NJ Holdings, Inc. (9421) AI Stock Analysis

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NJ Holdings, Inc.

(TSE/TYO:9421)

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Rating:48Neutral

Price Target:JPY 500.00▼(-8.42% Downside)

Action:reiterated

Date:08/19/26

The overall score reflects moderate but improving financial quality constrained by structurally weak revenue growth and volatile profitability, combined with a technically soft price trend and limited valuation support due to negative earnings and no dividend, while recent deleveraging and stronger cash flows provide some offsetting strength.

Positive Factors

Improved LeverageThe substantial reduction in debt-to-equity indicates meaningful balance-sheet de-risking and gives the company greater financial flexibility. Positive, stable equity provides resilience, while lower leverage can reduce funding pressure and support continued operations through uneven earnings periods.

Negative Factors

Revenue ContractionPersistent annual revenue contraction weakens the scale of the business and makes a durable earnings recovery more difficult. The sharp 2026 decline also increases operating leverage risk, because fixed costs must be supported by a smaller revenue base and growth investment becomes harder to fund.

NJ Holdings, Inc. (9421) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 2.92B
Dividend Yield: ―
Average Volume (3M): 2,171
Price to Earnings (P/E): -16.7
Beta (1Y): 0.25
Revenue Growth: 2.23%
EPS Growth: -431.79%
Country: Japan
Employees: 868
Sector: General
Sector Strength: 55
Industry: Software - Application

NJ Holdings, Inc. Business Overview & Revenue Model

Company Description

NJ Holdings Inc. engages in the game development and mobile communication sales business in Japan. It operates through Game Business, Mobile Business, and Others segments. The Game Business segment focuses on the contract development and operation of...

NJ Holdings, Inc. Financial Statement Overview

Summary

Financial performance is moderate, with improved gross margins, stronger recent cash generation, and materially reduced debt offset by a shrinking revenue base and highly volatile profitability, indicating elevated execution risk.

Income Statement

41Neutral

Balance Sheet

57Neutral

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	9.95B	9.95B	9.11B	9.70B	10.13B	11.99B
Gross Profit	2.09B	2.03B	1.80B	1.76B	1.49B	2.21B
EBITDA	380.46M	381.06M	216.00M	417.27M	-237.94M	471.71M
Net Income	-119.55M	-119.55M	31.00M	274.86M	-469.24M	-92.47M
Balance Sheet
Total Assets	3.57B	3.57B	3.75B	3.94B	4.20B	5.76B
Cash, Cash Equivalents and Short-Term Investments	1.31B	1.31B	851.91M	1.69B	1.14B	1.25B
Total Debt	731.95M	731.95M	952.25M	1.10B	1.62B	1.20B
Total Liabilities	1.98B	1.98B	2.04B	2.27B	2.82B	2.52B
Stockholders Equity	1.49B	1.49B	1.61B	1.58B	1.31B	3.07B
Cash Flow
Free Cash Flow	0	712.69M	-644.00M	581.75M	300.86M	114.03M
Operating Cash Flow	0	852.88M	-482.00M	661.12M	339.86M	169.03M
Investing Cash Flow	0	-152.03M	-194.00M	421.38M	-253.86M	-61.41M
Financing Cash Flow	0	-247.11M	-165.00M	-526.09M	-43.91M	-472.60M

NJ Holdings, Inc. Technical Analysis

Technical Analysis SentimentPositive

Last Price546.00

Price Trends

50DMA528.96Positive

100DMA522.65Positive

200DMA581.95Negative

Market Momentum

MACD3.08Negative

RSI63.76Neutral

STOCH85.93Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9421, the sentiment is Positive. The current price of 546.00 is above the 20-day moving average (MA) of 537.60, above the 50-day MA of 528.96, and below the 200-day MA of 581.95, indicating a neutral trend. The MACD of 3.08 indicates Negative momentum. The RSI at 63.76 is Neutral, neither overbought nor oversold. The STOCH value of 85.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9421.

NJ Holdings, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:9421 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3776	75Outperform	JPY 13.37B	28.79	―	1.32%	-14.02%	16.57%
JP:9450	70Outperform	JPY 14.86B	13.48	―	3.73%	4.54%	-17.49%
JP:9445	69Neutral	JPY 8.50B	10.13	―	4.59%	3.75%	-8.50%
JP:9419	63Neutral	JPY 3.25B	11.02	―	―	18.07%	69.43%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:9424	54Neutral	JPY 16.60B	61.35	―	―	17.19%	-74.05%
JP:9421	48Neutral	JPY 2.88B	-16.73	―	―	2.23%	-431.79%

* General Sector Average

Performance Comparison

JP:9421 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:9421	NJ Holdings, Inc.	546.00	-36.00	-6.19%
JP:3776	Broadband Tower, Inc.	227.00	55.49	32.35%
JP:9419	WirelessGate, Inc.	297.00	33.00	12.50%
JP:9424	Japan Communications Inc.	101.00	-45.00	-30.82%
JP:9445	Forval Telecom, Inc.	523.00	-29.31	-5.31%
JP:9450	Fibergate, Inc.	724.00	52.19	7.77%

NJ Holdings, Inc. Corporate Events

NJ Holdings Reports Lower Sales and Wider First-Quarter Loss

Nov 6, 2026

NJ Holdings Inc., listed on the Tokyo Standard market, reported first-quarter consolidated results for the fiscal year ending June 2027, with net sales falling 10.0% year over year to ¥2.25 billion and operating profit dropping 79.8% to ¥3 million. O...

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: Nov 11, 2026

NJ Holdings, Inc. AI Stock Analysis