NEOJAPAN Inc. (3921) AI Stock Analysis

• Market Cap: ¥23.96B
• Dividend Yield: 2.34%
• Average Volume (3M): 47.65K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.66
• Revenue Growth: 13.73%
• EPS Growth: 61.79%
• Country: JP
• Employees: 305
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Application
• EPS (TTM): 31.97
• Shares Outstanding: 14,073,200
• 10 Day Avg. Volume: 25,440
• 30 Day Avg. Volume: 47,653
• PEG Ratio: 0.60
• Price to Book (P/B): 3.80
• 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: ¥2,193.00
• Price Target Upside: 28.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 81 Outperform
• Price Target: ¥1,971.00 ▲(15.13%Upside)

NEOJAPAN Inc. achieves a strong overall score driven primarily by its robust financial performance, marked by significant revenue and profit growth and efficient cash flow management. Its valuation is favorable with a competitive P/E ratio and dividend yield, enhancing its attractiveness. Technical analysis provides some caution but indicates potential for upward movement.

NEOJAPAN Inc. Business Overview & Revenue Model

Company Description

NEOJAPAN Inc. is a Japanese company specializing in the development and provision of software solutions, primarily focusing on communication and collaboration tools for businesses. The company's flagship product is 'desknet's NEO,' a groupware solution that enhances workplace productivity through features like scheduling, information sharing, and task management. NEOJAPAN Inc. serves a diverse range of industries, offering customizable solutions to meet the specific needs of its clients.

How the Company Makes Money

NEOJAPAN Inc. generates revenue through the sale of its software products, particularly the desknet's NEO suite. The company employs a subscription-based model where clients pay periodic fees for access to its software solutions, which may include cloud-based or on-premise deployments. Additionally, NEOJAPAN may offer professional services such as customization, integration, and support, providing additional revenue streams. Partnerships with other technology companies and resellers also help expand its market reach and contribute to its earnings. The company's focus on continuous product innovation and development ensures it remains competitive and retains its customer base.

NEOJAPAN Inc. Financial Statement Overview

Summary

NEOJAPAN Inc. demonstrates 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: Neutral
• Last Price: 1712.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3921, the sentiment is Neutral. The current price of 1712 is below the 20-day moving average (MA) of 1774.00, above the 50-day MA of 1676.70, and above the 200-day MA of 1699.16, indicating a neutral trend. The MACD of 2.20 indicates Positive momentum. The RSI at 45.86 is Neutral, neither overbought nor oversold. The STOCH value of 17.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3921.

NEOJAPAN Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3921	81 Outperform	¥23.96B	15.50		2.34%	13.73%	61.79%
4333	80 Outperform	¥23.44B	18.84		5.28%	7.87%	4.99%
3648	76 Outperform	¥17.61B	12.54		2.34%	12.54%	52.37%
4058	76 Outperform	¥35.45B	39.91		0.75%	29.24%	28.74%
3835	74 Outperform	¥22.94B	18.00		4.80%	2.77%	6.32%
4448	58 Neutral	¥20.62B	135.78		―	25.35%	-118.04%
Sector *	57 Neutral	HK$14.24B	5.26	-5.75%	6.39%	9.34%	-42.23%

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.