform improvements.

CREEMA LTD. Business Overview & Revenue Model

Company Description

Creema Ltd., together with its subsidiaries, operates as an online marketplace where individuals can directly buy and sell original handmade works online in Japan and Asia. The company helps users to find products in various categories, such as accessories and jewelry; bag and rucksacks; wallet, case, and accessory case; cases for iPhone, smartphones, and PCs; fashion; furniture; interior goods; art; tableware/kitchen; and other accessories. It also offers products in other categories, including stuffed animals, figurines, miscellaneous goods, stationery, pet goods, baby kids, wedding, mens, food, alcohol, drinks, and other handmade materials. In addition, the company provides pearl, cotton pearl, leather, skin leather, yarn, felt, wool, canvas, brass, glass, stained glass, silver, natural stone, and other material products. Further, it offers platform services, such as marketing support; creator empowerment services; operates an EC platform site that sells artists' works and videos; and arranges exhibitions and events at permanent stores for creators. Creema Ltd. was incorporated in 2009 and is based in Tokyo, Japan.

How the Company Makes Money

Creema Ltd. primarily generates revenue by monetizing transactions and activity on its CREEMA online marketplace. Key revenue streams include: (1) Marketplace-related fees charged to creators/sellers for listing and/or selling items on the platform (e.g., commissions on completed transactions and other seller fees tied to the use of the marketplace). (2) Ancillary services connected to the marketplace that support creators and commerce on the platform (such as optional paid features or services offered to sellers). Significant partnerships or additional revenue drivers beyond the platform ecosystem are null.

CREEMA LTD. Financial Statement Overview

Summary

CREEMA LTD. demonstrates a robust financial position with strong revenue and profit margins. The balance sheet reflects a stable financial structure, while cash flow statements indicate good cash management despite some fluctuations. The company is well-positioned in the specialty retail industry, though it should continue to monitor debt levels and cash flow stability.

Income Statement

CREEMA LTD. has shown a stable revenue base with slight growth over the years. The gross profit margin is strong, indicating effective cost management. However, net profit margins have fluctuated, with a notable recovery from negative figures in 2023 to positive in 2025. EBIT and EBITDA margins have improved, suggesting better operational efficiency.

Balance Sheet

The company's balance sheet is solid with a healthy equity ratio and improving return on equity. The debt-to-equity ratio is moderate, indicating manageable leverage. The increase in stockholders' equity over the years reflects a strengthening financial position, though the total debt levels require monitoring.

Cash Flow

CREEMA LTD.'s cash flow from operations has been positive, indicating good cash generation capability. Free cash flow has shown significant improvement, but the volatility in cash flows over the years suggests some operational challenges. The operating cash flow to net income ratio indicates efficient cash conversion.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	2.49B	2.51B	2.51B	2.50B	2.29B	2.06B
Gross Profit	1.99B	1.96B	1.99B	1.91B	2.22B	2.06B
EBITDA	140.29M	141.85M	80.50M	-354.44M	338.31M	229.80M
Net Income	93.14M	103.02M	79.14M	-408.32M	230.69M	178.37M
Balance Sheet
Total Assets	3.55B	3.37B	3.59B	3.43B	3.89B	4.15B
Cash, Cash Equivalents and Short-Term Investments	2.85B	2.44B	2.63B	2.37B	2.95B	2.89B
Total Debt	515.12M	325.51M	517.78M	381.87M	558.45M	665.82M
Total Liabilities	2.42B	2.26B	2.59B	2.51B	2.57B	3.07B
Stockholders Equity	1.13B	1.11B	1.00B	919.40M	1.32B	1.08B
Cash Flow
Free Cash Flow	0.00	22.21M	112.71M	-347.90M	394.03M	688.68M
Operating Cash Flow	0.00	22.93M	113.39M	-320.74M	394.44M	689.24M
Investing Cash Flow	0.00	-23.15M	4.30M	-91.25M	-215.77M	-5.93M
Financing Cash Flow	0.00	-190.40M	137.54M	-169.84M	-112.89M	796.39M

CREEMA LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 254.00
• 50DMA: Negative
• 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:4017, the sentiment is Negative. The current price of 254 is above the 20-day moving average (MA) of 231.70, above the 50-day MA of 244.30, and below the 200-day MA of 262.48, indicating a bearish trend. The MACD of -5.18 indicates Negative momentum. The RSI at 38.60 is Neutral, neither overbought nor oversold. The STOCH value of 45.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4017.

CREEMA LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3560	78 Outperform	¥8.06B	2.45	―	2.66%	15.17%	12.30%
4385	63 Neutral	¥576.74B	23.34	31.11%	―	4.83%	106.29%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
4017	61 Neutral	¥1.52B	-9.68	―	―	-0.97%	-6.95%
3396	60 Neutral	¥5.79B	13.21	―	1.76%	2.24%	―
3416	58 Neutral	¥2.07B	16.01	―	4.41%	-10.69%	-60.56%
4755	41 Neutral	¥1.62T	-12.21	-21.14%	―	11.45%	42.34%