KAPPA.CREATE CO.LTD. (JP:7421)
:7421
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KAPPA.CREATE CO.LTD.
(7421)
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Rating:51Neutral
Price Target:
¥1,502.00
▼(-2.78% Downside)
Action:Reiterated
Date:05/10/26
The score is held back primarily by unstable profitability and a sharp revenue setback in 2026 despite generally positive free cash flow and moderate leverage. Technicals add additional pressure as the stock is in a downtrend with bearish momentum, while valuation is constrained by losses (negative P/E) and only a moderate dividend yield.
Positive Factors
Consistent free cash flow
Positive free cash flow across 2022–2026 indicates the business generates real cash even when accounting earnings swing. Durable cash generation supports reinvestment, modest dividends, and debt servicing, providing a financial cushion while management addresses operating volatility.
Negative Factors
Volatile profitability and ROE
ROE and profitability swing materially (positive in some years, negative in others), which undermines predictability of earnings, dividend capacity, and strategic planning. Persistent volatility makes cash flow coverage and investor returns less reliable over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent free cash flow
Positive free cash flow across 2022–2026 indicates the business generates real cash even when accounting earnings swing. Durable cash generation supports reinvestment, modest dividends, and debt servicing, providing a financial cushion while management addresses operating volatility.
Read all positive factors
KAPPA.CREATE CO.LTD. (7421) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥71.00B
Dividend Yield0.32%
Average Volume (3M)106.15K
Price to Earnings (P/E)―
Beta (1Y)0.35
Revenue Growth-0.02%
EPS Growth-138.17%
CountryJP
Employees784
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)24.54
Shares Outstanding49,414,577
10 Day Avg. Volume72,100
30 Day Avg. Volume106,146
Financial Highlights & Ratios
PEG Ratio1.42
Price to Book (P/B)7.56
Price to Sales (P/S)1.06
P/FCF Ratio115.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
KAPPA.CREATE CO.LTD. Business Overview & Revenue Model
Company Description
Kappa Create Co., Ltd. engages in the management of restaurants. It also processes and sells food products. The company was formerly known as Kappa Create Holdings Co., Ltd. and changed its name to Kappa Create Co., Ltd. in October 2015. Kappa Cre...
KAPPA.CREATE CO.LTD. Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
58
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 73.57B | 73.19B | 73.21B | 72.20B | 70.44B | 67.21B |
| Gross Profit | 38.49B | 37.78B | 38.26B | 37.53B | 35.72B | 33.52B |
| EBITDA | 3.95B | 2.86B | 3.71B | 3.90B | 1.01B | -131.00M |
| Net Income | 1.21B | -394.00M | 1.03B | 1.40B | -3.04B | 737.00M |
Balance Sheet | ||||||
| Total Assets | 31.32B | 28.99B | 31.19B | 30.28B | 29.05B | 31.77B |
| Cash, Cash Equivalents and Short-Term Investments | 8.01B | 6.03B | 7.94B | 7.94B | 7.52B | 9.41B |
| Total Debt | 8.98B | 8.06B | 9.26B | 7.46B | 9.74B | 10.74B |
| Total Liabilities | 20.37B | 18.74B | 20.30B | 20.17B | 20.35B | 20.04B |
| Stockholders Equity | 10.90B | 10.21B | 10.85B | 10.03B | 8.62B | 11.63B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 666.00M | 2.17B | 1.12B | 1.35B | 1.70B |
| Operating Cash Flow | 0.00 | 2.53B | 3.83B | 3.55B | 2.52B | 2.58B |
| Investing Cash Flow | 0.00 | -2.13B | -1.94B | -2.49B | -1.15B | 306.00M |
| Financing Cash Flow | 0.00 | -2.29B | -1.91B | -644.00M | -3.27B | -1.40B |
KAPPA.CREATE CO.LTD. Technical Analysis
Negative
1545.00
Price Trends
1548.22
Negative
1556.79
Negative
1558.43
Negative
Market Momentum
-34.97
Negative
38.53
Neutral
48.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7421, the sentiment is Negative. The current price of 1545 is above the 20-day moving average (MA) of 1478.15, below the 50-day MA of 1548.22, and below the 200-day MA of 1558.43, indicating a bearish trend. The MACD of -34.97 indicates Negative momentum. The RSI at 38.53 is Neutral, neither overbought nor oversold. The STOCH value of 48.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7421.
