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Nihon Knowledge Co. Ltd. (JP:5252)
:5252
Japanese Market

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

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JP:5252

Nihon Knowledge Co. Ltd.

(5252)

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Neutral 62 (OpenAI - 5.2)
Rating:62Neutral
Price Target:
¥824.00
▲(34.20% Upside)
Action:ReiteratedDate: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
Consistent Revenue Growth
Consistent top-line growth, including a noted increase from 2024 to 2025, implies sustained demand for its infrastructure software. Durable revenue expansion supports reinvestment, scale economics and product development, underpinning business stability over the next several months.
Negative Factors
Weakening Margins
Declining net, EBIT and EBITDA margins indicate margin compression and reduced profitability leverage. Persistent margin deterioration limits the firm’s ability to translate revenue into sustainable earnings, making operating performance more exposed to cost pressures and competitive pricing over months ahead.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Revenue Growth
Consistent top-line growth, including a noted increase from 2024 to 2025, implies sustained demand for its infrastructure software. Durable revenue expansion supports reinvestment, scale economics and product development, underpinning business stability over the next several months.
Read all positive factors

Nihon Knowledge Co. Ltd. (5252) vs. iShares MSCI Japan ETF (EWJ)

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...
How the Company Makes Money
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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
75
Positive
Balance Sheet
80
Positive
Cash Flow
65
Positive
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue4.22B4.15B4.08B3.55B3.23B2.82B
Gross Profit723.00M704.49M813.19M689.05M527.37M407.75M
EBITDA145.75M162.04M287.67M212.77M155.50M75.25M
Net Income112.00M82.00M202.15M137.25M94.28M32.49M
Balance Sheet
Total Assets2.01B2.13B2.13B1.81B1.32B1.25B
Cash, Cash Equivalents and Short-Term Investments681.44M738.49M848.67M922.37M508.15M613.28M
Total Debt367.91M381.83M340.10M235.21M298.04M296.64M
Total Liabilities934.91M990.06M1.04B908.26M799.40M843.65M
Stockholders Equity1.08B1.14B1.08B898.72M516.45M410.34M
Cash Flow
Free Cash Flow0.00-112.13M-167.06M266.43M-99.73M174.20M
Operating Cash Flow0.0053.90M127.94M286.38M-32.83M186.17M
Investing Cash Flow0.00-167.08M-285.53M-29.83M-89.70M-29.82M
Financing Cash Flow0.002.99M81.90M159.66M10.70M77.34M

Nihon Knowledge Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price614.00
Price Trends
50DMA
814.88
Negative
100DMA
681.62
Positive
200DMA
570.91
Positive
Market Momentum
MACD
-20.53
Positive
RSI
38.20
Neutral
STOCH
14.73
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5252, the sentiment is Neutral. The current price of 614 is below the 20-day moving average (MA) of 856.68, below the 50-day MA of 814.88, and above the 200-day MA of 570.91, indicating a neutral trend. The MACD of -20.53 indicates Positive momentum. The RSI at 38.20 is Neutral, neither overbought nor oversold. The STOCH value of 14.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5252.

Nihon Knowledge Co. Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥9.57B26.791.01%15.34%67.96%
69
Neutral
¥8.97B8.253.06%27.08%18.85%
68
Neutral
¥30.36B27.580.39%30.59%65.14%
65
Neutral
¥13.34B25.110.91%15.28%60.07%
62
Neutral
¥3.23B-40.271.11%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
¥15.45B8.71
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5252
Nihon Knowledge Co. Ltd.
777.00
434.81
127.06%
JP:3850
NTT Data Intramart Corporation
2,754.00
271.11
10.92%
JP:4430
TOKAI SOFT CO.,LTD.
1,824.00
439.19
31.71%
JP:4434
Serverworks Co., Ltd.
1,947.00
-78.24
-3.86%
JP:4475
HENNGE K.K.
934.00
-693.00
-42.59%
JP:4811
DreamArts Corp.
799.00
58.22
7.86%
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.Date of analysis: Feb 28, 2026