Cresco,Ltd. (4674) AI Stock Analysis

• Market Cap: ¥67.01B
• Dividend Yield: 2.91%
• Average Volume (3M): 81.30K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.90
• Revenue Growth: 10.02%
• EPS Growth: 16.48%
• Country: JP
• Employees: 2,742
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 31.85
• Shares Outstanding: 42,000,000
• 10 Day Avg. Volume: 60,550
• 30 Day Avg. Volume: 81,303
• 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: 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: 72 Outperform
• Price Target: ¥1,936.00 ▲(8.64% Upside)

Cresco, Ltd. receives a solid overall score driven by strong financial performance and reasonable valuation. The primary strength is its robust financial health, supported by efficient cash flow management and profitability. However, technical indicators suggest a lack of upward momentum, which slightly tempers the overall score.

Positive Factors

Strong revenue growth

Sustained 11.4% annual revenue growth indicates expanding product adoption and market penetration. Over 2–6 months this supports durable demand, funds R&D and distribution expansion, and underpins scalable operations that can improve unit economics and competitive position long term.

Robust cash generation

Very strong free cash flow growth and near-parity of FCF to net income indicate high quality earnings and liquidity. This durable cash generation supports reinvestment, dividends, debt management, and strategic M&A without relying heavily on external financing, enhancing long-term resilience.

Low leverage and healthy equity base

A high equity ratio and minimal leverage provide strong financial flexibility, lowering bankruptcy risk and enabling opportunistic investment during downturns. Combined with a solid ROE, this capital structure supports sustained strategic initiatives and credit stability over multiple cycles.

Negative Factors

Moderate net profit margin

A 7.5% net margin, while profitable, is modest and leaves limited internal cushion for large reinvestments or margin shocks. Over time this can constrain the pace of organic expansion and reduce excess cash available for discretionary strategic moves compared with higher-margin peers.

Relatively low gross margin

A 19.5% gross margin provides a narrower buffer to absorb rising input or distribution costs and limits funding for SG&A and R&D from sales. Structurally, low gross margins raise sensitivity to cost inflation and competitive pricing pressure, challenging margin expansion without scale or product differentiation.

Need for further equity growth

Management note that additional equity growth would strengthen resilience suggests current capital may limit large strategic moves. Over the medium term, insufficient equity expansion could restrict balance sheet flexibility for acquisitions or heavy capex without increasing leverage or dilution.

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 generates revenue through multiple streams, including the sale of its core consumer products across various markets, which contribute significantly to its earnings. The company also engages in strategic partnerships with other firms to co-develop products and expand its market reach, enhancing its sales capabilities. Additionally, Cresco invests in research and development to innovate and improve its product offerings, ensuring long-term profitability and competitiveness in the market.

Cresco,Ltd. Financial Statement Overview

Summary

Cresco, Ltd. showcases strong financial performance with robust revenue growth, solid profitability, and efficient cash flow management. The income statement highlights consistent growth, while the balance sheet reflects financial stability with low leverage. Cash flow management supports strategic growth initiatives, although further equity growth could enhance 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: Neutral
• Last Price: 1782.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4674, the sentiment is Neutral. The current price of 1782 is above the 20-day moving average (MA) of 1746.55, above the 50-day MA of 1693.24, and above the 200-day MA of 1602.27, indicating a neutral trend. The MACD of -9.87 indicates Positive momentum. The RSI at 37.72 is Neutral, neither overbought nor oversold. The STOCH value of 14.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4674.

Cresco,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3762	78 Outperform	¥84.01B	18.82	17.96%	1.83%	13.23%	16.07%
4725	77 Outperform	¥33.85B	9.82	10.34%	4.82%	-3.03%	38.83%
9889	77 Outperform	¥103.34B	18.36	―	2.32%	5.09%	26.12%
3636	75 Outperform	¥76.79B	11.96	―	3.28%	5.28%	28.90%
4674	72 Outperform	¥67.01B	15.02	14.67%	2.91%	10.02%	16.48%
3655	70 Outperform	¥59.08B	72.03	―	0.28%	8.64%	-23.20%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%