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

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Create SD Holdings Co., Ltd.

(TSE/TYO:3148)

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Rating:68Neutral

Price Target:JPY 3,417.00▲(6.12% Upside)

Action:downgraded

Date:10/14/26

The score is driven primarily by strong financial stability (notably the very conservative balance sheet) and supportive valuation (moderate P/E and ~3% dividend yield). These positives are offset by weak technicals, with the stock trading below key moving averages and negative momentum indicators, which weighs on the near-term outlook.

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 209.96B
Dividend Yield: 2.89%
Average Volume (3M): 96.24K
Price to Earnings (P/E): 12.5
Beta (1Y): 0.10
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

Strong balance-sheet resilience (very low leverage and steadily growing equity) supports a high financial score. Income statement trends show solid multi-year revenue growth with stable, but modest, profitability; however, gross margin has compressed and free cash flow conversion has been volatile and only moderate versus net income, tempering the overall financial strength.

Income Statement

78Positive

Balance Sheet

90Very Positive

Cash Flow

62Positive

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 Price3220.00

Price Trends

50DMA3262.20Negative

100DMA3292.15Negative

200DMA3264.70Negative

Market Momentum

MACD3.52Negative

RSI49.48Neutral

STOCH61.11Neutral

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 3220.00 is above the 20-day moving average (MA) of 3208.50, below the 50-day MA of 3262.20, and below the 200-day MA of 3264.70, indicating a neutral trend. The MACD of 3.52 indicates Negative momentum. The RSI at 49.48 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, 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:3391	81Outperform	JPY 1.13T	19.41	7.13%	1.91%	―	―
JP:7649	69Neutral	JPY 528.15B	16.79	9.94%	1.30%	8.97%	-29.54%
JP:9989	69Neutral	JPY 452.96B	14.37	11.15%	3.43%	4.32%	0.18%
JP:3148	68Neutral	JPY 205.78B	12.45	―	2.89%	8.67%	3.24%
JP:3549	62Neutral	JPY 486.01B	25.22	―	0.29%	12.54%	15.87%
JP:3349	60Neutral	JPY 502.83B	15.48	―	1.31%	8.99%	3.61%
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.	3220.00	63.26	2.00%
JP:9989	Sundrug Co	3848.00	-263.45	-6.41%
JP:7649	Sugi Holdings Co	1345.00	-419.08	-23.76%
JP:3391	TSURUHA Holdings	2455.50	-241.32	-8.95%
JP:3349	COSMOS Pharmaceutical Corporation	6236.00	-1078.62	-14.75%
JP:3549	KUSURI NO AOKI HOLDINGS CO.,LTD.	5084.00	1137.96	28.84%

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 5.2% to ¥3.7...

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