NEOJAPAN Inc. (JP:3921)
:3921
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NEOJAPAN Inc.
(3921)
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Rating:76Outperform
Price Target:
¥1,921.00
▲(5.84% Upside)
Action:ReiteratedDate:03/12/26
The score is driven primarily by strong financial quality (high and improving margins, very low leverage, and improving ROE). Valuation is supportive (moderate P/E and ~2.94% yield), but the overall score is held back by a weaker technical trend with the stock trading below key moving averages.
Positive Factors
High Profitability
Sustained, high margins reflect a capital-light software model and strong unit economics. These margin levels provide durable cash generation, cushion against demand variability, and capacity to fund R&D, support and dividends without needing large revenue jumps to sustain earnings.
Negative Factors
Uneven Revenue Growth
Irregular topline growth makes future revenue and investment outcomes less predictable. Reliance on margin expansion to drive profitability increases sensitivity to margin pressure; inconsistent demand could constrain long-term scaling and make multi-year forecasting and capacity planning harder.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Sustained, high margins reflect a capital-light software model and strong unit economics. These margin levels provide durable cash generation, cushion against demand variability, and capacity to fund R&D, support and dividends without needing large revenue jumps to sustain earnings.
Read all positive factors
NEOJAPAN Inc. (3921) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥21.95B
Dividend Yield2.53%
Average Volume (3M)46.28K
Price to Earnings (P/E)13.8
Beta (1Y)0.65
Revenue Growth16.13%
EPS Growth62.27%
CountryJP
Employees305
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)32.60
Shares Outstanding14,087,600
10 Day Avg. Volume30,840
30 Day Avg. Volume46,283
Financial Highlights & Ratios
PEG Ratio0.48
Price to Book (P/B)3.34
Price to Sales (P/S)3.03
P/FCF Ratio11.66
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
NEOJAPAN Inc. Business Overview & Revenue Model
Company Description
NEOJAPAN Inc. engages in development and sale of packaged software to small and medium-sized enterprises, large companies, schools, hospitals, local governments, and public agencies in Japan and internationally. The company offers desknet's NEO, a...
How the Company Makes Money
NEOJAPAN makes money primarily by selling and licensing its enterprise software products and associated services. A key revenue stream is fees from desknet’s NEO, earned through software licenses and/or subscriptions depending on whether customers...
NEOJAPAN Inc. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.87B | 8.23B | 7.26B | 6.62B | 6.01B | 5.92B |
| Gross Profit | 4.46B | 4.74B | 4.03B | 3.64B | 3.23B | 3.03B |
| EBITDA | 2.72B | 2.84B | 2.26B | 1.64B | 1.61B | 1.51B |
| Net Income | 1.70B | 1.81B | 1.41B | 956.35M | 812.64M | 866.33M |
Balance Sheet | ||||||
| Total Assets | 9.85B | 10.69B | 9.28B | 8.65B | 8.03B | 7.32B |
| Cash, Cash Equivalents and Short-Term Investments | 6.16B | 6.61B | 5.55B | 5.40B | 5.22B | 4.33B |
| Total Debt | 27.56M | 3.25M | 2.72M | 290.00K | 311.00K | 364.00K |
| Total Liabilities | 3.01B | 3.21B | 2.97B | 2.31B | 2.30B | 2.15B |
| Stockholders Equity | 6.83B | 7.47B | 6.31B | 6.33B | 5.72B | 5.15B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 2.14B | 2.05B | 753.01M | 956.90M | 815.44M |
| Operating Cash Flow | 0.00 | 2.27B | 2.06B | 1.03B | 1.19B | 1.11B |
| Investing Cash Flow | 0.00 | -552.61M | -452.86M | -359.00M | -174.40M | -326.33M |
| Financing Cash Flow | 0.00 | -658.84M | -1.49B | -389.51M | -207.26M | -255.83M |
NEOJAPAN Inc. Technical Analysis
Negative
1815.00
Price Trends
1702.26
Negative
1746.95
Negative
1780.89
Negative
Market Momentum
-39.81
Positive
35.18
Neutral
11.03
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3921, the sentiment is Negative. The current price of 1815 is above the 20-day moving average (MA) of 1644.15, above the 50-day MA of 1702.26, and above the 200-day MA of 1780.89, indicating a bearish trend. The MACD of -39.81 indicates Positive momentum. The RSI at 35.18 is Neutral, neither overbought nor oversold. The STOCH value of 11.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3921.
NEOJAPAN Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥23.68B | 12.24 | ― | 0.82% | ― | ― | |
76 Outperform | ¥21.95B | 13.78 | ― | 2.53% | 16.13% | 62.27% | |
68 Neutral | ¥20.98B | 15.25 | ― | ― | 14.28% | -30.60% | |
64 Neutral | ¥34.43B | 20.10 | ― | ― | 27.97% | -5.25% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | ¥12.21B | 23.59 | ― | ― | 14.63% | -760.87% | |
49 Neutral | ¥24.60B | 39.28 | ― | ― | 20.84% | 10.41% |
* Technology Sector Average
JP:3921
NEOJAPAN Inc.
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NEOJAPAN Inc. Corporate Events
NEOJAPAN Plans Higher Year-End Dividend on Strong Fiscal 2025 Results
Mar 11, 2026
NEOJAPAN Inc. has proposed an increase in its year-end dividend for the fiscal year ended January 31, 2026, raising the planned payout from ¥29 to ¥31 per share, with total dividends of ¥434 million to be funded from retained earnin...
NEOJAPAN Reshapes Segment Structure to Highlight Core Software Business
Mar 11, 2026
NEOJAPAN Inc. reported a group structure in which its core Software Business, centered on products like desknet’s NEO and cloud services, is complemented by a System Development Service Business and an Overseas Business spanning Malaysia, Th...
NEOJAPAN Delivers Strong Earnings and Higher Dividend as Growth Moderates
Mar 11, 2026
NEOJAPAN reported solid growth for the fiscal year ended January 31, 2026, with net sales rising 13.3% to ¥8.23 billion and profit attributable to owners of parent climbing 28.0% to ¥1.81 billion. Profitability also improved, as operatin...
NEOJAPAN Evaluates Board Effectiveness and Sets Governance Improvement Priorities
Jan 30, 2026
NEOJAPAN Inc. has conducted an internal evaluation of the effectiveness of its Board of Directors, using anonymous questionnaires completed by all directors to assess roles and responsibilities, board composition, operational practices, and commun...
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.