NJ Holdings, Inc. (9421) AI Stock Analysis

• Market Cap: ¥3.10B
• Dividend Yield: N/A
• Average Volume (3M): 11.01K
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.48
• Revenue Growth: -13.42%
• EPS Growth: -195.53%
• Country: JP
• Employees: 887
• Sector: Communication Services
• Sector Strength: 72
• Industry: Telecommunications Services
• EPS (TTM): 2.28
• Shares Outstanding: 5,350,400
• 10 Day Avg. Volume: 1,720
• 30 Day Avg. Volume: 11,010
• PEG Ratio: 0.02
• Price to Book (P/B): 2.04
• 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: ¥743.00
• Price Target Upside: 26.15% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 42 Neutral
• Price Target: ¥565.00 ▼(-4.07%Downside)

The overall stock score reflects significant financial challenges, including declining revenues and negative profitability. Technical indicators suggest bearish momentum, and the negative P/E ratio highlights valuation concerns. These factors collectively contribute to a cautious outlook for the company's stock.

NJ Holdings, Inc. Business Overview & Revenue Model

Company Description

NJ Holdings, Inc. (9421) is a diversified company operating primarily in the technology and energy sectors. The company focuses on developing and managing renewable energy projects, alongside providing innovative technology solutions and services. NJ Holdings is committed to sustainable growth and environmental responsibility, leveraging its expertise to deliver high-quality products and services to its clients.

How the Company Makes Money

NJ Holdings, Inc. generates revenue through multiple streams, primarily through the development and management of renewable energy projects such as solar and wind farms. The company sells the energy produced to utility companies and other large-scale energy consumers. Additionally, NJ Holdings offers technology solutions and consultancy services, catering to businesses looking to optimize their operations through innovative technology. Strategic partnerships with key industry players and government incentives for renewable energy projects also contribute significantly to the company's earnings.

NJ Holdings, Inc. Financial Statement Overview

Summary

NJ Holdings, Inc. faces significant financial challenges, with declining revenues and profitability pressures reflected in the income statement. The balance sheet shows increased leverage and reduced equity, posing financial stability risks. Cash flow inconsistencies and absent positive cash flow in recent periods underscore liquidity concerns. The company needs strategic adjustments to improve its financial health and operational efficiency.

Income Statement

The company has experienced declining revenue over the past three years, with a negative revenue growth rate of -19.4% from 2020 to 2021, followed by further declines. The TTM (Trailing-Twelve-Months) data shows negative net income, resulting in a negative net profit margin of -1.32%. The gross profit margin decreased from previous periods, indicating pressure on profitability. Negative EBIT and EBITDA margins in recent periods highlight operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has increased over the years, indicating rising leverage, which poses a financial risk. The equity ratio has been declining, reflecting reduced equity in proportion to total assets. However, the TTM data shows a decrease in total debt, which could potentially improve the debt situation. The return on equity is negative due to consistent net losses.

Cash Flow

Operating cash flow has been inconsistent, with significant fluctuations over the years. The TTM data reports zero operating and free cash flows, signaling potential cash flow management challenges. Historical free cash flow growth has been negative, impacting financial flexibility. The absence of positive free cash flow in the latest period further weakens the cash flow position.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	9.70B	10.13B	10.65B	11.99B	14.49B
Gross Profit	1.76B	1.49B	970.82M	2.21B	2.94B
EBITDA	417.27M	-237.94M	-994.51M	471.71M	563.97M
Net Income	274.86M	-469.24M	-1.23B	-92.47M	27.10M
Balance Sheet
Total Assets	3.94B	4.20B	4.65B	5.76B	6.28B
Cash, Cash Equivalents and Short-Term Investments	1.69B	1.14B	1.09B	1.25B	1.61B
Total Debt	1.10B	1.62B	1.63B	1.20B	1.59B
Total Liabilities	2.27B	2.82B	2.75B	2.52B	2.94B
Stockholders Equity	1.58B	1.31B	1.80B	3.07B	3.21B
Cash Flow
Free Cash Flow	581.75M	300.86M	-727.96M	114.03M	404.35M
Operating Cash Flow	661.12M	339.86M	-685.96M	169.03M	550.75M
Investing Cash Flow	421.38M	-253.86M	230.32M	-61.41M	-196.12M
Financing Cash Flow	-526.09M	-43.91M	299.48M	-472.60M	-750.06M

NJ Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 589.00
• 50DMA: Negative
• 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:9421, the sentiment is Negative. The current price of 589 is below the 20-day moving average (MA) of 625.95, below the 50-day MA of 627.42, and above the 200-day MA of 532.53, indicating a neutral trend. The MACD of -12.56 indicates Positive momentum. The RSI at 35.94 is Neutral, neither overbought nor oversold. The STOCH value of 7.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9421.

NJ Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3842	74 Outperform	¥2.78B	13.51		1.11%	2.78%	21.27%
4415	69 Neutral	¥4.65B	11.21		―	15.58%	38.21%
9424	69 Neutral	¥26.36B	31.22		―	24.84%	-38.06%
9445	69 Neutral	¥8.80B	12.00		3.81%	3.93%	1.66%
9419	67 Neutral	¥2.76B	9.83		―	-1.07%	6.60%
Sector *	66 Neutral	¥381.65B	15.28	2.24%	2.38%	5.42%	-14.79%
9421	42 Neutral	¥3.10B	22.14		―	-13.42%	-195.53%