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create restaurants holdings inc. (3387) AI Stock Analysis

1 Followers
JP:3387

create restaurants holdings inc.

(TSE/TYO:3387)

Select Model
Rating:57Neutral
Price Target:JPY 861.00â–²(3.49% Upside)
Action:reiterated
Date:10/15/26

The overall score of 57 reflects a company with strong top-line momentum and positive technical trends, but significant fundamental risks. The primary concern is the combination of deteriorating profitability and cash flow, which is only partially offset by balance sheet improvement. The extremely high P/E ratio adds valuation risk, making the stock vulnerable if growth expectations are not met.

Positive Factors
Revenue GrowthStrong TTM revenue growth, alongside annual expansion, indicates that the multi-brand restaurant portfolio is continuing to grow sales. Sustained top-line progress can support store development, improve operating scale, and provide a durable base for future earnings improvement.
Negative Factors
Thin and Compressing MarginsNet profitability remains thin at roughly 3%, while lower gross margin and softer TTM net income indicate compression. A low margin base leaves less room to absorb cost increases or weaker demand, making durable earnings growth dependent on effective cost control.

create restaurants holdings inc. (3387) vs. iShares MSCI Japan ETF (EWJ)

-10%-5%0%5%10%15%20%25%JP:3387+11.32%EWJ+13.61%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 379.81B
Dividend Yield
0.57%
Average Volume (3M)
1.48M
Price to Earnings (P/E)
84.5
Beta (1Y)
0.12
Revenue Growth
3.22%
EPS Growth
-25.86%
Country
Japan
Employees
4,468
Sector
General
Sector Strength
55
Industry
Restaurants

create restaurants holdings inc. Business Overview & Revenue Model

Company Description

create restaurants holdings inc. plans, develops, and manages food courts, izakaya bars, dinner-time restaurants, and bakeries in Japan. It operates a range of restaurants, including Japanese, Western, Chinese, and ethnic cuisines primarily under the...

How the Company Makes Money

Create Restaurants Holdings Inc. makes money primarily through revenue generated by its restaurant operations and related brand/business management activities. Key revenue streams typically include: (1) sales from food and beverage served at company-...

create restaurants holdings inc. Financial Statement Overview

Summary

Financial performance is mixed. Strong revenue growth (85.3% TTM) is offset by declining gross margins (65.5% TTM), thin net margins (2.9%), and a sharp deterioration in free cash flow (-602.8% TTM growth). The balance sheet shows improving leverage (debt-to-equity from 3.23 to 1.46) but ROE has declined to 9.2%. Cash conversion is weak, with operating cash flow at only 0.67x net income.

Income Statement

58Neutral

Balance Sheet

62Positive

Cash Flow

45Neutral
Financial statement breakdown
BreakdownTTMFeb 2025Feb 2024Feb 2023Feb 2022Feb 2021
Income Statement
Total Revenue168.34B165.45B156.35B145.76B118.24B74.42B
Gross Profit105.95B100.33B111.35B103.83B85.01B53.19B
EBITDA24.24B25.12B24.04B22.81B20.45B3.15B
Net Income4.18B4.68B5.59B5.04B3.38B-13.87B
Balance Sheet
Total Assets146.32B139.67B137.17B130.82B133.56B161.97B
Cash, Cash Equivalents and Short-Term Investments17.43B17.50B21.47B21.30B23.89B37.31B
Total Debt68.07B65.04B67.70B67.77B75.53B119.03B
Total Liabilities96.23B91.78B93.18B91.44B99.11B138.70B
Stockholders Equity50.08B43.77B40.17B35.97B29.61B19.41B
Cash Flow
Free Cash Flow19.27B18.31B22.58B20.02B22.86B-2.88B
Operating Cash Flow23.86B23.00B25.99B23.29B24.59B409.00M
Investing Cash Flow-9.80B-5.82B-9.20B-3.62B-2.43B-3.85B
Financing Cash Flow-17.45B-21.34B-16.66B-22.48B-20.01B22.84B

create restaurants holdings inc. Technical Analysis

Technical Analysis SentimentPositive
Last Price832.00

Price Trends

50DMA782.64Positive
100DMA767.96Positive
200DMA751.09Positive

Market Momentum

MACD15.26Negative
RSI58.25Neutral
STOCH77.01Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3387, the sentiment is Positive. The current price of 832.00 is above the 20-day moving average (MA) of 799.15, above the 50-day MA of 782.64, and above the 200-day MA of 751.09, indicating a bullish trend. The MACD of 15.26 indicates Negative momentum. The RSI at 58.25 is Neutral, neither overbought nor oversold. The STOCH value of 77.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3387.

create restaurants holdings inc. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:3387 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7550JP:755070OutperformJPY 2.01T39.0316.56%0.64%12.44%51.49%
JP:7581JP:758170OutperformJPY 419.71B38.128.59%0.41%17.44%-1.16%
JP:9861JP:986169NeutralJPY 303.36B51.86―0.49%9.53%37.85%
JP:3197JP:319764NeutralJPY 835.62B42.0210.08%0.68%9.51%10.42%
JP:9936JP:993663NeutralJPY 175.32B26.59―1.90%-0.10%-24.16%
JP:3387JP:338757NeutralJPY 374.12B84.47―0.57%3.22%-25.86%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%20%40%60%JP:3387JP:3197JP:7581JP:7550JP:9861JP:9936Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:3387 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:3387create restaurants holdings inc.832.0071.719.43%
JP:3197Skylark Holdings Co 3519.00318.409.95%
JP:7581Saizeriya Co 8570.003096.6656.58%
JP:7550Zensho Holdings Co 12555.003656.3441.09%
JP:9861Yoshinoya Holdings Co., Ltd.4678.001663.3955.18%
JP:9936Ohsho Food Service Corp.2953.00-153.94-4.95%

create restaurants holdings inc. Corporate Events

Create Restaurants Holdings Details FY 2027 Q2 Results and Strategic Outlook

Oct 14, 2026

Create Restaurants Holdings has released supplementary materials on its financial results for the second quarter of FY 2027 under IFRS, outlining performance by business category, including core restaurant operations, specialty brands, izakaya format...

Create Restaurants Holdings Sees Profit Decline in First Half but Targets Recovery for Full Year

Oct 14, 2026

Create Restaurants Holdings reported consolidated revenue of 86.091 billion yen for the six months to August 2026, up 3.5% year on year, but operating profit fell 16.6% and profit attributable to owners of parent declined 15.6%, reflecting margin pre...

Create Restaurants Holdings Sets Interim Dividend at 2.50 Yen Per Share

Oct 14, 2026

Create Restaurants Holdings Inc. has approved an interim dividend from surplus with a record date of August 31, 2026, setting the payout at 2.50 yen per share and total dividends at approximately 1.136 billion yen. The effective payment date is Novem...

Create Restaurants Books Extraordinary Merger Gain With No Consolidated Impact

Oct 14, 2026

Create Restaurants Holdings Inc. has completed the absorption-type merger of its consolidated subsidiary SFP Holdings Co., Ltd., effective July 1, 2026, as part of a broader corporate integration strategy. In the second quarter of the fiscal year end...

Create Restaurants to Divest Loss-Making Hong Kong Subsidiary

Oct 14, 2026

Create Restaurants Holdings Inc. has decided to transfer all shares of its wholly owned Hong Kong subsidiary, create restaurants hong kong Ltd., to franchise partner eDigital Media Limited. The move follows several years of deteriorating performance...

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 15, 2026