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Kudan, Inc. (JP:4425)
:4425
Japanese Market
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Kudan, Inc. (4425) AI Stock Analysis

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JP:4425

Kudan, Inc.

(4425)

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Neutral 45 (OpenAI - 4o)
Rating:45Neutral
Price Target:
¥1,092.00
▲(7.37% Upside)
The overall stock score reflects significant challenges in financial performance, particularly in profitability and cash flow management. Technical analysis suggests a neutral trend with some potential for upward movement. Valuation concerns persist due to negative earnings and lack of dividend yield. The absence of earnings call insights and corporate events means these factors do not influence the score.

Kudan, Inc. (4425) vs. iShares MSCI Japan ETF (EWJ)

Kudan, Inc. Business Overview & Revenue Model

Company DescriptionKudan, Inc. is a company specializing in the development and implementation of artificial perception technologies, particularly focusing on computer vision and related software solutions. The company operates within the technology sector, providing innovative products and services that enhance the capabilities of machines and devices in processing visual information.
How the Company Makes MoneyKudan, Inc. generates revenue primarily through licensing its proprietary software solutions to enterprises and organizations across various industries. The company offers software development kits (SDKs) and platforms that enable businesses to integrate advanced computer vision capabilities into their products and services. Key revenue streams include licensing fees, subscription models for ongoing software access, and potentially custom development services for tailored solutions. Kudan may also engage in strategic partnerships with technology firms and hardware manufacturers to broaden the application and adoption of its technology, thus contributing to its earnings.

Kudan, Inc. Financial Statement Overview

Summary
Kudan, Inc. demonstrates revenue growth potential but faces significant challenges in achieving profitability and positive cash flows. The strong equity position provides some buffer, yet operational inefficiencies and reliance on external financing highlight areas of concern. Long-term sustainability depends on improving operational effectiveness and managing cash flow better.
Income Statement
35
Negative
Kudan, Inc. shows consistent revenue growth, with a 5.41% increase from 2024 to 2025. However, profitability remains a significant concern. The gross profit margin decreased, and the company has negative net profit and EBIT margins, indicating ongoing operational challenges. The net loss has widened compared to the previous year.
Balance Sheet
45
Neutral
The company maintains a strong equity position with a high equity ratio, indicating financial stability. However, its debt-to-equity ratio is modest, but the consistent negative net income raises concerns about long-term financial health. Despite having substantial cash reserves, the persistent losses might erode equity if not addressed.
Cash Flow
30
Negative
Operating cash flow is negative and worsening, indicating poor cash conversion from operations. The free cash flow situation is also deteriorating, reflecting a need for the company to improve its cash-generating capabilities. The reliance on financing activities to fund operations poses a risk if external funding becomes less accessible.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue517.55M517.55M490.95M332.77M271.96M127.86M
Gross Profit340.33M340.33M439.00M176.51M124.65M37.41M
EBITDA-796.51M-796.51M-65.08M-411.80M-2.20B-1.59B
Net Income-801.72M-801.72M-69.92M-413.57M-2.24B-1.61B
Balance Sheet
Total Assets3.41B3.41B2.38B1.01B770.15M1.54B
Cash, Cash Equivalents and Short-Term Investments2.63B2.63B1.75B885.04M647.29M1.23B
Total Debt200.00M200.00M200.00M200.00M0.000.00
Total Liabilities280.04M280.04M287.60M248.29M132.16M81.88M
Stockholders Equity3.13B3.13B2.09B759.78M637.99M1.46B
Cash Flow
Free Cash Flow0.00-872.50M-509.09M-639.38M-519.09M-365.31M
Operating Cash Flow0.00-815.07M-490.84M-619.04M-514.97M-349.81M
Investing Cash Flow0.00-161.80M-432.78M-20.34M-137.48M-705.60M
Financing Cash Flow0.001.85B1.76B870.09M9.39M1.78B

Kudan, Inc. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1017.00
Price Trends
50DMA
1076.50
Negative
100DMA
1117.30
Negative
200DMA
1211.48
Negative
Market Momentum
MACD
-10.57
Negative
RSI
47.61
Neutral
STOCH
73.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4425, the sentiment is Neutral. The current price of 1017 is below the 20-day moving average (MA) of 1031.55, below the 50-day MA of 1076.50, and below the 200-day MA of 1211.48, indicating a neutral trend. The MACD of -10.57 indicates Negative momentum. The RSI at 47.61 is Neutral, neither overbought nor oversold. The STOCH value of 73.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4425.

