NJ Holdings, Inc. (9421) AI Stock Analysis

• Market Cap: ¥3.27B
• Dividend Yield: N/A
• Average Volume (3M): 2.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.37
• Revenue Growth: 4.84%
• EPS Growth: -54.50%
• Country: JP
• Employees: 887
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): N/A
• Shares Outstanding: 5,350,400
• 10 Day Avg. Volume: 2,070
• 30 Day Avg. Volume: 2,046
• PEG Ratio: -1.27
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 0.38
• P/FCF Ratio: -5.42
• 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: 45 Neutral
• Price Target: ¥643.00 ▲(11.83% Upside)
• Action: Reiterated Date: 10/22/25
• Date: Action: Reiterated 10/22/25

The overall stock score is primarily influenced by financial performance challenges, including low profitability and negative cash flows. Technical analysis indicates bearish momentum, while valuation concerns arise from a high P/E ratio and lack of dividend yield. These factors collectively suggest caution for potential investors.

Positive Factors

Improving gross margin

An improved gross margin (19.73% in 2025) reflects better cost management and pricing discipline. Structurally this creates a durable buffer against revenue swings, enabling reinvestment in network or services and supporting longer-term operating margin recovery if SG&A remains controlled.

Reduced leverage

A lower debt-to-equity ratio (0.59) improves financial flexibility and reduces refinancing and interest-rate risk. Over months this strengthens the company's capacity to fund capex, absorb demand shocks, or pursue strategic initiatives without materially increasing solvency risk.

Revenue recovery

Return to positive revenue growth (4.17% in 2025) after prior declines indicates recovering demand or improved commercial execution. Sustained top-line growth in a fixed-cost telecom business supports operating leverage and provides a pathway to more durable margin expansion if maintained.

Negative Factors

Negative operating cash flow

Persistent negative operating and free cash flow erode internal funding capacity and force reliance on external financing or asset sales. Over a multi-month horizon this constrains capital spending for networks, increases refinancing risk, and limits ability to fund strategic investments.

Very low net margin

A net margin of 0.34% shows limited ability to convert revenue into profit despite gross margin improvement. Structurally low profitability restricts retained earnings, weakens resilience to cost or competitive shocks, and constrains reinvestment in long-term growth initiatives.

Weak returns on equity

ROE of 1.92% signals inefficient use of shareholder capital and weak returns relative to likely telecom peers. Sustained low ROE can impair investor confidence, make capital raising more costly, and limit the firm's ability to finance strategic projects without diluting equity.

NJ Holdings, Inc. Business Overview & Revenue Model

Company Description

NJ Holdings Inc. engages in the game development, temporary staffing, and mobile communication sales, and corporate solutions businesses in Japan. It plans, develops, programs, designs, produces, and operates games; and provides credit card payment services, as well as mobile related services. The company was formerly known as Nepro Japan Co. Ltd. and changed its name NJ Holdings Inc. in December 2015. NJ Holdings Inc. was incorporated in 1991 and is headquartered in Tokyo, Japan.

How the Company Makes Money

NJ Holdings generates revenue through multiple streams, primarily from the sale and leasing of developed properties. The company earns income from residential and commercial real estate sales, as well as ongoing rental income from its property management operations. Additionally, NJ Holdings may engage in joint ventures and partnerships with other real estate firms or investors, allowing it to share resources and capitalize on market opportunities. The company may also generate fees from advisory services related to real estate investments, further contributing to its overall earnings.

NJ Holdings, Inc. Financial Statement Overview

Summary

The company faces financial challenges with low net profit margins and negative cash flows despite improvements in gross profit margin and debt management. Operational efficiency and cash generation need enhancement.

Income Statement

The income statement shows a mixed performance. Gross profit margin has improved over the years, reaching 19.73% in 2025, indicating better cost management. However, net profit margin remains low at 0.34%, reflecting challenges in converting revenue into profit. Revenue growth has been inconsistent, with a positive growth rate of 4.17% in 2025 after previous declines. EBIT and EBITDA margins are low, suggesting limited operational efficiency and profitability.

