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Nihon M&A Center (2127) AI Stock Analysis
Nihon M&A Center
(TSE/TYO:2127)
The company's fundamental strength is the primary driver of the score, with an exceptionally healthy balance sheet, high profitability, and strong cash flows. An attractive valuation and high dividend yield further support the investment case. However, these positives are tempered by a weak technical trend, as the stock is in a clear downtrend across all major moving averages with bearish momentum.
Nihon M&A Center (2127) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 1.27B
- Dividend Yield
- 3.98%
- Average Volume (3M)
- 2.67M
- Price to Earnings (P/E)
- 15.1
- Beta (1Y)
- 0.94
- Revenue Growth
- 4.56%
- EPS Growth
- -1.97%
- Country
- Japan
- Employees
- 1,062
- Sector
- Financial
- Sector Strength
- 68
- Industry
- Financial - Capital Markets
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 M&A...
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 calculate...
Nihon M&A Center Earnings Call Summary
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.
Q2-2026 Updates
Positive Updates
Negative 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
Nihon M&A Center demonstrates excellent financial health. The income statement shows robust revenue growth and high profitability, the balance sheet is exceptionally strong with minimal debt and high ROE, and cash flow generation is robust with near 100% conversion of net income. Overall, the company combines high profitability, a conservative capital structure, and consistent cash generation.
Income Statement
92Very PositiveBalance Sheet
95Very PositiveCash Flow
90Very Positive| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 51.97B | 44.08B | 50.26B | 44.14B | 41.32B | 40.40B |
| Gross Profit | 31.85B | 24.78B | 30.28B | 24.64B | 23.51B | 24.14B |
| EBITDA | 21.97B | 17.12B | 18.95B | 16.71B | 15.70B | 16.83B |
| Net Income | 14.17B | 10.96B | 12.49B | 10.73B | 9.84B | 11.44B |
Balance Sheet | ||||||
| Total Assets | 60.01B | 61.79B | 66.22B | 58.64B | 65.95B | 59.16B |
| Cash, Cash Equivalents and Short-Term Investments | 37.49B | 39.21B | 40.45B | 37.44B | 45.58B | 47.30B |
| Total Debt | 4.00B | 5.40B | 4.00B | 6.30B | 0 | 0 |
| Total Liabilities | 11.75B | 14.20B | 15.58B | 14.67B | 11.23B | 8.13B |
| Stockholders Equity | 47.81B | 47.17B | 50.19B | 43.91B | 54.45B | 50.76B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 13.05B | 16.08B | 10.42B | 7.99B | 10.85B |
| Operating Cash Flow | 0 | 13.12B | 16.33B | 10.55B | 8.30B | 11.10B |
| Investing Cash Flow | 0 | 11.98B | -5.08B | -18.22B | -4.15B | 270.48M |
| Financing Cash Flow | 0 | -8.75B | -10.60B | -15.23B | -6.09B | -5.94B |
Nihon M&A Center Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2127, the sentiment is Negative. The current price of 619.50 is below the 20-day moving average (MA) of 620.78, below the 50-day MA of 633.12, and below the 200-day MA of 646.14, indicating a bearish trend. The MACD of -2.41 indicates Negative momentum. The RSI at 46.06 is Neutral, neither overbought nor oversold. The STOCH value of 40.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2127.
Nihon M&A Center Peers Comparison
Overall Rating
JP:608076Outperform
JP:619676Outperform- JP:212773.6Outperform
JP:860971.6Outperform
JP:869864Neutral
JP:860463Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:6080 | 76Outperform | JPY 133.40B | 16.88 | ― | 1.73% | 12.21% | 23.48% |
| JP:6196 | 76Outperform | JPY 81.08B | 15.44 | ― | 4.60% | 33.29% | 51.26% |
| JP:2127 | 74Outperform | JPY 205.01B | 15.12 | 25.19% | 3.98% | 4.56% | -1.97% |
| JP:8609 | 72Outperform | JPY 223.43B | 7.53 | ― | 3.96% | 35.90% | 141.44% |
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
| JP:8698 | 64Neutral | JPY 155.30B | 14.19 | 8.82% | 4.97% | 16.13% | ― |
| JP:8604 | 63Neutral | JPY 4.30T | 10.53 | 11.08% | 1.80% | 11.75% | 13.33% |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:2127 | Nihon M&A Center | 619.50 | -74.63 | -10.75% | |
| JP:8698 | Monex Group | 620.00 | -59.72 | -8.79% | |
| JP:8604 | Nomura Holdings | 1496.00 | 433.37 | 40.78% | |
| JP:6080 | M&A Capital Partners Co. Ltd. | 4195.00 | 1290.57 | 44.43% | |
| JP:6196 | Strike Co., Ltd. | 1413.00 | 203.26 | 16.80% | |
| JP:8609 | Okasan Securities Group Inc. | 1011.00 | 357.53 | 54.71% |
Nihon M&A Center Corporate Events
Nihon M&A Center Posts Flat Sales, Lower Profits but Keeps Guidance and Dividend
Nihon M&A Center Holdings reported consolidated net sales of ¥22.6 billion for the six months ended September 30, 2026, essentially flat year-on-year, while operating and ordinary profit declined 6.0% and 8.0% respectively. Profit attributab...
Nihon M&A Center Probes Illegal Dividends, Moves to Strengthen Governance
Nihon M&A Center Holdings has disclosed the findings of a Special Investigation Committee into interim dividends paid in December 2024 and December 2025 that exceeded legally distributable amounts under Japan’s Companies Act. The company ha...
Nihon M&A Center Strengthens Subsidiary HR Leadership with New Corporate Officer
Nihon M&A Center Holdings Inc. has strengthened the management structure of its core subsidiary, Nihon M&A Center Inc., by appointing Tomoyuki Kamata as Corporate Officer and Head of the HR Department at Corporate Headquarters, effective Nove...
Nihon M&A Center Sets Up Independent Panel Over Excess Dividends
Nihon M&A Center Holdings has established a special investigation committee after discovering that interim dividends paid in December 2024 and December 2025 exceeded legally distributable amounts under the Companies Act and related regulations. T...
Nihon M&A Center Admits Past Interim Dividends Exceeded Legal Limit
Nihon M&A Center Holdings has disclosed that interim dividends paid in December 2024 and December 2025 exceeded the legally distributable amount under Japan’s Companies Act, due primarily to inappropriate calculation and verification of the...
Nihon M&A Center Names First Chief Digital Officer in Digital Transformation Push
Nihon M&A Center Holdings has created a new Chief Digital Officer role and appointed Dai Yamamura to the post from October 1, 2026, underscoring its push to drive AI and digital transformation across the group. The company positions this move as...
Nihon M&A Center to Make AI Brain Partners a Wholly Owned Subsidiary to Drive AI-Led M&A Productivity
Nihon M&A Center Holdings will acquire AI Brain Partners and convert it into a wholly owned subsidiary through a simplified share exchange, after first taking a partial stake. The move follows the group’s early achievement of its medium-ter...
Nihon M&A Center Unveils Trust-Based Stock Incentive Plans for Directors and Employees
Nihon M&A Center Holdings Inc. has approved the disposal of 3,577,200 treasury shares as part of new stock compensation and incentive plans for directors and employees across the group. The shares, to be allotted via trust accounts managed by The...
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: Nov 01, 2026