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KAPPA.CREATE CO.LTD. (JP:7421)
:7421
Japanese Market

KAPPA.CREATE CO.LTD. (7421) AI Stock Analysis

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JP

KAPPA.CREATE CO.LTD.

(7421)

Rating:69Neutral
Price Target:
¥1,641.00
▲(8.68%Upside)
KAPPA.CREATE CO.LTD. scores strongly in financial performance and technical analysis. The company is experiencing revenue growth and strong cash flows, supported by positive technical indicators. However, the high P/E ratio signals potential overvaluation, and low dividend yield may not appeal to all investors. Efforts to improve profitability and enhance returns to equity holders could bolster future performance.

KAPPA.CREATE CO.LTD. (7421) vs. iShares MSCI Japan ETF (EWJ)

KAPPA.CREATE CO.LTD. Business Overview & Revenue Model

Company Descriptionnull
How the Company Makes Moneynull

KAPPA.CREATE CO.LTD. Financial Statement Overview

Summary
KAPPA.CREATE CO.LTD. demonstrates solid financial performance with consistent revenue growth and strong cash flow generation. The balance sheet shows a stable structure, but there is room for improvement in profitability metrics and returns to equity holders. The company is well-positioned in the restaurant industry, but enhancing operational efficiencies and profitability will be key to sustaining growth.
Income Statement
68
Positive
KAPPA.CREATE CO.LTD. has shown a consistent growth trajectory in revenue, with a notable increase of 2.8% from the previous year. The gross profit margin remains strong at 52.3%, indicating efficient cost management. However, the net profit margin has slightly declined to 1.4%, reflecting some pressure on bottom-line profitability. The EBIT and EBITDA margins of 2.0% and 5.0% respectively show moderate operational efficiency but suggest room for improvement in core operations.
Balance Sheet
72
Positive
The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.67, showcasing prudent financial leverage. The equity ratio stands at 34.9%, reflecting a stable financial structure. Return on equity has declined to 9.5%, which could be a concern if the trend continues. Overall, the balance sheet indicates a stable financial condition but with a need to enhance returns to equity holders.
Cash Flow
75
Positive
Cash flow performance is strong, with free cash flow growing by 103.7%. The operating cash flow to net income ratio of 3.72 demonstrates robust cash conversion efficiency. However, the free cash flow to net income ratio of 2.11 suggests potential room for improvement in cash management strategies. Overall, the cash flow statement reflects solid cash generation capabilities.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue73.07B73.21B72.20B70.44B67.21B64.88B
Gross Profit38.17B38.26B37.53B35.72B33.52B33.39B
EBITDA3.60B3.63B3.98B-550.00M-131.00M623.00M
Net Income1.30B1.03B1.40B-3.06B736.00M-1.12B
Balance Sheet
Total Assets32.92B31.07B30.19B28.94B31.65B32.01B
Cash, Cash Equivalents and Short-Term Investments8.66B7.94B7.94B7.52B9.41B7.92B
Total Debt8.69B7.25B7.46B6.74B8.80B9.01B
Total Liabilities22.33B20.18B20.08B20.24B19.92B21.04B
Stockholders Equity10.53B10.85B10.03B8.63B11.63B10.93B
Cash Flow
Free Cash Flow0.002.18B1.07B2.50B2.46B-597.00M
Operating Cash Flow0.003.84B3.55B2.52B2.58B-538.00M
Investing Cash Flow0.00-1.95B-2.49B-1.15B306.00M-604.00M
Financing Cash Flow0.00-1.91B-644.00M-3.27B-1.40B3.13B

KAPPA.CREATE CO.LTD. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1510.00
Price Trends
50DMA
1486.46
Positive
100DMA
1476.95
Positive
200DMA
1528.07
Negative
Market Momentum
MACD
7.76
Negative
RSI
57.46
Neutral
STOCH
67.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7421, the sentiment is Positive. The current price of 1510 is above the 20-day moving average (MA) of 1496.85, above the 50-day MA of 1486.46, and below the 200-day MA of 1528.07, indicating a neutral trend. The MACD of 7.76 indicates Negative momentum. The RSI at 57.46 is Neutral, neither overbought nor oversold. The STOCH value of 67.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7421.

KAPPA.CREATE CO.LTD. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥71.99B14.47
1.97%9.11%52.03%
71
Outperform
¥66.66B21.05
1.52%0.46%626.15%
69
Neutral
¥114.40B36.34
0.81%3.36%22.37%
69
Neutral
¥74.50B72.20
0.33%1.40%-26.08%
64
Neutral
¥137.81B112.01
0.57%4.82%-79.12%
62
Neutral
C$5.24B11.0818.82%3.79%5.08%6.52%
56
Neutral
¥114.53B52.41
0.40%20.85%-25.02%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7421
KAPPA.CREATE CO.LTD.
1,510.00
-223.50
-12.89%
JP:2695
Kura Sushi, Inc.
3,475.00
-420.60
-10.80%
JP:8153
MOS FOOD SERVICES, INC.
3,710.00
199.85
5.69%
JP:8160
KISOJI CO., LTD.
2,367.00
-184.59
-7.23%
JP:9828
Genki Sushi Co., Ltd.
4,065.00
598.60
17.27%
JP:9887
Matsuya Foods Holdings Co., Ltd.
6,010.00
-184.88
-2.98%

KAPPA.CREATE CO.LTD. Corporate Events

KAPPA-CREATE CO., LTD. Clarifies Parent Company Relationships and Independence Measures
Jun 27, 2025

KAPPA-CREATE CO., LTD. has disclosed its relationship with its parent companies, SPCKAPPA CO., LTD. and COLOWIDE Co., Ltd., highlighting COLOWIDE’s significant influence due to its 100% ownership of SPCKAPPA. The company maintains a degree of independence within the COLOWIDE Group and ensures fairness in transactions with controlling shareholders by involving a special committee to protect minority shareholders’ interests.

KAPPA-CREATE Announces Executive Personnel Changes
May 9, 2025

KAPPA-CREATE CO., LTD. has announced executive personnel changes, with the Board of Directors tentatively deciding on new appointments and reappointments, subject to shareholder approval. These changes, including the appointment of Fumio Fukutani as Director and General Manager of the Corporate Strategy Division, are expected to impact the company’s strategic direction and governance.

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: Jun 27, 2025