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

• Market Cap: ¥46.04B
• Dividend Yield: 1.94%
• Average Volume (3M): 47.98K
• Price to Earnings (P/E): 21.4
• Beta (1Y): 0.57
• Revenue Growth: 7.37%
• EPS Growth: -16.20%
• Country: JP
• Employees: 1,375
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): -83.05
• Shares Outstanding: 10,048,000
• 10 Day Avg. Volume: 36,700
• 30 Day Avg. Volume: 47,980
• PEG Ratio: 2.61
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 1.51
• P/FCF Ratio: 20.52
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥5,646.00 ▲(10.06% Upside)

The score is primarily supported by strong financial performance, led by a very low-debt balance sheet and improving recent results, but tempered by historically inconsistent cash flow. Technical indicators are neutral-to-soft, and valuation is mid-range with a moderate P/E offset by a modest dividend yield.

Positive Factors

Balance Sheet Health

A negligible debt level reduces financial risk and provides flexibility, ensuring stability through economic cycles.

Revenue Growth

Strong revenue growth indicates robust demand for services and enhances the company's market position.

Cash Flow Improvement

Improved cash flow enhances financial flexibility and supports potential reinvestment or shareholder returns.

Negative Factors

Cash Flow Volatility

Volatile cash flow can impact financial planning and stability, posing challenges in maintaining consistent operations.

Margin Consistency

Inconsistent margins suggest potential volatility in earnings, which can affect long-term profitability and investor confidence.

Earnings Volatility

Earnings volatility can lead to unpredictable financial performance, impacting strategic planning and investor trust.

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

Strong overall financial quality supported by an exceptionally conservative balance sheet (negligible debt; strong stability). Income statement shows meaningful revenue acceleration in 2024 and generally healthy margins, though margin consistency has varied. Cash flow is improving (notably higher FCF in 2023–2024) but remains historically volatile with uneven operating cash flow coverage versus net income.

Income Statement

Revenue has grown over the period, with a particularly strong step-up in 2024 (annual growth ~177%), indicating meaningful top-line momentum. Profitability is solid and fairly consistent: gross margin sits in the low-40% range in 2024 (up sharply from 2023), while operating and net margins remain healthy around the mid-teens and ~9–10%, respectively. A watch item is that margins have not expanded steadily year-to-year (e.g., operating margin peaked earlier and dipped in 2023 before improving again), suggesting some earnings volatility despite overall improvement.

Balance Sheet

The balance sheet appears very conservatively financed with negligible debt across all years (debt-to-equity near zero), which materially reduces financial risk and provides flexibility through cycles. Equity and total assets trend upward over time, supporting balance-sheet stability. Returns on equity are steady in the high-single-digits (~7.5%–9.0%), which is respectable but not exceptional, implying the company is very safe but not highly levered to boost equity returns.

Cash Flow

Cash generation is positive in the most recent years, with free cash flow improving materially in 2023 and surging again in 2024, and free cash flow broadly aligning with net income in 2024 (free cash flow about 93% of net income). However, cash flow has been volatile: operating cash flow and free cash flow were weak/negative in 2019 and 2021, and operating cash flow has not consistently covered net income well (coverage remains below ~0.5 in recent years). Overall, the trend is improving, but the historical inconsistency lowers the score.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.54B	22.59B	22.03B	19.23B	19.32B	18.95B
Gross Profit	10.17B	9.33B	7.24B	7.53B	7.57B	7.40B
EBITDA	4.10B	3.53B	3.24B	2.83B	3.07B	2.65B
Net Income	2.52B	2.12B	2.00B	1.73B	1.93B	1.70B
Balance Sheet
Total Assets	36.03B	31.12B	29.49B	28.18B	27.52B	25.67B
Cash, Cash Equivalents and Short-Term Investments	24.03B	17.69B	17.19B	13.98B	13.46B	14.44B
Total Debt	28.66M	3.34M	0.00	1.44M	4.29M	12.22M
Total Liabilities	7.19B	4.93B	4.94B	5.10B	6.01B	5.51B
Stockholders Equity	28.77B	26.12B	24.49B	23.03B	21.46B	20.14B
Cash Flow
Free Cash Flow	0.00	1.66B	1.05B	951.09M	-472.98M	2.27B
Operating Cash Flow	0.00	1.79B	1.55B	1.95B	227.02M	2.50B
Investing Cash Flow	0.00	-373.48M	2.42B	-950.96M	-551.30M	-371.72M
Financing Cash Flow	0.00	-957.20M	-771.68M	-866.29M	-556.96M	-852.85M

NJS Co., Ltd. Technical Analysis

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

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 5026.25, above the 50-day MA of 5076.31, and below the 200-day MA of 5236.84, indicating a bearish trend. The MACD of -72.07 indicates Positive momentum. The RSI at 40.18 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 is Positive, 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
5698	73 Outperform	¥25.77B	17.68	―	2.62%	-9.37%	590.66%
6403	71 Outperform	¥14.07B	23.94	―	1.79%	23.19%	-37.04%
2325	68 Neutral	¥46.04B	21.42	―	1.94%	7.37%	-16.20%
4245	67 Neutral	¥9.12B	38.56	―	3.34%	7.12%	-43.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4657	56 Neutral	¥2.11B	77.00	―	1.93%	-1.19%	-89.91%

NJS Co., Ltd. Corporate Events

NJS Co., Ltd. Increases Dividend Forecast Amid Strong Earnings Outlook

NJS Co., Ltd. has revised its dividend forecast for the fiscal year ending December 31, 2025, increasing the fiscal-year end dividend by ¥5 per share from the previous forecast. This adjustment reflects an improved earnings outlook for the year, resulting in a total annual dividend increase of ¥10 per share compared to the previous fiscal year, signaling strong financial performance and commitment to shareholder returns.