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

• Market Cap: ¥147.32B
• Dividend Yield: 1.7%
• Average Volume (3M): 606.22K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.67
• Revenue Growth: 19.68%
• EPS Growth: -39.34%
• Country: JP
• Employees: 7,635
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Auto - Dealerships
• EPS (TTM): 39.11
• Shares Outstanding: 80,877,900
• 10 Day Avg. Volume: 1,069,800
• 30 Day Avg. Volume: 606,216
• PEG Ratio: 0.45
• Price to Book (P/B): 4.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.97
• 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: ¥2,441.00
• Price Target Upside: 25.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: ¥2,115.00 ▲(8.80%Upside)

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. (3186) is a Japan-based company primarily engaged in the automobile sales business. The company operates in the used car retail sector, offering a wide range of pre-owned vehicles to customers across Japan. Nextage Co., Ltd. is known for its comprehensive services that include vehicle sales, maintenance, and after-sales support. The company strives to provide high-quality vehicles and exceptional customer service to ensure customer satisfaction and loyalty.

How the Company Makes Money

Nextage Co., Ltd. generates revenue primarily through the sale of used vehicles. The company sources pre-owned cars from various channels, including auctions and trade-ins, and sells them to individual consumers and businesses. In addition to the sale of vehicles, Nextage Co., Ltd. earns money through ancillary services such as vehicle maintenance, repairs, and inspections, which are offered at their service centers. The company may also have partnerships with financial institutions to provide auto financing options to customers, earning additional revenue through commissions or referral fees. Overall, Nextage Co., Ltd.'s revenue model is centered around its ability to acquire, refurbish, and sell quality used vehicles while providing supplementary services that enhance customer experience.

Nextage Co., Ltd. Financial Statement Overview

Summary

Nextage Co., Ltd. shows strong revenue growth but faces pressure on profitability margins. The balance sheet is stable but has a high debt level, posing potential risks. Cash flow is a concern, with negative free cash flow due to significant capital expenditures, highlighting a need for better cash flow 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	498.62B	552.78B	463.46B	418.12B	291.26B	241.15B
Gross Profit	93.50B	98.67B	86.83B	74.03B	56.73B	43.93B
EBITDA	20.42B	17.74B	20.07B	21.96B	17.48B	10.09B
Net Income	11.27B	8.01B	11.56B	13.89B	9.66B	4.74B
Balance Sheet
Total Assets	216.47B	222.27B	177.50B	161.26B	111.03B	99.63B
Cash, Cash Equivalents and Short-Term Investments	41.15B	35.71B	29.63B	19.84B	22.75B	27.44B
Total Debt	106.00B	109.92B	77.42B	76.52B	51.49B	52.62B
Total Liabilities	146.74B	149.54B	110.99B	104.96B	69.42B	69.62B
Stockholders Equity	69.73B	72.73B	66.50B	56.30B	41.62B	30.02B
Cash Flow
Free Cash Flow	4.68B	-11.16B	13.20B	-30.50B	-4.22B	10.93B
Operating Cash Flow	4.68B	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: 1944.00
• 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 1944 is above the 20-day moving average (MA) of 1752.20, above the 50-day MA of 1687.50, and above the 200-day MA of 1548.68, indicating a bullish trend. The MACD of 53.13 indicates Negative momentum. The RSI at 69.40 is Neutral, neither overbought nor oversold. The STOCH value of 68.12 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
7134	76 Outperform	¥8.93B	11.35		2.88%	11.34%	22.75%
3186	74 Outperform	¥147.32B	22.21		1.70%	19.68%	-39.34%
8291	72 Outperform	¥29.49B	7.40		4.82%	-4.95%	-40.10%
7599	70 Outperform	¥111.85B	8.32		3.81%	18.30%	17.52%
7593	65 Neutral	¥54.77B	10.54		5.19%	12.85%	-22.91%
9268	64 Neutral	¥26.49B	14.70		5.15%	116.91%	-106.11%
Sector *	63 Neutral	$16.85B	11.25	-7.01%	2.93%	1.72%	-24.85%

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.