Kudelski S.A.

KUD.SW

Software - Application · Technology

Also trades as: 0QNQ.L

Price

CHF 1.25

+0.04 (+3.32%)

Market Cap

CHF 64.2M

Exchange

SIX Swiss Exchange

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 10, 2026 · filings through Dec 31, 2025

Share count rising — dilution

+1.4% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 55.3M (2021) → 56.1M (2025)

Kudelski S.A. is a Swiss technology company best known for building security systems that protect digital content. Its main products include conditional access systems, which control who can watch pay-TV channels, and cybersecurity services for businesses and governments. The company also makes smart cards and software used by broadcasters, telecom operators, and media companies around the world.

Kudelski earns money by selling hardware like set-top box chips and smart cards, licensing its security technology, and providing ongoing cybersecurity services to corporate clients. It operates globally, with a strong presence in Europe and North America, and generates roughly $800 million in annual revenue. The company's long-standing patents and deep relationships with major pay-TV operators have historically been its competitive edge, but the steady decline of traditional pay-TV is a serious risk, and the company's negative operating margin shows it is currently spending more than it earns while trying to shift toward cybersecurity growth.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+2.0% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-117.9% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$110M/ year

↑ Rising (+866% vs prior year)

28.6% of revenue

1.9x the sector average (15%)

Investing heavily in future products and technology

Insider Activity

24.0%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$171M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Heavy R&D investment

Kudelski S.A. is putting 29% of revenue into R&D and that number is rising. That's 1.9x the sector average. And they're generating enough cash to self-fund it.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

17.8%

Thin — 17.8% gross margin

Operating Margin

-1.4%

Losing money on operations — -1.4%

ROCE

-0.7%

Weak — -0.7% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

-4.0%

Shrinking sales (-4.0% YoY)

EPS YoY

-472.7%

Earnings shrinking (-472.7% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

-4.0%

Burning cash (-4.0%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

0.24

Conservative — low debt load (0.24)

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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