Create Medic Co., Ltd. (5187) AI Stock Analysis

• Market Cap: ¥10.84B
• Dividend Yield: 3.52%
• Average Volume (3M): 7.98K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.22
• Revenue Growth: 4.97%
• EPS Growth: -10.07%
• Country: JP
• Employees: 1,002
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 5.80
• Shares Outstanding: 9,664,327
• 10 Day Avg. Volume: 3,800
• 30 Day Avg. Volume: 7,980
• PEG Ratio: -1.05
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 88.32
• 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: ¥1,244.00 ▲(19.96% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by solid financial stability (strong balance sheet and steady revenue growth) but held back by inconsistent profitability and weaker, lumpy cash generation. Technicals are supportive with an established uptrend, and valuation is helped by a reasonable P/E and a ~4% dividend yield.

Positive Factors

Conservative balance sheet / low leverage

Low reported leverage (debt roughly 5% of equity) gives the company durable financial flexibility to fund R&D, manage working capital through procedure cycles, and support capex or dividends without relying on volatile external financing, lowering insolvency risk.

Steady revenue growth (2021–2025)

Consistent low-to-mid single-digit top-line growth over multiple years indicates durable end-market demand and scalable commercial execution. Predictable revenue trends support capacity planning and provide a foundation for margin improvement if cost structure and operating leverage stabilize.

Recurring consumables-based business model

A business model focused on single-use and regularly replaced consumables creates repeatable, contractable demand and a built-in installed base. That recurring revenue profile increases predictability, strengthens customer relationships, and supports long-term revenue visibility versus one-off device sales.

Negative Factors

Volatile profitability and earnings quality

Marked swings in net income and uneven operating profit growth point to inconsistent cost control or non-recurring impacts. Persistent profitability volatility reduces the quality of reported earnings, complicates forecasting and capital allocation, and limits sustainable return generation.

Lumpy and weakening cash generation

Inconsistent cash conversion—strong one year but a sharp drop the next—raises execution risk around working capital and investment timing. Weak or lumpy free cash flow can constrain dividends, R&D, or capex, and may force external funding if adverse trends persist.

Exposure to procedure volumes and reimbursement cycles

Revenue sensitivity to hospital procedure volumes, procurement timing, and reimbursement policy creates structural exposure to policy shifts and secular declines in procedure mix. Limited pricing power in institutional procurement can compress margins and make revenues cyclical during policy or volume headwinds.

Create Medic Co., Ltd. Business Overview & Revenue Model

Company Description

Create Medic Co., Ltd. researches, develops, manufactures, and sells medical appliances in Japan and internationally. The company offers disposable medical devices made of silicone resin. It provides various urology, gastroenterology, percutaneous endoscopic gastrostomy, and surgery products. The company also provides other products, such as CLINY tracheostomy tubes, endotracheal tubes, tracheostomy tubes, and microcatheters. In addition, it offers OEM products comprising multi-lumen tubes, ultrathin walls, profile extrusions, and special structures; special shape and high-volume low-pressure cuff moldings; and hydrophilic coating and needles, as well as the technology on an OEM basis. The company was formerly known as NASK Co., Ltd. and changed its name to Create Medic Co., Ltd. in July 1977. Create Medic Co., Ltd. was incorporated in 1974 and is headquartered in Yokohama, Japan.

How the Company Makes Money

Create Medic Co., Ltd. generates revenue primarily through the sale of its medical devices and healthcare solutions. The company operates a multi-faceted revenue model that includes direct sales to healthcare providers, partnerships with distributors, and collaborations with research institutions for product development. Key revenue streams consist of one-time sales of medical equipment, recurring revenue from service contracts and maintenance, and royalties from patented technologies. Additionally, strategic partnerships with hospitals and healthcare organizations enhance its market reach and drive sales growth.

Create Medic Co., Ltd. Financial Statement Overview

Summary

Steady revenue growth and a conservative, low-leverage balance sheet support stability, but earnings quality is capped by volatile profitability and uneven operating performance. Cash flow is the key weakness, with sharply lower operating and free cash flow in 2025 after a strong 2024, indicating inconsistent cash conversion.

Income Statement

Revenue has grown steadily from 2021–2025 (low-to-mid single digits most years, ~2.4% in 2025). Profitability, however, has been volatile: net income dropped sharply in 2023 and remained below the 2024 level in 2025, indicating uneven cost/expense control and/or non-recurring impacts. Gross profit has expanded with sales, but operating profit has not grown consistently, which caps the quality of earnings despite stable top-line momentum.

Balance Sheet

The balance sheet looks conservative. Debt is low relative to equity (around ~5% in 2021–2024), and equity has grown over time alongside assets, suggesting good financial flexibility. Returns on equity have been positive but inconsistent (notably weak in 2023, stronger in 2024), which points to variability in profitability rather than balance-sheet risk.

