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

• Market Cap: ¥127.01B
• Dividend Yield: 2.01%
• Average Volume (3M): 453.65K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.63
• Revenue Growth: 24.35%
• EPS Growth: -35.21%
• Country: JP
• Employees: 7,635
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Auto - Dealerships
• EPS (TTM): 13.98
• Shares Outstanding: 80,877,900
• 10 Day Avg. Volume: 419,470
• 30 Day Avg. Volume: 453,650
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ¥1,782.00 ▲(8.79%Upside)

Nextage Co., Ltd. scores 70, driven by strong revenue growth and a fair valuation, despite challenges in profitability and cash flow. Technical indicators show mild bullish momentum but do not strongly indicate a clear trend. The stable yet high-debt balance sheet further influences the score.

Nextage Co., Ltd. Business Overview & Revenue Model

Company Description

Nextage Co., Ltd. is a Japan-based company primarily engaged in the automotive retail sector. The company specializes in the purchase and sale of pre-owned vehicles, offering a diverse range of cars to meet varying customer needs. Nextage operates through a network of dealerships across Japan, providing both in-person and online sales services to ensure a broad market reach. The company is committed to offering high-quality vehicles and exceptional customer service to support its growth in the competitive automotive market.

How the Company Makes Money

Nextage Co., Ltd. generates revenue primarily through the sale of pre-owned vehicles. The company's business model focuses on acquiring used cars through auctions, trade-ins, and direct purchases from individuals. These vehicles are then inspected, refurbished, and sold at a markup through Nextage's extensive network of dealerships and online platforms. Additionally, the company may offer ancillary services such as car financing, insurance, and maintenance packages, which contribute to its income. Strategic partnerships with financial institutions and other automotive service providers enhance Nextage's service offerings and customer reach, further supporting its revenue generation.

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
	EBIT
15.88B	12.94B	16.09B	19.45B	13.64B	6.83B
	EBITDA
20.42B	17.74B	20.07B	21.96B	17.48B	10.09B
	Net Income Common Stockholders
11.27B	8.01B	11.56B	13.89B	9.66B	4.74B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
41.15B	35.71B	29.63B	19.84B	22.75B	27.44B
	Total Assets
216.47B	222.27B	177.50B	161.26B	111.03B	99.63B
	Total Debt
106.00B	109.92B	77.42B	76.52B	51.49B	52.62B
	Net Debt
64.85B	74.21B	47.79B	56.68B	28.74B	25.17B
	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: 1638.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1638 is below the 20-day moving average (MA) of 1658.30, above the 50-day MA of 1616.46, and above the 200-day MA of 1560.77, indicating a neutral trend. The MACD of 18.31 indicates Positive momentum. The RSI at 48.06 is Neutral, neither overbought nor oversold. The STOCH value of 48.00 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	¥9.11B	11.58		2.82%	11.34%	22.75%
8291	76 Outperform	¥28.24B	7.08		5.05%	-4.95%	-39.29%
3186	70 Outperform	¥127.01B	17.13		2.01%	24.35%	-35.21%
7599	66 Neutral	¥105.33B	7.83		4.05%	18.30%	17.52%
7593	65 Neutral	¥55.84B	10.75		5.09%	12.85%	-22.91%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
9268	52 Neutral	¥22.46B	14.70		6.08%	116.91%	-107.34%

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.

Nextage Co., Ltd. Reports Q1 2025 Financial Results with Increased Sales but Lower Profits

Nextage Co., Ltd. reported its consolidated financial results for the three months ended February 28, 2025, showing a significant increase in net sales by 21.3% year-on-year, reaching ¥144,867 million. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with the latter decreasing by 22.8%. Despite these challenges, the company forecasts a positive outlook for the fiscal year ending November 30, 2025, with expected increases in net sales and profits, indicating potential growth and recovery in its financial performance.