NEOJAPAN Inc. (3921) AI Stock Analysis

• Market Cap: ¥25.54B
• Dividend Yield: 2.85%
• Average Volume (3M): 43.00K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.66
• Revenue Growth: 13.73%
• EPS Growth: 61.79%
• Country: JP
• Employees: 305
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 31.97
• Shares Outstanding: 14,073,200
• 10 Day Avg. Volume: 82,500
• 30 Day Avg. Volume: 42,996
• PEG Ratio: 0.64
• Price to Book (P/B): 2.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.69
• 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

• Rating: 80 Outperform
• Price Target: ¥2,193.00 ▲(20.16%Upside)

NEOJAPAN Inc. receives a high overall score driven by strong financial performance and solid valuation metrics. While technical analysis indicates a positive trend, caution is advised due to overbought signals. The absence of significant earnings call data and corporate events did not impact the score.

NEOJAPAN Inc. Business Overview & Revenue Model

Company Description

NEOJAPAN Inc. is a leading Japanese software company specializing in the development and distribution of communication and collaboration tools. The company primarily operates in the IT services sector, offering a range of products designed to enhance corporate communication and improve operational efficiency. Its flagship product, 'desknet's NEO,' is a groupware solution that supports information sharing and collaborative work within organizations.

How the Company Makes Money

NEOJAPAN Inc. generates revenue primarily through software licensing and subscription models. The company offers its products on a subscription basis, providing ongoing updates and support, which ensures a steady stream of recurring revenue. Additionally, NEOJAPAN offers customization and integration services for its software solutions, allowing clients to tailor the products to their specific needs. The company also benefits from partnerships with other technology firms and resellers, which help expand its market reach and drive sales. These partnerships often involve revenue-sharing agreements, contributing to the company's overall earnings.

NEOJAPAN Inc. Financial Statement Overview

Summary

NEOJAPAN Inc. demonstrates a strong financial performance with consistent revenue and profit growth, efficient cost management, and robust cash flow generation. The company's low leverage and high equity ratio contribute to its stability, making it well-positioned for future growth.

Income Statement

NEOJAPAN Inc. has shown strong revenue growth with a 9.8% increase from 2024 to 2025. The gross profit margin stands at 55.5%, indicating effective cost control and profitability. The company has a robust net profit margin of 19.5%, supported by improved EBIT and EBITDA margins of 26.9% and 31.2%, respectively. These metrics reflect operational efficiency and a strong competitive position in the software industry.

Balance Sheet

The balance sheet is healthy, with a very low debt-to-equity ratio of 0.0004, highlighting minimal leverage and financial risk. The equity ratio is strong at 68.3%, indicating a solid capital structure. Return on equity is impressive at 22.4%, showcasing effective utilization of shareholder capital. Overall, the company maintains a stable and low-risk financial position.

Cash Flow

NEOJAPAN Inc. exhibits exceptional cash flow management with a remarkable free cash flow growth rate of 170.4% year-over-year. The operating cash flow to net income ratio is 1.46, and the free cash flow to net income ratio is 1.45, indicating strong cash generation relative to earnings. This robust cash flow supports future growth initiatives and enhances financial flexibility.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.26B	6.62B	6.01B	5.92B	5.33B
Gross Profit	4.03B	3.64B	3.23B	3.03B	2.74B
EBITDA	2.26B	1.64B	1.61B	1.51B	1.12B
Net Income	1.41B	956.35M	812.64M	866.33M	677.11M
Balance Sheet
Total Assets	9.24B	8.62B	8.03B	7.29B	6.74B
Cash, Cash Equivalents and Short-Term Investments	5.55B	5.40B	5.22B	4.33B	3.65B
Total Debt	2.72M	290.00K	311.00K	364.00K	101.98M
Total Liabilities	2.93B	2.28B	2.30B	2.12B	2.31B
Stockholders Equity	6.31B	6.33B	5.72B	5.15B	4.42B
Cash Flow
Free Cash Flow	2.05B	759.41M	956.90M	815.44M	798.34M
Operating Cash Flow	2.06B	1.03B	1.19B	1.11B	989.86M
Investing Cash Flow	-452.86M	-359.00M	-174.40M	-326.33M	-227.70M
Financing Cash Flow	-1.49B	-389.51M	-207.26M	-255.83M	-142.62M

