Creo Co., Ltd. (9698) AI Stock Analysis

• Market Cap: ¥9.58B
• Dividend Yield: 4.34%
• Average Volume (3M): 5.80K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.51
• Revenue Growth: 2.08%
• EPS Growth: 25.43%
• Country: JP
• Employees: 1,212
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 31.14
• Shares Outstanding: 8,585,688
• 10 Day Avg. Volume: 8,060
• 30 Day Avg. Volume: 5,796
• PEG Ratio: -10.01
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 9.17
• 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: ―

Creo Co., Ltd. presents a strong financial position with no debt and substantial cash reserves, which are key strengths. The stock's valuation is appealing, supported by a reasonable P/E ratio and a high dividend yield. However, concerns over zero cash flows in the recent period and slightly declining profitability margins affect the overall score. Technical indicators suggest a neutral to slightly negative trend, warranting cautious optimism.

Creo Co., Ltd. Business Overview & Revenue Model

Company Description

Creo Co.,Ltd. develops information processing systems and provides related services in Japan. The company offers CREO integration-platform for DX; gym cloud; success mark; CREO-RPA; CREO-OCE; BIZ PLATFORM; SmartStage; QuickBinder; cloud business solution; 2Media; and N-CLOUD solutions. It also provides ZeeM on Azure; ZeeM HR payroll/TimePro-VG; ZeeM personnel salary school corporation edition, ZeeM labor and social insurance outsourcing service; ZeeM accounting; and ZeeM fixed asset management services. In addition, it offers construction of core business system and commissioned development for local governments; and Veva personnel evaluation system and Yahoo! Safety confirmation services. The company was formerly known as Tokai Create CO., LTD. and changed its name to Creo Co.,Ltd. in April 1989. The company was incorporated in 1974 and is based in Tokyo, Japan.

How the Company Makes Money

Creo Co., Ltd. generates revenue through several key streams. The primary source of income comes from its software development services, where the company designs and implements custom software solutions for clients. Additionally, Creo Co., Ltd. earns money through system integration services, helping businesses integrate various IT systems to improve performance and connectivity. IT consulting is another significant revenue stream, providing expert advice and strategies to clients seeking to optimize their technology infrastructure. The company may also engage in strategic partnerships or collaborations that enhance its service offerings and expand its market reach, contributing to its overall earnings.

Creo Co., Ltd. Financial Statement Overview

Summary

Creo Co., Ltd. demonstrates financial robustness with a strong balance sheet, characterized by no debt and significant cash reserves. Although revenue is stable, profitability margins are slightly declining. The cash flow statement is concerning, with zero cash flows reported in the TTM period, indicating potential cash management issues.

Income Statement

Creo Co., Ltd. shows stable revenue with a slight decline in TTM compared to the previous annual data. The gross profit margin is healthy, indicating efficient cost management. However, the net profit margin has decreased, suggesting increased expenses or reduced income efficiency. The EBIT and EBITDA margins are consistent but show a slight decline in the TTM period.

Balance Sheet

The company exhibits strong financial stability with no debt and significant cash reserves. The equity ratio is robust, indicating a strong reliance on equity financing. The return on equity has slightly decreased in the TTM period, reflecting lower profitability. Overall, the balance sheet is very strong with low risk.

Cash Flow

The cash flow statement reveals a concerning trend with zero operating, investing, and financing cash flows in the TTM period, which could indicate potential operational challenges or timing issues in cash management. Historically, the company has shown positive free cash flow, but recent figures suggest a need for improved cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.58B	14.52B	14.35B	14.69B	14.78B	14.74B
Gross Profit	3.63B	3.56B	3.39B	3.25B	3.41B	3.51B
EBITDA	1.38B	1.32B	1.27B	1.10B	1.27B	1.29B
Net Income	743.00M	696.00M	717.00M	487.00M	657.00M	776.00M
Balance Sheet
Total Assets	9.56B	9.99B	10.06B	9.75B	9.78B	9.34B
Cash, Cash Equivalents and Short-Term Investments	5.79B	5.62B	5.58B	3.91B	4.32B	3.93B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	2.58B	2.66B	2.76B	2.85B	2.78B	2.70B
Stockholders Equity	6.98B	7.33B	7.30B	6.90B	7.00B	6.64B
Cash Flow
Free Cash Flow	0.00	952.00M	2.00B	235.00M	749.00M	118.00M
Operating Cash Flow	0.00	972.00M	2.17B	515.00M	1.11B	494.00M
Investing Cash Flow	0.00	-278.00M	-172.00M	-350.00M	-389.00M	-399.00M
Financing Cash Flow	0.00	-656.00M	-329.00M	-571.00M	-330.00M	-296.00M

Creo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1171.00
• 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:9698, the sentiment is Positive. The current price of 1171 is below the 20-day moving average (MA) of 1175.00, below the 50-day MA of 1175.24, and above the 200-day MA of 1120.31, indicating a bullish trend. The MACD of 2.60 indicates Negative momentum. The RSI at 52.58 is Neutral, neither overbought nor oversold. The STOCH value of 34.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9698.

Creo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9691	75 Outperform	¥15.24B	7.77	―	0.98%	33.30%	163.81%
3969	75 Outperform	¥10.52B	15.10	―	2.13%	3.30%	-6.27%
4193	73 Outperform	¥11.19B	31.09	―	2.77%	13.71%	-48.11%
9692	73 Outperform	¥72.16B	16.38	―	2.77%	9.65%	2.79%
9698	72 Outperform	¥9.58B	11.69	―	4.34%	2.08%	25.43%
4829	66 Neutral	¥4.20B	173.48	―	2.70%	-4.90%	-85.89%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%