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

• Market Cap: ¥50.43B
• Dividend Yield: 1.9%
• Average Volume (3M): 47.98K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.49
• Revenue Growth: 3.43%
• EPS Growth: -4.13%
• Country: JP
• Employees: 1,375
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 44.36
• Shares Outstanding: 10,048,000
• 10 Day Avg. Volume: 36,700
• 30 Day Avg. Volume: 47,980
• PEG Ratio: 2.61
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 1.51
• P/FCF Ratio: 20.52
• 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: 76 Outperform
• Price Target: ―

NJS Co., Ltd. demonstrates strong financial stability with excellent revenue growth and profitability, supported by a solid balance sheet and cash flow capability. The technical analysis reveals some mixed signals, indicating potential short-term volatility. Valuation metrics suggest a fair market price, with a reasonable P/E ratio and a modest dividend yield. Overall, the stock presents a balanced investment opportunity with potential for stable returns in the waste management industry.

NJS Co., Ltd. Business Overview & Revenue Model

Company Description

NJS Co., Ltd. (2325) is a prominent company operating primarily in the engineering and consulting sectors. The company specializes in providing comprehensive solutions in the fields of civil engineering, environmental engineering, and infrastructure development. Its core services include project management, planning, design, and consulting for public and private sector clients. NJS Co., Ltd. is committed to delivering sustainable and innovative solutions that meet the evolving needs of its clients.

How the Company Makes Money

NJS Co., Ltd. generates revenue through a variety of streams primarily associated with its engineering and consulting services. The company's revenue model is predominantly based on fee-for-service contracts, where it charges clients for project management, design, and consulting services. These contracts can be short-term or long-term, depending on the scope and complexity of the projects. The company also benefits from partnerships and collaborations with government bodies, private enterprises, and international organizations, which often lead to consistent and significant project opportunities. Additionally, NJS Co., Ltd. may engage in joint ventures or strategic alliances that enhance its market reach and revenue potential. The company's success is largely influenced by its expertise, reputation, and the ability to adapt to market demands and technological advancements in the engineering and consulting sectors.

NJS Co., Ltd. Financial Statement Overview

Summary

Overall, NJS Co., Ltd. exhibits a robust financial position with stable revenue growth, high profitability margins, and strong balance sheet metrics, underpinned by minimal debt and substantial equity. While the cash flow generation is strong, there are some fluctuations in investment activities that could impact long-term cash flow stability. The company is well-positioned in the waste management industry with a sound financial foundation.

Income Statement

NJS Co., Ltd. shows solid financial performance with consistent revenue growth over the years, reaching ¥22.59 billion in 2024 from ¥17.34 billion in 2019. Gross Profit Margin increased to 41.3% in 2024 due to strong operational efficiency. The company maintains a healthy Net Profit Margin of 9.4% in 2024. EBIT and EBITDA margins are stable, indicating robust core operational profitability.

Balance Sheet

The balance sheet reflects excellent financial health, with a very low Debt-to-Equity Ratio, indicating minimal leverage risks. The Equity Ratio is strong at approximately 83.9%, illustrating a high proportion of equity financing. The company shows substantial cash reserves and an increasing stockholders' equity, demonstrating financial stability and resilience.

Cash Flow

NJS Co., Ltd. has strong cash flow generation capabilities, with the Free Cash Flow growing significantly over the recent years. The Operating Cash Flow to Net Income Ratio is healthy, supporting sustainability. However, fluctuations in Free Cash Flow and investing activities indicate potential volatility in cash allocation strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.54B	22.59B	22.03B	19.23B	19.32B	18.95B
Gross Profit	10.17B	9.33B	7.24B	7.53B	7.57B	7.40B
EBITDA	4.10B	3.53B	3.24B	2.83B	3.07B	2.65B
Net Income	2.52B	2.12B	2.00B	1.73B	1.93B	1.70B
Balance Sheet
Total Assets	36.03B	31.12B	29.49B	28.18B	27.52B	25.67B
Cash, Cash Equivalents and Short-Term Investments	24.03B	17.69B	17.19B	13.98B	13.46B	14.44B
Total Debt	28.66M	3.34M	0.00	1.44M	4.29M	12.22M
Total Liabilities	7.19B	4.93B	4.94B	5.10B	6.01B	5.51B
Stockholders Equity	28.77B	26.12B	24.49B	23.03B	21.46B	20.14B
Cash Flow
Free Cash Flow	0.00	1.66B	1.05B	951.09M	-472.98M	2.27B
Operating Cash Flow	0.00	1.79B	1.55B	1.95B	227.02M	2.50B
Investing Cash Flow	0.00	-373.48M	2.42B	-950.96M	-551.30M	-371.72M
Financing Cash Flow	0.00	-957.20M	-771.68M	-866.29M	-556.96M	-852.85M

NJS Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5270.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 5270 is below the 20-day moving average (MA) of 5372.00, below the 50-day MA of 5733.60, and above the 200-day MA of 4963.97, indicating a neutral trend. The MACD of -104.53 indicates Negative momentum. The RSI at 40.87 is Neutral, neither overbought nor oversold. The STOCH value of 19.05 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1712	77 Outperform	¥31.01B	21.71	―	0.81%	15.80%	11.11%
2325	76 Outperform	¥50.43B	20.00	―	1.90%	3.43%	-4.13%
5698	71 Outperform	¥15.41B	13.09	―	2.99%	-5.98%	117.10%
4245	67 Neutral	¥9.16B	34.76	―	3.50%	7.87%	-43.45%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6403	61 Neutral	¥13.59B	646.31	―	1.74%	22.44%	-96.06%
4657	56 Neutral	¥2.05B	258.47	―	1.88%	9.02%	-96.84%

NJS Co., Ltd. Corporate Events

NJS Co., Ltd. Affirms Independent Operations Amidst Major Shareholder Ties

NJS Co., Ltd. has announced its relationship with Nippon Hume Corporation, a major shareholder and former parent company. Despite Nippon Hume’s significant shareholding, NJS Co., Ltd. operates independently without business restrictions, ensuring a degree of autonomy in its operations. The announcement highlights the company’s governance structure, with key personnel from Nippon Hume serving as outside directors and auditors, reflecting a cooperative yet independent relationship.

NJS Co., Ltd. Acquires CDC Aqua Service to Boost Water Management Services

NJS Co., Ltd. has announced the acquisition of CDC Aqua Service Co., Ltd., making it a subsidiary to enhance its capabilities in the water supply and sewerage business. By integrating CDC’s customer-focused services with its own consulting and software solutions, NJS aims to create additional customer value and promote regional development in water services.

NJS Co., Ltd. Proposes Increased Year-End Dividend Amid Record Performance

NJS Co., Ltd. announced a proposed year-end dividend of ¥50 per share for the fiscal year ending December 31, 2024, reflecting a ¥5 increase from the previous year. This decision follows the company’s record-high financial performance, with plans to further increase the dividend to ¥100 per share in 2025, marking eight consecutive years of dividend growth, aimed at ensuring long-term stable returns for shareholders.