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

• Market Cap: ¥1.36B
• Dividend Yield: 0.62%
• Average Volume (3M): 25.51K
• Price to Earnings (P/E): 59.2
• Beta (1Y): 0.89
• 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: -1.08
• Price to Book (P/B): 3.91
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 16.72
• 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: ¥642.00 ▼(-42.83% 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 indicates durable demand for the company’s advertising services, enabling scale benefits and reinvestment. Over a 2–6 month horizon, continued revenue expansion supports strategic initiatives, margin recovery, and stronger bargaining power with clients.

Gross & EBITDA Margins

A robust gross margin (32.03%) and positive EBITDA margin show the business retains pricing power and manages direct costs effectively. These operating margins provide a structural buffer for profitability, making the model more resilient to demand cyclicality and enabling sustainable operating cash flow.

Strong Cash Generation

Free cash flow generation materially exceeding net income (FCF/NI 1.57) and positive operating cash flow imply strong internal funding capacity. Persistent cash generation supports debt servicing, capex, and strategic investments, enhancing financial flexibility over the medium term.

Negative Factors

High Leverage

Elevated leverage and a low equity ratio indicate reliance on debt financing, increasing interest and refinancing risk. In an advertising business that can be cyclical, this structural capital mix reduces resilience to revenue dips and limits flexibility for long-term investments or opportunistic M&A.

Thin Net Margin

A low and declining net margin (2.52%) means limited conversion of revenue into retained profit after non-operating items. That structural thinness reduces the company’s ability to absorb cost shocks, fund growth internally, or build reserves, raising sensitivity to expense or tax fluctuations.

Weak FCF Growth Trend

Although absolute FCF levels are healthy, a negative FCF growth rate and declining operating cash flow signal a deteriorating cash trend. If this persists, it could constrain debt reduction and reinvestment, undermining balance sheet repair efforts and long‑term financial stability.

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.

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	637.74M	1.08B	988.17M	884.00M	630.97M
EBITDA	132.51M	140.42M	183.74M	117.59M	21.19M
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	1.07B	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	323.20M	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: Negative
• 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 733.45, above the 50-day MA of 1029.02, and below the 200-day MA of 1383.66, indicating a bearish trend. The MACD of -134.71 indicates Negative momentum. The RSI at 18.27 is Positive, neither overbought nor oversold. The STOCH value of 17.20 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
7067	69 Neutral	¥1.58B	62.94	―	1.00%	5.79%	-30.56%
9238	64 Neutral	¥1.36B	59.25	―	0.62%	6.23%	145.96%
2122	59 Neutral	¥8.87B	12.89	―	2.61%	11.84%	246.10%
2491	57 Neutral	¥13.54B	29.59	―	7.85%	-3.20%	34.08%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
4170	55 Neutral	¥2.64B	98.58	―	―	-3.17%	-535.65%
9235	43 Neutral	¥3.91B	-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.