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Nextgen,Inc. (JP:3842)
:3842
Japanese Market
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Nextgen,Inc. (3842) AI Stock Analysis

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JP:3842

Nextgen,Inc.

(3842)

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Outperform 79 (OpenAI - 5.2)
Rating:79Outperform
Price Target:
¥1,198.00
▲(14.75% Upside)
Action:Reiterated
Date:08/17/26
Overall score is driven primarily by strengthening financial performance (return to profitability, improved margins, and a de-risked balance sheet) and supported by attractive valuation (low P/E and solid dividend yield). Technicals are positive but tempered by an elevated RSI indicating potentially stretched near-term momentum.
Positive Factors
Improving revenue and margins
Recent acceleration in revenue and expanding net margins indicate stronger operating execution and product demand. If sustained, this combination can support higher earnings quality and improve the company’s ability to fund growth internally.
Negative Factors
Historical earnings volatility
The recent recovery is encouraging, but prior losses demonstrate that profitability has not been consistently durable across the cycle. Future earnings could remain vulnerable to changes in demand, execution or industry conditions, limiting predictability.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving revenue and margins
Recent acceleration in revenue and expanding net margins indicate stronger operating execution and product demand. If sustained, this combination can support higher earnings quality and improve the company’s ability to fund growth internally.
Read all positive factors

Nextgen,Inc. (3842) vs. iShares MSCI Japan ETF (EWJ)

Nextgen,Inc. Business Overview & Revenue Model

Company Description
Nextgen, Inc., established in 2001 and based in Tokyo, Japan, specializes in delivering telecommunication, SIP/VoIP security, and comprehensive enterprise solutions. The company furnishes various telecommunication carriers with high-performance, c...

Nextgen,Inc. Financial Statement Overview

Summary
Fundamentals are improving: profitability turned positive in 2024–2026 with net margin expanding to ~6.9% in 2026, and revenue growth re-accelerated to ~12.6% in 2026. The balance sheet is conservatively levered (debt-to-equity ~0.12 in 2026) with ROE rebounding to ~12.2%. The main constraint is historical volatility in revenue, earnings, and free cash flow (including losses and negative FCF in 2023).
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
71
Positive
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue4.26B3.62B3.52B3.05B3.75B
Gross Profit1.58B1.42B1.31B1.15B1.36B
EBITDA613.96M502.54M503.24M-157.46M598.44M
Net Income292.31M204.88M166.92M-454.41M164.66M
Balance Sheet
Total Assets3.69B3.54B3.28B3.00B3.45B
Cash, Cash Equivalents and Short-Term Investments2.01B1.81B1.26B1.21B1.25B
Total Debt288.82M475.77M474.82M517.59M600.53M
Total Liabilities1.29B1.37B1.32B1.21B1.44B
Stockholders Equity2.40B2.17B1.96B1.80B2.01B
Cash Flow
Free Cash Flow723.74M845.18M100.41M-194.42M86.31M
Operating Cash Flow740.49M852.29M484.28M414.48M488.42M
Investing Cash Flow-290.78M-265.30M-380.76M-608.90M-392.30M
Financing Cash Flow-247.53M-39.21M-49.18M155.70M-26.95M

Nextgen,Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1044.00
Price Trends
50DMA
976.66
Positive
100DMA
972.54
Positive
200DMA
1002.66
Positive
Market Momentum
MACD
19.08
Positive
RSI
64.47
Neutral
STOCH
26.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3842, the sentiment is Positive. The current price of 1044 is above the 20-day moving average (MA) of 1030.05, above the 50-day MA of 976.66, and above the 200-day MA of 1002.66, indicating a bullish trend. The MACD of 19.08 indicates Positive momentum. The RSI at 64.47 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3842.

Nextgen,Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥3.22B9.560.98%16.94%8.35%
71
Outperform
¥17.36B14.133.53%2.67%-25.50%
70
Outperform
¥16.41B14.494.02%4.54%-17.49%
69
Neutral
¥8.98B10.623.85%-2.97%-6.79%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
60
Neutral
¥3.19B10.9118.07%69.43%
58
Neutral
¥19.96B28.9221.77%-25.14%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3842
Nextgen,Inc.
1,042.00
-35.59
-3.30%
JP:3834
ASAHI Net, Inc.
618.00
-59.87
-8.83%
JP:9419
WirelessGate, Inc.
292.00
16.00
5.80%
JP:9424
Japan Communications Inc.
117.00
-36.00
-23.53%
JP:9445
Forval Telecom, Inc.
536.00
-0.64
-0.12%
JP:9450
Fibergate, Inc.
790.00
106.64
15.61%
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 17, 2026