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

• Market Cap: ¥1.45B
• Dividend Yield: 0.62%
• Average Volume (3M): 25.51K
• Price to Earnings (P/E): 59.2
• Beta (1Y): 0.91
• 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: ¥659.00 ▼(-41.32% 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

A sustained 16.37% year-over-year revenue increase indicates expanding client demand and market penetration in the advertising segment. Durable top-line growth supports scale economies, funds reinvestment, and provides a structural base for improving operating leverage over the next several quarters.

Gross Margin Strength

A gross margin above 30% signals persistent cost discipline and pricing power in core services. This margin buffer helps absorb SG&A variability and competitive pricing pressure, supporting longer-term operating profitability and resilience through industry cycles.

Cash Generation & ROE

FCF to net income >1 and ROE near 15% show the business converts earnings into cash and deploys equity effectively. Strong cash conversion enables debt servicing, capex or buybacks and underpins sustained investments in growth initiatives and balance sheet repair over months.

Negative Factors

High Leverage

A D/E ~1.2 and low equity ratio indicate material reliance on debt financing. Persistently elevated leverage reduces financial flexibility, raises interest burden sensitivity to rate moves, and constrains strategic choices like M&A or aggressive investment if cash flows weaken.

Thin Net Margins

Net margins near 2.5% leave limited cushion for unexpected cost increases or client churn. Even with healthy gross margins, compressed net profitability restricts retained earnings for reinvestment and heightens the impact of nonoperating items on sustained EPS growth.

Declining Cash Flow Growth

Negative FCF growth and a decline in operating cash flow, despite good FCF-to-income conversion, could limit ability to reduce leverage or fund expansion without external financing. If the trend continues, it pressures liquidity and long-term capital allocation flexibility.

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 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: Neutral

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 866.60, above the 50-day MA of 1073.66, and below the 200-day MA of 1396.43, indicating a bearish trend. The MACD of -153.78 indicates Positive momentum. The RSI at 16.12 is Positive, neither overbought nor oversold. The STOCH value of 26.21 is Neutral, 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	¥28.61B	3.66	―	5.35%	58.08%	29.89%
7095	66 Neutral	¥19.58B	8.10	―	2.01%	15.43%	12.47%
9238	64 Neutral	¥1.45B	59.25	―	0.62%	6.23%	145.96%
2389	63 Neutral	¥32.11B	19.84	―	2.14%	-22.10%	-16.33%
2491	57 Neutral	¥13.70B	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	¥4.21B	-15.53	―	―	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.