Cash Flow

Cash generation is the main weak spot. Operating cash flow and free cash flow were strong in 2024 but dropped sharply in 2025, and free cash flow has been lumpy across the period (including weak years like 2022 and 2023). Overall, cash conversion versus accounting earnings appears inconsistent, which raises execution risk around working capital and/or investment spending.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.29B	13.62B	13.03B	12.59B	12.33B	11.70B
Gross Profit	5.93B	5.99B	5.70B	5.48B	5.37B	5.26B
EBITDA	1.49B	1.58B	1.73B	1.50B	1.47B	1.43B
Net Income	703.04M	713.73M	840.90M	154.02M	482.21M	660.41M
Balance Sheet
Total Assets	18.23B	20.14B	20.05B	19.26B	18.87B	18.08B
Cash, Cash Equivalents and Short-Term Investments	4.71B	5.83B	6.32B	4.39B	4.31B	4.36B
Total Debt	42.96M	749.70M	800.00M	800.00M	800.00M	800.00M
Total Liabilities	2.93B	3.81B	4.30B	4.31B	4.14B	3.86B
Stockholders Equity	15.31B	16.33B	15.75B	14.94B	14.72B	14.22B
Cash Flow
Free Cash Flow	0.00	98.51M	1.77B	246.98M	101.75M	629.58M
Operating Cash Flow	0.00	530.12M	2.25B	698.84M	461.34M	1.25B
Investing Cash Flow	0.00	-573.08M	270.62M	-363.61M	38.01M	-585.01M
Financing Cash Flow	0.00	-600.39M	-877.65M	-362.19M	-355.59M	-442.52M

Create Medic Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1037.00
• 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:5187, the sentiment is Positive. The current price of 1037 is below the 20-day moving average (MA) of 1160.95, below the 50-day MA of 1095.13, and above the 200-day MA of 998.06, indicating a bullish trend. The MACD of 32.01 indicates Negative momentum. The RSI at 67.95 is Neutral, neither overbought nor oversold. The STOCH value of 67.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5187.

Create Medic Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6678	78 Outperform	¥22.76B	17.62	―	3.02%	-4.36%	-14.92%
5187	72 Outperform	¥10.84B	14.50	―	3.52%	4.97%	-10.07%
4549	68 Neutral	¥103.36B	27.01	―	2.31%	4.36%	79.43%
6849	65 Neutral	¥281.88B	22.94	―	1.92%	4.31%	96.31%
7600	58 Neutral	¥18.12B	-17.19	―	3.12%	3.59%	-163.08%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
6523	51 Neutral	¥135.85B	39.27	4.32%	3.73%	0.04%	―

Create Medic Co., Ltd. Corporate Events

Create Medic Lifts Dividend as Profit Mix Shifts on Solid 2025 Sales

Create Medic Co., Ltd., a Tokyo Standard-listed medical device manufacturer focused on hospital-use products, reported steady top-line growth for the year ended December 31, 2025, with net sales rising 4.5% to ¥13.6 billion. Operating profit jumped 45.1% to ¥1.0 billion and ordinary profit climbed 31.7%, although profit attributable to owners of parent fell 15.1%, reflecting factors such as a higher share count impact and other non-operating items, while equity strengthened with an 81.1% capital adequacy ratio.

The company lifted its annual dividend to ¥45 per share for 2025 from ¥39 a year earlier and projects another increase to ¥47 in 2026, signaling continued shareholder returns despite softer bottom-line profit in the latest year. For the fiscal year ending December 31, 2026, Create Medic forecasts modest growth, with net sales expected to rise 2.5% and profit attributable to owners of parent to improve 5.1%, indicating confidence in maintaining earnings momentum and a stable financial base under revised accounting standards.

The most recent analyst rating on (JP:5187) stock is a Buy with a Yen1306.00 price target. To see the full list of analyst forecasts on Create Medic Co., Ltd. stock, see the JP:5187 Stock Forecast page.

Create Medic Lifts Dividend as Profits Rebound on Higher Sales

Create Medic reported a 4.5% rise in net sales to ¥13.62 billion for the year ended December 31, 2025, with operating profit surging 45.1% and ordinary profit up 31.7%, although profit attributable to owners fell 15.1% due partly to a lower share count impact. The company strengthened its financial base with an equity ratio above 80%, increased its annual dividend from ¥39 to ¥45 per share, and issued guidance for modest sales and profit growth in 2026, signaling a continued focus on stable earnings and shareholder returns.

The balance sheet remained solid, with total assets roughly flat at about ¥20.1 billion and net assets rising to ¥16.33 billion, while cash and equivalents declined on higher dividend payments and treasury stock purchases. For fiscal 2026, Create Medic forecasts net sales of ¥13.96 billion and profit attributable to owners of ¥750 million, implying mid-single-digit earnings growth and an expected further dividend increase, underscoring management’s confidence in steady demand and disciplined capital allocation in the medical device sector.

The most recent analyst rating on (JP:5187) stock is a Buy with a Yen1306.00 price target. To see the full list of analyst forecasts on Create Medic Co., Ltd. stock, see the JP:5187 Stock Forecast page.