Kudan, Inc. (4425) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

jig.jp Co., Ltd.

UNIRITA, Inc.

Kudan, Inc.

Wantedly, Inc.

Ubicom Holdings, Inc.

Gunosy, Inc.

eSOL Co., Ltd.

Headwaters Co. Ltd.

yappli, inc.

Veltra Corp. (Japan)

ENIGMO, Inc.

Why is Kudan, Inc. ?

Poor Management Efficiency with a low ROE of 0.69%

The company has been able to generate a Return on Equity (avg) of 0.69% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 2.55% and Operating profit at -343.36% over the last 5 years

With a growth in Operating Profit of 259.71%, the company declared Outstanding results in Dec 25

RAW MATERIAL COST(Y) Fallen by 0.38% (YoY)
NET SALES(Q) Highest at JPY 318.47 MM
OPERATING PROFIT(Q) Highest at JPY -106.52 MM

Risky - Negative EBITDA

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 57.78%, its profits have fallen by -1451.3%

Market Beating Performance

The stock has generated a return of 57.78% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kudan, Inc. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Kudan, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kudan, Inc.

57.78%

-0.31

65.95%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.55%

EBIT Growth (5y)

-343.36%

EBIT to Interest (avg)

-206.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.78

Sales to Capital Employed (avg)

0.23

Tax Ratio

3.54%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

0.69%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

4.33

EV to EBIT

-13.92

EV to EBITDA

-13.92

EV to Capital Employed

15.83

EV to Sales

21.54

PEG Ratio

Dividend Yield

ROCE (Latest)

-113.68%

ROE (Latest)

-23.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

33What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.38% (YoY

NET SALES(Q)

Highest at JPY 318.47 MM

OPERATING PROFIT(Q)

Highest at JPY -106.52 MM

OPERATING PROFIT MARGIN(Q)

Highest at -33.45 %

PRE-TAX PROFIT(Q)

Highest at JPY 145.47 MM

NET PROFIT(Q)

Highest at JPY 101.35 MM

EPS(Q)

Highest at JPY 8.96

-7What is not working for the Company

INTEREST(HY)

At JPY 2.41 MM has Grown at 13.27%

DEBT-EQUITY RATIO (HY)

Highest at -74.12 %

Here's what is working for Kudan, Inc.

Net Sales

At JPY 318.47 MM has Grown at 211.9%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 145.47 MM has Grown at 266.22%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 101.35 MM has Grown at 155.63%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 318.47 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY -106.52 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at -33.45 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 145.47 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 101.35 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 8.96

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by 0.38% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Kudan, Inc.

Interest

At JPY 2.41 MM has Grown at 13.27%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -74.12 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio