Kappa Create CoTSE:7421 +2.55%59 Gross Margin % is 51.00% as of Mar. 2026, which is 1% below its 10-year median of 51.54. GuruFocus rates TSE:7421 with a GF Score™ of 59/100 and a GF Value™ of 円1,598.07 (Fairly Valued). The stock has 2 warning signs investors should review. Among 353 Restaurants companies, Kappa Create Co ranks better than 59.21% on this metric.
The historical rank and industry rank for Kappa Create Co's Gross Margin % or its related term are showing as below:
TSE:7421'
s Gross Margin % Range Over the Past 10 Years
Min: 49.88 Med: 51.54 Max: 52.26
Current: 51.62
During the past 13 years, the highestGross Margin % of Kappa Create Co was 52.26%. The lowest was 49.88%. And the median was 51.54%.
TSE:7421's Gross Margin % is ranked better than 59.21% of 353
companies
in the Restaurants industry
Industry Median: 45.66
vs TSE:7421: 51.62
Kappa Create Co had a gross margin of 51.00% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Kappa Create Co was 0.50% per year.
Kappa Create Co (TSE:7421) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Kappa Create Co had a gross margin of 51.00% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Kappa Create Co Gross Margin % Related Terms
Kappa Create Co Gross Margin % Historical Data
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The historical data trend for Kappa Create Co's Gross Margin % 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.
TSE:7421 vs MCD, SBUX, YUM: Gross Margin % Comparison
For the Restaurants subindustry, Kappa Create Co's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Kappa Create Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kappa Create Co's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Kappa Create Co (TSE:7421) has a Gross Margin % of 51.00% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Kappa Create Co and its competitors. This is near median its historical median of 51.54. Over the past decade, Kappa Create Co's Gross Margin % has ranged from 49.88 to 52.26. According to the industry distribution chart, Kappa Create Co ranks #144 out of 353 companies in the Restaurants industry, placing it in the top 40.8%.
Is Kappa Create Co's Gross Margin % too high?
Kappa Create Co's current Gross Margin % of 51.00% is near median its 10-year median of 51.54. Over the past 10 years, this metric has ranged from a low of 49.88 to a high of 52.26. The Restaurants industry median Gross Margin % is 45.66. Kappa Create Co's value of 51.00% is 11.7% above this industry median. Based on the distribution chart, Kappa Create Co ranks #144 out of 353 companies in the Restaurants industry, which is above the industry midpoint. Overall, Kappa Create Co has a GF Score™ of 59/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kappa Create Co's Gross Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Kappa Create Co ranks #144 out of 353 companies for Gross Margin %. This puts Kappa Create Co in the upper half of its industry. The industry median Gross Margin % is 45.66. Kappa Create Co's value of 51.00% is 11.7% above this benchmark. Historically, Kappa Create Co's own Gross Margin % has ranged from 49.88 to 52.26 over the past decade. While the company's 10-year median is 51.54 vs. the industry median of 45.66, Kappa Create Co has consistently been above 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 Gross Margin % for a Restaurants company?
The median Gross Margin % among Restaurants companies is 45.66, based on 353 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kappa Create Co's current Gross Margin % of 51.00% is 11.7% above 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Kappa Create Co and its competitors. For the Restaurants industry, the median Gross Margin % is 45.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kappa Create Co's current Gross Margin % is 51.00%, which is near median its own 10-year median of 51.54. 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1,598.07, compared to a current price of 円1,529.00 — trading 4.3% below its estimated fair value. The current Gross Margin % is 51.00%, which is near median its 10-year median of 51.54 and 11.7% above the Restaurants industry median of 45.66. Kappa Create Co's overall GF Score™ is 59/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Kappa Create Co (TSE:7421), the current Gross Margin % is 51.00% 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 undervalued.
The current stock price of 円1,529.00 is trading 4.3% below its estimated GF Value™ of 円1,598.07.
GuruFocus considers Kappa Create Co to be Fairly Valued.
Key valuation signals for TSE:7421:
Gross Margin %: 51.00% (near median its 10-year median of 51.54)
GF Value™: 円1,598.07 vs. price of 円1,529.00 (4.3% below fair value)
Industry Position: 11.7% above the Restaurants median (#144 of 353)
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 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.
59GF Score
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