Nextage Co., Ltd. (3186) AI Stock Analysis

• Market Cap: ¥201.06B
• Dividend Yield: 1.29%
• Average Volume (3M): 601.26K
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.73
• Revenue Growth: 21.79%
• EPS Growth: 9.89%
• Country: JP
• Employees: 7,635
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 46.35
• Shares Outstanding: 80,877,900
• 10 Day Avg. Volume: 815,920
• 30 Day Avg. Volume: 601,260
• PEG Ratio: -0.46
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 0.21
• P/FCF Ratio: -10.37
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥2,115.00 ▼(-18.43% Downside)

The overall stock score is primarily driven by strong technical analysis, reflecting positive market momentum and investor sentiment. Financial performance, while showing growth, is impacted by profitability and cash flow challenges. Valuation is fair, offering moderate income through dividends.

Nextage Co., Ltd. Business Overview & Revenue Model

Company Description

NEXTAGE Co., Ltd. engages in the retail sale of new and used cars in Japan. It is also involved in the provision of vehicle maintenance and repair, as well as vehicle safety inspection services; operation of an insurance agency; purchase of used cars; and car exterior coating business. The company was incorporated in 1998 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Nextage generates revenue primarily through commissions from the sale and leasing of properties. The company earns a significant portion of its income by acting as a broker in real estate transactions, where it charges fees based on the value of the properties involved. Additionally, Nextage generates revenue from property management services, where it manages residential and commercial properties on behalf of owners, collecting management fees. The company may also derive income from real estate consulting and advisory services, providing clients with strategic insights and assistance in their real estate investments. Partnerships with other real estate firms, financial institutions, and technology providers enhance its service offerings and can lead to increased transactions, further contributing to its revenues.

Nextage Co., Ltd. Financial Statement Overview

Summary

Nextage Co., Ltd. demonstrates strong revenue growth. However, profitability margins are under pressure with declining net profit and EBIT margins. The balance sheet shows high debt levels, posing potential financial risks. Cash flow challenges are notable with recent negative free cash flow, suggesting a need for improved cash management.

Income Statement

The company has shown impressive revenue growth with a significant increase from 2019 to 2024. Gross profit margin in 2024 was 17.85%, indicating efficient cost management. However, the net profit margin declined to 1.45%, suggesting increased expenses or cost pressures. EBIT and EBITDA margins also reflect a decline, highlighting potential profitability challenges.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.51 in 2024, indicating a balanced approach to leveraging. The company's equity ratio of 32.71% suggests reasonable financial stability. However, the high level of total debt may pose a risk if not managed carefully. Return on equity has declined over time, pointing to potential inefficiencies in generating profits from shareholders' equity.

Cash Flow

The cash flow situation is concerning; free cash flow turned negative in 2024, primarily due to significant capital expenditures. The operating cash flow to net income ratio is low, showing challenges in converting profits into cash. Despite these issues, the company managed positive operating cash flow in 2023, indicating some capability to generate cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	596.73B	552.78B	463.46B	418.12B	291.26B	241.15B
Gross Profit	103.34B	98.67B	86.83B	74.03B	56.73B	43.93B
EBITDA	17.67B	17.74B	20.07B	21.96B	17.48B	10.09B
Net Income	6.87B	8.01B	11.56B	13.89B	9.66B	4.74B
Balance Sheet
Total Assets	227.08B	222.27B	177.50B	161.26B	111.03B	99.63B
Cash, Cash Equivalents and Short-Term Investments	28.60B	35.71B	29.63B	19.84B	22.75B	27.44B
Total Debt	111.49B	109.92B	77.42B	76.52B	51.49B	52.62B
Total Liabilities	156.70B	149.54B	110.99B	104.96B	69.42B	69.62B
Stockholders Equity	70.38B	72.73B	66.50B	56.30B	41.62B	30.02B
Cash Flow
Free Cash Flow	0.00	-11.16B	13.20B	-30.50B	-4.22B	10.93B
Operating Cash Flow	0.00	3.02B	33.69B	-17.85B	3.21B	19.27B
Investing Cash Flow	0.00	-18.45B	-23.68B	-13.83B	-8.26B	-8.53B
Financing Cash Flow	0.00	21.37B	-227.00M	28.81B	317.00M	5.67B

Nextage Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2593.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3186, the sentiment is Positive. The current price of 2593 is above the 20-day moving average (MA) of 2479.15, above the 50-day MA of 2285.52, and above the 200-day MA of 1775.82, indicating a bullish trend. The MACD of 106.96 indicates Negative momentum. The RSI at 61.12 is Neutral, neither overbought nor oversold. The STOCH value of 65.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3186.

Nextage Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8291	79 Outperform	¥29.72B	7.68	―	4.80%	-5.73%	-38.92%
3186	74 Outperform	¥201.06B	22.91	―	1.29%	21.79%	9.89%
7134	74 Outperform	¥8.85B	11.91	―	2.90%	7.91%	8.30%
7599	73 Outperform	¥116.47B	9.51	―	3.16%	11.66%	-7.47%
7593	68 Neutral	¥59.04B	11.67	―	4.84%	8.88%	-25.45%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9268	56 Neutral	¥23.76B	14.70	―	5.17%	50.37%	-148.77%

Nextage Co., Ltd. Corporate Events

Nextage Co., Ltd. Launches Employee Shareholding Incentive Plan

Nextage Co., Ltd. has introduced a Trust-type Employee Shareholding Incentive Plan (E-Ship®) to motivate employees and enhance the company’s medium- to long-term corporate value. The plan involves creating a trust to acquire company shares, which will be sold to the Employee Shareholding Association, with any surplus distributed to eligible beneficiaries. This initiative is expected to support employee asset building and promote welfare benefits, while positioning the company as a forward-thinking entity in employee engagement.