Nextgen,Inc. (3842) AI Stock Analysis

• Market Cap: ¥4.04B
• Dividend Yield: 0.76%
• Average Volume (3M): 8.08K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.88
• Revenue Growth: 11.10%
• EPS Growth: 16.84%
• Country: JP
• Employees: 139
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 14.96
• Shares Outstanding: 3,092,900
• 10 Day Avg. Volume: 15,390
• 30 Day Avg. Volume: 8,076
• PEG Ratio: 0.64
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 3.32
• 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: 70 Outperform
• Price Target: ¥1,199.00 ▲(4.17% Upside)

Nextgen, Inc. has a strong financial foundation with improving profitability and cash flow, which is the most significant factor in its overall score. The technical analysis indicates mixed signals, with potential for a reversal due to oversold conditions. The valuation is fair, with a reasonable P/E ratio and modest dividend yield. The absence of earnings call data and corporate events does not impact the score.

Nextgen,Inc. Business Overview & Revenue Model

Company Description

Nextgen, Inc. (3842) is a leading technology company specializing in innovative solutions for the healthcare sector. The company focuses on enhancing patient care through its cutting-edge software platforms, electronic health records (EHR) systems, and data analytics services. With a commitment to improving operational efficiencies and patient outcomes, Nextgen serves a wide array of healthcare providers, including hospitals, clinics, and outpatient facilities.

How the Company Makes Money

Nextgen, Inc. generates revenue primarily through the sale of its software solutions and services, which include subscription-based EHR systems, practice management software, and revenue cycle management solutions. The company operates on a recurring revenue model, where clients pay ongoing subscriptions for access to its platforms and associated updates. Additionally, Nextgen earns revenue from professional services such as implementation, training, and customer support. Strategic partnerships with healthcare organizations and technology firms further enhance its earnings by expanding its market reach and integrating complementary technologies. The increasing demand for digital health solutions and regulatory support for electronic health records also contribute positively to the company’s financial growth.

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	3.78B	3.62B	3.52B	3.05B	3.75B	3.86B
Gross Profit	1.55B	1.42B	1.31B	1.15B	1.36B	1.38B
EBITDA	641.79M	502.54M	503.24M	-157.46M	598.44M	298.74M
Net Income	309.90M	204.88M	166.92M	-454.41M	164.66M	-174.32M
Balance Sheet
Total Assets	3.62B	3.54B	3.28B	3.00B	3.45B	3.34B
Cash, Cash Equivalents and Short-Term Investments	1.73B	1.81B	1.26B	1.21B	1.25B	1.18B
Total Debt	426.17M	475.77M	474.82M	517.59M	600.53M	686.70M
Total Liabilities	1.35B	1.36B	1.32B	1.21B	1.44B	1.56B
Stockholders Equity	2.27B	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: Negative
• Last Price: 1151.00
• 50DMA: Negative
• 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 Negative. The current price of 1151 is below the 20-day moving average (MA) of 1191.45, above the 50-day MA of 1150.63, and above the 200-day MA of 1011.45, indicating a neutral trend. The MACD of 20.26 indicates Positive momentum. The RSI at 39.30 is Neutral, neither overbought nor oversold. The STOCH value of 63.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3842.

Nextgen,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3842	70 Outperform	¥4.04B	14.56	―	0.76%	11.10%	16.84%
9445	69 Neutral	¥9.80B	10.81	―	3.71%	8.17%	25.32%
4341	67 Neutral	¥2.79B	6.40	―	2.89%	5.02%	314.95%
4415	65 Neutral	¥7.01B	15.12	―	―	27.56%	47.92%
9419	63 Neutral	¥2.91B	16.73	―	―	-2.94%	-52.22%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9421	45 Neutral	¥3.10B	58.94	―	―	4.84%	-54.50%