| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2869.97 | -12 |
| Intrinsic value (DCF) | 2007.34 | -38 |
| Graham-Dodd Method | 2357.10 | -27 |
| Graham Formula | 3878.80 | 20 |
Create SD Holdings Co., Ltd. (3148.T) is a leading Japanese healthcare company specializing in drug stores, dispensing pharmacies, and nursing care services. Headquartered in Yokohama, the company operates a diversified business model that includes retailing pharmaceuticals, cosmetics, food products, and daily necessities, alongside managing nursing homes and functional training centers. Founded in 1998, Create SD Holdings has established itself as a key player in Japan's healthcare sector, leveraging its integrated approach to meet the growing demand for pharmaceutical and elderly care services in an aging society. The company's strategic focus on both retail and care services positions it uniquely in Japan's competitive healthcare market, catering to a broad customer base with essential health and wellness products. With a market capitalization of over ¥202 billion, Create SD Holdings continues to expand its footprint, supported by strong operational cash flow and a solid balance sheet.
Create SD Holdings presents a stable investment opportunity within Japan's healthcare sector, benefiting from the country's aging population and consistent demand for pharmaceuticals and elderly care services. The company's diversified revenue streams—spanning retail, pharmacy, and nursing care—provide resilience against sector-specific downturns. Financially, it maintains a healthy balance sheet with ¥38.2 billion in cash and minimal debt (¥1 million), ensuring liquidity for growth initiatives. However, the company operates in a highly competitive market with thin margins, and its beta of 0.336 suggests lower volatility but also limited upside compared to high-growth peers. The dividend yield, supported by a ¥71 per share payout, adds appeal for income-focused investors. Risks include regulatory changes in Japan's healthcare policies and intensifying competition from larger retail-pharmacy chains.
Create SD Holdings competes in Japan's crowded drugstore and nursing care market, where differentiation is critical. Its competitive advantage lies in its integrated business model, combining retail pharmacies with nursing care services—a synergy that addresses Japan's demographic shift toward an older population. The company's localized store network and focus on community-based care services strengthen its positioning against purely retail-focused rivals. However, it faces stiff competition from larger players like Matsumotokiyoshi Holdings (3088.T) and Welcia Holdings (3141.T), which benefit from greater economies of scale and nationwide brand recognition. Create SD's smaller scale limits its pricing power and marketing reach, but its niche in nursing care provides a defensible revenue stream. The company's low debt and strong cash position allow for strategic investments in automation and store upgrades, though capex remains modest (¥-16.2 billion in FY2024). Its beta of 0.336 reflects lower market correlation, appealing to conservative investors but potentially lagging in high-growth phases.