Nextgen,Inc. (3842) AI Stock Analysis

• Market Cap: ¥3.64B
• Dividend Yield: 0.9%
• Average Volume (3M): 14.49K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.86
• Revenue Growth: 6.95%
• EPS Growth: 50.07%
• Country: JP
• Employees: 139
• Sector: Communication Services
• Sector Strength: 92
• Industry: Telecommunications Services
• EPS (TTM): 35.58
• Shares Outstanding: 3,091,800
• 10 Day Avg. Volume: 37,220
• 30 Day Avg. Volume: 14,490
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 3.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥1,222.00 ▲(3.74% 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.

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. has solid financial health with strong revenue growth and gross margins, reflecting effective market positioning and cost control. The balance sheet's low leverage and high equity ratio suggest stability, while robust cash flow generation underscores efficient operations. Opportunities exist to enhance EBIT margins and ROE.

Income Statement

The company demonstrates a strong gross profit margin and improving net profit margin, indicating effective cost management. Revenue growth is consistent, showing resilience despite industry challenges. However, EBIT and EBITDA margins are modest, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet is solid with a favorable debt-to-equity ratio, indicating low leverage. The equity ratio is strong, reflecting a stable financial position. However, the return on equity is moderate, suggesting potential for improved profitability.

Cash Flow

Operating cash flow is robust, with a healthy free cash flow to net income ratio, reflecting the company's strong cash-generating ability. There is significant growth in free cash flow, indicating effective cash management and potential for reinvestment or debt reduction.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.62B	3.52B	3.05B	3.75B	3.86B
Gross Profit	1.42B	1.31B	1.15B	1.36B	1.38B
EBITDA	502.54M	503.24M	-157.46M	598.44M	298.74M
Net Income	204.88M	166.92M	-454.41M	164.66M	-174.32M
Balance Sheet
Total Assets	3.54B	3.28B	3.00B	3.45B	3.34B
Cash, Cash Equivalents and Short-Term Investments	1.81B	1.26B	1.21B	1.25B	1.18B
Total Debt	475.77M	474.82M	517.59M	600.53M	686.70M
Total Liabilities	1.36B	1.32B	1.21B	1.44B	1.56B
Stockholders Equity	2.17B	1.96B	1.80B	2.01B	1.78B
Cash Flow
Free Cash Flow	845.18M	100.41M	-194.42M	86.31M	474.87M
Operating Cash Flow	852.29M	484.28M	414.48M	488.42M	646.26M
Investing Cash Flow	-265.30M	-380.76M	-608.90M	-392.30M	-167.13M
Financing Cash Flow	-39.21M	-49.18M	155.70M	-26.95M	-449.04M

Nextgen,Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1178.00
• 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 1178 is above the 20-day moving average (MA) of 957.45, above the 50-day MA of 913.10, and above the 200-day MA of 967.07, indicating a bullish trend. The MACD of 63.49 indicates Negative momentum. The RSI at 94.06 is Negative, neither overbought nor oversold. The STOCH value of 70.62 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	¥5.09B	10.98		―	27.56%	47.92%
3842	71 Outperform	¥3.64B	11.71		0.90%	6.95%	50.07%
9445	69 Neutral	¥9.07B	9.99		3.70%	8.17%	25.32%
9419	67 Neutral	¥3.04B	17.48		―	-1.07%	6.60%
4341	66 Neutral	¥2.88B	12.24		2.79%	3.01%	20.65%
Sector *	60 Neutral	$44.07B	1.90	-11.99%	3.99%	2.50%	-38.33%
9421	42 Neutral	¥3.05B	98.51		―	-6.10%	-88.72%