Kudo Corporation (1764) AI Stock Analysis

• Market Cap: ¥3.48B
• Dividend Yield: 4.09%
• Average Volume (3M): 706.00
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.32
• Revenue Growth: 14.64%
• EPS Growth: 48.31%
• Country: JP
• Employees: 434
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): N/A
• Shares Outstanding: 1,331,220
• 10 Day Avg. Volume: 860
• 30 Day Avg. Volume: 706
• PEG Ratio: 0.04
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.15
• P/FCF Ratio: -1.33
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥3,413.00 ▲(17.29% Upside)
• Action: Reiterated Date: 09/11/25
• Date: Action: Reiterated 09/11/25

Kudo Corporation's overall stock score is driven by strong valuation metrics, including a low P/E ratio and high dividend yield, which suggest the stock may be undervalued. However, financial performance is mixed, with strong revenue growth offset by cash flow challenges and increasing leverage. Technical indicators point to bearish momentum, which could impact short-term performance.

Positive Factors

Revenue Growth

Sustained top-line expansion, including a very large recent year increase and multi-year growth, indicates the company can scale revenues and win contracts. This durable growth trajectory supports long-term cash generation potential and market share gains if managed sustainably.

Improved Capital Efficiency (ROE)

An improving ROE signals management is extracting more profit per unit of equity, a persistent sign of better capital allocation. Over months this supports reinvestment, strengthens investor confidence, and can compound returns without relying solely on external financing.

Low Market Volatility (Beta)

A low beta implies the business historically exhibits muted share-price swings, reflecting either stable cash flows or lower correlation with market cycles. That stability supports predictable financing costs and planning for multi‑month project execution in engineering and construction.

Negative Factors

Weak Cash Generation

Persistently negative operating and free cash flows create structural liquidity pressure, forcing reliance on external financing or asset sales. Over a 2–6 month horizon this undermines reinvestment, heightens refinancing risk, and can constrain working capital for project deliveries.

Rising Leverage

An uptick in total debt and fluctuating debt/equity diminish financial flexibility and raise interest burden risk. In a capital‑intensive sector, higher leverage increases vulnerability to rate shifts and limits ability to fund growth internally, making long‑term stability conditional on deleveraging.

Modest Operating Margins

Relatively low EBIT/EBITDA margins reduce the buffer against cost inflation and compress free cash flow potential. Without sustained operational improvement, margin pressure can reverse profit gains and prolong the timeline to convert revenue growth into durable cash profitability.

Kudo Corporation Business Overview & Revenue Model

Company Description

Kudo Corporation engages in the construction business in Japan. The company engages in the consultation, planning, construction, management, and repair of public and private sector projects. It is also involved in the contracting of architecture and civil engineering works; and renovation, real estate, custom built housing, building management, and nursing care business. The company was founded in 1966 and is headquartered in Yokohama, Japan.

How the Company Makes Money

null

Kudo Corporation Financial Statement Overview

Summary

Kudo Corporation shows strong revenue growth and improving profitability, but faces challenges with cash flow management and increasing leverage. While the income statement reflects positive trends, the balance sheet and cash flow statements highlight areas that require strategic attention to ensure long-term financial stability.

Income Statement

Kudo Corporation has demonstrated strong revenue growth, particularly in the most recent year with a significant increase of 353.21%. The gross profit and net profit margins have shown improvement over the years, indicating enhanced profitability. However, the EBIT and EBITDA margins are relatively modest, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio has been fluctuating, with a recent increase in total debt, which could pose a risk if not managed properly. The return on equity has improved, reflecting better utilization of equity. However, the equity ratio indicates a moderate level of financial leverage, which requires careful monitoring.

Cash Flow

Kudo Corporation's cash flow situation is concerning, with negative operating and free cash flows in the latest period. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, indicating potential liquidity challenges. The company needs to focus on improving cash generation from operations.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	22.50B	20.52B	19.58B	17.01B	19.80B
Gross Profit	3.15B	2.41B	2.33B	2.12B	2.54B
EBITDA	1.09B	710.41M	674.62M	628.33M	929.28M
Net Income	483.12M	206.76M	135.90M	121.06M	355.71M
Balance Sheet
Total Assets	17.08B	15.63B	14.66B	14.15B	13.60B
Cash, Cash Equivalents and Short-Term Investments	3.21B	4.42B	2.16B	1.74B	2.79B
Total Debt	5.54B	3.80B	4.30B	3.87B	3.40B
Total Liabilities	11.70B	10.80B	9.95B	9.47B	9.21B
Stockholders Equity	5.38B	4.83B	4.71B	4.68B	4.39B
Cash Flow
Free Cash Flow	-2.53B	3.01B	266.13M	-1.22B	1.66B
Operating Cash Flow	-2.13B	3.07B	294.00M	-1.10B	1.74B
Investing Cash Flow	-359.80M	-479.14M	-293.83M	110.03M	-190.06M
Financing Cash Flow	1.25B	-626.40M	245.30M	351.67M	-602.18M

Kudo Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2910.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1764, the sentiment is Neutral. The current price of 2910 is below the 20-day moving average (MA) of 3276.75, below the 50-day MA of 3130.38, and above the 200-day MA of 2837.14, indicating a neutral trend. The MACD of 3.94 indicates Positive momentum. The RSI at 46.73 is Neutral, neither overbought nor oversold. The STOCH value of 48.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1764.

Kudo Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1841	82 Outperform	¥5.69B	10.43	―	1.88%	-16.60%	-19.91%
1788	78 Outperform	¥3.17B	10.99	―	2.11%	21.66%	385.30%
1443	74 Outperform	¥4.79B	5.08	―	0.46%	0.58%	25.48%
4673	73 Outperform	¥3.47B	6.39	―	1.16%	29.12%	428.78%
7057	73 Outperform	¥3.16B	14.75	―	2.71%	5.85%	―
1764	66 Neutral	¥3.48B	5.72	―	4.09%	14.64%	48.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%