KAPPA.CREATE CO.LTD. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | ¥51.63B | 31.42 | ― | 1.30% | 2.40% | -26.93% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | ¥208.10B | 37.97 | ― | 0.69% | 10.09% | 22.64% | |
58 Neutral | ¥129.40B | 31.47 | ― | 0.63% | 5.09% | 30.45% | |
55 Neutral | ¥302.85B | 212.33 | ― | 0.56% | 5.82% | -16.39% | |
51 Neutral | ¥71.00B | -196.03 | ― | 0.32% | -0.02% | -138.17% | |
51 Neutral | ¥48.95B | 14.55 | ― | 2.41% | 9.25% | -29.60% |
* Consumer Cyclical Sector Average
JP:7421
KAPPA.CREATE CO.LTD.
1,427.00
-27.53
-1.89%
JP:2695
Kura Sushi, Inc.
1,627.00
86.31
5.60%
JP:3198
SFP Holdings Co.Ltd.
2,251.00
165.76
7.95%
JP:3387
create restaurants holdings inc.
711.00
27.40
4.01%
JP:9828
Genki Sushi Co., Ltd.
2,798.00
-1,095.58
-28.14%
JP:9861
Yoshinoya Holdings Co., Ltd.
3,233.00
66.36
2.10%
KAPPA.CREATE CO.LTD. Corporate Events
Kappa Create Books Impairment Losses as Earnings Miss Forecast and Dividend Is Scrapped
May 8, 2026
Kappa Create Co., Ltd. has recognized impairment losses of 715 million yen on 85 domestic stores, two overseas stores, and one domestic factory for the fiscal year ended March 2026, reflecting a reassessment of asset recoverability amid soaring ra...
Kappa-Create Swings to Loss, Halts Dividend but Targets Profit Rebound in FY 2027
May 8, 2026
Kappa-Create Co., Ltd., a Tokyo Prime-listed restaurant operator best known for its conveyor-belt sushi format, reported essentially flat consolidated revenue of ¥73.2 billion for the fiscal year ended March 31, 2026, as margin pressure drove...
KAPPA.CREATE Overhauls Board Lineup Ahead of June Shareholders Meeting
May 8, 2026
KAPPA.CREATE CO. LTD. announced planned changes to its board of directors following a report from its Nomination and Remuneration Advisory Committee, with the board tentatively approving the slate on May 8, 2026. The final decision is scheduled to...
Kappa-Create Confirms Flat Sales but Sharply Lower Profit for Nine-Month Period
Feb 13, 2026
Kappa-Create Co., Ltd. reported consolidated revenue of ¥55.0 billion for the nine months ended December 31, 2025, effectively flat year on year, while operating profit fell 41.6% to ¥442 million and profit attributable to owners of pare...
Kappa-Create Profit Halves on Flat Sales for Nine-Month Period
Feb 13, 2026
Kappa-Create Co., Ltd. reported consolidated results for the nine months ended December 31, 2025, showing flat revenue at ¥55.0 billion but a sharp decline in profitability. Operating profit fell 41.6% year on year to ¥442 million, ordin...
KAPPA.CREATE Profit Slumps in Nine Months, But Full-Year Rebound Forecast
Feb 10, 2026
KAPPA.CREATE reported flat revenue of ¥55.0 billion for the nine months ended December 31, 2025, but saw profitability weaken, with operating profit down 41.6% to ¥442 million and profit attributable to owners of parent falling 49.2% to ...
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.