Nextgen,Inc. (JP:3842)
:3842
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Nextgen,Inc.
(3842)
Select Model
Select Model
Rating:59Neutral
Price Target:
¥1,031.00
▼(-1.25% Downside)
Action:DowngradedDate:03/24/26
The score is supported by improved financial health—better profitability, low leverage, and strong recent free cash flow—but is pulled down by weak technicals (below major moving averages with negative MACD) and concerns about revenue stability given the steep reported 2025 revenue decline. Valuation is reasonable but not a major catalyst given the low dividend yield.
Positive Factors
Improving Profitability
Sustained positive earnings and rising margins through 2024–2025 indicate the business can generate operating profits on a recurring basis. Higher gross and operating margins improve durability of cash flow and reinvestment capacity, supporting capital allocation and resilience versus peers.
Negative Factors
Revenue Stability Risk
A near-90% reported revenue drop in 2025 raises questions about the sustainability of recent profit recovery. Structural revenue erosion can undermine margin and cash-flow durability, forcing cost cuts or asset sales and making future earnings less predictable for investors and lenders.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Profitability
Sustained positive earnings and rising margins through 2024–2025 indicate the business can generate operating profits on a recurring basis. Higher gross and operating margins improve durability of cash flow and reinvestment capacity, supporting capital allocation and resilience versus peers.
Read all positive factors
Nextgen,Inc. (3842) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥3.08B
Dividend Yield0.98%
Average Volume (3M)18.77K
Price to Earnings (P/E)12.9
Beta (1Y)0.73
Revenue Growth11.10%
EPS Growth16.84%
CountryJP
Employees139
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)20.06
Shares Outstanding3,092,900
10 Day Avg. Volume9,850
30 Day Avg. Volume18,773
Financial Highlights & Ratios
PEG Ratio0.64
Price to Book (P/B)1.29
Price to Sales (P/S)0.77
P/FCF Ratio3.32
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 ...
Nextgen,Inc. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
71
Positive
| 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 | 1.37B | 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
Negative
1044.00
Price Trends
1061.40
Negative
1047.28
Negative
1041.29
Negative
Market Momentum
-26.25
Positive
37.92
Neutral
52.30
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 1044 is below the 20-day moving average (MA) of 1047.90, below the 50-day MA of 1061.40, and above the 200-day MA of 1041.29, indicating a bearish trend. The MACD of -26.25 indicates Positive momentum. The RSI at 37.92 is Neutral, neither overbought nor oversold. The STOCH value of 52.30 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥18.54B | 13.52 | ― | 3.53% | 5.03% | -9.55% | |
75 Outperform | ¥9.59B | 12.83 | ― | 3.85% | 1.75% | 24.87% | |
68 Neutral | ¥14.63B | 10.17 | ― | 4.02% | 5.13% | -13.74% | |
66 Neutral | ¥21.85B | 23.11 | ― | ― | 30.15% | 31.28% | |
62 Neutral | ¥3.19B | 5.37 | ― | ― | -3.76% | -67.98% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | ¥3.08B | 12.90 | ― | 0.98% | 11.10% | 16.84% |
* Communication Services Sector Average
JP:3842
Nextgen,Inc.
995.00
94.97
10.55%
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663.00
-2.34
-0.35%
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293.00
63.00
27.39%
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Japan Communications Inc.
131.00
-11.00
-7.75%
JP:9445
Forval Telecom, Inc.
572.00
120.13
26.59%
JP:9450
Fibergate, Inc.
714.00
-160.27
-18.33%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.