ScoreComparison
Company
Score
Quality
Valuation
Financial
Technical
Why is Kappa Create Co., Ltd. ?
1
Poor Management Efficiency with a low ROE of 5.20%
- The company has been able to generate a Return on Equity (avg) of 5.20% signifying low profitability per unit of shareholders funds
2
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -4.63
- Poor long term growth as Net Sales has grown by an annual rate of -0.43% and Operating profit at 0.82% over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -4.63
- The company has been able to generate a Return on Equity (avg) of 5.20% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of -0.43% and Operating profit at 0.82% over the last 5 years
4
With a fall in Net Sales of -4.75%, the company declared Very Negative results in Dec 25
- INTEREST COVERAGE RATIO(Q) Lowest at 304.84
- CASH AND EQV(HY) Lowest at JPY 15,572 MM
- INVENTORY TURNOVER RATIO(HY) Lowest at 28.28 times
5
With ROE of 11.15%, it has a expensive valuation with a 6.63 Price to Book Value
- Over the past year, while the stock has generated a return of 7.59%, its profits have fallen by -18.8%
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Leisure Services)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Kappa Create Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Kappa Create Co., Ltd.
7.59%
-0.17
18.01%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-0.43%
EBIT Growth (5y)
0.82%
EBIT to Interest (avg)
-4.30
Debt to EBITDA (avg)
3.84
Net Debt to Equity (avg)
-0.06
Sales to Capital Employed (avg)
3.94
Tax Ratio
13.95%
Dividend Payout Ratio
23.91%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.69%
ROE (avg)
5.20%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
59
Industry P/E
Price to Book Value
6.63
EV to EBIT
64.61
EV to EBITDA
21.11
EV to Capital Employed
7.02
EV to Sales
0.97
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
10.86%
ROE (Latest)
11.15%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-28What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 304.84
CASH AND EQV(HY)
Lowest at JPY 15,572 MM
INVENTORY TURNOVER RATIO(HY)
Lowest at 28.28 times
NET SALES(Q)
Lowest at JPY 17,964 MM
INTEREST(Q)
Highest at JPY 62 MM
OPERATING PROFIT(Q)
Lowest at JPY 189 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 1.05 %
PRE-TAX PROFIT(Q)
Lowest at JPY -347 MM
NET PROFIT(Q)
Lowest at JPY -378 MM
EPS(Q)
Lowest at JPY -7.66
Here's what is working for Kappa Create Co., Ltd.
Depreciation
Highest at JPY 579 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Kappa Create Co., Ltd.
Pre-Tax Profit
At JPY -347 MM has Fallen at -180.93%
over average net sales of the previous four periods of JPY 428.75 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY -378 MM has Fallen at -201.32%
over average net sales of the previous four periods of JPY 373.09 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest
At JPY 62 MM has Grown at 29.17%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 304.84
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Sales
Lowest at JPY 17,964 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Interest
Highest at JPY 62 MM
in the last five periods and Increased by 29.17% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit
Lowest at JPY 189 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 1.05 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY -347 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY -378 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY -7.66
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Cash and Eqv
Lowest at JPY 15,572 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Inventory Turnover Ratio
Lowest at 28.28 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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