Kudan, Inc. (4425) AI Stock Analysis

• Market Cap: ¥12.84B
• Dividend Yield: N/A
• Average Volume (3M): 47.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.21
• 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: 54 Neutral
• Price Target: ¥1,382.00 ▲(19.97% Upside)

The overall score reflects strong technical momentum, which is offset by significant financial performance challenges and poor valuation metrics. The company's ability to sustain its stock price depends on improving profitability and cash flow.

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. (4425) is a forward-thinking technology company based in Japan that specializes in the development of advanced augmented reality (AR) and computer vision solutions. The company focuses on sectors such as mobile applications, automotive, and robotics, providing innovative software solutions that enhance visual experiences through real-time data integration. Kudan's core products include its AR SDKs (Software Development Kits) that enable developers to create immersive applications across various platforms, leveraging its proprietary computer vision technology.

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: Positive
• Last Price: 1152.00
• 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:4425, the sentiment is Positive. The current price of 1152 is below the 20-day moving average (MA) of 1199.75, above the 50-day MA of 1100.54, and above the 200-day MA of 1130.35, indicating a neutral trend. The MACD of 17.25 indicates Positive momentum. The RSI at 52.57 is Neutral, neither overbought nor oversold. The STOCH value of 25.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥10.40B	60.60	―	―	34.56%	4.59%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3905	57 Neutral	¥48.08B	-21.83	―	―	27.58%	-1.50%
4425	54 Neutral	¥12.84B	-22.50	―	―	36.08%	-7.71%
3823	43 Neutral	¥6.05B	-58.71	―	―	134.28%	94.74%
4382	43 Neutral	¥12.62B	-172.24	―	―	16.29%	93.98%

Kudan, Inc. Corporate Events

Kudan Inc. Projects Reduced Year-End Losses and Improved Profitability

Kudan Inc. announced that its financial report presentation for institutional investors and analysts is now available online. The company expects a significant reduction in year-end losses due to profitability improvement measures and revised cost-reduction plans. Kudan does not foresee the need for additional financing and plans to achieve profitability without raising extra capital. The company is also reviewing its timeline for operating profitability and will disclose further details once finalized.

Kudan Inc. Reports Strong Q2 Revenue Growth and Upward Forecast Revision

Kudan Inc. has reported a robust 170% increase in net revenue for the second quarter of the fiscal year ending March 2026, reaching 400 million yen. The company’s strategic focus on expanding software technology and leveraging hardware packages has driven this growth, leading to an upward revision of full-year earnings forecasts. This expansion has particularly benefited Kudan’s Digital Twin and Robotics sectors, enhancing its market position.

Kudan Inc. Reports Significant Foreign Exchange Gains in Q2

Kudan Inc. has reported a significant foreign exchange gain of 79 million yen for the second quarter of the fiscal year ending March 31, 2026, attributed to changes in the Pound, Euro, and Dollar exchange rates. This gain, which follows a smaller gain of 15 million yen in the first quarter, is reflected in the company’s consolidated financial results for the six months ended September 30, 2025, highlighting its impact on Kudan’s financial performance.

Kudan Inc. Reports Increased Sales but Continued Losses in H1 2025

Kudan Inc. reported its consolidated financial results for the six months ending September 30, 2025, showing a significant increase in net sales by 170.2% compared to the previous year, reaching 400 million yen. Despite the rise in sales, the company experienced operating and ordinary losses, with a profit attributable to owners of the parent at a negative 329 million yen. The financial position showed a decrease in total assets and net assets, with an equity ratio of 89.4%. The company has maintained a zero-dividend policy and forecasts continued losses for the fiscal year ending March 31, 2026, reflecting ongoing challenges in achieving profitability.

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.

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.