Kudan, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
14.67B122.9328.99%-16.50%
54
Neutral
63.88B-58.27-27.47%32.51%40.51%
53
Neutral
16.67B-115.11-3.83%17.83%87.36%
45
Neutral
¥11.72B38.13%-281.13%
40
Neutral
7.62B-7.58-126.53%99.79%7.36%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4425
Kudan, Inc.
1,017.00
-672.00
-39.79%
JP:3823
WHY HOW DO COMPANY,Inc.
67.00
37.00
123.33%
JP:3905
Datasection, Inc.
3,045.00
1,653.00
118.75%
JP:4011
Headwaters Co., Ltd.
3,780.00
-1,445.00
-27.66%
JP:4382
HEROZ, Inc.
1,110.00
21.00
1.93%

Kudan, Inc. Corporate Events

Kudan Inc. Unveils Advanced Digital Twin Solution ‘Kudan PRISM’
Aug 14, 2025

Kudan Inc. has launched Kudan PRISM, a next-generation digital twin solution that integrates photo-realistic 3D technology with spatial intelligence to enhance asset and space management. This innovation addresses challenges in the digital twin market, such as data handling and system integration, by offering a scalable, user-friendly platform that improves operational efficiency, cost savings, and equipment uptime, while also enhancing risk management and ESG performance.

Kudan, Inc. Reports 400% Revenue Growth in Q1 FY2026
Aug 14, 2025

Kudan, Inc. reported a significant 400% year-over-year increase in revenue for the first quarter of the fiscal year ending March 2026, driven by its growth strategies in software and hardware technologies. The company is making notable progress in expanding its technology domains, particularly in digital twin and robotics applications, with strong support from government-led projects, positioning itself as a leader in the development of autonomous mobile robots.

Kudan Inc. Reports Foreign Exchange Gains in Q1
Aug 14, 2025

Kudan Inc. has reported non-operating income for the first quarter of the fiscal year ending March 31, 2026, due to foreign exchange gains amounting to 15 million yen. This financial development is reflected in the company’s consolidated financial results for the three months ended June 30, 2025, indicating a positive impact on its earnings.

Kudan Inc. Sees Surge in Sales Amidst Profitability Challenges
Aug 14, 2025

Kudan Inc. reported a significant increase in net sales for the three months ended June 30, 2025, with a 382.9% rise compared to the same period in the previous year. Despite this growth in sales, the company faced operating and ordinary losses, reflecting ongoing challenges in achieving profitability. The financial position showed a slight decrease in total assets and net assets, with an equity ratio remaining strong at over 91%. The company maintained its dividend forecast at zero, indicating a focus on reinvestment or financial restructuring. Stakeholders should note the company’s strategic emphasis on long-term growth in the competitive technology market.

Kudan Inc. Joins NEDO Project to Advance Robotics in Construction
Aug 4, 2025

Kudan Inc. has been selected for a NEDO project to develop a software platform for robotics in the construction industry, addressing labor shortages and safety concerns. The project aims to create a general-purpose autonomous navigation technology adaptable to various industries, leveraging post-5G networks for enhanced performance and scalability.

Kudan Inc. Announces Director Elections and Reaffirms Governance Structure
Jun 27, 2025

Kudan Inc. announced the election of its Directors at the Annual General Shareholders Meeting, with no changes in the titles of the key figures, including the CEO and COO. The company emphasizes its governance structure, which supports sustainable corporate growth through strategic oversight by its Managing Directors.

Kudan Inc. Proposes Financial Adjustments and Board Restructuring
May 26, 2025

Kudan Inc. has announced a proposal for the appropriation of surplus funds and changes in its board of directors, to be discussed at the upcoming Annual General Shareholders Meeting. The company plans to transfer JPY 808,217,884 from other capital surplus to retained earnings to improve financial flexibility without affecting net assets or business performance. Additionally, Kudan is restructuring its board by maintaining current director roles while reducing the number of Audit and Supervisory Committee Members, reflecting its confidence in the existing audit effectiveness.

Kudan Inc. Aims for Growth in Advanced Robotics Market
May 19, 2025

Kudan Inc. has released the transcript of its financial report presentation for institutional investors and analysts, highlighting its strategic shift to reduce market dependence risk and improve financial predictability. The company anticipates growth in the robotics market that demands advanced technology, and plans to enhance its earnings structure by reducing fixed costs and optimizing its organization.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025