The Strong Earnings Posted By Create (TSE:3024) Are A Good Indication Of The Strength Of The Business

Create Corporation (TSE:3024) posted strong earnings, but the market overlooked key factors. The company's accrual ratio of -0.14 indicates its free cash flow (JP¥1.4b) significantly exceeds reported profit (JP¥536.0m), suggesting robust earnings potential. Despite positive earnings and EPS growth, investors should consider risks, including two warning signs. The analysis highlights the importance of free cash flow and suggests Create's earnings may be better than they appear.