NJS Co., Ltd. (2325) AI Stock Analysis

• Market Cap: ¥44.76B
• Dividend Yield: 1.94%
• Average Volume (3M): 47.98K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.58
• Revenue Growth: 7.37%
• EPS Growth: -16.20%
• Country: JP
• Employees: 1,375
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 30.25
• Shares Outstanding: 10,048,000
• 10 Day Avg. Volume: 36,700
• 30 Day Avg. Volume: 47,980
• PEG Ratio: 7.04
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 1.95
• P/FCF Ratio: 28.46
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 273
• Revenue Forecast (FY): ¥27.50B

• Rating: 68 Neutral
• Price Target: ¥5,014.00 ▼(-2.26% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by strong financial stability (very low leverage and steady profitability), partially offset by weaker cash-flow consistency. Technicals are meaningfully negative (below key moving averages with negative MACD), while valuation is moderate with a ~2.3% dividend but a P/E around 21.

Positive Factors

Conservative balance sheet

Near-zero leverage and steady asset/equity growth provide durable financial flexibility for a services business reliant on public contracts. This reduces default and refinancing risk, supports stable operations during project timing swings, and enables selective reinvestment or dividend support.

Stable margins

Consistently healthy gross and EBIT margins indicate structural pricing power and operational efficiency in engineering/consulting services. Durable margins help sustain cash generation across multi-year projects, fund talent and bid preparedness, and defend profitability in competitive public tenders.

Revenue re-acceleration

A pickup in revenue growth after a flat period suggests recovery in project awards or phases progressing from planning to execution. For a firm serving public infrastructure, multi-year pipelines mean sustained fee revenue once won, supporting medium-term top-line durability and capacity utilization.

Negative Factors

Inconsistent cash conversion

Variable cash conversion and occasional negative free cash flow point to timing and working-capital exposure inherent in project billing. This reduces financial predictability, can constrain funding for capex or hiring, and increases reliance on balance sheet buffers during slow collection periods.

Moderate returns on equity

Mid-single-digit ROE signals modest capital efficiency in a low-leverage model. Without higher returns or leverage, internal capital will compound slowly, limiting rapid shareholder-value creation and reducing optionality for scaling or pursuing larger, more capital-intensive opportunities.

Lumpy revenue trajectory

Historical revenue volatility reflects dependence on timing of public works and phased contracts. Lumpy award cycles and project sequencing reduce predictability of bookings and margins, complicating multi-year planning and making sustained organic growth harder without geographic or service diversification.

NJS Co., Ltd. Business Overview & Revenue Model

Company Description

NJS Co., Ltd., together with its subsidiaries, primarily engages in construction consultancy business in Japan and internationally. The company is involved in the water and industrial water supply, sewerage, river, and agricultural drainage and wastewater treatment; financial management consultancy of water supply and sewerage; survey, planning, and supervision of raw sewerage and waste treatment facilities; and seismic diagnosis businesses. It also provides consulting services for water quality management and maintenance of water and sewage treatment plants, pumping stations, etc.; asset management services for social infrastructure; and disaster prevention investigation, countermeasures, and planning for inundation, earthquakes, etc. In addition, the company develops systems, including GIS information systems for pipelines, rivers, and purified water tanks; facilities information system for water and sewage treatment plants, pumping stations, and tunnels; ASPs; and account processing systems, bill and collection systems, and others. Further, it is involved in the planning, design, and supervision of buildings and seismic diagnostic activities; administration of water supply and sewerage projects; and overseas consulting activities. Additionally, the company undertakes environmental basic planning and impact assessment works; investigation, analysis, and contamination analysis services of rivers, wetlands, lakes, and sea areas; and surveying and geological survey works. The company was formerly known as Nippon Jogesuido Sekkei Co., Ltd. and changed its name to NJS Co., Ltd. in April 2015. NJS Co., Ltd. was incorporated in 1951 and is headquartered in Tokyo, Japan.

How the Company Makes Money

NJS Co., Ltd. generates revenue through a variety of streams primarily associated with its engineering and consulting services. The company's revenue model is predominantly based on fee-for-service contracts, where it charges clients for project management, design, and consulting services. These contracts can be short-term or long-term, depending on the scope and complexity of the projects. The company also benefits from partnerships and collaborations with government bodies, private enterprises, and international organizations, which often lead to consistent and significant project opportunities. Additionally, NJS Co., Ltd. may engage in joint ventures or strategic alliances that enhance its market reach and revenue potential. The company's success is largely influenced by its expertise, reputation, and the ability to adapt to market demands and technological advancements in the engineering and consulting sectors.

NJS Co., Ltd. Financial Statement Overview

Summary

Financial strength is anchored by an exceptionally conservative balance sheet (near-zero leverage and steady asset/equity growth). Profitability is solid and resilient (~40% gross margin, ~13% EBIT margin, ~8.8% net margin) with revenue re-accelerating in 2025 (+5.6%), but cash flow quality is less consistent (operating cash flow has periodically lagged earnings and 2021 free cash flow was negative).

Income Statement

Profitability is solid and fairly steady: the latest annual report shows ~40% gross margin, ~13% EBIT margin, and ~8.8% net margin. Revenue growth re-accelerated in 2025 (+5.6%) after being nearly flat in 2024, but the multi-year path is not consistently upward (including a slight decline in 2022). Overall earnings have been resilient, though margins have not expanded meaningfully versus the prior year and net margin is below the 2021 peak.

