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NEOJAPAN Inc. (JP:3921)
:3921
Japanese Market

NEOJAPAN Inc. (3921) AI Stock Analysis

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JP

NEOJAPAN Inc.

(3921)

82Outperform
NEOJAPAN Inc. earns a strong overall stock score due to its impressive financial performance, highlighted by robust revenue growth, efficient cost management, and strong cash flow generation. The stock's fair valuation and reasonable dividend yield add to its attractiveness. While technical indicators show some short-term momentum, the longer-term trend is less clear, suggesting cautious optimism for investors.

NEOJAPAN Inc. (3921) vs. S&P 500 (SPY)

NEOJAPAN Inc. Business Overview & Revenue Model

Company DescriptionNEOJAPAN Inc. is a leading Japanese software company specializing in the development and distribution of communication and collaboration tools. The company primarily operates in the IT services sector, offering a range of products designed to enhance corporate communication and improve operational efficiency. Its flagship product, 'desknet's NEO,' is a groupware solution that supports information sharing and collaborative work within organizations.
How the Company Makes MoneyNEOJAPAN Inc. generates revenue primarily through software licensing and subscription models. The company offers its products on a subscription basis, providing ongoing updates and support, which ensures a steady stream of recurring revenue. Additionally, NEOJAPAN offers customization and integration services for its software solutions, allowing clients to tailor the products to their specific needs. The company also benefits from partnerships with other technology firms and resellers, which help expand its market reach and drive sales. These partnerships often involve revenue-sharing agreements, contributing to the company's overall earnings.

NEOJAPAN Inc. Financial Statement Overview

Summary
NEOJAPAN Inc. exhibits strong financial performance with significant revenue and profit growth, efficient cost management, and robust cash flow generation. The company's low leverage and high equity ratio contribute to its stability, indicating a strong market position.
Income Statement
88
Very Positive
NEOJAPAN Inc. has shown strong revenue growth with a 9.8% increase from 2024 to 2025. The gross profit margin stands at 55.5%, indicating effective cost control and profitability. The company has a robust net profit margin of 19.5%, supported by improved EBIT and EBITDA margins of 26.9% and 31.2%, respectively. These metrics reflect operational efficiency and a strong competitive position in the software industry.
Balance Sheet
85
Very Positive
The balance sheet is healthy, with a very low debt-to-equity ratio of 0.0004, highlighting minimal leverage and financial risk. The equity ratio is strong at 68.3%, indicating a solid capital structure. Return on equity is impressive at 22.4%, showcasing effective utilization of shareholder capital. Overall, the company maintains a stable and low-risk financial position.
Cash Flow
92
Very Positive
NEOJAPAN Inc. exhibits exceptional cash flow management with a remarkable free cash flow growth rate of 170.4% year-over-year. The operating cash flow to net income ratio is 1.46, and the free cash flow to net income ratio is 1.45, indicating strong cash generation relative to earnings. This robust cash flow supports future growth initiatives and enhances financial flexibility.
Breakdown
Mar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
7.26B6.62B6.01B5.92B5.33B
Gross Profit
4.03B3.64B3.23B3.03B2.74B
EBIT
1.95B1.30B1.24B1.25B920.65M
EBITDA
2.26B1.64B1.61B1.51B1.12B
Net Income Common Stockholders
1.41B956.35M812.64M866.33M677.11M
Balance SheetCash, Cash Equivalents and Short-Term Investments
5.55B5.40B5.22B4.33B3.65B
Total Assets
9.24B8.62B8.03B7.29B6.74B
Total Debt
2.72M290.00K311.00K364.00K101.98M
Net Debt
-5.39B-5.21B-4.84B-4.02B-3.28B
Total Liabilities
2.93B2.28B2.30B2.12B2.31B
Stockholders Equity
6.31B6.33B5.72B5.15B4.42B
Cash FlowFree Cash Flow
2.05B759.41M956.90M815.44M798.34M
Operating Cash Flow
2.06B1.03B1.19B1.11B989.86M
Investing Cash Flow
-452.86M-359.00M-174.40M-326.33M-227.70M
Financing Cash Flow
-1.49B-389.51M-207.26M-255.83M-142.62M

NEOJAPAN Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1505.00
Price Trends
50DMA
1529.64
Negative
100DMA
1619.32
Negative
200DMA
1723.56
Negative
Market Momentum
MACD
1.97
Negative
RSI
49.14
Neutral
STOCH
35.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3921, the sentiment is Negative. The current price of 1505 is above the 20-day moving average (MA) of 1497.10, below the 50-day MA of 1529.64, and below the 200-day MA of 1723.56, indicating a neutral trend. The MACD of 1.97 indicates Negative momentum. The RSI at 49.14 is Neutral, neither overbought nor oversold. The STOCH value of 35.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3921.

