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

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Next Generation Technology Group, Inc.

(TSE/TYO:319A)

Select Model

Rating:55.25Neutral

Price Target:JPY 23,932.00▲(2.62% Upside)

Action:reiterated

Date:08/21/26

The score is held back primarily by financial quality risk—especially weak cash generation and a debt-heavy capital structure despite strong revenue growth and decent reported profitability. Technicals are supportive with an uptrend and neutral momentum, but valuation is relatively expensive (P/E ~41), limiting the overall score.

Positive Factors

Strong Revenue GrowthRapid revenue expansion indicates strong demand for the company’s technology services and improving market reach. If sustained, this scale can support broader customer relationships, greater operating leverage, and continued investment in capabilities over the next several quarters.

Negative Factors

Persistent Negative Free Cash FlowRepeatedly negative free cash flow means reported earnings are not translating into internally generated liquidity. This can restrict the company’s ability to fund growth, repay debt, or absorb weaker trading conditions without relying more heavily on external financing.

Next Generation Technology Group, Inc. (319A) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 198.59B
Dividend Yield: ―
Average Volume (3M): 45.89K
Price to Earnings (P/E): 45.9
Beta (1Y): 0.72
Revenue Growth: ―
EPS Growth: ―
Country: Japan
Employees: 1,208
Sector: General
Sector Strength: 55
Industry: Asset Management

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

Company Description

Established in 2018 and headquartered in Tokyo, Japan, this company primarily focuses on acquiring businesses within the manufacturing sector. Additionally, it operates a metal grinding division, providing services for the industrial equipment, disas...

Next Generation Technology Group, Inc. Financial Statement Overview

Summary

Income statement strength (score 72) is offset by a weak balance sheet (score 46) and very weak cash flow (score 29). Revenue growth is strong and 2025 profitability is solid, but earnings have been volatile, leverage remains elevated despite improving equity, and cash conversion is poor with consistently negative free cash flow.

Income Statement

72Positive

Balance Sheet

46Neutral

Cash Flow

29Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	22.83B	14.96B	11.05B	9.33B	1.12B
Gross Profit	6.53B	4.10B	3.14B	2.40B	361.00M
EBITDA	4.65B	2.32B	2.16B	2.63B	662.00M
Net Income	4.38B	3.09B	901.00M	1.61B	148.00M
Balance Sheet
Total Assets	35.97B	30.93B	15.42B	14.75B	9.19B
Cash, Cash Equivalents and Short-Term Investments	11.22B	9.57B	5.44B	4.40B	2.60B
Total Debt	18.04B	16.23B	8.84B	9.24B	6.48B
Total Liabilities	25.11B	21.61B	11.41B	11.64B	7.86B
Stockholders Equity	10.76B	9.21B	3.90B	3.01B	-219.00M
Cash Flow
Free Cash Flow	0	-140.00M	0	-229.95M	0
Operating Cash Flow	0	147.00M	0	1.19B	0
Investing Cash Flow	0	-3.46B	-169.00M	-702.00M	-431.00M
Financing Cash Flow	0	6.59B	-605.00M	1.28B	393.00M

Next Generation Technology Group, Inc. Technical Analysis

Technical Analysis SentimentPositive

Last Price23320.00

Price Trends

50DMA21808.00Positive

100DMA19924.50Positive

200DMA16514.55Positive

Market Momentum

MACD78.75Positive

RSI55.03Neutral

STOCH61.69Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:319A, the sentiment is Positive. The current price of 23320.00 is above the 20-day moving average (MA) of 22778.00, above the 50-day MA of 21808.00, and above the 200-day MA of 16514.55, indicating a bullish trend. The MACD of 78.75 indicates Positive momentum. The RSI at 55.03 is Neutral, neither overbought nor oversold. The STOCH value of 61.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:319A.

Next Generation Technology Group, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:319A against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8739	79Outperform	JPY 75.09B	11.35	21.29%	5.95%	30.22%	45.03%
JP:4310	70Outperform	JPY 20.60B	12.31	―	8.58%	23.98%	42.54%
JP:8595	67Neutral	JPY 114.57B	18.59	4.55%	6.12%	-38.26%	-6.57%
JP:319A	55Neutral	JPY 201.51B	45.90	―	―	―	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:8518	39Underperform	JPY 3.60B	32.31	1.10%	―	8.00%	-55.19%
JP:2134	37Underperform	JPY 8.50B	-5.68	―	―	263.03%	23.09%

* General Sector Average

Performance Comparison

JP:319A and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:319A	Next Generation Technology Group, Inc.	23320.00	14180.00	155.14%
JP:8595	Jafco Co	2174.00	-183.93	-7.80%
JP:8739	Sparx Group Co., Ltd.	2435.00	1031.33	73.47%
JP:8518	Japan Asia Investment Company, Limited	126.00	-108.00	-46.15%
JP:2134	Sun Capital Management Corp.	15.00	-28.00	-65.12%
JP:4310	Dream Incubator Inc.	2179.00	-94.84	-4.17%

Next Generation Technology Group, Inc. Corporate Events

Next Generation Technology Group Boosts Earnings as Acquisition Strategy Drives Growth

Aug 16, 2026

Next Generation Technology Group reported a sharp improvement in second-quarter performance, with adjusted EBITDA and adjusted profit nearly tripling year on year, driven by strong results across its portfolio and full-year contributions from seven b...

Next Generation Technology Group posts surging profits on expanded industrial portfolio

Aug 14, 2026

Next Generation Technology Group, Inc., listed on the Tokyo Stock Exchange, operates in the industrial technology and machinery components space, supplying precision equipment such as clutches and brakes. With newly consolidated subsidiaries Horikosh...

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 21, 2026

Next Generation Technology Group, Inc. AI Stock Analysis