| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1854.69 | 22 |
| Intrinsic value (DCF) | 1105.14 | -27 |
| Graham-Dodd Method | 611.97 | -60 |
| Graham Formula | 958.22 | -37 |
CREEK & RIVER Co., Ltd. is a diversified Japanese company specializing in rights management, production, and agency services across multiple industries, including entertainment, IT, healthcare, and marketing. Headquartered in Tokyo and founded in 1990, the company operates through various segments, including professional agent services, content distribution, IT consulting, AI and VR development, and NFT platform management (ANIFTY). With a market cap of approximately ¥30.7 billion, CREEK & RIVER serves both domestic and international markets, leveraging its expertise in digital transformation, creative content monetization, and workforce solutions. The company’s broad service portfolio positions it as a key player in Japan’s consulting and industrial sectors, catering to evolving demands in media, technology, and professional staffing. Its diversified revenue streams—from software development to NFT platforms—reflect adaptability in a rapidly changing digital economy.
CREEK & RIVER presents a moderate-risk investment opportunity with stable financials, including ¥50.3 billion in revenue and ¥2.25 billion in net income (FY 2025). The company’s low beta (0.368) suggests lower volatility compared to the broader market, appealing to conservative investors. Strengths include diversified revenue streams, strong cash reserves (¥12.8 billion), and a growing focus on high-margin digital services like AI and NFTs. However, risks include exposure to Japan’s competitive consulting sector and reliance on domestic demand. The dividend yield (~1.3% based on a ¥41/share payout) is modest but sustainable given healthy operating cash flow (¥2.96 billion). Investors should monitor execution in digital initiatives (e.g., ANIFTY) and IT consulting growth for long-term upside.
CREEK & RIVER’s competitive advantage lies in its diversified service model, bridging creative content, IT solutions, and professional staffing—a rare combination in Japan’s consulting landscape. Unlike pure-play IT firms or staffing agencies, it integrates digital innovation (AI, VR, NFTs) with traditional agency services, offering cross-industry synergies. Its ANIFTY platform positions it in the emerging NFT market, though competition with global platforms remains a challenge. The company’s strength in copyright management and production outsourcing provides sticky client relationships, but it faces pressure from larger IT consultancies (e.g., Nomura Research Institute) and staffing giants (e.g., Recruit Holdings). Its niche in healthcare and community services adds stability but limits scalability versus broader peers. Capital efficiency is solid (low debt at ¥4.17 billion), but R&D spending lags behind tech-focused rivals. Success hinges on leveraging its hybrid model to capture demand for integrated digital-creative solutions.