Balance Sheet

The balance sheet indicates moderate financial stability. The debt-to-equity ratio has improved to 0.59 in 2025, showing a reduction in leverage. Return on equity is low at 1.92%, reflecting limited profitability from shareholders' investments. The equity ratio is not explicitly calculated, but the company maintains a reasonable level of equity relative to its assets.

Cash Flow

The cash flow statement reveals significant challenges. Operating cash flow is negative, indicating issues in generating cash from operations. Free cash flow is also negative, with a concerning growth rate of -Infinity, highlighting cash flow difficulties. The operating cash flow to net income ratio is negative, and the free cash flow to net income ratio is relatively high at 1.34, suggesting reliance on non-operational sources for cash.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2021
Income Statement
Total Revenue	9.11B	9.70B	10.13B	10.65B	11.99B
Gross Profit	1.80B	1.76B	1.49B	970.82M	2.21B
EBITDA	216.00M	417.27M	-237.94M	-994.51M	471.71M
Net Income	31.00M	274.86M	-469.24M	-1.23B	-92.47M
Balance Sheet
Total Assets	3.75B	3.94B	4.20B	4.65B	5.76B
Cash, Cash Equivalents and Short-Term Investments	851.00M	1.69B	1.14B	1.09B	1.25B
Total Debt	952.00M	1.10B	1.62B	1.63B	1.20B
Total Liabilities	2.04B	2.27B	2.82B	2.75B	2.52B
Stockholders Equity	1.61B	1.58B	1.31B	1.80B	3.07B
Cash Flow
Free Cash Flow	-644.00M	581.75M	300.86M	-727.96M	114.03M
Operating Cash Flow	-482.00M	661.12M	339.86M	-685.96M	169.03M
Investing Cash Flow	-194.00M	421.38M	-253.86M	230.32M	-61.41M
Financing Cash Flow	-165.00M	-526.09M	-43.91M	299.48M	-472.60M

NJ Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 575.00
• 50DMA: Positive
• 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 Neutral. The current price of 575 is below the 20-day moving average (MA) of 634.75, below the 50-day MA of 617.60, and below the 200-day MA of 604.48, indicating a neutral trend. The MACD of 3.20 indicates Positive momentum. The RSI at 44.59 is Neutral, neither overbought nor oversold. The STOCH value of 16.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9421.

NJ Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9445	75 Outperform	¥9.48B	12.83	―	3.85%	1.75%	24.87%
3842	70 Outperform	¥3.45B	12.90	―	0.98%	11.10%	16.84%
9424	66 Neutral	¥22.52B	23.11	―	―	30.15%	31.28%
9419	62 Neutral	¥3.41B	9.34	―	―	-3.76%	-67.98%
4415	61 Neutral	¥8.07B	15.40	―	―	39.18%	27.87%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9421	45 Neutral	¥3.27B	-275.17	―	―	4.84%	-54.50%

NJ Holdings, Inc. Corporate Events

NJ Holdings Returns to Profit on Higher Second-Quarter Sales

NJ Holdings Inc., a diversified general business company listed on the Tokyo Standard market, reported consolidated results for the second quarter of its fiscal year ending June 30, 2026. The company continues to manage a stable asset base, with total assets of ¥3,782 million and a capital adequacy ratio of 42.7%, indicating a solid financial position.

For the quarter ended December 2025, net sales rose 15.2% year on year to ¥5,025 million, marking a recovery from the prior period’s decline. Operating profit improved to ¥44 million from a loss a year earlier, and ordinary profit reached ¥31 million, while profit attributable to owners of parent turned slightly positive at ¥1 million, suggesting a modest but notable turnaround in profitability for stakeholders.

The most recent analyst rating on (JP:9421) stock is a Hold with a Yen570.00 price target. To see the full list of analyst forecasts on NJ Holdings, Inc. stock, see the JP:9421 Stock Forecast page.