Next Generation Technology Group, Inc. (319A) AI Stock Analysis

• Market Cap: ¥66.43B
• Dividend Yield: N/A
• Average Volume (3M): 130.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 558
• Sector: Technology
• Sector Strength: 88
• Industry: Asset Management
• EPS (TTM): N/A
• Shares Outstanding: 8,845,978
• 10 Day Avg. Volume: 86,050
• 30 Day Avg. Volume: 130,516
• PEG Ratio: -0.69
• Price to Book (P/B): 7.08
• Price to Sales (P/S): 2.50
• P/FCF Ratio: -124.01
• 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: ¥6,110.00
• Price Target Upside: -18.64% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥6,165.00 ▼(-17.91% Downside)

The stock's overall score is driven primarily by strong financial performance, with robust revenue growth and profitability. Technical indicators suggest a positive trend, though momentum is not strong. The absence of valuation data adds uncertainty, slightly lowering the overall score.

Next Generation Technology Group, Inc. Business Overview & Revenue Model

Company Description

Next Generation Technology Group Inc. engages in the acquisition of manufacturing-related companies. It is also involved in the metal grinding business for industrial equipment, disaster prevention, and welfare industries. The company was incorporated in 2018 and is based in Tokyo, Japan.

How the Company Makes Money

Next Generation Technology Group, Inc. generates revenue through multiple streams, primarily by offering subscription-based services and licensing agreements for its software products. The company charges clients a recurring fee for access to its cloud services and cybersecurity solutions, which provides a steady income flow. Additionally, it earns revenue from consulting services, where it partners with businesses to implement technology solutions tailored to their specific needs. Strategic partnerships with major tech firms and system integrators also enhance its market reach, allowing the company to tap into new customer bases and increase sales. Furthermore, the company may receive income from training and support services provided to clients, ensuring they can maximize the value of their technology investments.

Next Generation Technology Group, Inc. Financial Statement Overview

Summary

Next Generation Technology Group, Inc. demonstrates strong financial health with significant revenue growth and profitability. The company has a robust cash flow position, although high leverage requires careful monitoring. The balance sheet reflects strategic use of debt and equity, while the income statement underscores efficient operations.

Income Statement

Next Generation Technology Group, Inc. has demonstrated strong revenue growth with a 18.47% increase from 2023 to 2024. The gross profit margin is healthy at 28.43%, and the net profit margin stands at 8.15%, indicating solid profitability. EBIT and EBITDA margins are robust at 13.73% and 19.54%, respectively, reflecting efficient operations. However, the decline in net income from 2023 to 2024 suggests potential challenges in cost management or other financial pressures.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 2.27, indicating a relatively high level of leverage, which could pose risks if not managed carefully. The return on equity is impressive at 23.09%, showcasing effective use of equity to generate profits. The equity ratio is 25.31%, suggesting a balanced approach to financing with a reasonable level of equity relative to total assets.

Cash Flow

The cash flow statement reveals a strong free cash flow growth rate of 59.19% from 2023 to 2024, highlighting excellent cash generation capabilities. The operating cash flow to net income ratio is 2.10, indicating efficient conversion of income into cash. Additionally, the free cash flow to net income ratio is 2.10, further emphasizing strong cash flow management.

Breakdown	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	11.05B	9.33B	1.12B
Gross Profit	3.14B	2.40B	361.00M
EBITDA	2.16B	2.63B	662.00M
Net Income	901.00M	1.61B	148.00M
Balance Sheet
Total Assets	15.42B	14.75B	9.19B
Cash, Cash Equivalents and Short-Term Investments	5.44B	4.40B	2.60B
Total Debt	8.84B	9.24B	6.48B
Total Liabilities	11.41B	11.64B	7.86B
Stockholders Equity	3.90B	3.01B	-219.00M
Cash Flow
Free Cash Flow	-222.64M	-229.95M	-124.78M
Operating Cash Flow	179.50M	1.19B	-114.67M
Investing Cash Flow	-169.00M	-702.00M	-431.00M
Financing Cash Flow	-605.00M	1.28B	393.00M

Next Generation Technology Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
319A	75 Outperform	¥66.43B	―	―	―	―	―
7345	55 Neutral	¥1.95B	-169.16	-1.54%	0.67%	-2.04%	-168.42%
7162	50 Neutral	¥3.11B	-6.70	-2.92%	2.89%	36.38%	-164.43%
8518	48 Neutral	¥5.04B	65.75	―	―	7.47%	―
3113	41 Neutral	¥6.04B	-8.17	-41.55%	―	-41.81%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Next Generation Technology Group, Inc. Corporate Events

Next Generation Technology Group Reports FY2025 Q1 Results and Strategic Acquisition

Next Generation Technology Group Inc. has announced its financial results for FY2025 Q1, highlighting the acquisition of Suntec Industry for its advanced metal surface treatment technologies and stable profitability. The company maintains its full-year forecast, despite a decline in Q1 Adjusted EBITDA due to delayed high-margin orders at Aero craft Japan, which are expected to recover in Q2. The company is leveraging its growing number of group companies to share best practices and enhance operational efficiencies, while conserving cash for future acquisition opportunities.