Value Creation Co., Ltd (9238) AI Stock Analysis

• Market Cap: ¥1.53B
• Dividend Yield: 0.62%
• Average Volume (3M): 25.51K
• Price to Earnings (P/E): 59.2
• Beta (1Y): 0.85
• Revenue Growth: 6.23%
• EPS Growth: 145.96%
• Country: JP
• Employees: N/A
• Sector: Services
• Sector Strength: N/A
• Industry: Advertising Agencies
• EPS (TTM): 5.01
• Shares Outstanding: 2,350,680
• 10 Day Avg. Volume: 18,900
• 30 Day Avg. Volume: 25,510
• PEG Ratio: -0.91
• Price to Book (P/B): 4.33
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 18.53
• 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: 64 Neutral
• Price Target: ¥895.00 ▼(-20.30% Downside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is primarily supported by solid financial performance (strong revenue growth and healthy cash generation) and a moderate valuation (P/E 13.00). This is materially offset by very weak technical conditions, with the stock trading far below major moving averages and negative momentum indicators.

Positive Factors

Revenue Growth

Sustained 16.37% top-line growth signals expanding client demand and successful business development. For an advertising agency, multi-year revenue expansion supports scale advantages in pricing, talent retention and cross-selling, making growth a durable driver of future cash flows.

Cash Generation

A 1.57 FCF/Net Income ratio and positive operating cash flow show strong cash conversion, enabling capital allocation to growth, debt service, or buybacks. Robust cash generation provides lasting flexibility versus peers, supporting operational resilience over the medium term.

Gross Margin

A healthy gross margin (32.03%) and positive EBITDA margin demonstrate structural cost control and pricing power in core services. These operational margins create a lasting buffer against revenue cyclicality and underpin the company's ability to invest in client services and talent.

Negative Factors

High Leverage

Elevated leverage and a low equity ratio increase refinancing, interest-rate and covenant risk. Reliance on debt reduces financial flexibility for acquisitions or cyclic downturns, making the company more vulnerable to shocks and constraining durable strategic options.

Thin Net Margins

A low and declining net margin (2.52%) limits the firm's ability to convert revenue into retained profits. This compresses long-term internal funding for growth or deleveraging and makes profitability sensitive to higher operating costs or interest expense.

Declining FCF Growth

Negative FCF growth, despite a strong FCF/NI ratio, suggests deteriorating absolute cash generation trends. Persistent declines would restrict reinvestment, debt reduction and strategic spending, undermining the durability of cash-driven advantages.

Value Creation Co., Ltd Business Overview & Revenue Model

Company Description

Value Creation Co.,Ltd. engages in the marketing DX and digital media businesses. It also operates real estate matching platform for finding housing demolition. The company was incorporated in 2008 and is based in Shibuya, Japan.

How the Company Makes Money

Value Creation Co., Ltd generates revenue through multiple streams, primarily by offering subscription-based software services and consulting fees. The company charges clients for access to its proprietary software platforms, which are designed to improve productivity and data management. Additionally, it earns income from consulting projects where it provides tailored business strategies and operational improvements. Significant partnerships with other technology firms and financial institutions enhance its service offerings and expand its market reach, contributing to a robust revenue model based on both recurring and project-based income.

Value Creation Co., Ltd Financial Statement Overview

Summary

Strong revenue growth (16.37% from 2024 to 2025) and solid gross margin (32.03%) support operating strength, and cash generation is strong (FCF to net income ratio 1.57). Offsetting this are thin and slightly declining net margins (2.52%) and elevated leverage (debt-to-equity 1.19; low equity ratio 13.52%), which increase financial risk.

Income Statement

The company has shown a strong revenue growth rate of 16.37% from 2024 to 2025, with consistent increases over the past years. Gross Profit Margin stands robust at 32.03% for 2025, indicating efficient cost management. However, the Net Profit Margin has slightly decreased to 2.52%, reflecting challenges in controlling non-operational expenses or tax burdens. Despite this, the EBITDA Margin is healthy at 4.68%, showing good operating profitability, albeit a decrease from previous periods.

