Create SD Holdings Co., Ltd. (3148) AI Stock Analysis

Create SD Holdings Co., Ltd.

(TSE/TYO:3148)

Select Model

Rating:71.9Outperform

Price Target:JPY 3,478.00▲(9.72% Upside)

Action:reiterated

Date:10/14/26

The overall score is driven by a strong financial foundation and attractive valuation, offset by very weak technical momentum. The company's pristine balance sheet and low P/E ratio with a high dividend yield are the most significant positive factors. However, the stock is in a clear technical downtrend, trading below all major moving averages with deeply negative momentum indicators, which presents a significant headwind. The slowing revenue growth and margin pressure from the income statement add a note of caution to an otherwise financially healthy profile.

Positive Factors

Multi-year revenue growthThe sustained increase in revenue indicates that the drugstore and healthcare-retail model continues to expand its sales base. A larger revenue platform can support broader customer reach, recurring pharmacy activity, and continued investment across the operating group over the next several quarters.

Negative Factors

Gross margin compressionThe multi-year decline in gross margin signals pressure on the profitability of each yen of sales. If this trend persists, the company may need stronger sales productivity or cost discipline simply to preserve earnings, limiting the benefit that future revenue growth delivers to operating results.

Create SD Holdings Co., Ltd. (3148) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 204.79B
Dividend Yield: 2.93%
Average Volume (3M): 94.94K
Price to Earnings (P/E): 12.2
Beta (1Y): 0.13
Revenue Growth: 8.67%
EPS Growth: 3.24%
Country: Japan
Employees: 5,475
Sector: Healthcare
Sector Strength: 51
Industry: Medical - Pharmaceuticals

Create SD Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Create SD Holdings Co., Ltd., along with its various subsidiaries, conducts business in Japan across the drugstore, pharmacy, and nursing care sectors. Its retail operations provide a broad array of products, including pharmaceuticals, cosmetics, foo...

How the Company Makes Money

The company makes money primarily through retail sales generated at its drugstore operations. Its core revenue stream is the sale of pharmaceuticals, including (1) prescription drugs dispensed at in-store pharmacies (where revenue is driven by prescr...

Create SD Holdings Co., Ltd. Financial Statement Overview

Summary

The company exhibits a very strong balance sheet (95) with negligible debt and robust equity, paired with healthy cash flows (75) that consistently exceed net income. However, the income statement (65) shows margin compression and slowing revenue growth, tempering the overall financial picture. The weighted financial health is solid, but profitability trends require monitoring.

Income Statement

65Positive

Balance Sheet

95Very Positive

Cash Flow

75Positive

Financial statement breakdown
Breakdown	TTM	May 2025	May 2024	May 2023	May 2022	May 2021
Income Statement
Total Revenue	497.13B	497.13B	457.09B	422.33B	380.96B	350.74B
Gross Profit	123.74B	120.87B	119.22B	110.19B	102.99B	95.58B
EBITDA	31.46B	30.53B	27.66B	24.35B	23.01B	22.02B
Net Income	16.99B	16.99B	15.69B	13.69B	12.93B	12.60B
Balance Sheet
Total Assets	255.35B	255.35B	236.56B	216.48B	194.94B	176.91B
Cash, Cash Equivalents and Short-Term Investments	37.10B	37.10B	37.75B	38.21B	37.53B	42.07B
Total Debt	1.36B	1.36B	0	1.00M	6.00M	25.00M
Total Liabilities	101.03B	101.03B	93.84B	86.24B	78.53B	70.58B
Stockholders Equity	154.32B	154.32B	142.72B	130.24B	116.41B	106.32B
Cash Flow
Free Cash Flow	9.22B	9.22B	6.10B	5.26B	3.03B	8.63B
Operating Cash Flow	25.43B	25.43B	23.63B	21.03B	18.98B	16.10B
Investing Cash Flow	-20.41B	-20.41B	-20.70B	-20.21B	-20.49B	-10.81B
Financing Cash Flow	-5.68B	-5.68B	-3.39B	-140.00M	-3.03B	-2.91B

Create SD Holdings Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price3170.00

Price Trends

50DMA3285.20Negative

100DMA3293.35Negative

200DMA3264.91Negative

Market Momentum

MACD-25.26Negative

RSI44.56Neutral

STOCH15.79Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3148, the sentiment is Negative. The current price of 3170.00 is below the 20-day moving average (MA) of 3170.75, below the 50-day MA of 3285.20, and below the 200-day MA of 3264.91, indicating a bearish trend. The MACD of -25.26 indicates Negative momentum. The RSI at 44.56 is Neutral, neither overbought nor oversold. The STOCH value of 15.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3148.

Create SD Holdings Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

JP:3148 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3148	72Outperform	JPY 200.40B	12.20	―	2.93%	8.67%	3.24%
JP:7649	69Neutral	JPY 506.97B	16.12	9.94%	1.34%	8.97%	-29.54%
JP:9989	69Neutral	JPY 422.80B	13.44	11.15%	3.65%	4.32%	0.18%
JP:3349	60Neutral	JPY 480.15B	14.88	―	1.36%	8.99%	3.61%
JP:3549	56Neutral	JPY 418.12B	21.94	―	0.34%	12.54%	15.87%
JP:3391	54Neutral	JPY 1.01T	17.51	7.13%	2.10%	―	―
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

* Healthcare Sector Average

Performance Comparison

JP:3148 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3148	Create SD Holdings Co., Ltd.	3170.00	61.90	1.99%
JP:9989	Sundrug Co	3616.00	-399.89	-9.96%
JP:7649	Sugi Holdings Co	1304.50	-340.92	-20.72%
JP:3391	TSURUHA Holdings	2236.00	-391.62	-14.90%
JP:3349	COSMOS Pharmaceutical Corporation	6032.00	-789.24	-11.57%
JP:3549	KUSURI NO AOKI HOLDINGS CO.,LTD.	4373.00	523.54	13.60%

Create SD Holdings Co., Ltd. Corporate Events

Create SD Holdings posts higher sales but lower Q1 profit, keeps outlook and dividend forecast

Oct 5, 2026

Create SD Holdings reported consolidated net sales of ¥129.54 billion for the three months ended August 31, 2026, up 6.5% year on year, while operating profit slipped 4.1% to ¥5.40 billion and profit attributable to owners of parent fell 5....

Create SD Holdings Details Controlling Shareholder Structure and Minority Protection Measures

Aug 24, 2026

Create SD Holdings Co., Ltd., listed on the Prime Market of the Tokyo Stock Exchange, is majority-controlled by Yohei Yamamoto and Director and Chairman Hisao Yamamoto through a combined 55.18 percent of voting rights. This ownership structure places...

Create SD Holdings Sets Director Slate and Post-Meeting Governance Structure

Jul 21, 2026

Create SD Holdings Co., Ltd. announced that its Board of Directors has approved the re-election of Representative Director and Chairman Hisao Yamamoto, Representative Director and President Taizo Hirose, and Director Yukihiko Takiya as director candi...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 14, 2026

Create SD Holdings Co., Ltd. AI Stock Analysis