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Next Generation Technology Group, Inc. (JP:319A)
:319A
Japanese Market

Next Generation Technology Group, Inc. (319A) AI Stock Analysis

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JP:319A

Next Generation Technology Group, Inc.

(319A)

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Neutral 56 (OpenAI - 5.2)
Rating:56Neutral
Price Target:
¥11,279.00
▲(14.28% Upside)
Action:DowngradedDate:02/18/26
The score is held back primarily by weak cash generation (consistently negative free cash flow and low operating cash flow versus earnings) and a still-leveraged balance sheet, despite strong revenue growth. Technicals are moderately supportive with price above key moving averages, but momentum signals are mixed (slightly negative MACD). Valuation also limits upside due to a higher P/E and no dividend yield support in the provided data.
Positive Factors
Revenue Growth
Sustained double-digit top-line growth over consecutive years indicates durable demand and successful go-to-market execution. Consistent revenue expansion supports scale advantages, improves fixed-cost absorption, and provides a platform for cross-selling and margin recovery over the next 2–6 months.
Strong reported profitability & ROE
High reported ROE and restored equity reflect effective capital allocation and profitable operations. A durable high ROE suggests the business can generate attractive returns on incremental capital, supporting reinvestment and shareholder value if cash conversion trends improve.
Diversified recurring revenue streams
A mixed model of contracts, subscriptions, and maintenance creates recurring revenue and client stickiness, improving revenue visibility and resilience to cyclical swings. Strategic partnerships enable bundled offers, aiding cross-sell and long-term customer relationships.
Negative Factors
Very weak cash conversion
Consistently negative free cash flow and low OCF relative to earnings indicate earnings are not translating to liquid cash. This reduces capacity for organic investment, debt paydown, or dividends, and increases reliance on external financing, constraining durable financial flexibility.
Debt-heavy capital structure
Elevated leverage, despite improvement, raises refinancing and interest-rate vulnerability and limits strategic optionality. High debt can strain liquidity in downturns and complicate funding for growth or working capital without improved cash generation or deleveraging.
Earnings and margin volatility
Wide swings in margins and net income suggest earnings include non-recurring items or volatile cost structures, reducing predictability. Persistent volatility undermines planning, capital allocation, and investor confidence unless margins stabilize and recurring earnings increase.

Next Generation Technology Group, Inc. (319A) vs. iShares MSCI Japan ETF (EWJ)

Next Generation Technology Group, Inc. Business Overview & Revenue Model

Company DescriptionNext Generation Technology Group Inc. engages in the acquisition of manufacturing-related companies. It is also involved in the metal grinding business for industrial equipment, disaster prevention, and welfare industries. The company was incorporated in 2018 and is based in Tokyo, Japan.
How the Company Makes MoneyNext Generation Technology Group, Inc. generates revenue through multiple streams. The primary revenue model is based on service contracts, where the company charges clients for bespoke software development and consulting services. Additionally, the company earns income from subscription-based cloud services and ongoing maintenance contracts for its technology solutions. Strategic partnerships with technology providers enable the company to offer bundled services, enhancing its value proposition and creating additional revenue opportunities. Furthermore, the company may also benefit from performance-based incentives tied to the successful implementation of its solutions, contributing to its overall earnings.