Balance Sheet

The Debt-to-Equity Ratio is high at 1.19, indicating significant leverage, which poses potential risks if not managed carefully. However, the Return on Equity has improved remarkably to 14.85% in 2025, showcasing efficient use of equity capital. The Equity Ratio of 13.52% suggests a lower proportion of equity financing, indicating reliance on debt which could be risky in volatile markets.

Cash Flow

The company has a strong Free Cash Flow to Net Income Ratio of 1.57, highlighting excellent cash generation relative to net income. Despite a decline in Operating Cash Flow from the previous year, it remains positive at 230.76 million, reflecting stable operational cash generation. The Free Cash Flow Growth Rate is negative, indicating a decrease compared to the previous year, but overall cash flow management remains solid.

Breakdown	TTM	Feb 2025	Feb 2025	Feb 2024	Feb 2022
Income Statement
Total Revenue	1.76B	3.43B	2.95B	2.82B	2.44B
Gross Profit	648.98M	1.10B	999.13M	888.12M	633.75M
EBITDA	130.67M	160.60M	188.45M	134.73M	39.35M
Net Income	117.97M	86.37M	114.36M	86.03M	16.67M
Balance Sheet
Total Assets	4.79B	4.30B	3.63B	3.29B	3.93B
Cash, Cash Equivalents and Short-Term Investments	831.42M	1.14B	1.21B	833.15M	611.97M
Total Debt	685.18M	689.75M	723.00M	817.83M	739.12M
Total Liabilities	4.16B	3.72B	3.12B	3.14B	3.87B
Stockholders Equity	631.65M	581.82M	509.25M	147.29M	61.26M
Cash Flow
Free Cash Flow	0.00	135.94M	295.93M	144.02M	30.12M
Operating Cash Flow	0.00	230.76M	326.63M	152.10M	34.50M
Investing Cash Flow	0.00	-257.08M	-87.47M	-9.63M	1.82M
Financing Cash Flow	0.00	-47.05M	140.01M	78.71M	93.53M

Value Creation Co., Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1123.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9238, the sentiment is Negative. The current price of 1123 is above the 20-day moving average (MA) of 1114.35, below the 50-day MA of 1147.94, and below the 200-day MA of 1422.78, indicating a bearish trend. The MACD of -128.03 indicates Positive momentum. The RSI at 8.66 is Positive, neither overbought nor oversold. The STOCH value of 0.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9238.

Value Creation Co., Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6535	75 Outperform	¥30.06B	194.87	―	5.35%	58.08%	29.89%
7095	66 Neutral	¥20.16B	10.84	―	2.01%	15.43%	12.47%
9238	64 Neutral	¥1.53B	59.25	―	0.62%	6.23%	145.96%
2389	63 Neutral	¥32.09B	19.84	―	2.14%	-22.10%	-16.33%
2491	57 Neutral	¥13.86B	29.59	―	7.85%	-3.20%	34.08%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
9235	43 Neutral	¥4.13B	-130.60	―	―	49.01%	-21.56%

Value Creation Co., Ltd Corporate Events

Value Creation Posts Sharp Profit Rebound and Lifts Dividend Outlook

Value Creation Co., Ltd. reported non-consolidated net sales of ¥2,751 million for the nine months ended 30 November 2025, up 5.4% year-on-year, with operating profit surging 61.4% to ¥104 million and ordinary profit more than tripling to ¥186 million; net profit jumped 265% to ¥121 million, lifting basic earnings per share to ¥52.72 despite a low equity ratio of 11.5%. The company kept its full-year forecast unchanged, projecting double-digit growth in sales and profit for the year ending 28 February 2026, and plans to raise its annual dividend to ¥9 per share, signalling management’s confidence in earnings momentum and offering a higher shareholder return even as leverage remains relatively high.

The most recent analyst rating on (JP:9238) stock is a Hold with a Yen1258.00 price target. To see the full list of analyst forecasts on Value Creation Co., Ltd stock, see the JP:9238 Stock Forecast page.