Nextgen,Inc. (3842) AI Stock Analysis

• Market Cap: ¥3.48B
• Dividend Yield: 0.98%
• Average Volume (3M): 18.77K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.73
• Revenue Growth: 11.10%
• EPS Growth: 16.84%
• Country: JP
• Employees: 139
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 20.06
• Shares Outstanding: 3,092,900
• 10 Day Avg. Volume: 9,850
• 30 Day Avg. Volume: 18,773
• 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: ¥1,287.00 ▲(23.28% Upside)
• Action: Reiterated Date: 11/11/25
• Date: Action: Reiterated 11/11/25

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.

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. provides telecommunication, session initiation protocol (SIP)/VoIP security, and enterprise solutions in Japan. The company offers carrier-grade SIP/VoIP systems to various telecommunication carriers. It also provides VoIP QA testing solutions, including NX-VNS, a VoIP node simulator; NX-V3S, a SIP fuzz test tool; and NX-V3R, an RTP/RTCP signaling test tool, as well as NX-C6000/NX-C6500, a network forensic and IDS system targeted for VoIP/IMS core network. In addition, the company offers SIP/VoIP security audit for telecom carriers, mobile operators, VoIP/IMS system vendors, and VoIP/IMS system integrators. Further, it provides session border controller, subscriber storing softswitch, HSS/HLR solution, and IP-PBX solutions for enterprises, as well as voice logging solutions for small to large networks. The company was incorporated in 2001 and is headquartered in Tokyo, Japan.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• Last Price: 1044.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 1044 is below the 20-day moving average (MA) of 1080.35, below the 50-day MA of 1053.58, and above the 200-day MA of 1023.68, indicating a bullish trend. The MACD of 30.24 indicates Negative momentum. The RSI at 70.07 is Negative, neither overbought nor oversold. The STOCH value of 46.83 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
3834	80 Outperform	¥19.32B	12.60	―	3.53%	5.03%	-9.55%
9445	75 Outperform	¥9.59B	10.29	―	3.85%	1.75%	24.87%
3842	70 Outperform	¥3.48B	11.99	―	0.98%	11.10%	16.84%
9424	66 Neutral	¥22.35B	22.27	―	―	30.15%	31.28%
9450	64 Neutral	¥14.32B	10.97	―	4.02%	5.13%	-13.74%
9419	62 Neutral	¥3.51B	27.33	―	―	-3.76%	-67.98%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%