Kappa Create CoTSE:7421 +0.13%59 Interest Coverage is 2.19 as of Mar. 2026, which is 71% below its 10-year median of 7.62. GuruFocus rates TSE:7421 with a GF Score™ of 59/100 and a GF Value™ of 円1,597.95 (Fairly Valued). The stock has 2 warning signs investors should review. Among 260 Restaurants companies, Kappa Create Co ranks worse than 71.54% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Kappa Create Co's
Operating Income
for the
three
months ended in Mar. 2026 was 円92 Mil. Kappa Create Co's Interest Expense for the
three
months ended in Mar. 2026 was 円-42 Mil.
Kappa Create Co's interest coverage for the quarter that ended in Mar. 2026 was 2.19.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Kappa Create Co's Interest Coverage or its related term are showing as below:
TSE:7421'
s Interest Coverage Range Over the Past 10 Years
Min: 2.68 Med: 7.62 Max: 15.6
Current: 2.68
TSE:7421's Interest Coverage is ranked worse than 71.54% of 260
companies
in the Restaurants industry
Industry Median: 6.45
vs TSE:7421: 2.68
Kappa Create Co (TSE:7421) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Kappa Create Co Interest Coverage Related Terms
Kappa Create Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Kappa Create Co's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
TSE:7421 vs MCD, SBUX, YUM: Interest Coverage Comparison
For the Restaurants subindustry, Kappa Create Co's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Kappa Create Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Kappa Create Co's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (TSE:7421) has a Interest Coverage of 2.19 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Kappa Create Co and its competitors. This is 71% below median its historical median of 7.62. Over the past decade, Kappa Create Co's Interest Coverage has ranged from 2.68 to 15.60. According to the industry distribution chart, Kappa Create Co ranks #186 out of 260 companies in the Restaurants industry, placing it in the top 71.5%.
Is Kappa Create Co's Interest Coverage too high?
Kappa Create Co's current Interest Coverage of 2.19 is 71% below median its 10-year median of 7.62. Over the past 10 years, this metric has ranged from a low of 2.68 to a high of 15.60. The Restaurants industry median Interest Coverage is 6.45. Kappa Create Co's value of 2.19 is 66% below this industry median. Based on the distribution chart, Kappa Create Co ranks #186 out of 260 companies in the Restaurants industry, which is below 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 Interest Coverage compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Kappa Create Co ranks #186 out of 260 companies for Interest Coverage. This places Kappa Create Co in the lower half of its industry. The industry median Interest Coverage is 6.45. Kappa Create Co's value of 2.19 is 66% below this benchmark. Historically, Kappa Create Co's own Interest Coverage has ranged from 2.68 to 15.60 over the past decade. While the company's 10-year median is 7.62 vs. the industry median of 6.45, 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 Interest Coverage for a Restaurants company?
The median Interest Coverage among Restaurants companies is 6.45, based on 260 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kappa Create Co's current Interest Coverage of 2.19 is 66% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Kappa Create Co and its competitors. For the Restaurants industry, the median Interest Coverage is 6.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kappa Create Co's current Interest Coverage is 2.19, which is 71% below median its own 10-year median of 7.62. 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1,597.95, compared to a current price of 円1,491.00 — trading 6.7% below its estimated fair value. The current Interest Coverage is 2.19, which is 71% below median its 10-year median of 7.62 and 66% below the Restaurants industry median of 6.45. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Kappa Create Co (TSE:7421), the current Interest Coverage is 2.19 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1,491.00 is trading 6.7% below its estimated GF Value™ of 円1,597.95.
GuruFocus considers Kappa Create Co to be Fairly Valued.
Key valuation signals for TSE:7421:
Interest Coverage: 2.19 (71% below median its 10-year median of 7.62)
GF Value™: 円1,597.95 vs. price of 円1,491.00 (6.7% below fair value)
Industry Position: 66% below the Restaurants median (#186 of 260)
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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