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KAPPA.CREATE CO.LTD.
(7421)
Select Model
Select Model
Rating:51Neutral
Price Target:
¥1,668.00
▲(7.96% Upside)
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 FCF across 2022–2026 shows the business converts operations into cash despite earnings swings. Over a 2–6 month horizon this durable cash generation supports working capital, servicing obligations, selective reinvestment, and cushions against cyclical revenue weakness.
Negative Factors
Volatile profitability
Returns swing materially year to year, driven by operating volatility below the gross line. This inconsistent profitability undermines planning, makes sustained margin improvement uncertain, and increases the risk that shortfalls persist beyond a single quarter.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent free cash flow
Positive FCF across 2022–2026 shows the business converts operations into cash despite earnings swings. Over a 2–6 month horizon this durable cash generation supports working capital, servicing obligations, selective reinvestment, and cushions against cyclical revenue weakness.
Read all positive factors
KAPPA.CREATE CO.LTD. (7421) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥80.32B
Dividend Yield0.38%
Average Volume (3M)106.15K
Price to Earnings (P/E)―
Beta (1Y)0.32
Revenue Growth-0.02%
EPS Growth-138.17%
CountryJP
Employees801
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)-7.98
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. primarily operates restaurants and is also involved in the processing and sale of various food items. The enterprise, originally established in 1973, was known as Kappa Create Holdings Co., Ltd. until it adopted its current ...
KAPPA.CREATE CO.LTD. Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
58
Neutral
Cash Flow
63
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 73.19B | 73.21B | 72.20B | 70.44B | 67.21B |
| Gross Profit | 37.78B | 38.26B | 37.53B | 35.72B | 33.52B |
| EBITDA | 2.40B | 3.63B | 3.98B | -550.00M | 2.96B |
| Net Income | -394.00M | 1.03B | 1.40B | -3.04B | 737.00M |
Balance Sheet | |||||
| Total Assets | 28.99B | 31.19B | 30.28B | 29.05B | 31.77B |
| Cash, Cash Equivalents and Short-Term Investments | 6.03B | 7.94B | 7.94B | 7.52B | 9.41B |
| Total Debt | 8.06B | 9.26B | 7.46B | 9.74B | 10.74B |
| Total Liabilities | 18.74B | 20.30B | 20.17B | 20.35B | 20.04B |
| Stockholders Equity | 10.21B | 10.85B | 10.03B | 8.62B | 11.63B |
Cash Flow | |||||
| Free Cash Flow | 666.00M | 2.17B | 1.12B | 1.35B | 1.70B |
| Operating Cash Flow | 2.53B | 3.83B | 3.55B | 2.52B | 2.58B |
| Investing Cash Flow | -2.13B | -1.94B | -2.49B | -1.15B | 306.00M |
| Financing Cash Flow | -2.29B | -1.91B | -644.00M | -3.27B | -1.40B |
KAPPA.CREATE CO.LTD. Technical Analysis
Positive
1545.00
Price Trends
1474.20
Positive
1509.83
Positive
1528.50
Positive
Market Momentum
40.57
Negative
64.82
Neutral
78.71
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 1545 is below the 20-day moving average (MA) of 1561.10, above the 50-day MA of 1474.20, and above the 200-day MA of 1528.50, indicating a bullish trend. The MACD of 40.57 indicates Negative momentum. The RSI at 64.82 is Neutral, neither overbought nor oversold. The STOCH value of 78.71 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ¥132.74B | 38.08 | ― | 0.63% | 6.86% | 182.73% | |
63 Neutral | ¥62.61B | 18.00 | ― | 2.41% | 17.21% | -27.52% | |
62 Neutral | ¥352.83B | 68.21 | ― | 0.56% | 4.40% | -17.52% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | ¥248.52B | 43.35 | ― | 0.61% | 10.76% | 48.44% | |
51 Neutral | ¥80.32B | -204.01 | ― | 0.32% | -0.02% | -138.17% |
* Consumer Cyclical Sector Average
JP:7421
KAPPA.CREATE CO.LTD.
1,614.00
80.71
5.26%
JP:2695
Kura Sushi, Inc.
1,645.00
-402.63
-19.66%
JP:3387
create restaurants holdings inc.
772.00
-17.99
-2.28%
JP:9828
Genki Sushi Co., Ltd.
3,340.00
-49.76
-1.47%
JP:9861
Yoshinoya Holdings Co., Ltd.
3,816.00
491.42
14.78%
KAPPA.CREATE CO.LTD. Corporate Events
Kappa-Create to Grant Restricted Treasury Shares to Key Executives
Jul 21, 2026
Kappa-Create Co., Ltd. operates in the restaurant sector, best known for its conveyor-belt sushi chains in Japan. Listed on the TSE Prime market under securities code 7421, the company focuses on mass-market dining and seeks to enhance corporate v...
Kappa Create Clarifies COLOWIDE Group Control and Minority Shareholder Safeguards
Jun 26, 2026
Kappa Create Co., Ltd., a fresh seafood-focused restaurant operator, sits under SPCKAPPA Co., Ltd. and ultimate parent COLOWIDE Co., Ltd., which together hold 50.57% of its voting rights and integrate it into a larger foodservice group spanning re...
Kappa Create Boosts Capital at Vietnam Subsidiary to Support Expansion
Jun 24, 2026
Kappa Create Co., Ltd. has resolved to subscribe to a capital increase at its wholly owned subsidiary, Kappa Create Vietnam Company Limited, in Ho Chi Minh City. The move will raise the subsidiary’s paid-in capital to about 16.4 billion Viet...
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...
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.