Nextgen,Inc. (JP:3842)
:3842
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Nextgen,Inc.
(3842)
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Rating:74Outperform
Price Target:
¥1,111.00
▲(6.42% Upside)
Action:Upgraded
Date:05/16/26
The score is driven primarily by improving financial performance (better profitability, de-risked balance sheet, and strong 2026 cash generation) and supported by attractive valuation (low P/E with a dividend). Technicals temper the rating due to weaker intermediate-term momentum (below key moving averages and negative MACD).
Positive Factors
Improving profitability and margins
Sustained margin expansion and stronger ROE through 2024–2026 indicate the business has moved from loss-making to structurally profitable operations. Higher margins and ROE improve internal funding capacity and signal improved operational leverage, supporting durable earnings generation over the medium term.
Negative Factors
Historical revenue and profit volatility
Material year-to-year swings in revenue and profit reduce forecastability of core cash flows and complicate capital planning. Structural volatility increases execution risk for management and can magnify the impact of market slowdowns, undermining confidence in sustained margin progress.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability and margins
Sustained margin expansion and stronger ROE through 2024–2026 indicate the business has moved from loss-making to structurally profitable operations. Higher margins and ROE improve internal funding capacity and signal improved operational leverage, supporting durable earnings generation over the medium term.
Read all positive factors
Nextgen,Inc. (3842) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥3.03B
Dividend Yield0.98%
Average Volume (3M)18.77K
Price to Earnings (P/E)10.2
Beta (1Y)0.73
Revenue Growth17.57%
EPS Growth42.04%
CountryJP
Employees139
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)100.39
Shares Outstanding3,092,900
10 Day Avg. Volume9,850
30 Day Avg. Volume18,773
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)1.24
Price to Sales (P/S)0.70
P/FCF Ratio4.11
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 ...
How the Company Makes Money
null...
Nextgen,Inc. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
71
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.78B | 4.26B | 3.62B | 3.52B | 3.05B | 3.75B |
| Gross Profit | 1.55B | 1.58B | 1.42B | 1.31B | 1.15B | 1.36B |
| EBITDA | 641.79M | 613.96M | 502.54M | 503.24M | -157.46M | 598.44M |
| Net Income | 309.90M | 292.31M | 204.88M | 166.92M | -454.41M | 164.66M |
Balance Sheet | ||||||
| Total Assets | 3.62B | 3.69B | 3.54B | 3.28B | 3.00B | 3.45B |
| Cash, Cash Equivalents and Short-Term Investments | 1.73B | 2.01B | 1.81B | 1.26B | 1.21B | 1.25B |
| Total Debt | 426.17M | 288.82M | 475.77M | 474.82M | 517.59M | 600.53M |
| Total Liabilities | 1.35B | 1.29B | 1.37B | 1.32B | 1.21B | 1.44B |
| Stockholders Equity | 2.27B | 2.40B | 2.17B | 1.96B | 1.80B | 2.01B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 723.74M | 845.18M | 100.41M | -194.42M | 86.31M |
| Operating Cash Flow | 0.00 | 740.49M | 852.29M | 484.28M | 414.48M | 488.42M |
| Investing Cash Flow | 0.00 | -290.78M | -265.30M | -380.76M | -608.90M | -392.30M |
| Financing Cash Flow | 0.00 | -247.53M | -39.21M | -49.18M | 155.70M | -26.95M |
Nextgen,Inc. Technical Analysis
Negative
1044.00
Price Trends
994.07
Negative
1019.81
Negative
1045.94
Negative
Market Momentum
-0.64
Negative
46.56
Neutral
47.92
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 above the 20-day moving average (MA) of 981.55, above the 50-day MA of 994.07, and below the 200-day MA of 1045.94, indicating a bearish trend. The MACD of -0.64 indicates Negative momentum. The RSI at 46.56 is Neutral, neither overbought nor oversold. The STOCH value of 47.92 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥3.03B | 10.17 | ― | 0.98% | 17.57% | 42.04% | |
73 Outperform | ¥16.75B | 13.03 | ― | 3.53% | 3.36% | -23.56% | |
68 Neutral | ¥14.28B | 9.66 | ― | 4.02% | 5.51% | -2.57% | |
65 Neutral | ¥9.22B | 9.64 | ― | 3.85% | -6.67% | 34.46% | |
63 Neutral | ¥20.02B | 27.91 | ― | ― | 25.92% | -10.55% | |
62 Neutral | ¥3.16B | 10.26 | ― | ― | 8.20% | 2.55% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
JP:3842
Nextgen,Inc.
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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.