JAC Recruitment Co., Ltd. (2124) AI Stock Analysis

• Market Cap: ¥139.69B
• Dividend Yield: 2.38%
• Average Volume (3M): 234.20K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.46
• Revenue Growth: 20.17%
• EPS Growth: 32.32%
• Country: JP
• Employees: 2,063
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 8.74
• Shares Outstanding: 165,557,200
• 10 Day Avg. Volume: 210,170
• 30 Day Avg. Volume: 234,196
• PEG Ratio: 0.40
• Price to Book (P/B): 7.56
• Price to Sales (P/S): 3.66
• P/FCF Ratio: 17.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥1,015.00 ▼(-4.69% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

Overall score is driven by very strong financial performance (growth, margins, cash generation, and minimal leverage) and a supportive dividend/reasonable P/E, partially offset by weak technical signals (downtrend with negative momentum despite oversold readings).

Positive Factors

Multi-year Revenue Growth

Consistent multi-year revenue growth (17.7% recent growth) indicates durable demand for the firm's professional and mid-to-senior placement services. Sustained top-line expansion improves scale economics, supports reinvestment in client coverage, and underpins predictable fee generation over the medium term.

Very High and Improving Margins

Very high gross margins and recent operating/net margin improvement point to strong pricing power and low direct cost intensity in the placement model. High margin structure supports cash conversion and resilience to moderate revenue swings, making profits more durable across hiring cycles.

Conservative Balance Sheet & Strong Cash Generation

Near-zero leverage and expanding equity provide financial flexibility and low solvency risk, enabling investment or shareholder returns without refinancing pressure. Coupled with consistently strong operating and free cash flow, the company can fund growth, pay dividends, and weather cyclical hiring slowdowns.

Negative Factors

Earnings and Margin Volatility

Historical dips in net margin (notably in 2024) show profitability can be uneven despite overall improvement. For a placement-driven business, single-year margin swings can persist, making near-term earnings less predictable and complicating planning for hiring, compensation, and operating expense levels.

Revenue Dependence on Success-Based Placements

Heavy reliance on contingency and success fees ties revenue closely to hiring demand and client hiring cycles. That structural exposure creates revenue sensitivity to economic or sector-specific slowdowns, making medium-term top-line performance dependent on external labor-market conditions.

Working-Capital Timing & Sustainability Risk of High Returns

Occasional operating cash coverage below one and working-capital timing swings indicate cash conversion can be lumpy. Combined with the note that very high returns may be hard to sustain if margins normalize, this raises a structural risk that cash and ROE could compress in less favorable hiring environments.

JAC Recruitment Co., Ltd. Business Overview & Revenue Model

Company Description

JAC Recruitment Co., Ltd. operates as a recruitment consultancy in Japan. The company provides recruitment services for job positions, such as specialists and middle management positions. It also provides its services under the JAC Recruitment, JAC Digital, JAC International, JAC Executive, JAC International, JAC Career, JAC Interim Management Solutions, VantagePoint, Recruitment Process Optimisation, and CareerCross brands. The company was formerly known as JAC Japan Co., Ltd. and changed its name to JAC Recruitment Co., Ltd. in 2009. JAC Recruitment Co., Ltd. was founded in 1975 and is headquartered in Tokyo, Japan.

How the Company Makes Money

JAC Recruitment generates revenue primarily through recruitment services, which include fees charged to employers for successfully placing candidates in permanent and temporary positions. The company typically earns a percentage of the candidate's first-year salary as a placement fee, which constitutes a significant portion of its income. Additionally, JAC Recruitment may offer consulting services related to HR strategy, talent acquisition, and workforce management, contributing to its revenue streams. The company also benefits from partnerships with various businesses and organizations, enhancing its market reach and client base. Factors such as the demand for skilled labor in specific sectors and the overall employment market trends play a crucial role in influencing JAC Recruitment's earnings.

JAC Recruitment Co., Ltd. Financial Statement Overview

Summary

High-quality fundamentals: strong multi-year revenue growth, very strong margins with meaningful improvement in 2025, and excellent capital efficiency supported by an exceptionally low-debt balance sheet. Main risk is some earnings/margin variability (e.g., 2024 dip), though overall financial strength remains above average.

Income Statement

Revenue has grown strongly over the last several years (from 2020 through 2025), with 2025 showing solid growth versus 2024. Profitability is a standout: gross margin is consistently above 90%, while 2025 operating margin and net margin improved meaningfully versus 2024, indicating good cost control and pricing power. The main weakness is that growth and profitability were not perfectly linear (notably the 2024 net margin dip versus 2023), showing some earnings volatility even within an overall upward trajectory.

Balance Sheet

The balance sheet is exceptionally conservative with near-zero debt across the period and effectively no leverage (debt-to-equity close to zero). Equity and total assets have expanded steadily, supporting business scale-up without balance sheet strain. Returns on equity are very high and improved further in 2025, signaling strong capital efficiency. A potential watch item is that very high returns can be harder to sustain if margins normalize, but current financial risk from leverage appears minimal.

Cash Flow

Cash generation is strong and consistent: operating cash flow and free cash flow have risen over time and remain closely aligned with reported earnings, with free cash flow roughly matching net income in recent years. Cash conversion is generally healthy, with operating cash flow covering net income in most years, though there were a couple of earlier periods where coverage was slightly below 1.0, suggesting some working-capital timing variability. Overall, cash flow quality looks solid and supportive of the earnings profile.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	43.31B	46.09B	39.16B	34.48B	30.43B	24.85B
Gross Profit	39.94B	42.25B	36.25B	31.82B	28.04B	23.00B
EBITDA	11.62B	12.15B	10.23B	8.88B	7.62B	6.33B
Net Income	7.01B	8.40B	5.61B	5.98B	5.03B	3.88B
Balance Sheet
Total Assets	26.29B	30.89B	26.01B	23.52B	22.08B	18.93B
Cash, Cash Equivalents and Short-Term Investments	18.09B	23.31B	19.05B	16.77B	14.88B	12.93B
Total Debt	0.00	0.00	307.00M	353.00M	1.00M	2.00M
Total Liabilities	7.82B	8.55B	7.92B	6.30B	6.50B	5.57B
Stockholders Equity	18.47B	22.34B	18.09B	17.22B	15.58B	13.37B
Cash Flow
Free Cash Flow	0.00	9.39B	7.93B	6.62B	5.19B	4.77B
Operating Cash Flow	0.00	9.57B	8.12B	7.09B	5.91B	5.09B
Investing Cash Flow	0.00	-8.78B	-607.00M	-461.00M	-944.00M	-436.00M
Financing Cash Flow	0.00	-4.61B	-5.31B	-4.84B	-3.17B	-5.40B

JAC Recruitment Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1065.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2124, the sentiment is Negative. The current price of 1065 is above the 20-day moving average (MA) of 962.50, above the 50-day MA of 1016.25, and above the 200-day MA of 1004.56, indicating a bearish trend. The MACD of -41.36 indicates Positive momentum. The RSI at 21.64 is Positive, neither overbought nor oversold. The STOCH value of 1.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2124.

JAC Recruitment Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9744	85 Outperform	¥255.88B	18.50	28.98%	5.57%	4.09%	17.10%
2146	79 Outperform	¥121.70B	19.44	―	7.51%	8.28%	-36.32%
2124	75 Outperform	¥139.69B	16.54	―	2.38%	20.17%	32.32%
6098	66 Neutral	¥8.93T	19.47	27.29%	0.27%	1.23%	26.94%
2181	66 Neutral	¥546.49B	13.65	19.18%	3.59%	6.95%	13.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2168	42 Neutral	¥75.26B	-14.07	-6.02%	0.77%	-9.70%	-108.59%

JAC Recruitment Co., Ltd. Corporate Events

JAC Recruitment Sets Director Slate Ahead of March 2026 Shareholders Meeting

JAC Recruitment has announced its slate of director nominees for approval at the 39th Annual General Meeting of Shareholders scheduled for March 26, 2026, maintaining continuity in core management roles. The company plans to reappoint key executives including Chairman and CEO Hiromi Tazaki, as well as several independent directors, while adding Naoyasu Ozawa as a new independent director and Audit & Supervisory Committee member.

The board changes also include the scheduled retirement of independent director and Audit & Supervisory Committee member Naoto Yokoi upon expiration of his term. This mix of reappointments and a targeted new independent appointment suggests a strategy of governance continuity with incremental refreshment of oversight, aimed at sustaining stable management while reinforcing the company’s audit and supervisory framework.

The most recent analyst rating on (JP:2124) stock is a Buy with a Yen1269.00 price target. To see the full list of analyst forecasts on JAC Recruitment Co., Ltd. stock, see the JP:2124 Stock Forecast page.

JAC Recruitment to Grant Restricted Treasury Shares to Directors as Part of Expanded Equity Pay Plan

JAC Recruitment will dispose of up to 43,300 treasury shares on 12 March 2026 as restricted stock compensation to 13 non-executive sales directors and directors, with a maximum aggregate value of ¥44.89 million and a disposal price initially set at ¥1,014 per share, subject to adjustment based on pre-announced market prices. The move is part of a broader equity-based remuneration framework, expanded in 2024 and extended to directors in 2025, designed to increase the share-based portion of pay, strengthen alignment with shareholders, and support medium- to long-term corporate value growth through stricter transfer restrictions tied to tenure and service conditions.

The most recent analyst rating on (JP:2124) stock is a Buy with a Yen1269.00 price target. To see the full list of analyst forecasts on JAC Recruitment Co., Ltd. stock, see the JP:2124 Stock Forecast page.

JAC Recruitment Publishes 2025 Domestic Net Sales and Operational Data

JAC Recruitment Co., Ltd. has released monthly consolidated net sales and related performance data for its domestic recruitment business for the twelve months ended 31 December 2025. The disclosure covers JAC Recruitment, JAC International, and VantagePoint K.K., but excludes CareerCross and overseas group companies.

