Cresco,Ltd. (4674) AI Stock Analysis

• Market Cap: ¥57.64B
• Dividend Yield: 2.91%
• Average Volume (3M): 81.30K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.83
• Revenue Growth: 10.02%
• EPS Growth: 16.48%
• Country: JP
• Employees: 2,742
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 37.74
• 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)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

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

Revenue Growth & Profitability

Consistent double-digit revenue growth with mid-single-digit net margins and double-digit operating margins indicates the business can scale while maintaining operational efficiency. Over 2–6 months this supports reinvestment, pricing power and the ability to fund growth initiatives without eroding profitability.

Strong Cash Flow Generation

Very strong free cash flow growth and near‑par conversion of earnings to cash provide durable funding for capex, dividends, buybacks or acquisitions. This cash generation reduces reliance on external financing and gives management flexibility to pursue long‑term strategic priorities.

Conservative Balance Sheet

A high equity ratio and negligible leverage materially lower financial risk and interest burden, increasing resilience through cycles. Combined with a healthy ROE, this balance sheet supports investment and M&A optionality while preserving credit capacity over the medium term.

Negative Factors

Moderate Profit Margins

Margins are positive but moderate for an IT services firm; sustained expansion may be challenged by competition or wage and subcontractor cost pressures. Limited margin headroom can constrain the pace of reinvestment and reduce buffer against cyclical revenue softness over the next several months.

Limited Equity Growth Noted

Although equity ratio is high, management commentary flags the need for additional equity growth to boost resilience. If retained earnings or capital increases don't accelerate, the company may have less firepower for larger strategic moves or absorbing shocks without changing capital structure.

Sparse Public Guidance / Disclosures

Absence of earnings call details and formal guidance reduces visibility into management's outlook and execution plans. Over a multimonth horizon, limited disclosure can hinder investor ability to assess forward performance and complicate external monitoring of strategy and capital allocation.

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	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	60.08B	58.76B	52.76B	48.37B	44.45B	39.71B
Gross Profit	11.84B	11.44B	10.13B	9.43B	8.52B	7.07B
EBITDA	6.58B	6.61B	5.64B	5.49B	4.90B	3.88B
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	15.90B	11.86B	12.88B	11.56B
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	3.03B	1.39B	3.12B	3.08B
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: 1782.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 1782 is above the 20-day moving average (MA) of 1498.20, above the 50-day MA of 1607.28, and above the 200-day MA of 1639.02, indicating a bearish trend. The MACD of -37.94 indicates Negative momentum. The RSI at 34.82 is Neutral, neither overbought nor oversold. The STOCH value of 14.01 is Positive, 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
3762	78 Outperform	¥65.89B	18.88	17.96%	1.83%	13.23%	16.07%
3636	77 Outperform	¥72.83B	7.46	―	3.28%	5.28%	28.90%
9889	77 Outperform	¥88.67B	19.07	―	2.32%	5.09%	26.12%
4674	72 Outperform	¥57.64B	11.56	16.12%	2.91%	10.02%	16.48%
4725	65 Neutral	¥30.97B	10.75	10.34%	4.82%	-3.03%	38.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%