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    NEOJAPAN (TSE:3921) Stock Looks Cheap As Margins Hold Firm

    Simply Wall St·09/12/2026 20:19:47
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    NEOJAPAN’s stock closed at ¥1,576 on the day of the Q2 2027 release, leaving the software specialist trading on a trailing P/E of 11.8x that sits below both direct peers and the wider Japan software group. The headline from the quarter is profit resilience. Basic earnings per share of roughly ¥33 and net income around ¥459 million keep trailing net margin near 22%, which is high for a software developer focused on recurring corporate customers. Price action looks cautious, yet the earnings print appears to be a quiet confirmation of an already profitable, reasonably priced business.

    Is NEOJAPAN trading at a genuine discount, or does it only appear that way because of a low P/E and strong margins? See how the current price compares with our intrinsic value analysis on the valuation analysis for NEOJAPAN

    Q2 2027 Earnings Summary

    • Revenue (Q2 2027 vs. Q2 2026): ¥2,148.2m vs. ¥1,976.6m (up roughly 8.7%)
    • Net Income (Q2 2027 vs. Q2 2026): ¥459.4m vs. ¥441.6m (up about 4%)
    • Basic EPS (Q2 2027 vs. Q2 2026): ¥32.77 vs. ¥31.54 (up around 3.9%)
    • Net Profit Margin (TTM vs. Prior TTM): 22.0% vs. 21.6% (slight improvement in profitability on a trailing twelve month basis)

    Tired of squinting at walls of text and raw earnings tables for NEOJAPAN? See the full picture of the stock’s valuation and recent performance in an easy visual format with the company report for NEOJAPAN.

    TSE:3921 Trailing 12-Month Revenue & Expenses Breakdown as at Sep 2026
    TSE:3921 Trailing 12-Month Revenue & Expenses Breakdown as at Sep 2026

    NEOJAPAN earnings still back a quietly bullish story

    For anyone leaning positive on NEOJAPAN, the latest quarter gives some backing. Revenue of ¥2,148.2m and net income of ¥459.4m both sit above the prior year, and the trailing net margin edges higher to 22.0%. That is healthy for a software provider that leans on recurring corporate contracts. Earnings per share also tick up. The share price has slipped around 2% over 7 days and roughly 1% over 30 days, so the financial progress has not been chased hard by the market in the very short term.

    Bearish worries soften, but are not erased

    Bears looking for clear deterioration in NEOJAPAN’s business do not find it in these figures. Revenue and profit both move higher year on year, and margin inches up from 21.6% to 22.0% on a trailing basis, which does not point to immediate pressure on profitability. Short term share performance is mixed, with a decline over 7 and 30 days but an 8.2% gain over 90 days. That pattern fits a market that is watchful rather than alarmed, keeping bearish arguments more about future competition than current fundamentals.

    Profit trends look constructive for NEOJAPAN, but earnings alone do not reveal whether cash, liabilities, and working capital actually support this pace. Check the full solvency and liquidity breakdown in our financial health analysis of NEOJAPAN stock

    Take Control Of Your Next Move

    If NEOJAPAN’s solid margins and relatively low trailing P/E have caught your attention, register for free with Simply Wall St and add it to a Watchlist to track share price against fair value and watch for your preferred entry point. After you build a position, keep your decisions focused with the Portfolio Command Center that alerts you to key developments while cutting back on routine noise. Over the longer haul, compare your thinking with thousands of other investors through the Community and see how sentiment and thesis updates evolve around NEOJAPAN. By spotting potential catalysts and risks early, you may be able to respond to market developments in a more timely and informed way.

    Seeking Alternatives Beyond NEOJAPAN?

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.