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

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Kudan, Inc.

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Veltra Corp. (Japan)

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

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -206.00

Poor long term growth as Net Sales has grown by an annual rate of 27.20% and Operating profit at -198.23% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -206.00
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 27.20% and Operating profit at -198.23% over the last 5 years

With a growth in Net Sales of 78.92%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
INVENTORY TURNOVER RATIO(HY) Highest at 17.14 times
NET SALES(Q) Highest at JPY 478.17 MM
OPERATING PROFIT(Q) Highest at JPY -63.17 MM

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.

49.69%

-0.41

76.23%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

27.20%

EBIT Growth (5y)

-198.23%

EBIT to Interest (avg)

-214.08

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.78

Sales to Capital Employed (avg)

0.25

Tax Ratio

0.54%

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

8.03

EV to EBIT

-29.69

EV to EBITDA

-29.70

EV to Capital Employed

28.17

EV to Sales

19.14

PEG Ratio

Dividend Yield

ROCE (Latest)

-94.86%

ROE (Latest)

-18.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

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

31What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 17.14 times

NET SALES(Q)

Highest at JPY 478.17 MM

OPERATING PROFIT(Q)

Highest at JPY -63.17 MM

OPERATING PROFIT MARGIN(Q)

Highest at -13.21 %

PRE-TAX PROFIT(Q)

At JPY -32.76 MM has Grown at 87.55%

NET PROFIT(Q)

At JPY 51.81 MM has Grown at 119.64%

-8What is not working for the Company

INTEREST(HY)

At JPY 2.43 MM has Grown at 13.48%

RAW MATERIAL COST(Y)

Grown by 59.61% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -67.67 %

Here's what is working for Kudan, Inc.

Net Sales

At JPY 478.17 MM has Grown at 78.92%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (JPY MM)

Net Sales

Highest at JPY 478.17 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY -63.17 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at -13.21 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At JPY -32.76 MM has Grown at 87.55%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 51.81 MM has Grown at 119.64%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 17.14 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

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

Interest

At JPY 2.43 MM has Grown at 13.48%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -67.67 %

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

Raw Material Cost

Grown by 59.61% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales