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

• Market Cap: ¥165.19B
• Dividend Yield: 2.59%
• Average Volume (3M): 299.11K
• Price to Earnings (P/E): 24.8
• Beta (1Y): 0.54
• Revenue Growth: 17.37%
• EPS Growth: 7.93%
• Country: JP
• Employees: 2,063
• Sector: Industrials
• Sector Strength: 87
• Industry: Staffing & Employment Services
• EPS (TTM): 14.78
• Shares Outstanding: 165,557,200
• 10 Day Avg. Volume: 319,880
• 30 Day Avg. Volume: 299,110
• PEG Ratio: 0.66
• Price to Book (P/B): 6.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.89
• 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

• Rating: 76 Outperform
• Price Target: ¥1,116.00 ▲(11.16%Upside)

The stock is well-supported by strong financial performance and bullish technical indicators. However, the high P/E ratio suggests a cautionary stance regarding valuation. Despite this, the company's financial health and upward price momentum create a positive outlook, although potential overbought conditions could lead to short-term volatility.

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

Company Description

JAC Recruitment Co., Ltd. (2124) is a leading recruitment agency specializing in providing comprehensive human resource solutions across various sectors such as finance, technology, engineering, and healthcare. The company offers a wide range of services including permanent recruitment, temporary staffing, and executive search, catering to both local and international markets.

How the Company Makes Money

JAC Recruitment Co., Ltd. generates revenue primarily through fees charged for its recruitment services. The company earns placement fees when successfully matching candidates with client companies for permanent positions, typically calculated as a percentage of the candidate's first-year salary. Additionally, JAC Recruitment makes money from temporary staffing services, where it charges client companies an hourly or monthly rate for the temporary staff they provide. Executive search services, which involve the recruitment of high-level executives, also contribute significantly to their revenue, as these services command higher fees due to the specialized nature of the work. Partnerships with businesses across different sectors and a strong global network further bolster their earnings by expanding their client base and enhancing service offerings.

JAC Recruitment Co., Ltd. Financial Statement Overview

Summary

JAC Recruitment Co., Ltd. showcases strong financial health with robust revenue growth and high margins, supported by a debt-free balance sheet and strong cash flow generation. Despite a slight decrease in net income, overall financial performance is solid.

Income Statement

The company demonstrates strong and consistent revenue growth with a notable increase from 2023 to 2024. Gross profit margins are high, indicating effective cost management, while EBIT and EBITDA margins reflect solid operational efficiency. However, a slight decrease in net income from 2023 to 2024 suggests some pressure on profitability, but overall, the income statement shows robust performance.

Balance Sheet

The balance sheet is strong with zero total debt, resulting in a favorable debt-to-equity ratio. The company's equity ratio is healthy, indicating a stable financial structure. High stockholders' equity relative to total assets underscores financial stability, although the return on equity shows room for improvement, reflecting moderate profitability.

Cash Flow

The company has a strong cash flow position with impressive free cash flow growth. Operating cash flow to net income ratio is robust, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is also favorable, highlighting effective capital expenditure management. Overall, cash flow metrics suggest solid liquidity and financial health.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.16B	34.48B	30.43B	24.85B	21.61B
Gross Profit	36.25B	31.82B	28.04B	23.00B	20.09B
EBITDA	10.23B	8.88B	7.62B	6.33B	4.22B
Net Income	5.61B	5.98B	5.03B	3.88B	1.83B
Balance Sheet
Total Assets	26.01B	23.52B	22.08B	18.93B	18.62B
Cash, Cash Equivalents and Short-Term Investments	19.05B	16.77B	14.88B	12.93B	13.58B
Total Debt	307.00M	353.00M	1.00M	2.00M	3.00M
Total Liabilities	7.92B	6.30B	6.50B	5.57B	4.30B
Stockholders Equity	18.09B	17.22B	15.58B	13.37B	14.32B
Cash Flow
Free Cash Flow	7.93B	6.62B	5.19B	4.77B	4.22B
Operating Cash Flow	8.12B	7.09B	5.91B	5.09B	4.53B
Investing Cash Flow	-607.00M	-461.00M	-944.00M	-436.00M	1.31B
Financing Cash Flow	-5.31B	-4.84B	-3.17B	-5.40B	-3.62B

