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

• Market Cap: ¥77.85B
• Dividend Yield: 0.32%
• Average Volume (3M): 106.15K
• Price to Earnings (P/E): 64.3
• Beta (1Y): 0.39
• Revenue Growth: 1.53%
• EPS Growth: -15.91%
• Country: JP
• Employees: 784
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 6.71
• Shares Outstanding: 49,414,577
• 10 Day Avg. Volume: 72,100
• 30 Day Avg. Volume: 106,146
• PEG Ratio: -2.57
• Price to Book (P/B): 6.51
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 32.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: ¥1,612.00 ▲(2.41% Upside)

KAPPA.CREATE CO.LTD. shows strong financial performance with consistent revenue growth and stable cash flow generation, which are significant strengths. However, the technical analysis indicates potential short-term bearish momentum, and the high P/E ratio suggests overvaluation, which are key risks. The absence of earnings call and corporate events data limits further insights.

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

Company Description

KAPPA.CREATE CO.LTD. (7421) is a dynamic company operating primarily in the creative industries, focusing on innovative design solutions and digital content creation. The company specializes in a diverse range of sectors, including graphic design, branding, and digital marketing, offering services that cater to both corporate and individual clients. KAPPA.CREATE is recognized for its commitment to quality and creativity, providing tailored solutions that enhance brand visibility and engagement in an increasingly digital marketplace.

How the Company Makes Money

KAPPA.CREATE CO.LTD. generates revenue through multiple streams. The primary revenue model is based on service fees charged for design and marketing services, which include project-based work, retainers, and consultancy fees. Additionally, the company may earn income from licensing digital content and selling proprietary design tools or software. Key partnerships with businesses and organizations in need of branding and marketing support enhance its revenue potential, while collaborations with digital platforms can also contribute to earnings through affiliate marketing or promotional campaigns.

KAPPA.CREATE CO.LTD. Financial Statement Overview

Summary

KAPPA.CREATE CO.LTD. exhibits a solid financial position with consistent revenue growth and improving profitability metrics. The balance sheet is stable, with a prudent approach to debt management. Cash flow generation is robust, supporting ongoing operations and investment activities. However, there are areas of volatility in net profit margin and asset base.

Income Statement

KAPPA.CREATE CO.LTD. has shown consistent revenue growth over the years, with a notable increase from 2024 to 2025. The gross profit margin remains strong, indicating efficient cost management. However, the net profit margin has fluctuated, reflecting some volatility in profitability. The EBIT and EBITDA margins have improved, suggesting better operational efficiency.

Balance Sheet

The company's balance sheet reveals a stable equity position with a healthy equity ratio. The debt-to-equity ratio is manageable, indicating a balanced approach to leveraging. Return on equity has improved, showcasing enhanced profitability relative to shareholder investments. However, the overall asset base has seen minor fluctuations.

Cash Flow

KAPPA.CREATE CO.LTD. has demonstrated positive operating cash flow, which supports its operational activities. The free cash flow has shown growth, indicating effective capital expenditure management. The operating cash flow to net income ratio suggests strong cash generation relative to net income, although there have been periods of fluctuation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	73.57B	73.21B	72.20B	70.44B	67.21B	64.88B
Gross Profit	38.49B	38.26B	37.53B	35.72B	33.52B	33.39B
EBITDA	3.87B	3.63B	3.98B	-550.00M	2.96B	623.00M
Net Income	1.21B	1.03B	1.40B	-3.04B	736.00M	-1.15B
Balance Sheet
Total Assets	31.32B	31.07B	30.19B	28.94B	31.65B	32.01B
Cash, Cash Equivalents and Short-Term Investments	8.01B	7.94B	7.94B	7.52B	9.41B	7.92B
Total Debt	8.98B	7.25B	7.46B	6.74B	8.80B	9.01B
Total Liabilities	20.37B	20.18B	20.08B	20.24B	19.92B	21.04B
Stockholders Equity	10.90B	10.85B	10.03B	8.63B	11.63B	10.93B
Cash Flow
Free Cash Flow	0.00	2.18B	3.50B	2.50B	2.46B	-597.00M
Operating Cash Flow	0.00	3.84B	3.55B	2.52B	2.58B	-538.00M
Investing Cash Flow	0.00	-1.94B	-2.49B	-1.15B	306.00M	-604.00M
Financing Cash Flow	0.00	-1.91B	-644.00M	-3.27B	-1.40B	3.13B

KAPPA.CREATE CO.LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1574.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1574 is below the 20-day moving average (MA) of 1580.45, below the 50-day MA of 1604.10, and above the 200-day MA of 1510.64, indicating a neutral trend. The MACD of -10.81 indicates Negative momentum. The RSI at 49.96 is Neutral, neither overbought nor oversold. The STOCH value of 69.74 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2695	66 Neutral	¥136.42B	60.87	―	0.57%	5.43%	-62.27%
8153	66 Neutral	¥122.57B	34.58	―	0.75%	4.32%	29.02%
9828	66 Neutral	¥55.52B	11.57	―	2.23%	8.33%	24.64%
8160	65 Neutral	¥68.60B	19.04	―	1.95%	0.63%	1053.55%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9887	57 Neutral	¥118.15B	43.52	―	0.39%	21.94%	-7.70%
7421	55 Neutral	¥77.85B	64.30	―	0.32%	1.53%	-15.91%

KAPPA.CREATE CO.LTD. Corporate Events

KAPPA-CREATE Completes Treasury Share Disposal

KAPPA-CREATE CO., LTD. has completed the payment procedures for the disposal of 4,000 treasury shares as restricted share remuneration, a decision made at their Board of Directors meeting on July 15, 2025. This move is part of their corporate strategy to manage share distribution among directors, potentially impacting internal governance and shareholder value.

KAPPA.CREATE CO., LTD. Reports Strong Financial Growth in Q2 2025

KAPPA.CREATE CO., LTD. reported a significant increase in its financial performance for the three months ending June 30, 2025, with notable growth in revenue and profits compared to the previous year. The company’s strong financial results indicate a positive trajectory, with implications for enhanced market positioning and potential benefits for stakeholders.