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Nihon M&A Center
(2127)
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Rating:75Outperform
Price Target:
¥717.00
▲(4.17% Upside)
Action:Reiterated
Date:08/01/26
The score is driven primarily by strong financial performance (robust margins, low leverage, and solid cash conversion) and supported by reasonable valuation with an attractive dividend yield. Offsetting these positives, the technical picture is weak as the stock trades below all major moving averages, suggesting near-term trend pressure.
Positive Factors
High and Consistent Profitability
Sustained high gross and net margins indicate durable pricing power and a scalable advisory model that converts revenue into profit efficiently. This supports long-term cash generation and resilience across M&A cycles, enabling reinvestment in origination and advisor capacity.
Negative Factors
Margin Compression Risk
Margins have softened from earlier peaks, implying either competitive pricing pressure or mix shifts toward smaller/less lucrative mandates. If structural, persistent margin compression would reduce free cash flow and constrain long-term reinvestment and shareholder distributions.
Read all positive and negative factors
Positive Factors
Negative Factors
High and Consistent Profitability
Sustained high gross and net margins indicate durable pricing power and a scalable advisory model that converts revenue into profit efficiently. This supports long-term cash generation and resilience across M&A cycles, enabling reinvestment in origination and advisor capacity.
Read all positive factors
Nihon M&A Center (2127) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥206.20B
Dividend Yield3.96%
Average Volume (3M)1.93M
Price to Earnings (P/E)15.2
Beta (1Y)0.95
Revenue Growth10.74%
EPS Growth12.02%
CountryJP
Employees1,062
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)40.97
Shares Outstanding336,934,800
10 Day Avg. Volume1,582,290
30 Day Avg. Volume1,926,146
Financial Highlights & Ratios
PEG Ratio1.15
Price to Book (P/B)3.98
Price to Sales (P/S)3.98
P/FCF Ratio12.44
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)43.43
Revenue Forecast (FY)¥54.10B
Nihon M&A Center Business Overview & Revenue Model
Company Description
Nihon M&A Center Holdings Inc. specializes in providing comprehensive merger and acquisition (M&A) services, operating both within Japan and on an international scale. The company particularly aids small and medium-sized enterprises with critical ...
How the Company Makes Money
The company primarily makes money by earning fees related to M&A transactions it intermediates and advises on. Its core revenue stream is success-based compensation (success fees) recognized when an M&A deal closes; these fees are typically calcul...
Nihon M&A Center Earnings Call Summary
Earnings Call Date:Oct 30, 2026
(Q2-2026)
| Next Earnings Date:Oct 30, 2026
Earnings Call Sentiment Positive
The call was predominantly positive, supported by double-digit sales growth, stronger ordinary profit, increased transaction volume and value, improved cost and SG&A ratios, progress toward full-year targets, and a sharp reduction in timing-delayed projects. The main challenges were declining new mandates and negotiations, elevated turnover, a higher referral and outsourcing expense ratio, and uncertainty around future dividend continuation. Management expressed confidence in recovering mandate numbers and delivering solid second-half results.Positive Updates
Sales and Ordinary Profit Growth
Sales stood at JPY 22.5 billion, increasing 21.5% year-on-year. Ordinary profit was JPY 8.1 billion, up 43.1% year-on-year, resulting in an upward revision to the forecast for the first half.
Negative Updates
Decline in New Mandates and Negotiations
New sell-side mandates were 327, down 15.9% year-on-year. New buy-side mandates were 388, down 4%, and new transaction negotiations were 297, down 4.8%. The company attributed the declines to its focus on growing sales and closing transactions, as well as stricter screening of new mandate opportunities.
Read all updates
Q2-2026 Updates
Positive
Negative
Sales and Ordinary Profit Growth
Sales stood at JPY 22.5 billion, increasing 21.5% year-on-year. Ordinary profit was JPY 8.1 billion, up 43.1% year-on-year, resulting in an upward revision to the forecast for the first half.
