Kappa Create Co., Ltd. (7421) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Matsuya Foods Holdings Co., Ltd.

Royal Holdings Co., Ltd.

Kura Sushi, Inc.

Kappa Create Co., Ltd.

Why is Kappa Create Co., Ltd. ?

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

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -4.30

Poor long term growth as Net Sales has grown by an annual rate of 2.21% and Operating profit at 21.49% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -4.30
The company has been able to generate a Return on Equity (avg) of 5.20% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 2.21% and Operating profit at 21.49% over the last 5 years

With a fall in Operating Profit of -18.17%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 2 consecutive quarters
PRE-TAX PROFIT(Q) At JPY 98 MM has Fallen at -65.85%
NET PROFIT(Q) At JPY -39 MM has Fallen at -117.62%
ROCE(HY) Lowest at -3.74%

With ROE of 7.79%, it has a expensive valuation with a 7.35 Price to Book Value

Over the past year, while the stock has generated a return of -8.49%, its profits have fallen by -39.6%

Real-Time Research Report

Verdict Report

How 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.

-6.06%

-1.03

18.13%

Japan Nikkei 225

81.96%

2.98

27.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.21%

EBIT Growth (5y)

21.49%

EBIT to Interest (avg)

-4.30

Debt to EBITDA (avg)

3.84

Net Debt to Equity (avg)

0.24

Sales to Capital Employed (avg)

3.87

Tax Ratio

13.95%

Dividend Payout Ratio

23.91%

Pledged Shares

Institutional Holding

ROCE (avg)

5.69%

ROE (avg)

5.20%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

7.35

EV to EBIT

72.31

EV to EBITDA

23.72

EV to Capital Employed

7.09

EV to Sales

1.11

PEG Ratio

Dividend Yield

ROCE (Latest)

9.81%

ROE (Latest)

7.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-19What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 98 MM has Fallen at -65.85%

NET PROFIT(Q)

At JPY -39 MM has Fallen at -117.62%

ROCE(HY)

Lowest at -3.74%

CASH AND EQV(HY)

Lowest at JPY 13,508 MM

DEBT-EQUITY RATIO (HY)

Highest at 30.98 %

EPS(Q)

Lowest at JPY -15.28

Here's what is working for Kappa Create Co., Ltd.

Depreciation

Highest at JPY 609 MM

in the last five periods

MOJO 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 98 MM has Fallen at -65.85%

over average net sales of the previous four periods of JPY 287 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -39 MM has Fallen at -117.62%

over average net sales of the previous four periods of JPY 221.34 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

EPS

Lowest at JPY -15.28

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv

Lowest at JPY 13,508 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 30.98 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio