Kudan, Inc. (4425) AI Stock Analysis

• Market Cap: ¥12.13B
• Dividend Yield: N/A
• Average Volume (3M): 47.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: 36.08%
• EPS Growth: -7.71%
• Country: JP
• Employees: 38
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -8.80
• Shares Outstanding: 11,284,967
• 10 Day Avg. Volume: 56,010
• 30 Day Avg. Volume: 47,056
• PEG Ratio: -0.02
• Price to Book (P/B): 4.13
• Price to Sales (P/S): 25.01
• P/FCF Ratio: -14.83
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: ¥981.00 ▼(-3.44% Downside)

Kudan, Inc. faces significant financial challenges, with negative profitability and cash flow issues being the most critical factors. The technical indicators show a bearish trend, and valuation concerns persist due to ongoing losses. The strong equity position offers some stability, but operational improvements are necessary for long-term viability.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Kudan's AR solutions, suggesting a solid market position and potential for future expansion.

Strong Equity Position

A strong equity position provides financial stability and flexibility, allowing Kudan to invest in growth opportunities and weather economic uncertainties.

Market Reach through Partnerships

Collaborations with industry players expand Kudan's market presence and integration opportunities, supporting long-term revenue growth and innovation.

Negative Factors

Profitability Challenges

Ongoing profitability issues highlight operational inefficiencies, which can hinder long-term growth and require strategic adjustments to improve margins.

Negative Cash Flow

Negative cash flow reflects challenges in generating cash from operations, potentially limiting Kudan's ability to fund growth and sustain operations without external financing.

Reliance on External Financing

Dependence on external financing can be risky if market conditions change, potentially impacting Kudan's ability to sustain operations and invest in growth.

Kudan, Inc. Business Overview & Revenue Model

Company Description

Kudan Inc. engages in the development of computer software algorithms classified as artificial perception that are machine equivalent of human eyes primarily in Japan. The company provides visual-SLAM, lidar SLAM, processor optimization, sensor fusion, algorithm fusion, and connected processing solutions, as well as mapping for various use-cases. Kudan Inc. was incorporated in 2014 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kudan, Inc. generates revenue primarily through the licensing of its AR SDKs to developers and businesses in various industries, including gaming, automotive, and retail. The company's revenue model is based on a combination of one-time licensing fees and recurring revenue from subscription services that provide ongoing support and updates. Additionally, Kudan may earn revenue through strategic partnerships with hardware manufacturers and software developers, collaborating on projects that integrate their AR technology into new products. This ecosystem of partnerships enhances Kudan's market reach and contributes significantly to its overall 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	651.23M	517.55M	490.95M	332.77M	271.96M	127.86M
Gross Profit	355.62M	340.33M	439.00M	176.51M	124.65M	37.41M
EBITDA	-976.60M	-796.51M	-65.08M	-411.80M	-2.20B	-1.59B
Net Income	-981.96M	-801.72M	-69.92M	-413.57M	-2.24B	-1.61B
Balance Sheet
Total Assets	3.14B	3.41B	2.38B	1.01B	770.15M	1.54B
Cash, Cash Equivalents and Short-Term Investments	2.41B	2.63B	1.75B	885.04M	647.29M	1.23B
Total Debt	200.00M	200.00M	200.00M	200.00M	0.00	0.00
Total Liabilities	273.14M	280.04M	287.60M	248.29M	132.16M	81.88M
Stockholders Equity	2.87B	3.13B	2.09B	759.78M	637.99M	1.46B
Cash Flow
Free Cash Flow	0.00	-872.50M	-509.09M	-639.38M	-519.09M	-365.31M
Operating Cash Flow	0.00	-815.07M	-490.84M	-619.04M	-514.97M	-349.81M
Investing Cash Flow	0.00	-161.80M	-432.78M	-20.34M	-137.48M	-705.60M
Financing Cash Flow	0.00	1.85B	1.76B	870.09M	9.39M	1.78B

Kudan, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1016.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4425, the sentiment is Negative. The current price of 1016 is below the 20-day moving average (MA) of 1061.10, below the 50-day MA of 1031.10, and below the 200-day MA of 1150.05, indicating a bearish trend. The MACD of 0.98 indicates Positive momentum. The RSI at 46.65 is Neutral, neither overbought nor oversold. The STOCH value of 34.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4425.

Kudan, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4011	67 Neutral	¥11.16B	64.39	―	―	34.56%	4.59%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3905	57 Neutral	¥46.88B	-42.76	―	―	27.58%	-1.50%
4425	44 Neutral	¥12.13B	-12.35	―	―	36.08%	-7.71%
4382	43 Neutral	¥14.72B	-101.66	―	―	17.83%	87.36%
3823	40 Neutral	¥8.02B	-71.15	―	―	134.28%	94.74%

Kudan, Inc. Corporate Events

Kudan Inc. Revises Earnings Forecast Upward Amid Robotics Project Success

Kudan Inc. has revised its earnings forecast for the fiscal year ending March 2026, increasing its net sales projection from 700 million yen to between 920 and 1,020 million yen. This adjustment is driven by a national robotics project and increased sales in digital twin solutions, although operating losses are expected to improve slightly. The company anticipates further profitability improvements in the following fiscal year.

The most recent analyst rating on (JP:4425) stock is a Hold with a Yen972.00 price target. To see the full list of analyst forecasts on Kudan, Inc. stock, see the JP:4425 Stock Forecast page.

Kudan Inc. Receives UK Government R&D Subsidy

Kudan Inc. has received a subsidy from the UK government, amounting to GBP 242,356, which has been recorded as non-operating income for the second quarter of this year. This financial support is aimed at bolstering Kudan’s research and development efforts, potentially enhancing its market position and benefiting stakeholders by advancing its technological capabilities.

The most recent analyst rating on (JP:4425) stock is a Hold with a Yen972.00 price target. To see the full list of analyst forecasts on Kudan, Inc. stock, see the JP:4425 Stock Forecast page.

Kudan Inc. Unveils Advanced Digital Twin Solution ‘Kudan PRISM’

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

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

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

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.