NEOJAPAN 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
82
Outperform
¥21.05B14.94
2.67%9.79%55.96%
74
Outperform
¥1.34T29.69
1.66%24.10%11.27%
72
Outperform
¥142.22B33.46
0.95%16.68%43.49%
69
Neutral
¥2.52T35.2115.31%1.59%8.65%12.22%
66
Neutral
¥34.51B21.03
4.76%8.11%7.91%
60
Neutral
$11.62B10.48-7.27%2.93%7.46%-10.64%
56
Neutral
¥1.28B20.20
-11.25%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3921
NEOJAPAN Inc.
1,504.00
31.87
2.16%
JP:3814
Alphax Food System Co., Ltd
335.00
-112.00
-25.06%
JP:4776
Cybozu, Inc.
3,300.00
1,728.00
109.92%
JP:9629
PCA Corporation
1,800.00
-69.96
-3.74%
JP:9719
SCSK Corporation
4,285.00
1,417.89
49.45%
JP:4684
OBIC Co
5,256.00
1,112.09
26.84%

NEOJAPAN Inc. Corporate Events

NEOJAPAN Inc. Implements Stock Compensation Plan to Boost Performance
Apr 25, 2025

NEOJAPAN Inc. has announced the disposal of 5,656 treasury shares as part of a performance-based restricted stock compensation plan for management-level employees. This initiative is designed to align employee incentives with the company’s long-term goals, potentially boosting corporate value and shareholder returns. The plan includes specific conditions for vesting and transfer restrictions, ensuring that employees remain committed to the company’s performance targets.

NEOJAPAN Inc. Announces Treasury Shares Disposal for Director Compensation
Apr 25, 2025

NEOJAPAN Inc. has announced a decision by its Board of Directors to dispose of 5,500 treasury shares as part of a performance-based restricted stock compensation plan for its directors. This initiative is designed to align the directors’ interests with the company’s long-term performance goals and shareholder value enhancement, by incentivizing them to improve business performance. The shares will be allotted to directors, excluding outside directors, and are subject to restrictions on transfer until certain performance and tenure conditions are met.

NEOJAPAN Inc. Announces Director Candidates for Upcoming Shareholders Meeting
Mar 13, 2025

NEOJAPAN Inc. announced the election of candidates for its Board of Directors, with the proposal to be presented at the upcoming Annual General Meeting of Shareholders. The company plans to reappoint several current directors and introduce new candidates, including Yuji Yano, Ichiro Hayama, and Sachiko Hosokawa, as part of its strategic leadership changes. These appointments are expected to strengthen the company’s governance and align with its future growth objectives.

NEOJAPAN Inc. Revises Dividend Policy to Enhance Shareholder Returns
Mar 13, 2025

NEOJAPAN Inc. has announced a revision to its dividend policy, aiming to enhance shareholder returns by introducing a progressive dividend approach and increasing the dividend payout ratio to 40%. This change reflects the company’s strategy to balance long-term stability with growth, as it anticipates continued growth in recurring services. The revised dividend forecast for the fiscal year ended January 31, 2025, increases the year-end dividend from 17.00 yen to 26.00 yen per share, highlighting the company’s commitment to returning profits to shareholders.

NEOJAPAN Inc. Reports Fiscal Year 2025 Business Results
Mar 13, 2025

NEOJAPAN Inc. has announced its business results for the fiscal year ending January 31, 2025, highlighting its diverse operations across various international markets. The company continues to expand its software development and cloud service offerings in key regions such as California, Kuala Lumpur, Bangkok, and Metro Manila, reinforcing its strategic positioning in the global software industry.

NEOJAPAN Inc. Reports Robust Financial Growth and Strategic Expansion
Mar 13, 2025

NEOJAPAN Inc. reported a significant increase in its financial performance for the fiscal year ended January 31, 2025, with net sales rising by 9.8% and operating profit surging by 50.5%. The company also announced a higher dividend payout, reflecting its strong financial health and commitment to returning value to shareholders. The inclusion of NEOPhilippine Tech Inc. in its consolidation scope indicates strategic expansion efforts, potentially enhancing its competitive positioning in the industry.

NEOJAPAN Inc. Achieves Compliance with Tokyo Stock Exchange Prime Market Criteria
Mar 13, 2025

NEOJAPAN Inc. has successfully met the listing maintenance criteria for the Tokyo Stock Exchange Prime Market as of January 31, 2025, after implementing a series of strategic initiatives. These initiatives included improving financial results, enhancing shareholder returns, increasing investor relations activities, and boosting ESG management efforts, leading to a rise in the company’s share price and compliance with all listing criteria a year ahead of schedule.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.