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

• Market Cap: ¥10.24B
• Dividend Yield: 3.52%
• Average Volume (3M): 7.98K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.25
• Revenue Growth: 4.97%
• EPS Growth: -10.07%
• Country: JP
• Employees: 1,002
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 30.10
• Shares Outstanding: 9,664,327
• 10 Day Avg. Volume: 3,800
• 30 Day Avg. Volume: 7,980
• PEG Ratio: 0.02
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 4.54
• 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: 78 Outperform
• Price Target: ¥1,284.00 ▲(23.82% Upside)

Create Medic Co., Ltd. scores well due to its strong financial performance, characterized by robust revenue growth, improved profitability, and a solid balance sheet. The valuation is attractive with a low P/E ratio and a high dividend yield. Technical analysis shows mixed signals, with long-term trends remaining positive despite short-term weakness.

Positive Factors

Strong balance sheet and low leverage

Very low financial leverage and a high equity base provide durable financial flexibility to fund R&D, absorb reimbursement or demand shocks, pursue opportunistic M&A, and maintain dividends without heavy reliance on external debt, supporting long-term resilience.

Robust cash generation and positive free cash flow

Strong operating cash flow and positive free cash flow with high cash-to-income conversion reduce financing risk and enable sustainable reinvestment in product development, capex, and shareholder distributions, underpinning durable funding of growth initiatives.

Steady revenue growth with improving margins

Concurrent revenue expansion and margin improvement signal underlying demand, pricing power, and operational efficiency. Sustained gross and net margin levels support consistent profitability and cash generation through typical healthcare cycles.

Negative Factors

Negative EPS growth

Reported EPS growth is negative despite top-line and margin gains. Persistent EPS declines can reflect dilution, one-offs, or uneven per-share profitability, which weakens shareholder returns and complicates long-term earnings-per-share visibility and forecasting.

Revenue sensitivity to hospital procedure cycles

Sales closely tied to hospital procedure volumes and reimbursement policy create structural demand sensitivity. Long-term revenue can be materially affected by budget constraints, policy changes, or shifts in clinical practice, raising cyclicality and regulatory exposure.

Limited disclosure on product mix and partnerships

Lack of detailed product-level revenues and named partnerships reduces visibility into concentration risks and growth drivers. This makes it harder to assess diversification, market expansion potential, and resilience to product-specific or channel-specific 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

Create Medic Co., Ltd. exhibits a robust financial profile with commendable revenue growth, improved profitability, and a strong balance sheet with low leverage. The cash flow statements further reinforce the company's solid financial health, demonstrating efficient cash management and operational strength.

Income Statement

Create Medic Co., Ltd. demonstrates strong revenue growth from ¥12.6 billion in 2023 to ¥13.03 billion in 2024, indicating a healthy expansion trajectory. The gross profit margin remains robust at around 43.8%, complemented by a solid net profit margin improvement to 6.4% from 1.2% the prior year. The company also shows consistent EBIT and EBITDA margins, reflecting operational efficiency.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.05, suggesting low financial leverage. The equity ratio is high at 78.6%, indicating a solid equity base. Return on equity improved to 5.3% from 1.0%, showcasing enhanced shareholder value creation.

Cash Flow

Operating cash flow grew significantly, indicating improved cash-generating capabilities, while free cash flow remains positive at ¥1.86 billion. The operating cash flow to net income ratio of 2.68 highlights strong cash flow relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.29B	13.03B	12.59B	12.33B	11.70B	10.83B
Gross Profit	5.93B	5.70B	5.48B	5.37B	5.26B	5.08B
EBITDA	1.49B	1.73B	1.50B	1.47B	1.43B	1.40B
Net Income	703.04M	840.90M	154.02M	482.21M	660.41M	659.52M
Balance Sheet
Total Assets	18.23B	20.05B	19.26B	18.87B	18.08B	17.10B
Cash, Cash Equivalents and Short-Term Investments	4.71B	6.32B	4.39B	4.31B	4.36B	3.97B
Total Debt	42.96M	800.00M	800.00M	800.00M	800.00M	892.40M
Total Liabilities	2.93B	4.30B	4.31B	4.14B	3.86B	3.87B
Stockholders Equity	15.31B	15.75B	14.94B	14.72B	14.22B	13.23B
Cash Flow
Free Cash Flow	0.00	1.77B	246.98M	101.75M	629.58M	839.00M
Operating Cash Flow	0.00	2.25B	698.84M	461.34M	1.25B	1.25B
Investing Cash Flow	0.00	270.62M	-363.61M	38.01M	-585.01M	-704.31M
Financing Cash Flow	0.00	-877.65M	-362.19M	-355.59M	-442.52M	-845.03M

Create Medic Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1037.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 1062.50, above the 50-day MA of 1033.24, and above the 200-day MA of 972.84, indicating a bullish trend. The MACD of 23.22 indicates Negative momentum. The RSI at 85.64 is Negative, neither overbought nor oversold. The STOCH value of 97.01 is Negative, 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
5187	78 Outperform	¥10.24B	12.56	―	3.52%	4.97%	-10.07%
6678	78 Outperform	¥18.97B	15.65	―	3.02%	-4.36%	-14.92%
7963	74 Outperform	¥9.35B	12.09	―	1.89%	9.47%	37.35%
7792	71 Outperform	¥13.78B	10.35	―	2.90%	16.37%	29.02%
7600	58 Neutral	¥12.80B	-12.14	―	3.12%	3.59%	-163.08%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
7777	48 Neutral	¥52.85B	-471.45	1.45%	―	40.50%	91.59%