Nihon Knowledge Co. Ltd. (5252) AI Stock Analysis

• Market Cap: ¥3.74B
• Dividend Yield: 1.11%
• Average Volume (3M): 12.84K
• Price to Earnings (P/E): 96.8
• Beta (1Y): 0.52
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 377
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -3.81
• Shares Outstanding: 4,151,100
• 10 Day Avg. Volume: 5,490
• 30 Day Avg. Volume: 12,843
• PEG Ratio: -0.19
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.32
• P/FCF Ratio: -12.04
• 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: 62 Neutral
• Price Target: ¥965.00 ▲(57.17% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven primarily by mixed financial performance: strong revenue growth and a solid balance sheet are offset by weakening margins and deteriorating cash flow. Technically, the stock is in an uptrend but shows overextended momentum, while valuation is a significant headwind due to the very high P/E and low dividend yield.

Positive Factors

Revenue Growth

Sustained top-line growth indicates the company is expanding product adoption and market reach. Recurring subscription and licensing models amplify this durability, supporting predictable revenue that can fund R&D and sales investments over the next 2–6 months and beyond.

Balance Sheet Strength

A solid equity base and manageable leverage provide financial flexibility to invest in product development or absorb shocks. This stability supports longer-term strategic initiatives and lowers refinancing risk over a medium-term horizon.

Diversified Revenue Streams

Multiple monetization channels and institutional partnerships reduce single-market reliance and foster recurring, contract-based income. This structural diversity improves resilience to sector-specific cycles and supports steady cash inflows over months to years.

Negative Factors

Margin Compression

Falling gross and net margins suggest cost pressures or pricing constraints that erode profitability. Sustained margin weakness limits internal funding for growth, pressures operating leverage, and increases sensitivity to revenue downturns over the medium term.

Deteriorating Cash Flow

Declining operating cash flow and negative free cash flow reduce the company’s ability to self-fund capex, R&D, or acquisitions. Persistent cash deficits may force external financing or slow strategic initiatives, affecting execution over the next several quarters.

Lower Return on Equity

A falling ROE indicates the company is generating less profit from shareholders' capital, signaling efficiency or profitability challenges. If the trend continues, it may constrain shareholder returns and reduce reinvestment effectiveness over a medium-term horizon.

Nihon Knowledge Co. Ltd. Business Overview & Revenue Model

Company Description

Nihon Knowledge Co,Ltd. provides software system verification services, system contract development, and business system package in Japan. It engages in the provision of software testing support, quality improvement, test automation implementation consulting, software development process support, quality improvement consulting, maintenance and operation support, and test automation support services; and develops, sells, and maintains cage software, packaged software, and security products. The company also offers PowerSteel package for steel industry; PowerCubic package for building materials and lumber wholesale industry; DEFESA Logger for managing operation logs; DEFESA REC, a recording solution; monoPack, a security product; and mono + WEB Separation, a web separation solution. Nihon Knowledge Co,Ltd. was incorporated in 1985 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nihon Knowledge Co. Ltd. generates revenue through multiple streams, primarily from subscription fees for its e-learning platforms and the sale of educational content. The company offers various subscription models for its online courses, which provide users access to a wide range of learning materials and resources. Additionally, revenue is supplemented through partnerships with educational institutions that adopt its learning management systems for their curriculum. Such collaborations often include licensing agreements, where schools pay to utilize the company's technology and resources. Furthermore, Nihon Knowledge may earn income through the development and distribution of customized educational solutions tailored to corporate training needs, enhancing its portfolio and market reach.

Nihon Knowledge Co. Ltd. Financial Statement Overview

Summary

Revenue growth is solid and the balance sheet is stable (healthy equity ratio, manageable leverage), but profitability has weakened (lower net/EBIT/EBITDA margins) and cash generation is a key concern with declining operating cash flow and negative free cash flow trends.

Income Statement

Nihon Knowledge Co. Ltd. has shown consistent revenue growth over the years, with a notable increase from 2024 to 2025. The gross profit margin has slightly decreased, indicating potential cost pressures. Net profit margin has also decreased, reflecting a decline in profitability. The EBIT and EBITDA margins have declined, suggesting operational challenges.

Balance Sheet

The company maintains a strong equity position with a healthy equity ratio. The debt-to-equity ratio is manageable, indicating a balanced approach to leverage. Return on equity has decreased, which may concern investors looking for high returns. Overall, the balance sheet reflects stability with a solid asset base.

Cash Flow

The cash flow statement reveals challenges in generating free cash flow, with a negative trend over recent years. Operating cash flow has significantly decreased, impacting the company's ability to fund operations internally. The free cash flow to net income ratio is negative, indicating cash flow issues relative to reported profits.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.22B	4.15B	4.08B	3.55B	3.23B	2.82B
Gross Profit	723.00M	704.49M	813.19M	689.05M	527.37M	407.75M
EBITDA	145.75M	162.04M	287.67M	212.77M	155.50M	75.25M
Net Income	112.00M	82.00M	202.15M	137.25M	94.28M	32.49M
Balance Sheet
Total Assets	2.01B	2.12B	2.12B	1.80B	1.31B	1.25B
Cash, Cash Equivalents and Short-Term Investments	681.00M	738.49M	848.67M	922.37M	508.15M	613.28M
Total Debt	367.00M	381.83M	340.10M	235.21M	298.04M	296.64M
Total Liabilities	936.00M	984.95M	1.04B	904.95M	795.10M	840.66M
Stockholders Equity	1.07B	1.14B	1.08B	898.72M	516.45M	410.34M
Cash Flow
Free Cash Flow	0.00	-112.13M	-167.06M	266.43M	-99.73M	174.20M
Operating Cash Flow	0.00	53.90M	127.94M	286.38M	-32.83M	186.17M
Investing Cash Flow	0.00	-167.08M	-285.53M	-29.83M	-89.70M	-29.82M
Financing Cash Flow	0.00	2.99M	81.90M	159.66M	10.70M	77.34M

Nihon Knowledge Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 614.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5252, the sentiment is Positive. The current price of 614 is below the 20-day moving average (MA) of 775.75, below the 50-day MA of 673.46, and above the 200-day MA of 519.45, indicating a bullish trend. The MACD of 68.87 indicates Negative momentum. The RSI at 89.00 is Negative, neither overbought nor oversold. The STOCH value of 88.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5252.

Nihon Knowledge Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4811	73 Outperform	¥10.17B	13.03	―	1.01%	15.34%	67.96%
4430	71 Outperform	¥9.04B	9.73	―	3.06%	27.08%	18.85%
4475	68 Neutral	¥32.40B	24.33	―	0.39%	30.59%	65.14%
3850	65 Neutral	¥15.53B	19.50	―	0.91%	15.28%	60.07%
5252	62 Neutral	¥3.74B	96.76	―	1.11%	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4434	61 Neutral	¥16.24B	-46.23	―	―	―	―