Nextgen, Inc. (3842) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Innotech Corp.

AIMECHATEC Ltd.

Newtech Co., Ltd.

Helios Techno Holding Co., Ltd.

Nextgen, Inc.

Sato Holdings Corp.

Nippon Primex Inc.

EBRAINS, Inc. (Japan)

Melco Holdings, Inc.

Optoelectronics Co., Ltd.

Fujicopian Co., Ltd.

Why is Nextgen, Inc. ?

Poor Management Efficiency with a low ROE of 5.73%

The company has been able to generate a Return on Equity (avg) of 5.73% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 38.54

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 38.54
The company has been able to generate a Return on Equity (avg) of 5.73% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -1.58% and Operating profit at 28.54% over the last 5 years

With a growth in Net Sales of 15.17%, the company declared Very Positive results in Mar 26

ROCE(HY) Highest at 12.77%
DIVIDEND PAYOUT RATIO(Y) Highest at 62.67%
CASH AND EQV(HY) Highest at JPY 3,909.82 MM

With ROE of 14.27%, it has a very attractive valuation with a 1.17 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 3.96%, its profits have risen by 34.4% ; the PEG ratio of the company is 0.2

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nextgen, Inc. should be less than 10%
Overall Portfolio exposure to IT - Hardware should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Nextgen, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nextgen, Inc.

-100.0%

1.04

34.11%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.58%

EBIT Growth (5y)

28.54%

EBIT to Interest (avg)

53.05

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.61

Sales to Capital Employed (avg)

1.46

Tax Ratio

9.95%

Dividend Payout Ratio

31.74%

Pledged Shares

Institutional Holding

ROCE (avg)

22.32%

ROE (avg)

5.73%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.17

EV to EBIT

3.30

EV to EBITDA

1.79

EV to Capital Employed

1.52

EV to Sales

0.28

PEG Ratio

0.24

Dividend Yield

ROCE (Latest)

46.12%

ROE (Latest)

14.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

ROCE(HY)

Highest at 12.77%

DIVIDEND PAYOUT RATIO(Y)

Highest at 62.67%

CASH AND EQV(HY)

Highest at JPY 3,909.82 MM

DEBT-EQUITY RATIO (HY)

Lowest at -71.66 %

INVENTORY TURNOVER RATIO(HY)

Highest at 21.34 times

DIVIDEND PER SHARE(HY)

Highest at JPY 5.76

NET SALES(Q)

Highest at JPY 1,275.54 MM

-2What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 16.19% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 11.23 %

Here's what is working for Nextgen, Inc.

Net Sales

Highest at JPY 1,275.54 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 3,909.82 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -71.66 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 21.34 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 5.76

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 62.67%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Nextgen, Inc.

Operating Profit Margin

Lowest at 11.23 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 16.19% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales