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Nihon M&A Center
(2127)
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Rating:74Outperform
Price Target:
¥773.00
▲(4.05% Upside)
Action:Reiterated
Date:05/02/26
The score is driven primarily by strong financial performance (high margins, low leverage, and solid cash conversion) and supportive valuation (moderate P/E with a high dividend yield). These positives are partially offset by weak technicals, with the stock trading below key moving averages and softer momentum readings.
Positive Factors
High margins
Sustained high gross and net margins reflect durable pricing power and efficient deal execution in SME M&A advisory. These margins support strong cash generation and ROE, providing a structural cushion to fund dividends, reinvestment, or strategic hires even if deal volumes ebb.
Negative Factors
Margin compression
Margins have softened from prior peaks, suggesting structural pressure from competition, pricing dynamics, or cost trends. Persistent margin erosion would weaken cash flow resilience and returns, reducing strategic flexibility and making earnings more sensitive to volume swings.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins
Sustained high gross and net margins reflect durable pricing power and efficient deal execution in SME M&A advisory. These margins support strong cash generation and ROE, providing a structural cushion to fund dividends, reinvestment, or strategic hires even if deal volumes ebb.
Read all positive factors
Nihon M&A Center (2127) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥223.94B
Dividend Yield4%
Average Volume (3M)1.53M
Price to Earnings (P/E)17.2
Beta (1Y)1.13
Revenue Growth14.02%
EPS Growth13.95%
CountryJP
Employees1,043
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)39.36
Shares Outstanding336,934,800
10 Day Avg. Volume1,425,290
30 Day Avg. Volume1,525,976
Financial Highlights & Ratios
PEG Ratio1.15
Price to Book (P/B)3.98
Price to Sales (P/S)3.98
P/FCF Ratio12.44
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)43.68
Revenue Forecast (FY)¥54.29B
Nihon M&A Center Business Overview & Revenue Model
Company Description
Nihon M&A Center Holdings Inc. specializes in providing comprehensive merger and acquisition (M&A) services, operating both within Japan and on an international scale. The company particularly aids small and medium-sized enterprises with critical ...
How the Company Makes Money
The company primarily generates revenue by earning fees for successfully arranging and supporting M&A transactions. Its core revenue model is transaction-driven: (1) Success fees on completed deals: The largest portion of earnings is typically tie...
Nihon M&A Center Earnings Call Summary
Earnings Call Date:Jan 30, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
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.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.
Negative Updates
Challenges in Direct Sales Recovery
Direct mandates accounted for only 35%, showing that the recovery in direct sales is still sluggish.
Read all updates
Q3-2024 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
86
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
84
Very Positive
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 50.26B | 44.08B | 44.14B | 41.32B | 40.40B |
| Gross Profit | 30.28B | 24.78B | 24.64B | 23.51B | 24.14B |
| EBITDA | 18.95B | 17.12B | 16.71B | 15.70B | 16.83B |
| Net Income | 12.49B | 10.96B | 10.73B | 9.84B | 11.44B |
Balance Sheet | |||||
| Total Assets | 66.22B | 61.79B | 58.64B | 65.95B | 59.16B |
| Cash, Cash Equivalents and Short-Term Investments | 40.45B | 39.21B | 37.44B | 45.58B | 47.30B |
| Total Debt | 4.00B | 5.40B | 6.30B | 0.00 | 0.00 |
| Total Liabilities | 15.58B | 14.20B | 14.67B | 11.23B | 8.13B |
| Stockholders Equity | 50.19B | 47.17B | 43.91B | 54.45B | 50.76B |
Cash Flow | |||||
| Free Cash Flow | 16.08B | 13.05B | 10.42B | 7.99B | 10.85B |
| Operating Cash Flow | 16.33B | 13.12B | 10.55B | 8.30B | 11.10B |
| Investing Cash Flow | -5.08B | 11.98B | -18.22B | -4.15B | 270.48M |
| Financing Cash Flow | -10.60B | -8.75B | -15.23B | -6.09B | -5.94B |
Nihon M&A Center Technical Analysis
Positive
742.90
Price Trends
648.58
Positive
652.94
Positive
684.38
Negative
Market Momentum
8.85
Negative
60.90
Neutral
72.40
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 742.9 is above the 20-day moving average (MA) of 649.54, above the 50-day MA of 648.58, and above the 200-day MA of 684.38, indicating a neutral trend. The MACD of 8.85 indicates Negative momentum. The RSI at 60.90 is Neutral, neither overbought nor oversold. The STOCH value of 72.40 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥76.95B | 15.99 | ― | 4.32% | 18.15% | 13.55% | |
74 Outperform | ¥223.94B | 17.19 | 26.65% | 4.00% | 14.02% | 13.95% | |
70 Outperform | ¥224.53B | 9.52 | ― | 4.01% | 21.03% | 85.38% | |
69 Neutral | ¥114.72B | 17.17 | ― | 1.54% | 4.46% | 7.20% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
59 Neutral | ¥4.44T | 0.31 | 10.23% | 3.93% | 0.46% | 6.70% | |
56 Neutral | ¥179.09B | 16.47 | 7.26% | 4.16% | 17.45% | ― |
* Financial Sector Average
JP:2127
Nihon M&A Center
676.70
-3.08
-0.45%
JP:8698
Monex Group
715.00
-38.66
-5.13%
JP:8604
Nomura Holdings
1,543.00
640.60
70.99%
JP:6080
M&A Capital Partners Co. Ltd.
