Kudo Corporation (1764) AI Stock Analysis

• Market Cap: ¥3.77B
• Dividend Yield: 4.09%
• Average Volume (3M): 706.00
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.30
• 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: ¥3,564.00 ▲(22.47% 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

A very large recent revenue increase indicates meaningful demand or contract wins that can expand scale and market share. Sustained top-line growth over quarters supports investment capacity, spreads fixed costs, and creates a foundation for longer-term margin and earnings improvement if execution continues.

Improving Profitability

Rising gross and net margins alongside improved ROE point to better pricing, cost control, and capital efficiency. These durable profitability gains enhance the company’s ability to self-fund initiatives and buffer competitive pressure, improving long-term resilience if margin trends persist.

Low Equity Volatility

A low beta suggests the business and earnings are less sensitive to market swings, implying steadier operational performance or defensive revenue streams. For strategic planning and financing, lower volatility supports predictable cash needs and reduces the cost of managing market-driven risk over the medium term.

Negative Factors

Weak Cash Flow Generation

Persistently negative operating and free cash flows constrain the company’s ability to fund capex, pay down debt, or return capital without external financing. Over months this undermines financial flexibility, increases reliance on borrowing, and can force trade-offs between growth investments and balance sheet repair.

Rising Leverage

An uptick in total debt raises interest and refinancing obligations and reduces slack to absorb shocks. With cash generation weak, rising leverage elevates solvency and refinancing risk, constraining strategic options and increasing vulnerability to higher funding costs over the coming quarters.

Modest Operating Margins

Relatively low EBIT/EBITDA margins limit conversion of revenue into free cash flow and reduce buffer against cost inflation or pricing pressure. Sustaining growth without margin expansion will strain cash conversion and make the business more dependent on revenue volume rather than durable profitability improvements.

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

Kudo Corporation generates revenue through the manufacturing and sale of industrial machinery and electronic components. The company's key revenue streams include direct sales of machinery and equipment to industrial clients, as well as long-term supply contracts with major corporations in the automotive and aerospace sectors. Additionally, Kudo Corporation benefits from strategic partnerships with technology firms to co-develop and market advanced electronic components. The company also invests in research and development to innovate its product line and expand its market share, contributing significantly to its overall earnings.

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	16.97B	15.53B	14.66B	14.09B	13.56B
Cash, Cash Equivalents and Short-Term Investments	3.21B	4.42B	2.16B	1.74B	2.79B
Total Debt	5.54B	3.80B	6.78B	6.19B	5.42B
Total Liabilities	11.59B	10.67B	9.95B	9.42B	9.17B
Stockholders Equity	5.38B	4.86B	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: Positive
• 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 Positive. The current price of 2910 is below the 20-day moving average (MA) of 3244.80, below the 50-day MA of 3054.52, and above the 200-day MA of 2813.69, indicating a bullish trend. The MACD of 96.19 indicates Positive momentum. The RSI at 61.61 is Neutral, neither overbought nor oversold. The STOCH value of 32.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	10.02	―	1.88%	-16.60%	-19.91%
1788	78 Outperform	¥3.29B	10.44	―	2.11%	21.66%	385.30%
1443	74 Outperform	¥5.23B	8.51	―	0.46%	0.58%	25.48%
4673	73 Outperform	¥3.90B	6.35	―	1.16%	29.12%	428.78%
7057	73 Outperform	¥3.50B	25.10	―	2.71%	5.85%	―
1764	66 Neutral	¥3.77B	6.95	―	4.09%	14.64%	48.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%