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

• Market Cap: ¥81.83B
• Dividend Yield: N/A
• Average Volume (3M): 131.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 558
• Sector: Technology
• Sector Strength: 88
• Industry: Asset Management
• EPS (TTM): 58.61
• Shares Outstanding: 8,845,978
• 10 Day Avg. Volume: 126,590
• 30 Day Avg. Volume: 131,576
• PEG Ratio: -0.69
• Price to Book (P/B): 7.08
• Price to Sales (P/S): 2.50
• P/FCF Ratio: -124.01
• 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: 74 Outperform
• Price Target: ¥10,360.00 ▲(4.96% Upside)

Next Generation Technology Group, Inc. demonstrates strong financial performance with robust revenue growth and cash flow management. The technical analysis indicates bullish momentum, though caution is advised due to potential overbought conditions. The lack of valuation data introduces some uncertainty, impacting the overall score.

Positive Factors

High free cash flow generation

Very strong free cash flow growth (59.19%) and operating cash flow roughly double net income indicate durable cash generation. This underpins capital allocation flexibility, funds R&D and capex without dilutive financing, and strengthens resilience to cyclical slowdowns over months.

Consistent revenue growth with healthy margins

Revenue rising 18.47% alongside healthy gross and EBITDA margins demonstrates a scalable services/subscription model with pricing power. Sustained profitable top-line growth supports reinvestment in product development and sales, promoting durable competitive positioning over quarters.

Strong return on equity

ROE of 23.09% signals efficient use of shareholder capital and effective operations. High ROE historically correlates with strong management execution and differentiated offerings, enabling consistent value creation and attractive returns on reinvested earnings over the medium term.

Negative Factors

Elevated leverage

A debt-to-equity ratio of 2.27 reflects relatively high leverage, which can increase interest burden and refinancing risk. Over a 2-6 month horizon elevated debt constrains strategic flexibility and amplifies earnings volatility if revenue or cash flows unexpectedly weaken.

Decline in net income despite revenue growth

Net income fell even as revenue grew, indicating margin pressure, rising costs, or non-recurring charges. If persistent, this erosion undermines cash conversion and return metrics, forcing difficult trade-offs between margin restoration and continued investment in growth initiatives.

Modest equity buffer

An equity ratio of 25.31% implies a relatively small equity cushion relative to assets. Limited capital buffer increases vulnerability to asset write-downs or shocks and may necessitate external financing for big investments, reducing balance sheet resilience over the medium term.

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

Company Description

Next 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 Money

Next 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

Next Generation Technology Group, Inc. exhibits strong financial health with impressive revenue growth and profitability. The company maintains a solid cash flow position, although the high leverage warrants cautious monitoring. The balance sheet reflects a strategic use of debt and equity, while the income statement underscores efficient operations.

Income Statement

Next Generation Technology Group, Inc. has demonstrated strong revenue growth with a 18.47% increase from 2023 to 2024. The gross profit margin is healthy at 28.43%, and the net profit margin stands at 8.15%, indicating solid profitability. EBIT and EBITDA margins are robust at 13.73% and 19.54%, respectively, reflecting efficient operations. However, the decline in net income from 2023 to 2024 suggests potential challenges in cost management or other financial pressures.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 2.27, indicating a relatively high level of leverage, which could pose risks if not managed carefully. The return on equity is impressive at 23.09%, showcasing effective use of equity to generate profits. The equity ratio is 25.31%, suggesting a balanced approach to financing with a reasonable level of equity relative to total assets.

Cash Flow

The cash flow statement reveals a strong free cash flow growth rate of 59.19% from 2023 to 2024, highlighting excellent cash generation capabilities. The operating cash flow to net income ratio is 2.10, indicating efficient conversion of income into cash. Additionally, the free cash flow to net income ratio is 2.10, further emphasizing strong cash flow management.

Breakdown	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	11.05B	9.33B	1.12B
Gross Profit	3.14B	2.40B	361.00M
EBITDA	2.16B	2.63B	662.00M
Net Income	901.00M	1.61B	148.00M
Balance Sheet
Total Assets	15.42B	14.75B	9.19B
Cash, Cash Equivalents and Short-Term Investments	5.44B	4.40B	2.60B
Total Debt	8.84B	9.24B	6.48B
Total Liabilities	11.41B	11.64B	7.86B
Stockholders Equity	3.90B	3.01B	-219.00M
Cash Flow
Free Cash Flow	-222.64M	-229.95M	-124.78M
Operating Cash Flow	179.50M	1.19B	-114.67M
Investing Cash Flow	-169.00M	-702.00M	-431.00M
Financing Cash Flow	-605.00M	1.28B	393.00M

Next Generation Technology Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9870.00
• 50DMA: Positive
• 100DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
319A	74 Outperform	¥81.83B	―	―	―	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
7345	50 Neutral	¥2.68B	987.80	―	0.62%	1.87%	51.81%
7162	48 Neutral	¥2.73B	-4.06	―	3.24%	21.67%	-214.76%
8518	46 Neutral	¥4.70B	16.45	4.15%	―	-6.60%	―
3113	39 Underperform	¥5.80B	-6.49	―	―	-42.35%	42.01%

Next Generation Technology Group, Inc. Corporate Events

Next Generation Technology Group to Acquire Precision Manufacturer Horikoshi-Seiki for ¥2.6 Billion

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.

Next Generation Technology Group Inc. Reports Positive Q3 Performance and Strategic Acquisitions

Next Generation Technology Group Inc. reported a positive Q3 performance with increases in Adjusted EBITDA and Adjusted Profit, driven by high-margin orders and recent acquisitions. The company is focusing on integrating new acquisitions and leveraging internal synergies to enhance profitability, while maintaining a conservative approach to capital management and shareholder returns.

The most recent analyst rating on (JP:319A) stock is a Buy with a Yen10953.00 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 Reports Mixed Financial Results for 2025

Next Generation Technology Group, Inc. reported its financial results for the nine months ending September 30, 2025, showing a significant increase in net sales by 11.5% year-on-year, reaching ¥8,970 million. However, the company experienced a decline in operating and ordinary profits by over 30% compared to the previous year. The company’s comprehensive income increased by 35.1%, and it has successfully improved its equity-to-asset ratio from 25.3% to 30.2%. The company also conducted a reverse stock split and has not announced any changes to its dividend forecast.

The most recent analyst rating on (JP:319A) stock is a Buy with a Yen10953.00 price target. To see the full list of analyst forecasts on Next Generation Technology Group, Inc. stock, see the JP:319A Stock Forecast page.