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Nihon Knowledge Co. Ltd. (JP:5252)
:5252
Japanese Market
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Nihon Knowledge Co. Ltd. (5252) AI Stock Analysis

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JP:5252

Nihon Knowledge Co. Ltd.

(5252)

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Neutral 57 (OpenAI - Gpt-5.6Sol)
Rating:57Neutral
Price Target:
¥828.00
▲(34.85% Upside)
Action:Reiterated
Date:09/08/26
The score is primarily held back by weakened profitability since 2024 and inconsistent cash generation despite a generally healthy balance sheet. Technicals show only a mild uptrend with mixed momentum, and valuation looks demanding (P/E ~28) relative to recent earnings durability, with only modest dividend support.
Positive Factors
Steady Revenue Growth
A multi-year pattern of revenue expansion indicates that Nihon Knowledge has continued to grow its software testing and support services base. Although the pace moderated recently, sustained top-line progression provides a durable foundation for maintaining operations and funding future business development.
Negative Factors
Profitability Deterioration
The sharp decline in earnings after 2024 shows that revenue growth has not translated into durable profitability. If lower operating earnings persist, the company may have less capacity to reinvest, strengthen shareholder returns, or withstand execution challenges despite its expanding top line.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady Revenue Growth
A multi-year pattern of revenue expansion indicates that Nihon Knowledge has continued to grow its software testing and support services base. Although the pace moderated recently, sustained top-line progression provides a durable foundation for maintaining operations and funding future business development.
Read all positive factors

Nihon Knowledge Co. Ltd. (5252) vs. iShares MSCI Japan ETF (EWJ)

Nihon Knowledge Co. Ltd. Business Overview & Revenue Model

Company Description
Founded in 1985 and headquartered in Tokyo, Japan, Nihon Knowledge Co,Ltd. provides a range of technology services across the country. The company specializes in software system verification, custom system development, and comprehensive business s...
How the Company Makes Money
The company primarily generates revenue by providing professional services to corporate customers, including contracted software testing/verification (QA) work and related engineering support delivered on a project or contract basis. Revenue is ea...

Nihon Knowledge Co. Ltd. Financial Statement Overview

Summary
Revenue growth and a strengthening equity base support stability, and leverage is moderate. However, profitability fell sharply after 2024 and remains low, while operating/free cash flow has been volatile with multiple negative FCF years, reducing confidence in earnings quality and cash conversion.
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
45
Neutral
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue4.56B4.15B4.08B3.55B3.23B
Gross Profit728.85M704.49M813.19M689.05M527.37M
EBITDA118.10M162.04M287.67M212.77M155.50M
Net Income86.50M82.00M202.15M137.25M94.28M
Balance Sheet
Total Assets2.26B2.13B2.13B1.81B1.32B
Cash, Cash Equivalents and Short-Term Investments671.83M738.49M848.67M922.37M508.15M
Total Debt400.87M381.83M340.10M235.21M298.04M
Total Liabilities1.05B990.06M1.04B908.26M799.40M
Stockholders Equity1.21B1.14B1.08B898.72M516.45M
Cash Flow
Free Cash Flow39.93M-112.13M-167.06M266.43M-99.73M
Operating Cash Flow56.75M53.90M127.94M286.38M-32.83M
Investing Cash Flow-113.07M-167.08M-285.53M-29.83M-89.70M
Financing Cash Flow-10.33M2.99M81.90M159.66M10.70M

Nihon Knowledge Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price614.00
Price Trends
50DMA
786.92
Positive
100DMA
777.47
Positive
200DMA
729.54
Positive
Market Momentum
MACD
-10.83
Positive
RSI
56.07
Neutral
STOCH
38.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5252, the sentiment is Positive. The current price of 614 is below the 20-day moving average (MA) of 786.30, below the 50-day MA of 786.92, and below the 200-day MA of 729.54, indicating a bullish trend. The MACD of -10.83 indicates Positive momentum. The RSI at 56.07 is Neutral, neither overbought nor oversold. The STOCH value of 38.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5252.

Nihon Knowledge Co. Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥8.68B8.633.77%15.03%17.34%
82
Outperform
¥50.99B30.190.50%19.17%46.29%
73
Outperform
¥10.91B15.722.24%7.28%-14.91%
72
Outperform
¥18.53B17.441.73%21.28%73.53%
63
Neutral
¥19.39B-48.811.64%17.69%-175.52%
57
Neutral
¥3.33B31.641.25%11.29%-4.15%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5252
Nihon Knowledge Co. Ltd.
830.00
388.25
87.89%
JP:3850
NTT Data Intramart Corporation
3,625.00
-101.79
-2.73%
JP:4430
TOKAI SOFT CO.,LTD.
1,724.00
171.69
11.06%
JP:4434
Serverworks Co., Ltd.
2,444.00
434.09
21.60%
JP:4475
HENNGE K.K.
1,590.00
-120.48
-7.04%
JP:4811
DreamArts Corp.
893.00
-473.16
-34.63%
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: Sep 08, 2026