Kappa Create Co (TSE:7421) Debt-to-EBITDA : 0.94 (As of Mar. 2026) — 61% Below Median

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TSE:7421 Kappa Create Co Ltd TSE:7421
60 GF Score
Price 円1,618.00
GF Value 円1,601.81
Valuation Fairly Valued
! 3 Warning Signs
View Full Analysis

What is Kappa Create Co Debt-to-EBITDA?

Kappa Create Co TSE:7421 -0.49% 60 Debt-to-EBITDA is 0.94 as of Mar. 2026, which is 61% below its 10-year median of 2.44. GuruFocus rates TSE:7421 with a GF Score™ of 60/100 and a GF Value™ of 円1,601.81 (Fairly Valued). The stock has 3 warning signs investors should review. Among 304 Restaurants companies, Kappa Create Co ranks worse than 73.03% on this metric.

Debt-to-EBITDA measures a company's ability to pay off its debt.

Kappa Create Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was 円2,539 Mil. Kappa Create Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was 円4,077 Mil. Kappa Create Co's annualized EBITDA for the quarter that ended in Mar. 2026 was 円7,012 Mil. Kappa Create Co's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 was 0.94.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Kappa Create Co's Debt-to-EBITDA or its related term are showing as below:

TSE:7421' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -2561.67   Med: 2.44   Max: 95.88
Current: 5.08

During the past 13 years, the highest Debt-to-EBITDA Ratio of Kappa Create Co was 95.88. The lowest was -2561.67. And the median was 2.44.

TSE:7421's Debt-to-EBITDA is ranked worse than
73.03% of 304 companies
in the Restaurants industry
Industry Median: 2.96 vs TSE:7421: 5.08

Kappa Create Co  (TSE:7421) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Kappa Create Co Debt-to-EBITDA Related Terms


Kappa Create Co Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Kappa Create Co's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Kappa Create Co Debt-to-EBITDA Chart

Kappa Create Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.97 -12.25 1.88 1.99 95.88

Kappa Create Co Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.46 1.21 -1.41 0.94 -2.39

TSE:7421 vs MCD, SBUX, CMG: Debt-to-EBITDA Comparison

For the Restaurants subindustry, Kappa Create Co's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Kappa Create Co Debt-to-EBITDA vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Kappa Create Co's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Kappa Create Co's Debt-to-EBITDA falls into.


TSE:7421
60GF Score
Kappa Create Co Ltd TSE:7421
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Kappa Create Co Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Kappa Create Co's Debt-to-EBITDA for the fiscal year that ended in Mar. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(2539 + 4077) / 69
=95.88

Kappa Create Co's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(2539 + 4077) / 7012
=0.94

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 0.94 mean?
Kappa Create Co (TSE:7421) has a Debt-to-EBITDA of 0.94 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Kappa Create Co. This is 61% below median its historical median of 2.44. According to the industry distribution chart, Kappa Create Co ranks #222 out of 304 companies in the Restaurants industry, placing it in the top 73%.
Is Kappa Create Co's Debt-to-EBITDA too high?
Kappa Create Co's current Debt-to-EBITDA of 0.94 is 61% below median its 10-year median of 2.44. The Restaurants industry median Debt-to-EBITDA is 2.96. Kappa Create Co's value of 0.94 is 68.2% below this industry median. Based on the distribution chart, Kappa Create Co ranks #222 out of 304 companies in the Restaurants industry, which is below the industry midpoint. Overall, Kappa Create Co has a GF Score™ of 60/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kappa Create Co's Debt-to-EBITDA compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Kappa Create Co ranks #222 out of 304 companies for Debt-to-EBITDA. This places Kappa Create Co in the lower half of its industry. The industry median Debt-to-EBITDA is 2.96. Kappa Create Co's value of 0.94 is 68.2% below this benchmark. While the company's 10-year median is 2.44 vs. the industry median of 2.96, Kappa Create Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Restaurants company?
The median Debt-to-EBITDA among Restaurants companies is 2.96, based on 304 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kappa Create Co's current Debt-to-EBITDA of 0.94 is 68.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Kappa Create Co. For the Restaurants industry, the median Debt-to-EBITDA is 2.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kappa Create Co's current Debt-to-EBITDA is 0.94, which is 61% below median its own 10-year median of 2.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kappa Create Co stock overvalued right now?
Based on GuruFocus' analysis, Kappa Create Co (TSE:7421) is currently considered Fairly Valued. The stock's GF Value™ is 円1,601.81, compared to a current price of 円1,618.00 — trading 1% above its estimated fair value. The current Debt-to-EBITDA is 0.94, which is 61% below median its 10-year median of 2.44 and 68.2% below the Restaurants industry median of 2.96. Kappa Create Co's overall GF Score™ is 60/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Kappa Create Co (TSE:7421), the current Debt-to-EBITDA is 0.94 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Kappa Create Co (TSE:7421) Overvalued in 2026?

Based on GuruFocus' analysis, Kappa Create Co stock appears to be overvalued. The current stock price of 円1,618.00 is trading 1% above its estimated GF Value™ of 円1,601.81. GuruFocus considers Kappa Create Co to be Fairly Valued.

Key valuation signals for TSE:7421:

  • Debt-to-EBITDA: 0.94 (61% below median its 10-year median of 2.44)
  • GF Value™: 円1,601.81 vs. price of 円1,618.00 (1% above fair value)
  • GF Score™: 60/100 with 3 warning signs
  • Industry Position: 68.2% below the Restaurants median (#222 of 304)

No single metric tells the full story. See the TSE:7421 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Kappa Create Co Business Description

Address 12th Floor, Landmark Tower, 2-2-1, Minato-Mirai, Nishi-ku, Kanagawaa Prefecture, Yokohama, JPN, 220-8112
Kappa Create Co Ltd operates Kappa-Sushi conveyer-belt-style sushi restaurants. Kappa-Sushi has several hundred locations throughout most regions of Japan, with its biggest regions being Chubu where it has almost a third of all Kappa restaurants and Kanto where roughly a quarter of all Kappa restaurants are located. Tohoku and Kinki collectively house roughly one third of the company's restaurants, and the remaining locations are in Chugoku and Kyushu. Besides Restaurant Management, other business lines for Kappa Create include Processing and Sale of Foodstuffs, Non-life Insurance, and Real Estate.
60GF Score

Get the complete analysis for TSE:7421

Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円1,618.00
Price
円1,601.81
GF Value