The company is publishing detailed figures on net sales, gross profit, employee numbers, consultant trends, and placements to improve transparency for shareholders and investors. VantagePoint K.K. ceased business at the end of November 2025, and the updated metrics are intended to help stakeholders better understand the core domestic recruitment operations.

The most recent analyst rating on (JP:2124) stock is a Buy with a Yen1269.00 price target. To see the full list of analyst forecasts on JAC Recruitment Co., Ltd. stock, see the JP:2124 Stock Forecast page.

JAC Recruitment Sets Three-Year Plan to Boost Growth and Capital Efficiency

JAC Recruitment Co., Ltd. has unveiled a three-year medium-term management plan starting in 2026 that targets becoming a global leader in recruitment consulting for both service quality and profitability. The strategy centers on aggressive growth investment, particularly in human capital, and expanding its share of Japan’s white-collar recruitment market while maintaining strong returns on capital.

The company plans to balance a high dividend payout with sufficient internal reserves to fund future business investments, using return on investment above the cost of capital as a key hurdle for new ventures to preserve capital efficiency. Numerical targets call for consolidated revenue to rise from JPY46.0 billion in 2025 to JPY70.4 billion in 2028, with operating profit increasing from JPY11.6 billion to JPY17.3 billion and profit after tax from JPY8.4 billion to JPY11.9 billion, underscoring an ambition to grow profits faster than equity and enhance shareholder value through expanded equity spreads and non-financial capital disclosure.

The most recent analyst rating on (JP:2124) stock is a Buy with a Yen1269.00 price target. To see the full list of analyst forecasts on JAC Recruitment Co., Ltd. stock, see the JP:2124 Stock Forecast page.

JAC Recruitment Delivers Record Revenue and Profit in FY2025

JAC Recruitment Co., Ltd. reported revenue of ¥46.08 billion for the fiscal year ended 4Q FY2025, a 17.7% year-on-year increase, and profit of ¥8.4 billion, up 49.7% from the previous year. Both topline and bottom-line figures surpassed the company’s initial forecasts and reached record highs, underscoring robust demand for its recruitment services and strengthening its competitive standing in the HR and staffing sector.

Gross profit, operating income, ordinary income, and profit before tax all recorded double-digit percentage gains versus the prior year, with operating income and profit attributable to owners of the parent rising 28.5% and 49.7%, respectively. These results indicate improved profitability and operational leverage, suggesting that JAC Recruitment has effectively capitalized on favorable labor market conditions and enhanced its earnings power for stakeholders.

The most recent analyst rating on (JP:2124) stock is a Buy with a Yen1269.00 price target. To see the full list of analyst forecasts on JAC Recruitment Co., Ltd. stock, see the JP:2124 Stock Forecast page.

JAC Recruitment Posts Surge in FY2025 Profit and Lifts Dividend, Signals Steady Growth for 2026

JAC Recruitment reported strong results for the fiscal year ended 31 December 2025, with net sales rising 17.7% to ¥46.1 billion and profit attributable to owners of parent jumping 49.7% to ¥8.4 billion, driving higher returns on equity and improving its equity ratio to 72.3%. The company raised its annual dividend to ¥36 per share for 2025 and projects continued double-digit revenue growth in 2026 to ¥53.2 billion, though profit growth is expected to moderate, signaling a shift from recovery-driven earnings expansion to a more stable growth phase for shareholders and other stakeholders.

The firm generated strong operating cash flows but saw significant cash outflows from investing and financing activities, reducing cash and cash equivalents to ¥15.3 billion at year-end 2025. Its 2026 guidance implies sustained high profitability with operating income of ¥12.6 billion and earnings per share of ¥54.18, underlining confidence in ongoing demand for recruitment services despite a more measured profit growth outlook.

The most recent analyst rating on (JP:2124) stock is a Buy with a Yen1269.00 price target. To see the full list of analyst forecasts on JAC Recruitment Co., Ltd. stock, see the JP:2124 Stock Forecast page.

JAC Recruitment Books ¥688 Million Extraordinary Loss on Subsidiary, No Hit to Consolidated Earnings

JAC Recruitment Co., Ltd., a listed Japanese recruitment firm, has disclosed that its consolidated subsidiary VantagePoint K.K., which operated in the domestic recruitment business, ceased business activities by the end of November 2025 and entered dissolution and liquidation procedures. As a consequence, the parent company booked an unrealized loss of JPY 688 million on the valuation of the subsidiary’s shares as an extraordinary loss in its non-consolidated financial statements for the fiscal year ended 31 December 2025.

The company emphasized that this extraordinary loss is eliminated at the consolidated level, meaning there is no impact on its consolidated financial results for the period, which should reassure shareholders and creditors about the group’s overall financial health. The move effectively ring-fences the financial impact of VantagePoint K.K.’s shutdown within the parent-only accounts, limiting broader implications for the group’s reported performance and potentially signaling a strategic withdrawal from a non-core or underperforming domestic unit.

The most recent analyst rating on (JP:2124) stock is a Buy with a Yen1269.00 price target. To see the full list of analyst forecasts on JAC Recruitment Co., Ltd. stock, see the JP:2124 Stock Forecast page.