Balance Sheet

The balance sheet is exceptionally conservative, with near-zero leverage (debt-to-equity is effectively negligible across all years). Equity and assets have grown steadily over time, and returns on equity have been stable in the mid-to-high single digits (about 7.7% in 2025). Key watch-out is that returns remain moderate rather than high, suggesting the company is safe but not aggressively compounding from leverage or very high profitability.

Cash Flow

Cash generation is generally positive with free cash flow consistently positive in recent years, but there is notable variability: 2021 free cash flow was negative and operating cash flow was unusually low versus earnings. In 2025, free cash flow covered ~82% of net income (healthy), yet operating cash flow remained relatively light versus earnings (about 0.37x), pointing to periodic working-capital or timing impacts. Overall, cash flow quality is decent but less consistent than profits and the balance sheet.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	23.54B	24.85B	22.59B	22.03B	19.23B	19.32B
Gross Profit	10.17B	9.92B	9.33B	7.24B	7.53B	7.57B
EBITDA	4.10B	3.76B	3.53B	3.24B	2.83B	3.07B
Net Income	2.52B	2.18B	2.12B	2.00B	1.73B	1.93B
Balance Sheet
Total Assets	36.03B	35.10B	31.12B	29.49B	28.18B	27.52B
Cash, Cash Equivalents and Short-Term Investments	24.03B	17.83B	17.69B	17.19B	13.98B	13.46B
Total Debt	28.66M	691.00K	3.34M	0.00	1.44M	4.29M
Total Liabilities	7.19B	6.52B	4.93B	4.94B	5.10B	6.01B
Stockholders Equity	28.77B	28.51B	26.12B	24.49B	23.03B	21.46B
Cash Flow
Free Cash Flow	0.00	1.71B	1.66B	1.05B	951.09M	-472.98M
Operating Cash Flow	0.00	2.08B	1.79B	1.55B	1.95B	227.02M
Investing Cash Flow	0.00	-952.17M	-373.48M	2.42B	-950.96M	-551.30M
Financing Cash Flow	0.00	-968.98M	-957.20M	-771.68M	-866.29M	-556.96M

NJS Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5130.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2325, the sentiment is Negative. The current price of 5130 is above the 20-day moving average (MA) of 4783.75, above the 50-day MA of 4943.08, and below the 200-day MA of 5331.06, indicating a bearish trend. The MACD of -92.47 indicates Negative momentum. The RSI at 44.41 is Neutral, neither overbought nor oversold. The STOCH value of 83.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2325.

NJS Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9247	76 Outperform	¥90.98B	6.24	―	2.77%	24.61%	185.90%
9793	73 Outperform	¥189.32B	20.74	10.88%	2.20%	6.63%	-3.05%
5698	73 Outperform	¥30.55B	16.56	―	2.62%	-9.37%	590.66%
9336	73 Outperform	¥385.59B	27.83	―	1.30%	8.33%	1.73%
2325	68 Neutral	¥44.76B	20.76	―	1.94%	7.37%	-16.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2195	56 Neutral	¥6.11B	19.76	―	1.36%	3.68%	-24.83%

NJS Co., Ltd. Corporate Events

NJS Co., Ltd. Posts Higher 2025 Earnings and Lifts Dividend, Forecasts Further Growth in 2026

NJS Co., Ltd. reported consolidated net sales of ¥24.85 billion for the fiscal year ended December 31, 2025, up 10.0% year on year, with operating profit rising 9.2% to ¥3.27 billion and profit attributable to owners of parent inching up 3.2% to ¥2.18 billion. Total assets grew to ¥35.10 billion and the equity ratio remained high at 81.2%, while operating cash flow improved to ¥2.08 billion, indicating a solid financial base.

The company raised its annual dividend for 2025 to ¥105 per share from ¥95 a year earlier, corresponding to a consolidated payout ratio of 46.0%, and plans a further increase to ¥110 per share in 2026. For the fiscal year ending December 31, 2026, NJS forecasts double-digit growth, targeting net sales of ¥28.0 billion and a 12.3% rise in profit attributable to owners of parent to ¥2.45 billion, suggesting continued expansion and shareholder returns.

The most recent analyst rating on (JP:2325) stock is a Buy with a Yen6345.00 price target. To see the full list of analyst forecasts on NJS Co., Ltd. stock, see the JP:2325 Stock Forecast page.

NJS Co., Ltd. Lifts Year-End Dividend and Extends Streak of Annual Increases

NJS Co., Ltd. has announced a year-end dividend of ¥55 per share for the fiscal year ended December 31, 2025, up ¥5 from the previous year, following record-high work orders, net sales, operating profit, and profit attributable to owners of the parent for the fourth consecutive year. Including the interim dividend, the total annual dividend for 2025 is expected to be ¥105 per share, a ¥10 year-on-year increase, subject to approval at the shareholders’ meeting.

For the fiscal year ending December 31, 2026, the company plans to raise its annual dividend further to ¥110 per share, comprising an interim dividend of ¥55 and a year-end dividend of ¥55. This planned increase, based on its earnings outlook, payout ratio, and desire to provide stable, sustainable returns, will mark NJS’s ninth consecutive year of dividend growth, reinforcing its shareholder-friendly capital allocation stance.

The most recent analyst rating on (JP:2325) stock is a Buy with a Yen6345.00 price target. To see the full list of analyst forecasts on NJS Co., Ltd. stock, see the JP:2325 Stock Forecast page.