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

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KAPPA.CREATE CO.LTD.

(7421)

55Neutral

KAPPA.CREATE CO.LTD. shows solid financial performance with improving profitability and balanced leverage, which are key strengths. However, the high P/E ratio and low dividend yield suggest potential overvaluation, which poses a risk. Technical indicators are mixed, showing neutral momentum. The absence of recent earnings call insights limits visibility into future performance. Overall, the stock is on a stable path but faces valuation challenges.

KAPPA.CREATE CO.LTD. (7421) vs. S&P 500 (SPY)

Market Cap

¥73.41B

Dividend Yield0.33%

Average Volume (3M)67.39K

Price to Earnings (P/E)71.5

Beta (1Y)0.36

Revenue Growth1.49%

EPS GrowthN/A

CountryJP

Employees784

SectorConsumer Cyclical

Sector Strength75

IndustryRestaurants

Share Statistics

EPS (TTM)6.40

Shares Outstanding49,414,577

10 Day Avg. Volume56,390

30 Day Avg. Volume67,390

Financial Highlights & Ratios

PEG Ratio11.53

Price to Book (P/B)6.98

Price to Sales (P/S)0.00

P/FCF Ratio0.00

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

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

Company DescriptionKappa 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 Create Co., Ltd. was founded in 1973 and is headquartered in Yokohama, Japan.

How the Company Makes Moneynull

KAPPA.CREATE CO.LTD. Financial Statement Overview

Summary

KAPPA.CREATE CO.LTD. demonstrates resilience with improving profitability and a balanced financial structure. While revenue growth is modest, operational efficiency is commendable. The balance sheet shows a healthy leverage position, but cash flow analysis requires more complete data for robust conclusions. Overall, the company is on a positive trajectory but should focus on enhancing cash flow consistency.

Income Statement

Positive

KAPPA.CREATE CO.LTD. shows a solid recovery in profitability over the recent periods. The Gross Profit Margin and Net Profit Margin are strong at 52.23% and 1.78% for TTM, respectively. Revenue growth is positive at 1.21% from the previous year, indicating modest expansion. The EBIT and EBITDA margins have improved significantly, suggesting effective cost management and operational efficiency.

Balance Sheet

Positive

The company's balance sheet reflects a moderate financial position. The Debt-to-Equity ratio is 0.83, indicating a balanced leverage. Return on Equity (ROE) is relatively low at 12.34%, but the Equity Ratio of 31.97% provides a stable capital structure. The slight increase in stockholder's equity signals gradual strengthening of financial health.

Cash Flow

Neutral

Cash flow metrics are challenging to assess due to missing TTM data. Historically, the Operating Cash Flow to Net Income Ratio and Free Cash Flow have shown variability. The Free Cash Flow growth was positive between 2022 and 2023, but the lack of TTM data necessitates caution in cash flow stability assumptions.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
73.07B	72.20B	70.44B	67.21B	64.88B	74.81B
	Gross Profit
38.17B	37.53B	35.72B	33.52B	33.39B	39.00B
	EBIT
1.48B	1.69B	-936.00M	-1.87B	-602.00M	1.60B
	EBITDA
2.94B	3.98B	-550.00M	-131.00M	623.00M	3.46B
	Net Income Common Stockholders
1.30B	1.40B	-3.06B	736.00M	-1.12B	-272.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.66B	7.94B	7.52B	9.41B	7.92B	5.94B
	Total Assets
32.92B	30.19B	28.94B	31.65B	32.01B	28.93B
	Total Debt
8.69B	7.46B	6.74B	8.80B	9.01B	4.85B
	Net Debt
30.00M	-477.00M	-783.00M	-611.00M	1.08B	-1.09B
	Total Liabilities
22.33B	20.08B	20.24B	19.92B	21.04B	16.84B
	Stockholders Equity
10.53B	10.03B	8.63B	11.63B	10.93B	12.08B
Cash Flow		Free Cash Flow
0.00	1.07B	2.50B	2.46B	-597.00M	3.69B
	Operating Cash Flow
0.00	3.55B	2.52B	2.58B	-538.00M	3.75B
	Investing Cash Flow
0.00	-2.49B	-1.15B	306.00M	-604.00M	-2.12B
	Financing Cash Flow
0.00	-644.00M	-3.27B	-1.40B	3.13B	-765.00M

KAPPA.CREATE CO.LTD. Technical Analysis

Technical Analysis Sentiment

Positive

Last Price1488.00

Price Trends

50DMA

1478.87

Positive

100DMA

1478.67

Positive

200DMA

1579.25

Negative

Market Momentum

MACD

8.85

Negative

RSI

54.51

Neutral

STOCH

61.76

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 1488 is above the 20-day moving average (MA) of 1483.20, above the 50-day MA of 1478.87, and below the 200-day MA of 1579.25, indicating a neutral trend. The MACD of 8.85 indicates Negative momentum. The RSI at 54.51 is Neutral, neither overbought nor oversold. The STOCH value of 61.76 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 (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9936	80 Outperform	¥237.23B	24.36		1.44%	7.86%	1.99%
2695	69 Neutral	¥125.91B	43.97		1.25%	9.79%	4.81%
3387	67 Neutral	¥300.94B	53.89		0.56%	7.27%	10.84%
8200	64 Neutral	¥58.20B	60.41		0.53%	8.92%	28.78%
Sector *	61 Neutral	$6.97B	11.38	2.88%	3.90%	2.64%	-22.07%
7421	55 Neutral	¥73.41B	71.49		0.33%	1.49%	―

* Consumer Cyclical Sector Average

Performance Comparison

JP:7421

KAPPA.CREATE CO.LTD.

1,488.00

-134.85

-8.31%

DE:5F7

Zensho Holdings Co

49.60

14.12

39.80%

JP:2695

Kura Sushi, Inc.

3,095.00

-1,820.29

-37.03%

JP:3387

create restaurants holdings inc.

1,432.00

349.48

32.28%

JP:8200

Ringer Hut Co., Ltd.

2,269.00

-20.05

-0.88%

JP:9936

Ohsho Food Service Corp.

3,495.00

832.82

31.28%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.