Read all positive updates
Company Guidance
The company said it is not waiting until the fourth quarter to acquire mandates, has launched a campaign to acquire at least 3 mandates starting from October, and is hoping to have a new mandate number recovery from the third quarter while creating pipelines for closures in the next fiscal year after. It is trying to achieve double-digit growth, with minimum must targets of at least 7% to even higher than 10% growth, and will try to exceed these targets. The dividend forecast remains JPY 29 per share for the current fiscal year, equivalent to a dividend payout ratio of 83.6%, with a policy of dividend payout ratio of 60% or more during the midterm management plan period; ROE is planned to be 22.9%. The company also said it would deliver solid results in the second half, while the amount of the project that experienced a time lag was JPY 150 million, compared with JPY 560 million in the second quarter last year.Nihon M&A Center Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 50.34B | 50.26B | 44.08B | 44.14B | 41.32B | 40.40B |
| Gross Profit | 30.39B | 30.28B | 24.78B | 24.64B | 23.51B | 24.14B |
| EBITDA | 18.69B | 18.95B | 17.12B | 16.71B | 15.70B | 16.83B |
| Net Income | 13.00B | 12.49B | 10.96B | 10.73B | 9.84B | 11.44B |
Balance Sheet | ||||||
| Total Assets | 54.44B | 66.22B | 61.79B | 58.64B | 65.95B | 59.16B |
| Cash, Cash Equivalents and Short-Term Investments | 32.93B | 40.45B | 39.21B | 37.44B | 45.58B | 47.30B |
| Total Debt | 2.80B | 4.00B | 5.40B | 6.30B | 0.00 | 0.00 |
| Total Liabilities | 6.71B | 15.58B | 14.20B | 14.67B | 11.23B | 8.13B |
| Stockholders Equity | 47.55B | 50.19B | 47.17B | 43.91B | 54.45B | 50.76B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 16.08B | 13.05B | 10.42B | 7.99B | 10.85B |
| Operating Cash Flow | 0.00 | 16.33B | 13.12B | 10.55B | 8.30B | 11.10B |
| Investing Cash Flow | 0.00 | -5.08B | 11.98B | -18.22B | -4.15B | 270.48M |
| Financing Cash Flow | 0.00 | -10.60B | -8.75B | -15.23B | -6.09B | -5.94B |
Nihon M&A Center Technical Analysis
Neutral
688.30
Price Trends
634.81
Negative
636.94
Negative
647.22
Negative
Market Momentum
-2.47
Negative
48.51
Neutral
43.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2127, the sentiment is Neutral. The current price of 688.3 is above the 20-day moving average (MA) of 620.86, above the 50-day MA of 634.81, and above the 200-day MA of 647.22, indicating a neutral trend. The MACD of -2.47 indicates Negative momentum. The RSI at 48.51 is Neutral, neither overbought nor oversold. The STOCH value of 43.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2127.
Nihon M&A Center Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥235.36B | 7.61 | ― | 3.73% | 38.46% | 176.98% | |
76 Outperform | ¥131.81B | 16.67 | ― | 1.75% | 12.21% | 23.48% | |
75 Outperform | ¥206.20B | 15.21 | 26.88% | 3.96% | 10.74% | 12.02% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | ¥80.56B | 15.34 | ― | 4.63% | 13.31% | 17.20% | |
64 Neutral | ¥157.30B | 14.33 | 8.82% | 4.90% | 16.13% | ― | |
64 Neutral | ¥4.14T | 0.29 | 395.36% | 1.88% | 6.38% | 8.32% |
* Financial Sector Average
JP:2127
Nihon M&A Center
623.10
-119.56
-16.10%
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61.58%
Nihon M&A Center Corporate Events
Nihon M&A Center Sees Profit Jump Despite Softer Margins, Confirms Dividend and FY2027 Outlook
Jul 30, 2026
Nihon MA Center Holdings posted net sales of ¥9,104 million for the three months ended June 30, 2026, up 0.9% year-on-year, while operating and ordinary profits declined 6.4% and 11.1% respectively. Profit attributable to owners of parent, ho...
Nihon M&A Center Grants Restricted Stock to Align Directors’ Pay With Long-Term Value
Jun 25, 2026
Nihon MA Center Holdings has approved the disposal of 40,824 shares of its treasury stock as restricted stock remuneration for three internal directors, with a total value of about ¥25.7 million at a disposal price aligned with the latest mar...
Nihon M&A Center Announces Reduction in Major Shareholder Baillie Gifford’s Stake
Jun 8, 2026
Nihon MA Center Holdings has disclosed a change in major shareholding after investment manager Baillie Gifford Co and its joint holder Baillie Gifford Overseas Limited reduced their combined stake. Their voting rights fell from 10.41 percent to 9...
Nihon M&A Center to Cut Legal Capital Surplus by ¥3 Billion to Boost Shareholder Flexibility
May 22, 2026
Nihon MA Center Holdings will reduce its legal capital surplus by ¥3 billion, cutting the balance from ¥3.82 billion to ¥823.71 million and transferring the entire reduced amount into other capital surplus. The move, subject to shar...
Asset Management One Lifts Stake in Nihon M&A Center to Just Over 10%
May 13, 2026
Nihon MA Center Holdings announced that Asset Management One Co., Ltd. has increased its shareholding based on a large shareholding change report filed with the Kanto Local Finance Bureau. The asset manager now holds 32,274,800 shares, representin...
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.