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Nextgen,Inc.
(3842)
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Rating:77Outperform
Price Target:
¥1,555.00
▲(48.95% Upside)
Action:Reiterated
Date:10/01/26
The score is driven primarily by improving financial performance (return to profitability, stronger margins, de-risked leverage, and solid recent free cash flow). Technicals are supportive due to a strong uptrend, but the very overextended RSI/Stoch readings temper the rating. Valuation is a secondary positive with a moderate P/E and a ~2.3% dividend yield.
Positive Factors
Improving profitability and margins
Positive net income in 2024–2026 and margin expansion to about 6.9% in 2026 indicate a meaningful recovery in operating economics. If maintained, better profitability can support reinvestment and resilience, while the steady high-30% gross margin provides a base for ongoing earnings generation.
Negative Factors
Volatile revenue trajectory
Recent revenue momentum is encouraging, but the sharp 2023 decline and low 2025 growth show that demand and expansion have not followed a consistent path. Such variability makes forward earnings less predictable and can complicate hiring, investment planning, and durable margin management.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability and margins
Positive net income in 2024–2026 and margin expansion to about 6.9% in 2026 indicate a meaningful recovery in operating economics. If maintained, better profitability can support reinvestment and resilience, while the steady high-30% gross margin provides a base for ongoing earnings generation.
Read all positive factors
Nextgen,Inc. (3842) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥4.24B
Dividend Yield2.19%
Average Volume (3M)6.37K
Price to Earnings (P/E)12.6
Beta (1Y)0.62
Revenue Growth16.94%
EPS Growth8.35%
CountryJP
Employees148
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)94.52
Shares Outstanding3,094,000
10 Day Avg. Volume9,320
30 Day Avg. Volume6,373
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)1.24
Price to Sales (P/S)0.70
P/FCF Ratio4.11
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
71
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.26B | 3.62B | 3.52B | 3.05B | 3.75B |
| Gross Profit | 1.58B | 1.42B | 1.31B | 1.15B | 1.36B |
| EBITDA | 613.96M | 502.54M | 503.24M | -157.46M | 598.44M |
| Net Income | 292.31M | 204.88M | 166.92M | -454.41M | 164.66M |
Balance Sheet | |||||
| Total Assets | 3.69B | 3.54B | 3.28B | 3.00B | 3.45B |
| Cash, Cash Equivalents and Short-Term Investments | 2.01B | 1.81B | 1.26B | 1.21B | 1.25B |
| Total Debt | 288.82M | 475.77M | 474.82M | 517.59M | 600.53M |
| Total Liabilities | 1.29B | 1.37B | 1.32B | 1.21B | 1.44B |
| Stockholders Equity | 2.40B | 2.17B | 1.96B | 1.80B | 2.01B |
Cash Flow | |||||
| Free Cash Flow | 723.74M | 845.18M | 100.41M | -194.42M | 86.31M |
| Operating Cash Flow | 740.49M | 852.29M | 484.28M | 414.48M | 488.42M |
| Investing Cash Flow | -290.78M | -265.30M | -380.76M | -608.90M | -392.30M |
| Financing Cash Flow | -247.53M | -39.21M | -49.18M | 155.70M | -26.95M |
Nextgen,Inc. Technical Analysis
Positive
1044.00
Price Trends
1062.82
Positive
998.80
Positive
1001.81
Positive
Market Momentum
85.88
Negative
85.80
Negative
95.70
Negative
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 below the 20-day moving average (MA) of 1159.38, below the 50-day MA of 1062.82, and above the 200-day MA of 1001.81, indicating a bullish trend. The MACD of 85.88 indicates Negative momentum. The RSI at 85.80 is Negative, neither overbought nor oversold. The STOCH value of 95.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3842.
Nextgen,Inc. Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥4.24B | 12.58 | ― | 2.19% | 16.94% | 8.35% | |
77 Outperform | ¥16.75B | 13.60 | ― | 4.20% | 2.67% | -25.50% | |
70 Outperform | ¥15.78B | 14.32 | ― | 3.51% | 4.54% | -17.49% | |
69 Neutral | ¥8.88B | 10.60 | ― | 4.49% | -2.97% | -6.79% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | ¥3.28B | 10.91 | ― | 0.27% | 18.07% | 69.43% | |
51 Neutral | ¥19.79B | 29.41 | ― | ― | 21.77% | -25.14% |
* Communication Services Sector Average
JP:3842
Nextgen,Inc.
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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.