Net margin is calculated as Net Income divided by its Revenue. Kappa Create Co's Net Income for the
three
months ended in Mar. 2026 was 円-754 Mil. Kappa Create Co's Revenue for the
three
months ended in Mar. 2026 was 円18,180 Mil. Therefore, Kappa Create Co's net margin for the quarter that ended in Mar. 2026 was -4.15%.
The historical rank and industry rank for Kappa Create Co's Net Margin % or its related term are showing as below:
TSE:7421'
s Net Margin % Range Over the Past 10 Years
Min: -7.31 Med: -0.09 Max: 1.93
Current: -0.54
TSE:7421's Net Margin % is ranked worse than 67.67% of 365
companies
in the Restaurants industry
Industry Median: 2.12
vs TSE:7421: -0.54
Kappa Create Co (TSE:7421) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Kappa Create Co Net Margin % Related Terms
Kappa Create Co Net Margin % Historical Data
* Premium members only.
The historical data trend for Kappa Create Co's Net 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, CMG: Net Margin % Comparison
For the Restaurants subindustry, Kappa Create Co's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Kappa Create Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Kappa Create Co's Net 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.
Kappa Create Co (TSE:7421) has a Net Margin % of -4.15% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Kappa Create Co and its competitors. According to the industry distribution chart, Kappa Create Co ranks #247 out of 365 companies in the Restaurants industry, placing it in the top 67.7%.
Is Kappa Create Co's Net Margin % too high?
Kappa Create Co's current Net Margin % is -4.15%. Based on the distribution chart, Kappa Create Co ranks #247 out of 365 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 Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kappa Create Co's Net Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Kappa Create Co ranks #247 out of 365 companies for Net Margin %. This places Kappa Create Co in the lower half of its industry. The industry median Net Margin % is 2.12. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Restaurants company?
The median Net Margin % among Restaurants companies is 2.12, based on 365 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Kappa Create Co and its competitors. For the Restaurants industry, the median Net Margin % is 2.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kappa Create Co's current Net Margin % is -4.15%. 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 Modestly Undervalued. The stock's GF Value™ is 円1,597.50, compared to a current price of 円1,430.00 — trading 10.5% below its estimated fair value. The current Net Margin % is -4.15%. Kappa Create Co's overall GF Score™ is 60/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Kappa Create Co (TSE:7421), the current Net Margin % is -4.15% 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1,430.00 is trading 10.5% below its estimated GF Value™ of 円1,597.50.
GuruFocus considers Kappa Create Co to be Modestly Undervalued.
Key valuation signals for TSE:7421:
Net Margin %: -4.15%
GF Value™: 円1,597.50 vs. price of 円1,430.00 (10.5% below fair value)
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.
60GF Score
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