Create Corp

Create Corp's capital structure is characterized by a debt-to-equity ratio of 0.31, indicating a relatively conservative leverage position. The company's liquidity is assessed as medium, with a current ratio of 1.3, suggesting it has sufficient short-term assets to cover its short-term liabilities, but with limited excess. However, the company's net cash position is negative after subtracting total debt, which could pose a liquidity risk if not managed effectively.

In terms of profitability, Create Corp reported a net loss of 106,510,000 JPY and an operating loss of 75,451,000 JPY in the latest period. The return on equity (ROE) was -2.17%, and the return on assets (ROA) was -0.63%, both significantly below the industry median for the Construction Supplies & Fixtures sector. These metrics indicate that the company is currently unprofitable and underperforming relative to its peers.

Create Corp's revenue is concentrated in the construction supplies and fixtures segment, with no disclosed geographic diversification in the provided data. The lack of segment and geographic detail limits the ability to assess exposure to specific markets or product lines, but the company's performance is likely tied to the broader construction industry's health.

The company's growth trajectory is uncertain, as the latest financial data shows a decline in profitability. The operating cash flow was positive at 4,331,000 JPY, but the capital expenditure of -71,214,000 JPY suggests ongoing investment in infrastructure or equipment. The capital expenditure is a significant outflow, which may impact the company's ability to generate positive cash flow in the near term.

The risk assessment for Create Corp highlights liquidity as a medium concern, with a current ratio of 1.3 and a negative net cash position after debt. The dilution risk is assessed as low, with no significant changes in shares outstanding between basic and diluted shares. The company's financial performance and liquidity position suggest that it may need to manage its debt and cash flow carefully to avoid further financial distress.

Recent events, as reflected in the financial data, include a net loss and a negative return on equity, which may have been influenced by industry-specific challenges or internal operational issues. The company's performance in the latest period does not provide clear evidence of recent strategic changes or external events that have significantly impacted its financial position.

Net income surged 239.4% year-over-year to JPY 486.5 million in fiscal 2025, demonstrating strong profitability recovery.

Operating income jumped 120.3% to JPY 758.8 million in fiscal 2025, indicating significant improvement in core operational efficiency.

Free cash flow increased 466.6% to JPY 400.7 million in fiscal 2025, highlighting robust cash generation capabilities.

Long-term debt decreased to JPY 1.12 billion in fiscal 2025, reflecting a deleveraging trend and improved balance sheet health.

Revenue grew at a 5.4% compound annual growth rate over four years, showing consistent top-line expansion.

The company faces high credit risk, posing a significant threat to financial stability and potential future losses.

Operating margin sits at -0.88%, placing the company in the bottom quartile of its construction supplies cohort.

Net margin is negative at -1.24%, falling below the cohort median of 3.0% and signaling weak profitability relative to peers.

The company carries a medium liquidity risk, which could constrain its ability to meet short-term financial obligations.

Revenue ¥9.99B, +0,8% YoY; Operating income −3,6% YoY.

• ▍Revenue ¥9.99B, +0,8% YoY
• ▍Operating income −3,6% YoY
• ▍Net income −12,6% YoY
• ▍Net margin 2.0%

Revenue ¥9.17B, +2,3% YoY; Operating income +12,5% YoY.

• ▍Revenue ¥9.17B, +2,3% YoY
• ▍Operating income +12,5% YoY
• ▍Net income +13,4% YoY
• ▍Net margin 1.0%

Revenue ¥8.82B, +4,8% YoY; Operating income +77,0% YoY.

• ▍Revenue ¥8.82B, +4,8% YoY
• ▍Operating income +77,0% YoY
• ▍Net income +139,4% YoY
• ▍Net margin 0.8%

Revenue ¥9.25B, +7,4% YoY; Operating income +381,7% YoY.

• ▍Revenue ¥9.25B, +7,4% YoY
• ▍Operating income +381,7% YoY
• ▍Net income +238,2% YoY
• ▍Net margin 1.6%

Revenue ¥9.91B; Operating income ¥327.9M.

• ▍Revenue ¥9.91B
• ▍Operating income ¥327.9M
• ▍Net margin 2.3%

Revenue ¥8.96B; Operating income ¥143.0M.

• ▍Revenue ¥8.96B
• ▍Operating income ¥143.0M
• ▍Net margin 0.9%

Revenue ¥8.42B; Operating income ¥75.4M.

• ▍Revenue ¥8.42B
• ▍Operating income ¥75.4M
• ▍Net margin 0.3%

Revenue ¥8.62B; Operating income -¥75.5M.

• ▍Revenue ¥8.62B
• ▍Operating income -¥75.5M
• ▍Net margin -1.2%

Revenue ¥36.55B, +1,9% YoY; Operating income +120,3% YoY.

• ▍Revenue ¥36.55B, +1,9% YoY
• ▍Operating income +120,3% YoY
• ▍Net income +239,4% YoY
• ▍Free cash flow +466,6% YoY
• ▍Net margin 1.3%

Revenue ¥35.86B, +2,8% YoY; Operating income −50,7% YoY.

• ▍Revenue ¥35.86B, +2,8% YoY
• ▍Operating income −50,7% YoY
• ▍Net income −65,9% YoY
• ▍Free cash flow −82,4% YoY
• ▍Net margin 0.4%

Revenue ¥34.88B, +10,6% YoY; Operating income +160,8% YoY.

• ▍Revenue ¥34.88B, +10,6% YoY
• ▍Operating income +160,8% YoY
• ▍Net income +132,3% YoY
• ▍Free cash flow +65,9% YoY
• ▍Net margin 1.2%

Revenue ¥31.53B, +6,4% YoY; Operating income +253,0% YoY.

• ▍Revenue ¥31.53B, +6,4% YoY
• ▍Operating income +253,0% YoY
• ▍Net income +268,2% YoY
• ▍Free cash flow +460,7% YoY
• ▍Net margin 0.6%