Next Generation Technology Group, Inc. Financial Statement Overview

Summary
Strong revenue growth and healthy 2025 net margin are offset by a debt-heavy balance sheet and very weak cash conversion, with negative free cash flow in every year shown.
Income Statement
72
Positive
Revenue has grown strongly across the period (2024: +18.5%, 2025: +35.4%), pointing to solid business momentum. Profitability is generally healthy with a 2025 net margin of ~20.7% and positive EBIT/EBITDA margins, but margins have been volatile versus earlier years (EBITDA margin down from ~28.2% in 2023 to ~15.5% in 2025). Net income also swung meaningfully (2023: 1.61B, 2024: 0.90B, 2025: 3.09B), suggesting earnings quality and/or one-off impacts that reduce predictability.
Balance Sheet
46
Neutral
The company’s balance sheet shows elevated leverage: debt-to-equity remains high (2023: ~3.07x, 2024: ~2.27x, 2025: ~1.76x), even though the trend is improving as equity has grown. Total debt also increased sharply in 2025 (to 16.23B), which can amplify risk in weaker markets. A key positive is the turnaround from negative equity in 2022 to substantial positive equity by 2025 (9.21B), alongside strong returns on equity (2025: ~33.6%), but the capital structure is still debt-heavy for a stability-focused profile.
Cash Flow
29
Negative
Cash generation is the main weak spot. Operating cash flow is low relative to reported earnings in 2024–2025 (operating cash flow to net income ~3.6% in 2024 and ~1.6% in 2025), indicating profits are not translating into cash. Free cash flow is negative in every year shown (2025: -140M; 2024: -223M; 2023: -230M; 2022: -125M), which limits financial flexibility and increases reliance on financing. While operating cash flow was strong in 2023 (1.19B), the sharp step-down in 2024–2025 raises consistency concerns.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022
Income Statement
Total Revenue14.96B11.05B9.33B1.12B
Gross Profit4.10B3.14B2.40B361.00M
EBITDA2.32B2.16B2.63B662.00M
Net Income3.09B901.00M1.61B148.00M
Balance Sheet
Total Assets30.93B15.42B14.75B9.19B
Cash, Cash Equivalents and Short-Term Investments9.57B5.44B4.40B2.60B
Total Debt16.23B8.84B9.24B6.48B
Total Liabilities21.61B11.41B11.64B7.86B
Stockholders Equity9.21B3.90B3.01B-219.00M
Cash Flow
Free Cash Flow-140.00M-222.64M-229.95M-124.78M
Operating Cash Flow147.00M179.50M1.19B-114.67M
Investing Cash Flow-3.46B-169.00M-702.00M-431.00M
Financing Cash Flow6.59B-605.00M1.28B393.00M

Next Generation Technology Group, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price9870.00
Price Trends
50DMA
8677.80
Positive
100DMA
7164.90
Positive
200DMA
Market Momentum
MACD
493.46
Negative
RSI
68.21
Neutral
STOCH
74.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:319A, the sentiment is Positive. The current price of 9870 is above the 20-day moving average (MA) of 9483.50, above the 50-day MA of 8677.80, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of 493.46 indicates Negative momentum. The RSI at 68.21 is Neutral, neither overbought nor oversold. The STOCH value of 74.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:319A.

Next Generation Technology Group, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
56
Neutral
¥106.33B34.44
53
Neutral
¥3.20B61.540.62%1.87%51.81%
48
Neutral
¥2.83B-2.783.24%21.67%-214.76%
46
Neutral
¥4.65B-7.174.15%-6.60%
39
Underperform
¥5.96B-5.72-42.35%42.01%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:319A
Next Generation Technology Group, Inc.
12,020.00
6,820.00
131.15%
JP:8518
Japan Asia Investment Company, Limited
194.00
-29.00
-13.00%
JP:3113
UNIVA Oak Holdings Limited
74.00
-6.00
-7.50%
JP:3266
Fund Creation Group Co., Ltd.
106.00
24.94
30.77%
JP:7162
ASTMAX Co., Ltd. (7162)
220.00
-13.46
-5.77%
JP:7345
Ai Partners Financial Inc.
977.00
376.05
62.58%

Next Generation Technology Group, Inc. Corporate Events

Next Generation Technology Group to Acquire Osaki Electric Clutch and Brake in First Carve-Out Deal
Feb 19, 2026

Next Generation Technology Group Inc. has agreed to acquire all shares of OSAKI ELECTRIC CLUTCH AND BRAKE Co., Ltd., a Tokyo-based manufacturer of electromagnetic clutches, brakes, and slip rings, from SINFONIA TECHNOLOGY CO., LTD., turning Osaki into a wholly owned subsidiary. The deal, funded through a mix of internal funds and bank loans, marks NGTG’s first carve-out acquisition and is intended to preserve Osaki’s core industrial technologies while expanding NGTG’s portfolio of manufacturing assets, though the company expects only a limited impact on its consolidated financial results.

The acquisition will be executed through NGTG18 Co., Ltd., a wholly owned subsidiary established in 2025 to acquire and manage marketable securities, with the share transfer scheduled for March 31, 2026. NGTG plans to continue supporting Osaki’s management and pursue additional deals, including business successions, carve-outs from large corporations, and potential tender offers for listed companies, reinforcing its positioning as a consolidator in Japan’s manufacturing sector.

The most recent analyst rating on (JP:319A) stock is a Hold with a Yen12753.00 price target. To see the full list of analyst forecasts on Next Generation Technology Group, Inc. stock, see the JP:319A Stock Forecast page.

Next Generation Technology Group Hits FY2025 Targets and Lifts Outlook on M&A-Driven Growth
Feb 15, 2026

Next Generation Technology Group reported FY2025 net sales of JPY15.0 billion, adjusted EBITDA of JPY2.9 billion, and adjusted profit of JPY1.5 billion, meeting its guidance on the back of delayed orders at Aerocraft Japan, value-up initiatives, and new acquisitions. The company clarified that operating cash flow appeared low due to directors’ retirement benefits and acquisition-related fees, which it economically treats as investing cash flows, and it explained a gain on bargain purchase arising from negative goodwill on recent deals.

