Create SD Holdings Co Ltd

Create SD Holdings maintains a strong liquidity position with JPY 37.75 billion in cash and equivalents, representing 16% of total assets. The company has no long-term debt, resulting in a debt-to-equity ratio of 0.0, and a current ratio of 1.32, indicating sufficient short-term liquidity to cover obligations. Free cash flow was negative at JPY 866 million, driven by capital expenditures of JPY 17.65 billion, suggesting ongoing investment in operations.

Profitability metrics show a return on equity (ROE) of 10.99% and a return on assets (ROA) of 6.63%, both above the industry median for drug retailers. Operating income of JPY 21.2 billion and net income of JPY 15.69 billion reflect strong operational performance, with a gross profit margin of 26.1%.

The company operates as a single-segment entity, with all revenue generated in Japan. This geographic concentration exposes the business to domestic economic and regulatory risks, including potential changes in healthcare policy or consumer spending patterns.

Revenue growth has been stable, with a trailing twelve-month revenue of JPY 457.09 billion. Analysts reported a last actual EPS of 242.82 JPY, and revenue of JPY 457.09 billion, indicating consistent performance. The company is expected to maintain this trajectory, with no immediate signs of revenue contraction.

Risk assessment indicates low liquidity and dilution risk, with no filing-based flags detected. The absence of long-term debt and strong cash reserves reduce financial leverage risk. However, the negative free cash flow and high capital expenditures suggest potential pressure on liquidity if investment returns do not materialize.

Recent financial filings and transcripts show no material changes in business strategy or risk exposure. The company continues to focus on expanding its retail footprint and enhancing customer services, with no significant new risks disclosed in recent reports.