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Nihon M&A Center Inc. (JP:2127)
:2127
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Nihon M&A Center (2127) AI Stock Analysis

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JP:2127

Nihon M&A Center

(OTC:2127)

Rating:77Outperform
Price Target:
¥797.00
▲(10.80%Upside)
Nihon M&A Center scores well due to strong financial performance and positive technical indicators suggesting robust market momentum. The company's valuation is fair with an attractive dividend yield. The absence of specific earnings call data or notable corporate events keeps the focus on the company's strong fundamentals and technical strength.

Nihon M&A Center (2127) vs. iShares MSCI Japan ETF (EWJ)

Nihon M&A Center Business Overview & Revenue Model

Company DescriptionNihon M&A Center Inc. is a leading Japanese firm specializing in mergers and acquisitions (M&A) advisory services. The company primarily operates within the financial services sector, offering consultancy services for corporate mergers, acquisitions, business succession, and revitalization. With a strong focus on small and medium-sized enterprises (SMEs), Nihon M&A Center plays a pivotal role in facilitating successful business transitions, leveraging its extensive network and expertise to deliver tailored solutions for clients.
How the Company Makes MoneyNihon M&A Center generates revenue primarily through advisory fees charged for its M&A services. These fees are typically based on the transaction value and complexity of each deal. The company earns income by guiding clients through the entire M&A process, from initial strategy formulation and target identification to negotiation and deal closure. Nihon M&A Center also benefits from a vast network of industry professionals and partnerships, which enhance its ability to connect buyers and sellers, thus increasing transaction volumes and advisory opportunities. Additionally, the company may receive success fees contingent on the successful completion of transactions, further contributing to its revenue streams.

Nihon M&A Center Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q3-2024)
|
% Change Since: 22.66%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in transactions, revenue, and profit margins, while also noting areas needing improvement such as direct sales and consultant turnover. The company's financial stability and strategic initiatives for expansion and employee development reflect a positive outlook overall.
Q3-2024 Updates
Positive Updates
Record High Transactions Closed
A record high of 300 transactions were closed in the third quarter, representing a 16.3% increase from the same quarter last year.
Improvement in Average Transaction Value
The average transaction value increased by 7.8% to over JPY 38 million in a single quarter basis.
Significant Growth in Revenue
Sales increased by 22.5% from Q3 last year on a single quarter basis, totaling JPY 11.9 billion.
Substantial Improvement in Profit Margins
Ordinary profit margin for the third quarter was 46.5%, showing a significant improvement from the same quarter last year.
High Growth in Large Cases
The number of large cases in Q3 increased to 20, up from 13 in the same period last year.
Healthy Balance Sheet
Close to JPY 45 billion in cash and deposits, indicating financial stability.
Expansion and Development Initiatives
Opening of new local subsidiaries in Thailand and other regions, as well as strategic recruitment efforts to improve company culture and performance.
Negative Updates
Challenges in Direct Sales Recovery
Direct mandates accounted for only 35%, showing that the recovery in direct sales is still sluggish.
Consultant Turnover
21 consultants left in the third quarter, leading to a net increase of only 11 consultants.
Increased Expenses
An increase in costs due to referral fees and incentive payments, impacting profit margins.
Company Guidance
In the earnings call for the third quarter of fiscal year 2023, Nihon M&A Center Holdings reported significant improvements across various financial metrics. The company closed a record 300 transactions in Q3, a 16.3% increase over the same period last year, contributing to a cumulative 796 transactions for the fiscal year, up by 5.6%. The average transaction value improved, reaching over JPY 38 million for the quarter, marking a 7.8% increase. Consequently, sales rose to JPY 31.1 billion, a 4.3% increase from the previous year, with a notable single-quarter sales figure of JPY 11.9 billion, a 22.5% rise year-over-year. Ordinary profit also saw a substantial improvement, standing at JPY 5.5 billion in Q3, an 81.2% increase, resulting in an ordinary profit margin of 46.5%. The company achieved a 70.8% progress rate towards its annual sales target of JPY 44 billion, while ordinary profit reached 68.7% of its guidance. Despite some challenges, including balancing direct and network mandates, the company expressed confidence in achieving its profit guidance, supported by a robust pipeline and ongoing strategic initiatives.