For FY2026, the group forecasts net sales of JPY23.0 billion, adjusted EBITDA of JPY4.0 billion, and adjusted profit of JPY2.0 billion, adopting conservative guidance that excludes the impact of new acquisitions. Management said its value-up program is progressing smoothly, synergies are emerging through best-practice sharing and intra-group collaboration, and the post-IPO profile has improved deal flow and hiring, while interest rate hikes are not expected to materially affect funding costs due to low Japanese rates and a largely fixed-rate debt structure. The company reiterated its strategy of focusing on domestic manufacturing succession opportunities, avoiding portfolio sales and shareholder dilution, and using adjusted EBITDA and adjusted profit to strip out one-off M&A effects and better reflect underlying shareholder returns.

The most recent analyst rating on (JP:319A) stock is a Hold with a Yen9805.00 price target. To see the full list of analyst forecasts on Next Generation Technology Group, Inc. stock, see the JP:319A Stock Forecast page.

Next Generation Technology Group Pairs FY2025 Results With FY2026 Outlook and New Acquisition Plan
Feb 13, 2026

Next Generation Technology Group, Inc. released its FY2025 financial results, offering investors a snapshot of recent performance and operational trends. The company also issued a financial forecast for FY2026, signaling expectations for the coming year and providing guidance that will inform market views on its earnings trajectory.

Alongside the outlook, the group announced a new acquisition planned for FY2026, underscoring its continued reliance on M&A as a growth driver. The accompanying company overview highlights the market environment, details its acquisition targets and track record, and outlines how acquired firms are integrated to create value and support the group’s broader equity story.

These disclosures collectively reinforce the company’s positioning as an active consolidator in its sector and offer stakeholders insight into how management intends to balance financial performance with strategic expansion. The focus on value creation from acquired companies suggests ongoing efforts to enhance profitability and shareholder value across the group’s portfolio.

The most recent analyst rating on (JP:319A) stock is a Hold with a Yen9805.00 price target. To see the full list of analyst forecasts on Next Generation Technology Group, Inc. stock, see the JP:319A Stock Forecast page.

Next Generation Technology Group Doubles Scale on Acquisitions, Sets Ambitious 2026 Outlook
Feb 13, 2026

Next Generation Technology Group reported a 35.4% jump in net sales to ¥14.96 billion for the year ended December 31, 2025, with adjusted EBITDA up 34.4% and profit attributable to owners surging 243%, driven in part by newly consolidated subsidiaries. Despite this top-line growth, operating and ordinary profit declined year on year, while total assets roughly doubled to ¥30.9 billion and the equity ratio improved to 29.8%, reflecting aggressive expansion funded largely through financing, continued suspension of dividends, and a strong cash position of ¥8.96 billion at year-end.

For 2026, the company forecasts a further 53.7% rise in net sales to ¥23 billion, alongside solid gains in adjusted EBITDA and adjusted profit, suggesting management expects continued benefits from its enlarged group structure and integration of acquisitions. Changes in accounting policies due to revisions in standards and the addition of nine new consolidated companies underscore an ongoing transformation of the business portfolio that could materially influence returns and risk for shareholders and creditors.

The most recent analyst rating on (JP:319A) stock is a Hold with a Yen9805.00 price target. To see the full list of analyst forecasts on Next Generation Technology Group, Inc. stock, see the JP:319A Stock Forecast page.

Next Generation Technology Group to Acquire Precision Manufacturer Horikoshi-Seiki for ¥2.6 Billion
Jan 16, 2026

Next Generation Technology Group Inc. has agreed to acquire all shares of Tokyo-based precision machining and cutting specialist Horikoshi-Seiki Co., Ltd., making it a wholly owned subsidiary for ¥2.612 billion through its fully owned vehicle NGTG17 Co., Ltd. The deal, concluded and completed on January 16, 2026, brings a long-established and steadily profitable manufacturer into NGTG’s portfolio, strengthening its position as a consolidator in Japan’s manufacturing sector and signaling continued pursuit of similar acquisitions financed by a mix of internal funds and bank loans.

The most recent analyst rating on (JP:319A) stock is a Hold with a Yen11533.00 price target. To see the full list of analyst forecasts on Next Generation Technology Group, Inc. stock, see the JP:319A Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 18, 2026