Nextgen,Inc. (3842) AI Stock Analysis

• Market Cap: ¥3.62B
• Dividend Yield: 0.88%
• Average Volume (3M): 19.51K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.84
• Revenue Growth: 6.95%
• EPS Growth: 50.07%
• Country: JP
• Employees: 139
• Sector: Communication Services
• Sector Strength: 94
• Industry: Telecommunications Services
• EPS (TTM): 35.58
• Shares Outstanding: 3,091,800
• 10 Day Avg. Volume: 12,860
• 30 Day Avg. Volume: 19,510
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,222.00
• Price Target Upside: 7.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥1,222.00 ▲(7.38% Upside)

Nextgen, Inc. scores well due to its strong financial performance and attractive valuation. The company's solid balance sheet and improving profitability are significant strengths. However, technical indicators suggest the stock is currently overbought, which could lead to short-term volatility.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Balance Sheet Health

A strong balance sheet with low debt enhances financial stability and provides flexibility for future investments and growth opportunities.

Profitability

Improved profitability margins reflect efficient cost management and pricing strategies, contributing to sustainable financial performance.

Negative Factors

Cash Flow Fluctuations

Inconsistent cash flow management can hinder the company's ability to fund operations and growth initiatives, posing a risk to financial stability.

Historical Volatility

Historical volatility in income and margins suggests potential challenges in maintaining consistent financial performance, impacting investor confidence.

Debt Monitoring

While current debt levels are low, ongoing monitoring is crucial to prevent financial strain and ensure long-term fiscal health.

Nextgen,Inc. Business Overview & Revenue Model

Company Description

Nextgen, Inc. (3842) is a technology company specializing in innovative software solutions and services that cater to various domains, including healthcare, education, and enterprise resource management. The company focuses on developing integrated platforms that enhance operational efficiency, data management, and user experience across its client sectors. By leveraging cutting-edge technology, Nextgen aims to provide scalable and customizable solutions to address the unique challenges faced by organizations in an increasingly digital world.

How the Company Makes Money

Nextgen, Inc. generates revenue through multiple streams, primarily by offering subscription-based software services and licensing fees for its proprietary platforms. The company has established key partnerships with healthcare providers and educational institutions, allowing it to integrate its solutions into their existing systems, thereby creating a reliable customer base. Additionally, Nextgen earns income through professional services, including consulting, implementation, and training, which support clients in maximizing the utilization of its software. The recurring revenue from subscriptions, combined with one-time fees from implementation projects, forms the backbone of Nextgen's financial performance.

Nextgen,Inc. Financial Statement Overview

Summary

Nextgen, Inc. demonstrates a solid financial position with improving profitability and strong cash generation. The company's financial health is supported by a strong balance sheet and positive income statement trends. While there have been historical challenges, the trajectory is positive, with a focus on maintaining stability and growth in the telecommunications sector.

Income Statement

Nextgen, Inc. shows a strong recovery in its income statement metrics over the years. The gross profit margin and net profit margin have improved significantly, indicating enhanced profitability. Revenue growth is positive, with a notable increase from 2023 to 2025. EBIT and EBITDA margins have also improved, reflecting better operational efficiency. However, past negative net income and fluctuating EBIT margins highlight some historical volatility.

Balance Sheet

The balance sheet of Nextgen, Inc. is robust, with a strong equity base and a low debt-to-equity ratio, indicating financial stability. The return on equity has improved, showcasing better utilization of equity to generate profits. The equity ratio is healthy, suggesting a solid asset base funded by equity. However, the company should continue to monitor its debt levels to maintain this stability.

Cash Flow

Nextgen, Inc.'s cash flow statement reflects a positive trend in operating cash flow, which has grown substantially. The free cash flow has also shown growth, indicating effective capital management. The operating cash flow to net income ratio is strong, suggesting good cash generation relative to net income. However, fluctuations in free cash flow in previous years indicate some inconsistency in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.62B	3.62B	3.52B	3.05B	3.75B	3.86B
Gross Profit	1.42B	1.42B	1.31B	1.15B	1.36B	1.38B
EBITDA	539.31M	502.54M	503.24M	-157.46M	598.44M	298.74M
Net Income	203.91M	204.88M	166.92M	-454.41M	164.66M	-174.32M
Balance Sheet
Total Assets	3.54B	3.54B	3.28B	3.00B	3.45B	3.34B
Cash, Cash Equivalents and Short-Term Investments	1.81B	1.81B	1.26B	1.21B	1.25B	1.18B
Total Debt	475.77M	475.77M	474.82M	517.59M	600.53M	686.70M
Total Liabilities	1.36B	1.36B	1.32B	1.21B	1.44B	1.56B
Stockholders Equity	2.17B	2.17B	1.96B	1.80B	2.01B	1.78B
Cash Flow
Free Cash Flow	0.00	845.18M	100.41M	-194.42M	86.31M	474.87M
Operating Cash Flow	0.00	852.29M	484.28M	414.48M	488.42M	646.26M
Investing Cash Flow	0.00	-265.30M	-380.76M	-608.90M	-392.30M	-167.13M
Financing Cash Flow	0.00	-39.21M	-49.18M	155.70M	-26.95M	-449.04M

Nextgen,Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1138.00
• 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:3842, the sentiment is Positive. The current price of 1138 is below the 20-day moving average (MA) of 1145.05, above the 50-day MA of 1007.32, and above the 200-day MA of 996.71, indicating a neutral trend. The MACD of 34.05 indicates Positive momentum. The RSI at 59.13 is Neutral, neither overbought nor oversold. The STOCH value of 70.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3842.

Nextgen,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4415	72 Outperform	¥5.74B	12.30		―	27.56%	47.92%
3842	71 Outperform	¥3.62B	11.65		0.88%	6.95%	50.07%
9445	69 Neutral	¥9.28B	10.23		3.58%	8.17%	25.32%
4341	68 Neutral	¥2.83B	12.04		2.85%	3.01%	20.65%
9419	67 Neutral	¥3.07B	17.23		―	-2.94%	-52.22%
Sector *	60 Neutral	$47.13B	4.38	-11.40%	4.21%	1.87%	-42.87%
9421	42 Neutral	¥3.22B	105.34		―	-6.10%	-88.72%