NJS Co., Ltd. (2325) AI Stock Analysis

NJS Co., Ltd.

(TSE/TYO:2325)

Select Model

Rating:69Neutral

Price Target:JPY 4,851.00▲(18.46% Upside)

Action:reiterated

Date:08/06/26

The score is primarily supported by strong financial stability (near-zero leverage) and steady profitability, with a reasonable P/E and dividend yield. Offsetting these positives, technical indicators point to a downward trend and bearish momentum, and cash-flow conversion has been less consistent than reported earnings.

Positive Factors

Balance Sheet StrengthNear-zero leverage and steady asset/equity growth provide lasting financial flexibility for NJS. This conservatism reduces refinancing and solvency risk, enables stable staffing and bid capacity for public projects, and cushions the firm against project timing volatility over 2-6 months and beyond.

Negative Factors

Inconsistent Cash ConversionPeriodic divergence between earnings and operating cash flow indicates working-capital timing or billing seasonality. Inconsistent cash conversion reduces free-cash-flow reliability, constrains investment or payout flexibility, and can raise funding needs during lumpy project receipts over the medium term.

NJS Co., Ltd. (2325) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 39.66B
Dividend Yield: 2.64%
Average Volume (3M): 26.54K
Price to Earnings (P/E): 12.7
Beta (1Y): 0.55
Revenue Growth: 16.21%
EPS Growth: 23.77%
Country: Japan
Employees: 1,471
Sector: Industrials
Sector Strength: 63
Industry: Waste Management

NJS Co., Ltd. Business Overview & Revenue Model

Company Description

NJS Co., Ltd., originally founded as Nippon Jogesuido Sekkei Co., Ltd. in 1951 and headquartered in Tokyo, Japan, adopted its current name in April 2015. This company, along with its subsidiaries, functions as a prominent construction consulting ente...

How the Company Makes Money

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NJS Co., Ltd. Financial Statement Overview

Summary

Financials are anchored by an exceptionally conservative balance sheet (near-zero leverage; steady asset/equity growth), supporting stability. Profitability is solid with steady margins (about ~40% gross, ~13% EBIT, ~8.8% net) and revenue growth re-accelerated in 2025 (+5.6%). The main drag is cash-flow quality/consistency: operating cash flow has been light versus earnings at times and free cash flow has shown variability (including a negative year in 2021).

Income Statement

74Positive

Balance Sheet

92Very Positive

Cash Flow

66Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	27.35B	24.85B	22.59B	22.03B	19.23B	19.32B
Gross Profit	11.34B	9.92B	9.20B	7.11B	7.43B	7.52B
EBITDA	4.86B	3.76B	3.37B	1.97B	2.21B	3.00B
Net Income	3.12B	2.18B	2.12B	2.00B	1.73B	1.93B
Balance Sheet
Total Assets	39.16B	35.10B	31.12B	29.49B	28.18B	27.52B
Cash, Cash Equivalents and Short-Term Investments	26.31B	17.83B	17.69B	17.19B	13.98B	13.46B
Total Debt	0	691.00K	3.75M	0	1.44M	4.29M
Total Liabilities	8.21B	6.52B	4.93B	4.94B	5.10B	6.01B
Stockholders Equity	30.88B	28.51B	26.12B	24.49B	23.03B	21.46B
Cash Flow
Free Cash Flow	0	1.71B	1.66B	1.30B	1.23B	-233.19M
Operating Cash Flow	0	2.08B	1.79B	1.55B	1.95B	227.02M
Investing Cash Flow	0	-952.17M	-373.48M	2.42B	-950.96M	-551.30M
Financing Cash Flow	0	-968.98M	-957.20M	-771.68M	-866.29M	-556.96M

NJS Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price4095.00

Price Trends

50DMA4560.50Negative

100DMA4579.12Negative

200DMA4664.84Negative

Market Momentum

MACD-95.08Positive

RSI28.72Positive

STOCH2.82Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2325, the sentiment is Negative. The current price of 4095.00 is below the 20-day moving average (MA) of 4373.75, below the 50-day MA of 4560.50, and below the 200-day MA of 4664.84, indicating a bearish trend. The MACD of -95.08 indicates Positive momentum. The RSI at 28.72 is Positive, neither overbought nor oversold. The STOCH value of 2.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2325.

NJS Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:2325 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:5698	80Outperform	JPY 18.98B	7.42	―	3.96%	-9.49%	118.07%
JP:9336	76Outperform	JPY 399.57B	24.13	―	1.40%	13.76%	18.44%
JP:9793	72Outperform	JPY 161.97B	15.71	12.40%	2.44%	3.67%	13.39%
JP:9247	70Outperform	JPY 87.28B	7.50	―	3.24%	-8.78%	-28.43%
JP:2325	69Neutral	JPY 39.70B	12.72	―	2.64%	16.21%	23.77%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:2195	52Neutral	JPY 6.33B	20.24	―	1.54%	0.03%	-16.01%

* Industrials Sector Average

Performance Comparison

JP:2325 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:2325	NJS Co., Ltd.	4165.00	-988.89	-19.19%
JP:9793	Daiseki Co	3405.00	229.70	7.23%
JP:2195	Amita Holdings Co., Ltd.	325.00	12.41	3.97%
JP:5698	Envipro Holdings, Inc.	632.00	142.32	29.06%
JP:9247	TRE HOLDINGS CORPORATION	1699.00	201.33	13.44%
JP:9336	Daiei Kankyo Co., Ltd.	4000.00	619.73	18.33%

NJS Co., Ltd. Corporate Events

NJS Posts Strong Q1 Earnings and Lifts 2026 Dividend Outlook

May 14, 2026

NJS Co., Ltd. reported strong consolidated results for the three months ended March 31, 2026, with net sales rising 20.1% year on year to ¥10,626 million and profit attributable to owners of parent climbing 28.7% to ¥2,910 million. Operatin...

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: Aug 06, 2026

NJS Co., Ltd. AI Stock Analysis