NEOJAPAN Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1825.00
• 50DMA: Positive
• 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:3921, the sentiment is Positive. The current price of 1825 is above the 20-day moving average (MA) of 1747.95, above the 50-day MA of 1610.80, and above the 200-day MA of 1711.65, indicating a bullish trend. The MACD of 77.56 indicates Positive momentum. The RSI at 63.40 is Neutral, neither overbought nor oversold. The STOCH value of 24.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3921.

NEOJAPAN Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3648	82 Outperform	¥16.48B	11.73		1.66%	12.54%	52.37%
4333	80 Outperform	¥23.82B	19.14		4.00%	7.87%	4.99%
3921	80 Outperform	¥25.54B	16.52		2.85%	13.73%	61.79%
4058	76 Outperform	¥33.35B	37.55		0.46%	29.24%	28.74%
3835	74 Outperform	¥23.77B	18.65		2.67%	2.77%	6.32%
Sector *	69 Neutral	¥231.71B	14.67	7.64%	2.71%	9.09%	8.52%
4448	55 Neutral	¥19.44B	135.78		―	25.35%	-118.04%

NEOJAPAN Inc. Corporate Events

NEOJAPAN Inc. Reclassifies DELCUI to Boost Software Business

NEOJAPAN Inc. has reclassified DELCUI from its Overseas Business segment to its Software Business segment, reflecting the growing significance of DELCUI as an outsourced development partner. This strategic move, effective from the first quarter of the fiscal year ending January 2026, is expected to enhance the company’s operations by integrating DELCUI’s results into its core software business, potentially impacting its market positioning and stakeholder interests.

NEOJAPAN Inc. Reports Strong Q1 Financial Performance

NEOJAPAN Inc. reported a strong financial performance for the three months ending April 30, 2025, with net sales increasing by 18.3% and operating profit rising by 47.6% compared to the previous year. This growth reflects the company’s robust market positioning and effective operational strategies, potentially benefiting stakeholders and reinforcing its competitive stance in the software industry.

NEOJAPAN Inc. Completes Treasury Share Disposal for Employee Compensation

NEOJAPAN Inc. has completed the disposal of 5,656 treasury shares as part of a performance condition-based restricted stock compensation plan for its management-level employees. This move, resolved in a board meeting on April 25, 2025, reflects the company’s commitment to aligning employee incentives with corporate performance, potentially enhancing operational efficiency and stakeholder value.

NEOJAPAN Inc. Completes Treasury Share Disposal for Compensation Plan

NEOJAPAN Inc. announced the completion of its disposal of treasury shares as part of a performance condition-based restricted stock compensation plan. This move involved the disposal of 5,500 common shares at a price of 1,488 yen per share, totaling 8,184,000 yen, and was allocated to five directors of the company. This strategic decision is expected to align the interests of the directors with the company’s performance goals, potentially impacting its operational dynamics and shareholder value.

NEOJAPAN Inc. Implements Stock Compensation Plan to Boost Performance

NEOJAPAN Inc. has announced the disposal of 5,656 treasury shares as part of a performance-based restricted stock compensation plan for management-level employees. This initiative is designed to align employee incentives with the company’s long-term goals, potentially boosting corporate value and shareholder returns. The plan includes specific conditions for vesting and transfer restrictions, ensuring that employees remain committed to the company’s performance targets.

NEOJAPAN Inc. Announces Treasury Shares Disposal for Director Compensation

NEOJAPAN Inc. has announced a decision by its Board of Directors to dispose of 5,500 treasury shares as part of a performance-based restricted stock compensation plan for its directors. This initiative is designed to align the directors’ interests with the company’s long-term performance goals and shareholder value enhancement, by incentivizing them to improve business performance. The shares will be allotted to directors, excluding outside directors, and are subject to restrictions on transfer until certain performance and tenure conditions are met.