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KAPPA.CREATE CO.LTD.
(7421)
Select Model
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Rating:55Neutral
Price Target:
¥1,625.00
▲(5.18% Upside)
Action:Reiterated
Date:08/11/26
The score is held back primarily by unstable financial performance (profitability volatility and a notable 2026 revenue decline), partially offset by generally positive cash generation and moderate leverage. Technical indicators are supportive with price trending above key moving averages and a positive MACD, but valuation remains a key drag due to the negative P/E and a low dividend yield.
Positive Factors
Consistent positive free cash flow
Free cash flow positive across 2022–2026 provides a durable internal funding source. Reliable FCF supports operations, capital spending and debt service even when earnings fluctuate, giving management flexibility to invest or shore up the business over the medium term.
Negative Factors
Profitability volatility and 2026 net loss
A return to a small net loss and sharp 2026 revenue decline show earnings fragility. Persistent swings in profitability reduce predictability for reinvestment and planning, force reactive cost cutting in downturns, and weaken long-term operating credibility with stakeholders.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent positive free cash flow
Free cash flow positive across 2022–2026 provides a durable internal funding source. Reliable FCF supports operations, capital spending and debt service even when earnings fluctuate, giving management flexibility to invest or shore up the business over the medium term.
Read all positive factors
KAPPA.CREATE CO.LTD. (7421) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥76.92B
Dividend Yield0.4%
Average Volume (3M)106.15K
Price to Earnings (P/E)―
Beta (1Y)0.29
Revenue Growth-1.11%
EPS Growth-223.03%
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
1497.04
Positive
1508.02
Positive
1528.83
Positive
Market Momentum
18.15
Positive
54.22
Neutral
37.50
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 1571.20, above the 50-day MA of 1497.04, and above the 200-day MA of 1528.83, indicating a bullish trend. The MACD of 18.15 indicates Positive momentum. The RSI at 54.22 is Neutral, neither overbought nor oversold. The STOCH value of 37.50 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 | ¥134.81B | 38.58 | ― | 0.63% | 6.86% | 182.73% | |
64 Neutral | ¥242.44B | 42.67 | ― | 0.61% | 10.76% | 48.44% | |
63 Neutral | ¥58.27B | 16.93 | ― | 2.41% | 17.21% | -27.52% | |
62 Neutral | ¥341.96B | 67.08 | ― | 0.56% | 4.40% | -17.52% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | ¥76.92B | -51.84 | ― | 0.32% | -1.11% | -223.03% |
* Consumer Cyclical Sector Average
JP:7421
KAPPA.CREATE CO.LTD.
1,573.00
-10.13
-0.64%
JP:2695
Kura Sushi, Inc.
1,692.00
-228.89
-11.92%
JP:3387
create restaurants holdings inc.
766.00
-33.94
-4.24%
JP:9828
Genki Sushi Co., Ltd.
3,335.00
-0.96
-0.03%
JP:9861
Yoshinoya Holdings Co., Ltd.
3,774.00
424.59
12.68%
KAPPA.CREATE CO.LTD. Corporate Events
KAPPA.CREATE Swings to Quarterly Loss but Maintains Forecast for Full-Year Rebound
Aug 10, 2026
KAPPA.CREATE reported consolidated revenue of ¥17.75 billion for the quarter ended June 30, 2026, a 2.4% year-on-year decline, and swung to an operating loss of ¥707 million from a profit a year earlier. The company posted a quarterly ne...
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...
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.