JAC Recruitment Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1004.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2124, the sentiment is Positive. The current price of 1004 is above the 20-day moving average (MA) of 983.90, above the 50-day MA of 906.90, and above the 200-day MA of 772.90, indicating a bullish trend. The MACD of 26.00 indicates Positive momentum. The RSI at 69.69 is Neutral, neither overbought nor oversold. The STOCH value of 89.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
2146	86 Outperform	¥97.50B	10.86		4.20%	16.59%	40.77%
2168	79 Outperform	¥86.78B	1.00	90.72%	0.65%	-11.30%	6369.78%
2154	78 Outperform	¥154.04B	12.03		5.29%	13.01%	23.41%
7088	77 Outperform	¥63.82B	22.11		4.76%	10.90%	40.18%
2124	76 Outperform	¥165.19B	24.76		2.59%	17.37%	7.93%
4848	74 Outperform	¥61.25B	13.28		3.53%	-2.99%	-27.98%
Sector *	71 Outperform	¥255.65B	12.95	8.49%	3.09%	6.31%	12.94%

JAC Recruitment Co., Ltd. Corporate Events

JAC Recruitment Completes Treasury Stock Disposal for Employee Incentive Plan

JAC Recruitment Co., Ltd. has completed the payment procedures for the disposal of 300,000 shares of treasury stock as part of an employee incentive plan. This move, resolved in a recent board meeting, involves a disposal price of 903 yen per share, amounting to a total of 270,900,000 yen, with the shares being transferred to The Master Trust Bank of Japan, Ltd. The initiative is aimed at enhancing employee motivation and aligning their interests with the company’s performance.

JAC Recruitment Announces Treasury Stock Disposal for Employee Incentive Plan

JAC Recruitment Co., Ltd. has announced the disposal of treasury stock as part of an employees’ incentive plan, with a determined disposal price of 903 yen per share, totaling 270,900,000 yen. This decision, resolved by the Board of Directors, aims to incorporate share price fluctuations and ensure fairness for shareholders, reflecting the highest closing price on the Tokyo Stock Exchange.

JAC Recruitment Announces Treasury Stock Disposal for Employee Incentive Plan

JAC Recruitment Co., Ltd. has announced the disposal of 300,000 shares of treasury stock as part of an employee incentive plan, aimed at boosting long-term employee performance and corporate value. This move is in response to an increase in eligible employees for the stock-granted ESOP trust, necessitating additional shares to meet future demands.

JAC Recruitment Releases Q1 2025 Domestic Sales Data

JAC Recruitment Co., Ltd. released its consolidated net sales data for the three months ending March 31, 2025, focusing on its domestic recruitment business. This disclosure aims to provide transparency to shareholders and stakeholders, highlighting the company’s operational performance and market positioning in Japan’s recruitment sector.

JAC Recruitment Reports Strong Q1 2025 Financial Results

JAC Recruitment Co., Ltd. reported significant growth in its financial performance for the first quarter of 2025, with net sales increasing by 23.5% and profit attributable to owners rising by 55.7% compared to the same period in 2024. The company’s strong financial results reflect its solid market positioning and effective operational strategies, which have positively impacted its equity ratio and overall financial health.

JAC Recruitment Completes Treasury Stock Disposal for Executive Remuneration

JAC Recruitment Co., Ltd. has completed the payment procedures for the disposal of 39,300 shares of treasury stock as restricted stock remuneration. This move, resolved at a recent Board of Directors meeting, involves a total disposal amount of 31,282,800 yen, and is aimed at remunerating executive directors, excluding independent directors.