NEOJAPAN Inc. (3921) AI Stock Analysis

• Market Cap: ¥25.38B
• Dividend Yield: 2.53%
• Average Volume (3M): 46.28K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.67
• Revenue Growth: 16.13%
• EPS Growth: 62.27%
• Country: JP
• Employees: 305
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 33.05
• Shares Outstanding: 14,087,600
• 10 Day Avg. Volume: 30,840
• 30 Day Avg. Volume: 46,283
• PEG Ratio: 0.30
• Price to Book (P/B): 3.75
• Price to Sales (P/S): 3.26
• P/FCF Ratio: 11.53
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥2,034.00 ▲(12.07% Upside)

NEOJAPAN Inc. scores well due to its strong financial performance, characterized by robust revenue growth, profitability, and cash flow management. However, technical indicators suggest a bearish trend, which impacts the overall score. The valuation is reasonable, supported by a decent dividend yield, making the stock attractive for income-focused investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective product offerings, supporting long-term business expansion.

Cash Flow Management

Strong cash generation enhances financial flexibility, enabling investment in growth opportunities and resilience against economic fluctuations.

Balance Sheet Health

Minimal leverage reduces financial risk, providing stability and the capacity to withstand market volatility, supporting long-term sustainability.

Negative Factors

Short-term Bearish Trend

While not a fundamental issue, the bearish trend could affect investor sentiment, potentially impacting capital raising or stock-based compensation.

Lack of Earnings Call Data

The absence of earnings call insights limits transparency and investor understanding of management's strategic direction and operational challenges.

Absence of Corporate Events

Lack of recent corporate events may indicate a period of stagnation or missed opportunities for strategic partnerships or market expansion.

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 groupware software; AppSuite, a tool to create custom business applications; and ChatLuck, a chat-based business communication tool. It also provides Denbun, a web-based email system for corporate clients that manages, sends, and receives emails through a web browser; desknet's DAX, a file transfer system; desknet's SSS, a web-based sales management system, which enables to monitor progress in business negotiations, client info, and sales; and desknet's CAMS, a web-based customer relationship management system. In addition, it provides multi-application integration and hosting services; and system integration services, such as e-business system, e-commerce website, infrastructure and middleware, application service provider website construction, and online information distribution services. The company was incorporated in 1992 and is headquartered in Yokohama, Japan.

How the Company Makes Money

NEOJAPAN generates revenue through multiple streams, primarily by selling software licenses for its enterprise applications and cloud-based services. The company employs a subscription-based model that provides recurring revenue from clients who utilize its software solutions on a regular basis. Additionally, NEOJAPAN offers customization and consulting services, which contribute to its income by tailoring solutions to meet specific client needs. Strategic partnerships with other technology providers enhance its market reach and capabilities, further driving sales and customer retention.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.87B	7.26B	6.62B	6.01B	5.92B	5.33B
Gross Profit	4.46B	4.03B	3.64B	3.23B	3.03B	2.74B
EBITDA	2.72B	2.26B	1.64B	1.61B	1.51B	1.12B
Net Income	1.70B	1.41B	956.35M	812.64M	866.33M	677.11M
Balance Sheet
Total Assets	9.85B	9.24B	8.62B	8.03B	7.29B	6.74B
Cash, Cash Equivalents and Short-Term Investments	6.16B	5.55B	5.40B	5.22B	4.33B	3.65B
Total Debt	27.56M	2.72M	290.00K	311.00K	364.00K	101.98M
Total Liabilities	3.01B	2.93B	2.28B	2.30B	2.12B	2.31B
Stockholders Equity	6.83B	6.31B	6.33B	5.72B	5.15B	4.42B
Cash Flow
Free Cash Flow	0.00	2.05B	753.01M	956.90M	815.44M	798.34M
Operating Cash Flow	0.00	2.06B	1.03B	1.19B	1.11B	989.86M
Investing Cash Flow	0.00	-452.86M	-359.00M	-174.40M	-326.33M	-227.70M
Financing Cash Flow	0.00	-1.49B	-389.51M	-207.26M	-255.83M	-142.62M

NEOJAPAN Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1815.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Negative. The current price of 1815 is below the 20-day moving average (MA) of 1840.05, below the 50-day MA of 1824.80, and above the 200-day MA of 1748.74, indicating a neutral trend. The MACD of 7.06 indicates Negative momentum. The RSI at 44.92 is Neutral, neither overbought nor oversold. The STOCH value of 54.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3921.

NEOJAPAN Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4333	81 Outperform	¥22.60B	16.49	―	3.86%	0.50%	17.15%
3648	76 Outperform	¥22.88B	11.31	―	2.40%	21.57%	129.44%
3835	75 Outperform	¥21.23B	18.01	―	3.14%	0.50%	-2.92%
3921	74 Outperform	¥25.38B	14.23	―	2.53%	16.13%	62.27%
4058	72 Outperform	¥30.02B	26.86	―	0.52%	50.92%	46.61%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4448	49 Neutral	¥17.66B	-13.70	―	―	14.63%	-760.87%

NEOJAPAN Inc. Corporate Events

NEOJAPAN Inc. Revises Financial and Dividend Forecasts Upward

NEOJAPAN Inc. has revised its consolidated financial results and year-end dividend forecasts for the fiscal year ending January 31, 2026. The company anticipates higher-than-expected profits due to increased sales in its software business and effective cost management, leading to a 2.1% increase in net sales and a 19.5% rise in profit attributable to owners. Consequently, the year-end dividend forecast has been increased from 21 yen to 29 yen per share, reflecting the company’s commitment to progressive dividends and sustained profit growth.

The most recent analyst rating on (JP:3921) stock is a Buy with a Yen2034.00 price target. To see the full list of analyst forecasts on NEOJAPAN Inc. stock, see the JP:3921 Stock Forecast page.

NEOJAPAN Inc. Reclassifies DELCUI to Boost Software Segment

NEOJAPAN Inc. has reclassified DELCUI from its Overseas Business segment to the Software Business segment, reflecting its growing importance as an outsourced development partner. This strategic move is expected to enhance the company’s operational efficiency and strengthen its position in the software market.

The most recent analyst rating on (JP:3921) stock is a Buy with a Yen2034.00 price target. To see the full list of analyst forecasts on NEOJAPAN Inc. stock, see the JP:3921 Stock Forecast page.

NEOJAPAN Inc. Reports Strong Financial Growth and Dividend Forecast Revision

NEOJAPAN Inc. reported significant growth in its financial performance for the nine months ending October 31, 2025, with net sales increasing by 15.2% and operating profit rising by 36.7% compared to the previous year. The company also announced a revision in its cash dividends forecast, reflecting confidence in its financial stability and future growth prospects.

The most recent analyst rating on (JP:3921) stock is a Buy with a Yen2034.00 price target. To see the full list of analyst forecasts on NEOJAPAN Inc. stock, see the JP:3921 Stock Forecast page.