Cresco,Ltd. (4674) AI Stock Analysis

• Market Cap: ¥67.73B
• Dividend Yield: 2.48%
• Average Volume (3M): 111.44K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.90
• Revenue Growth: 9.98%
• EPS Growth: 13.52%
• Country: JP
• Employees: 2,742
• Sector: Technology
• Sector Strength: 98
• Industry: Information Technology Services
• EPS (TTM): 18.33
• Shares Outstanding: 42,000,000
• 10 Day Avg. Volume: 129,820
• 30 Day Avg. Volume: 111,440
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,962.81
• Price Target Upside: 15.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥1,963.00 ▲(15.88% Upside)

Cresco, Ltd. presents a strong overall financial performance, driving a high score. Technical analysis suggests caution due to overbought conditions, impacting the score negatively. The valuation is fair, supporting the stock's potential. The absence of earnings call data and corporate events does not detract from the primary analysis.

Cresco,Ltd. Business Overview & Revenue Model

Company Description

Cresco, Ltd. (4674) is a Japanese IT solutions company that specializes in providing a wide range of technology services, including system integration, software development, and IT consulting. The company primarily serves sectors such as finance, manufacturing, and telecommunications, offering tailored solutions that help businesses optimize their operations and improve efficiency. Cresco is committed to innovation and leveraging cutting-edge technologies to deliver high-value services to its clients.

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 strong financial performance with solid growth in revenue, profitability, and cash flow. The income statement indicates robust growth and operational efficiency. The balance sheet is stable with low leverage and strong equity. Cash flow management supports strategic growth, although a focus on equity growth could 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	58.76B	52.76B	48.37B	44.45B	39.71B
Gross Profit	11.44B	10.34B	9.64B	8.70B	7.20B
EBITDA	6.88B	5.64B	5.44B	5.33B	4.42B
Net Income	4.41B	3.73B	3.33B	3.24B	2.63B
Balance Sheet
Total Assets	43.34B	39.71B	33.64B	33.14B	30.34B
Cash, Cash Equivalents and Short-Term Investments	16.15B	15.79B	11.79B	12.80B	11.50B
Total Debt	1.72B	2.39B	1.03B	1.57B	1.92B
Total Liabilities	12.52B	12.03B	9.19B	11.00B	10.86B
Stockholders Equity	30.82B	27.68B	24.45B	22.13B	19.49B
Cash Flow
Free Cash Flow	4.35B	2.95B	1.28B	3.01B	2.97B
Operating Cash Flow	4.76B	3.21B	1.68B	3.22B	3.16B
Investing Cash Flow	-2.29B	1.45B	-874.88M	-1.16B	-47.41M
Financing Cash Flow	-2.08B	-723.69M	-1.63B	-1.35B	-1.48B

Cresco,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1694.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1694 is above the 20-day moving average (MA) of 1656.70, above the 50-day MA of 1678.34, and above the 200-day MA of 1321.66, indicating a bullish trend. The MACD of 16.69 indicates Negative momentum. The RSI at 54.17 is Neutral, neither overbought nor oversold. The STOCH value of 48.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥60.83B	16.06		2.47%	11.92%	7.75%
3844	75 Outperform	$56.52B	17.51	18.34%	2.72%	4.89%	4.85%
4674	75 Outperform	¥67.73B	15.84	15.02%	2.48%	9.98%	13.52%
9739	68 Neutral	¥39.20B	10.87		3.23%	<0.01%	-17.60%
3636	67 Neutral	¥77.66B	15.02		3.26%	1.06%	-0.20%
3916	67 Neutral	¥39.95B	17.78		2.52%	21.47%	30.65%
Sector *	61 Neutral	$36.04B	6.25	-9.40%	2.02%	7.67%	-3.03%

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.