3,610.00
696.29
23.90%
JP:6196
Strike Co., Ltd.
1,341.00
121.97
10.01%
JP:8609
Okasan Securities Group Inc.
1,016.00
350.25
52.61%
Nihon M&A Center Corporate Events
Nihon M&A Center Grants Restricted Stock to Align Directors’ Pay With Long-Term Value
Jun 25, 2026
Nihon MA Center Holdings has approved the disposal of 40,824 shares of its treasury stock as restricted stock remuneration for three internal directors, with a total value of about ¥25.7 million at a disposal price aligned with the latest mar...
Nihon M&A Center Announces Reduction in Major Shareholder Baillie Gifford’s Stake
Jun 8, 2026
Nihon MA Center Holdings has disclosed a change in major shareholding after investment manager Baillie Gifford Co and its joint holder Baillie Gifford Overseas Limited reduced their combined stake. Their voting rights fell from 10.41 percent to 9...
Nihon M&A Center to Cut Legal Capital Surplus by ¥3 Billion to Boost Shareholder Flexibility
May 22, 2026
Nihon MA Center Holdings will reduce its legal capital surplus by ¥3 billion, cutting the balance from ¥3.82 billion to ¥823.71 million and transferring the entire reduced amount into other capital surplus. The move, subject to shar...
Asset Management One Lifts Stake in Nihon M&A Center to Just Over 10%
May 13, 2026
Nihon MA Center Holdings announced that Asset Management One Co., Ltd. has increased its shareholding based on a large shareholding change report filed with the Kanto Local Finance Bureau. The asset manager now holds 32,274,800 shares, representin...
Nihon M&A Center to Relocate and Expand Tokyo Head Office in 2029
Apr 30, 2026
Nihon MA Center Holdings Inc., a major Japanese integrated MA services provider focused on regional revitalization and business succession, plans to expand and relocate the head offices of both the holding company and Nihon MA Center Inc. The move...
Nihon M&A Center Launches ESOP-Based Stock Incentive Plan for Employees
Apr 30, 2026
Nihon MA Center Holdings Inc. and its subsidiaries will introduce a stock-granting ESOP Trust for employees, aiming to strengthen their sense of belonging and participation in management while aligning incentives with medium- to long-term improvem...
Nihon M&A Center to Introduce Performance-Based Stock Compensation for Directors
Apr 30, 2026
Nihon MA Center Holdings has resolved to introduce a performance-based stock compensation plan for its directors, excluding Audit and Supervisory Committee members, outside directors, and non-residents of Japan, with similar schemes to be adopted ...
Nihon M&A Center Delivers Double-Digit Profit Growth and Keeps Dividend, Sees Steady FY2027 Gains
Apr 30, 2026
Nihon MA Center Holdings reported strong consolidated results for the year ended March 31, 2026, with net sales up 14% to ¥50.26 billion and profit attributable to owners of parent rising 14% to ¥12.49 billion, supported by improved prof...
Nihon M&A Center Revamps Leadership at Core M&A Advisory Subsidiary
Apr 15, 2026
Nihon MA Center Holdings has overhauled the leadership structure at its core subsidiary, Nihon MA Center Inc., appointing Kaoru Nakagawa as managing director and head of Marketing HQ and elevating Mamoru Saito to director and senior corporate offi...
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.