KARADANOTE INC. (4014) AI Stock Analysis

• Market Cap: ¥2.83B
• Dividend Yield: N/A
• Average Volume (3M): 13.65K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.91
• Revenue Growth: -51.54%
• EPS Growth: -111.68%
• Country: JP
• Employees: 45
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 8.14
• Shares Outstanding: 6,697,900
• 10 Day Avg. Volume: 6,780
• 30 Day Avg. Volume: 13,653
• PEG Ratio: 0.28
• Price to Book (P/B): 6.40
• Price to Sales (P/S): 2.42
• P/FCF Ratio: -26.51
• 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: 45 Neutral
• Price Target: ¥450.00 ▼(-6.25% Downside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is primarily weighed down by weak financial performance (declining revenue, negative profitability, and negative operating/free cash flow). Technical signals are also soft with negative MACD and low RSI, while valuation is only neutral with a mid-20s P/E and no dividend yield data to offset risk.

Positive Factors

Recurring revenue & partnerships

A subscription model plus partnerships with providers and insurers creates recurring revenue and diversified distribution. This promotes predictable cash inflows, higher customer lifetime value, and deeper integration with institutional payers—supporting steadier growth and retention over months.

Improved leverage (debt-to-equity 0.42)

Lower leverage reduces refinancing risk and raises financial flexibility while the business repairs profitability. With debt-to-equity at 0.42 the company has more headroom to fund product development or partnerships without immediate stress from interest obligations, aiding medium-term stability.

Strategic digital-health product mix

A diversified product suite across apps, wearables and personalized services positions the firm to capture multiple revenue streams and cross-sell. Structural demand for digital health and data-driven care gives a durable addressable market and opportunities for ecosystem locking and analytics monetization.

Negative Factors

Declining revenue & negative margins

A sharp revenue decline combined with negative EBIT and net margins signals the core business is contracting and not currently profitable. Over the medium term this limits reinvestment, strains partner relationships, and requires either operational improvement or new revenue drivers to restore sustainable growth.

Negative operating & free cash flow

Persistent negative operating and free cash flows indicate the company is burning cash to run the business. This necessitates external financing or cost reductions, which can dilute shareholders or constrain product and go-to-market investment, limiting the firm's ability to execute strategy over months.

Negative return on equity

A negative ROE despite a stable equity base points to poor capital efficiency and an inability to convert assets into profitable returns. Over a 2-6 month horizon this undermines investor confidence and may restrict access to favorable financing while the company works to improve margins and growth.

KARADANOTE INC. Business Overview & Revenue Model

Company Description

Karadanote Inc. plans and develops applications related to pregnancy, childbirth, and childcare for medication and health management. It also provides media planning and management services; and insurance agency services. The company was incorporated in 2008 and is headquartered in Tokyo, Japan.

How the Company Makes Money

KARADANOTE INC. generates revenue through multiple streams, including subscription services for its health monitoring applications, direct sales of wearable fitness devices, and partnerships with healthcare providers and insurance companies. The subscription model allows users to access premium features and personalized health insights for a recurring fee. Additionally, the company collaborates with health organizations to offer tailored wellness programs, which provides another significant source of income. Advertising partnerships and data analytics services also contribute to its overall earnings by leveraging anonymized user data to provide insights for health-related research and marketing initiatives.

KARADANOTE INC. Financial Statement Overview

Summary

Financials are weak: revenue declined sharply (-16.16% YoY), profitability is negative (negative net profit and EBIT margins), and operating/free cash flow are negative. Lower leverage (debt-to-equity 0.42) is a partial offset, but negative ROE and cash burn keep the score low.

Income Statement

KARADANOTE INC. has experienced a significant decline in revenue, with a negative growth rate of -16.16% in the most recent year. The company is facing challenges in maintaining profitability, as indicated by negative net profit and EBIT margins. The gross profit margin has also decreased compared to previous years, reflecting potential issues in cost management or pricing strategy.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.42, indicating a reduction in leverage compared to previous years. However, the return on equity remains negative, suggesting that the company is not generating sufficient returns on shareholder investments. The equity ratio is stable, but the negative ROE is a concern for long-term financial health.

Cash Flow

KARADANOTE INC. is experiencing negative operating and free cash flows, which raises concerns about its ability to sustain operations without external financing. The free cash flow to net income ratio is slightly above 1, indicating that the company is generating cash flow relative to its net losses, but the overall cash flow situation remains weak.

Breakdown	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	1.27B	2.19B	2.06B	1.31B	1.00B
Gross Profit	619.00M	1.48B	1.52B	916.51M	760.43M
EBITDA	-51.91M	102.11M	-370.80M	-312.56M	214.28M
Net Income	-69.00M	114.89M	-372.46M	-271.73M	139.05M
Balance Sheet
Total Assets	768.60M	1.23B	1.09B	1.48B	1.14B
Cash, Cash Equivalents and Short-Term Investments	596.08M	483.48M	686.65M	1.04B	964.94M
Total Debt	200.00M	300.00M	400.00M	500.00M	0.00
Total Liabilities	288.14M	875.75M	866.14M	906.04M	170.99M
Stockholders Equity	480.45M	352.65M	221.58M	573.81M	967.85M
Cash Flow
Free Cash Flow	-116.00M	-110.37M	-258.22M	-349.08M	163.79M
Operating Cash Flow	-115.00M	-107.37M	-255.41M	-346.91M	185.22M
Investing Cash Flow	143.00M	-3.00M	-2.81M	-3.79M	-32.34M
Financing Cash Flow	84.63M	-92.80M	-93.45M	424.09M	497.06M

KARADANOTE INC. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 480.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4014, the sentiment is Negative. The current price of 480 is above the 20-day moving average (MA) of 443.20, above the 50-day MA of 450.80, and above the 200-day MA of 473.74, indicating a bearish trend. The MACD of -3.99 indicates Negative momentum. The RSI at 45.96 is Neutral, neither overbought nor oversold. The STOCH value of 65.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4014.

KARADANOTE INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5038	72 Outperform	¥29.68B	36.54	―	0.47%	31.05%	46.12%
4397	68 Neutral	¥6.79B	27.15	―	―	11.32%	―
5033	66 Neutral	¥4.86B	21.99	―	―	7.60%	19.13%
5588	63 Neutral	¥7.87B	54.21	―	0.12%	37.21%	129.72%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4074	59 Neutral	¥5.10B	-26.75	―	―	-3.20%	-39.38%
4014	45 Neutral	¥2.83B	13.84	―	―	-51.54%	-111.68%