Cresco,Ltd. (4674) AI Stock Analysis

• Market Cap: ¥66.04B
• Dividend Yield: 3.15%
• Average Volume (3M): 120.66K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.89
• Revenue Growth: 9.98%
• EPS Growth: 13.52%
• Country: JP
• Employees: 2,742
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 18.33
• Shares Outstanding: 42,000,000
• 10 Day Avg. Volume: 87,970
• 30 Day Avg. Volume: 120,656
• PEG Ratio: 0.59
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 0.83
• P/FCF Ratio: 11.24
• 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: ¥1,856.67
• Price Target Upside: 14.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥1,856.00 ▲(14.78% Upside)

Cresco, Ltd. demonstrates strong financial performance with efficient cash flow management and a stable balance sheet. The technical analysis indicates a neutral market position, while the valuation suggests the stock is fairly priced. These factors collectively contribute to a solid overall stock score.

Cresco,Ltd. Business Overview & Revenue Model

Company Description

Cresco Ltd., together with its subsidiaries, provides various services in the fields of application development, IT infrastructure system architecture, and embedded systems in Japan. The company offers services related to design, development, deployment, and maintenance of IT business systems; and a range of engineering services, including electronic equipment installed in vehicles, networked home electronics appliances, communication equipment terminals, and electronic equipment for the manufacturing industry. It also provides services related to the construction, implementation, and maintenance of IT infrastructural systems that support the fundamental workings of a company; and digital solutions. The company was incorporated in 1948 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Cresco, Ltd. generates revenue through several key streams. The company earns money by offering system integration services where it designs and implements IT systems tailored to client needs. Software development also forms a significant part of its revenue, as Cresco creates custom software solutions for businesses. Additionally, IT consulting services provide another revenue stream, where the company advises clients on technology strategies and digital transformation. Cresco often engages in long-term contracts with businesses across various industries, ensuring a steady flow of income. The company may also have strategic partnerships with technology vendors and other service providers, enhancing its service offerings and market reach.

Cresco,Ltd. Financial Statement Overview

Summary

Cresco, Ltd. showcases a strong financial performance across all verticals. The income statement reflects robust growth and profitability, while the balance sheet indicates a stable financial position with low leverage. Cash flow management is efficient, supporting business operations and strategic growth initiatives. While the company is well-positioned financially, continuous focus on equity growth could further enhance financial resilience.

Income Statement

Cresco, Ltd. has demonstrated strong revenue growth with a 11.4% increase from 2024 to 2025. The gross profit margin stands at 19.5%, and the net profit margin is 7.5%, indicating efficient cost management and profitability. The EBIT margin of 10.2% and EBITDA margin of 11.7% further highlight operational efficiency. Overall, the income statement reflects a robust performance with consistent growth and solid profitability.

Balance Sheet

The company maintains a healthy balance sheet with a high equity ratio of 71.1%, showing financial stability. The debt-to-equity ratio is low at 0.06, which minimizes financial risk. Return on equity is strong at 14.3%, suggesting effective use of equity to generate profits. Although the balance sheet is stable, further growth in equity could enhance financial strength.

Cash Flow

Cresco, Ltd. exhibits positive cash flow management with free cash flow growth of 47.5% from 2024 to 2025. The operating cash flow to net income ratio is 1.1, indicating that cash generation from operations is aligned with net income. The free cash flow to net income ratio is 0.99, reflecting a solid ability to generate free cash flow relative to earnings. Overall, the cash flow statement reflects a strong liquidity position and efficient capital allocation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	60.08B	58.76B	52.76B	48.37B	44.45B	39.71B
Gross Profit	11.84B	11.44B	10.34B	9.64B	8.70B	7.20B
EBITDA	6.80B	6.88B	6.22B	5.44B	5.33B	4.42B
Net Income	4.40B	4.41B	3.73B	3.33B	3.24B	2.63B
Balance Sheet
Total Assets	42.62B	43.34B	39.71B	33.64B	33.14B	30.34B
Cash, Cash Equivalents and Short-Term Investments	15.01B	16.15B	15.79B	11.79B	12.80B	11.50B
Total Debt	1.69B	1.72B	2.39B	1.03B	1.57B	1.92B
Total Liabilities	11.82B	12.52B	12.03B	9.19B	11.00B	10.86B
Stockholders Equity	30.79B	30.82B	27.68B	24.45B	22.13B	19.49B
Cash Flow
Free Cash Flow	0.00	4.35B	2.95B	1.28B	3.01B	2.97B
Operating Cash Flow	0.00	4.76B	3.21B	1.68B	3.22B	3.16B
Investing Cash Flow	0.00	-2.29B	1.45B	-874.88M	-1.16B	-47.41M
Financing Cash Flow	0.00	-2.08B	-723.69M	-1.63B	-1.35B	-1.48B

Cresco,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1617.00
• 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:4674, the sentiment is Negative. The current price of 1617 is below the 20-day moving average (MA) of 1657.54, below the 50-day MA of 1669.27, and above the 200-day MA of 1400.89, indicating a neutral trend. The MACD of -3.11 indicates Positive momentum. The RSI at 43.03 is Neutral, neither overbought nor oversold. The STOCH value of 53.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4674.

Cresco,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3371	77 Outperform	¥59.18B	15.63	―	2.48%	11.92%	7.75%
4674	75 Outperform	¥66.04B	15.44	15.02%	3.15%	9.98%	13.52%
3916	73 Outperform	¥38.94B	17.33	―	2.58%	21.47%	30.64%
3844	73 Outperform	$51.00B	15.80	18.34%	3.14%	4.89%	4.85%
9739	68 Neutral	¥38.38B	10.65	―	3.30%	<0.01%	-17.60%
3636	64 Neutral	¥78.45B	15.18	―	3.23%	1.06%	-0.20%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Cresco,Ltd. Corporate Events

Cresco, Ltd. Reports Strong Financial Growth and Strategic Changes

Cresco, Ltd. reported a significant increase in its financial performance for the fiscal year ending March 31, 2025, with net sales rising by 11.4% and operating profit increasing by 16.8% compared to the previous year. The company also announced changes in its consolidation scope, including the inclusion of Jet Technologies Co., Ltd. and TAKAGI SYSTEM CO., LTD., while excluding CRESCO Wireless, Inc. and Japan Software Design CO., LTD., indicating strategic shifts in its operations.