Nihon M&A Center Financial Statement Overview

Summary
Nihon M&A Center exhibits strong financial health with consistent revenue and profit growth. The company maintains a robust balance sheet with low leverage and strong equity backing. Cash flow generation is solid, although some variability in capital investments and financing activities is observed.
Income Statement
85
Very Positive
Nihon M&A Center has demonstrated consistent revenue growth over the years, with a notable increase from 2020 to 2025. The gross profit margin remains strong, indicative of effective cost management. The net profit margin is healthy, reflecting a strong bottom-line performance. Despite slight fluctuations in EBIT and EBITDA margins, the company maintains solid profitability.
Balance Sheet
80
Positive
The company's balance sheet reveals a very strong equity position with a low debt-to-equity ratio, indicating financial stability and low leverage risk. The equity ratio remains robust, underscoring the company's reliance on equity financing. Return on equity is commendable, showcasing effective utilization of shareholder funds.
Cash Flow
78
Positive
Cash flow analysis shows a positive trend in free cash flow generation, supporting potential reinvestment and dividend distribution. The operating cash flow to net income ratio is favorable, highlighting efficient cash conversion from operations. However, fluctuations in investing and financing cash flows suggest variability in capital allocation strategies.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue44.08B44.14B41.32B40.40B36.13B
Gross Profit24.78B24.64B23.51B24.14B22.33B
EBITDA17.12B16.71B15.70B16.83B15.76B
Net Income10.96B10.73B9.84B11.44B10.68B
Balance Sheet
Total Assets61.79B58.64B65.77B58.92B55.56B
Cash, Cash Equivalents and Short-Term Investments39.21B37.44B45.58B47.30B42.86B
Total Debt5.40B6.30B0.000.00500.00M
Total Liabilities14.20B14.67B11.04B7.89B10.13B
Stockholders Equity47.17B43.91B54.45B50.76B45.21B
Cash Flow
Free Cash Flow13.92B10.42B7.83B10.85B11.32B
Operating Cash Flow13.97B10.55B8.15B11.10B11.46B
Investing Cash Flow11.47B-19.43B-4.00B270.48M22.32B
Financing Cash Flow-9.09B-15.23B-6.09B-5.94B-3.10B

Nihon M&A Center Technical Analysis

Technical Analysis Sentiment
Positive
Last Price719.30
Price Trends
50DMA
699.70
Positive
100DMA
645.31
Positive
200DMA
634.40
Positive
Market Momentum
MACD
1.58
Positive
RSI
56.09
Neutral
STOCH
34.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2127, the sentiment is Positive. The current price of 719.3 is above the 20-day moving average (MA) of 709.48, above the 50-day MA of 699.70, and above the 200-day MA of 634.40, indicating a bullish trend. The MACD of 1.58 indicates Positive momentum. The RSI at 56.09 is Neutral, neither overbought nor oversold. The STOCH value of 34.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2127.

Nihon M&A Center Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥73.34B17.45
2.35%5.21%-13.86%
77
Outperform
$237.57B20.7223.83%2.09%-0.13%4.25%
76
Outperform
¥91.02B14.66
1.40%54.92%172.49%
76
Outperform
¥80.96B19.12
17.96%-2.21%
68
Neutral
$17.10B11.449.70%3.58%11.11%-4.78%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2127
Nihon M&A Center
719.30
-78.62
-9.85%
JP:6080
M&A Capital Partners Co. Ltd.
2,885.00
619.62
27.35%
JP:6196
Strike Co., Ltd.
3,865.00
-237.21
-5.78%
JP:9552
M&A Research Institute Holdings Inc.
1,370.00
-1,885.00
-57.91%

Nihon M&A Center Corporate Events

Nihon M&A Center Announces Treasury Stock Disposal for Director Incentives
Jun 26, 2025

Nihon M&A Center Holdings Inc. has resolved to dispose of 98,800 shares of treasury stock as part of a Restricted Stock Remuneration Plan aimed at aligning the interests of its directors with those of its shareholders. This move is designed to incentivize directors to contribute to the company’s long-term value enhancement, with shares being allocated to directors under specific conditions that restrict their transfer until certain criteria are met.

The most recent analyst rating on (JP:2127) stock is a Sell with a Yen500.00 price target. To see the full list of analyst forecasts on Nihon M&A Center stock, see the JP:2127 Stock Forecast page.

Nihon M&A Center Announces Corporate Officer Change
May 30, 2025

Nihon M&A Center Holdings Inc. has announced a change in its corporate officers, specifically within its subsidiary, Nihon M&A Center Inc. Yasunori Kasai has been appointed as the new Corporate Officer for the Financial Institutions Alliance Department, effective June 1, 2025. This change is expected to enhance the company’s strategic focus and operational efficiency in managing alliances with financial institutions.

The most recent analyst rating on (JP:2127) stock is a Sell with a Yen500.00 price target. To see the full list of analyst forecasts on Nihon M&A Center stock, see the JP:2127 Stock Forecast page.

Nihon M&A Center Announces Board of Directors Changes
May 23, 2025

Nihon M&A Center Holdings Inc. announced changes in its Board of Directors, effective June 26, 2025. The changes include the appointment of Noritaka Kobayashi and Mizuho Abe as new outside directors, while Takamaro Naraki and Naoki Takeuchi will assume new roles within the company. These changes are expected to bring fresh perspectives and strengthen the company’s governance, potentially impacting its strategic direction and stakeholder relations.

The most recent analyst rating on (JP:2127) stock is a Sell with a Yen500.00 price target. To see the full list of analyst forecasts on Nihon M&A Center stock, see the JP:2127 Stock Forecast page.

Nihon M&A Center Reports Stable Financial Growth Amid Slight Sales Dip
Apr 30, 2025

Nihon M&A Center Holdings Inc. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight decrease in net sales by 0.1% to ¥44,077 million. Despite this, the company achieved a 4.0% increase in operating profit and a 2.1% rise in profit attributable to owners of the parent. The company also announced an increase in annual dividends per share to ¥29, including a special dividend, reflecting a commitment to shareholder returns. The financial results indicate stable growth in profitability and a strong financial position, with a notable increase in net assets and cash flows from operating activities. The announcement suggests a positive outlook for the company’s operations and its ability to deliver value to stakeholders.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 30, 2025