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

• Market Cap: ¥175.23B
• Dividend Yield: 2.44%
• Average Volume (3M): 234.20K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.50
• Revenue Growth: 20.17%
• EPS Growth: 32.32%
• Country: JP
• Employees: 2,063
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 17.29
• Shares Outstanding: 165,557,200
• 10 Day Avg. Volume: 210,170
• 30 Day Avg. Volume: 234,196
• PEG Ratio: -3.42
• Price to Book (P/B): 6.21
• Price to Sales (P/S): 2.87
• P/FCF Ratio: 14.16
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥1,252.00 ▲(17.56% Upside)

JAC Recruitment Co., Ltd. has a strong financial foundation with robust revenue growth and a debt-free balance sheet. The stock shows positive technical trends, although it is approaching overbought levels. Valuation metrics suggest the stock may be slightly overvalued, but the dividend yield offers some compensation. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Debt-Free Balance Sheet

A debt-free balance sheet provides financial flexibility and reduces risk, supporting sustainable growth and investment opportunities.

Cash Flow Generation

Robust cash flow generation enhances liquidity and supports reinvestment in business operations, ensuring long-term operational success.

Negative Factors

Profitability Pressure

Decreasing net income may indicate rising costs or competitive pressures, potentially impacting long-term profit margins.

Return on Equity

Moderate return on equity suggests that the company may not be utilizing shareholder funds as efficiently as possible, impacting investor returns.

Profitability Growth

Challenges in sustaining profitability growth could hinder future earnings potential and affect overall financial performance.

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

Company Description

JAC Recruitment Co., Ltd. (2124) is a leading recruitment and staffing agency based in Japan, specializing in providing human resource solutions across various sectors, including IT, finance, engineering, and healthcare. The company focuses on connecting skilled professionals with employers, offering services such as permanent placement, temporary staffing, and executive search. With a strong presence in both domestic and international markets, JAC Recruitment aims to bridge the talent gap in Japan and beyond, leveraging its expertise in recruitment to cater to a diverse clientele.

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

JAC Recruitment Co., Ltd. showcases strong financial health across all verticals. Revenue growth and high margins support the robust income statement, while a debt-free balance sheet ensures financial stability. Strong cash flow generation further enhances liquidity, positioning the company well for future growth. However, maintaining profitability growth will be crucial moving forward.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.31B	39.16B	34.48B	30.43B	24.85B	21.61B
Gross Profit	39.94B	36.25B	31.82B	28.04B	23.00B	20.09B
EBITDA	11.62B	10.23B	8.88B	7.62B	6.33B	4.22B
Net Income	7.01B	5.61B	5.98B	5.03B	3.88B	1.83B
Balance Sheet
Total Assets	26.29B	26.01B	23.52B	22.08B	18.93B	18.62B
Cash, Cash Equivalents and Short-Term Investments	18.09B	19.05B	16.77B	14.88B	12.93B	13.58B
Total Debt	0.00	307.00M	353.00M	1.00M	2.00M	3.00M
Total Liabilities	7.82B	7.92B	6.30B	6.50B	5.57B	4.30B
Stockholders Equity	18.47B	18.09B	17.22B	15.58B	13.37B	14.32B
Cash Flow
Free Cash Flow	0.00	7.93B	6.62B	5.19B	4.77B	4.22B
Operating Cash Flow	0.00	8.12B	7.09B	5.91B	5.09B	4.53B
Investing Cash Flow	0.00	-607.00M	-461.00M	-944.00M	-436.00M	1.31B
Financing Cash Flow	0.00	-5.31B	-4.84B	-3.17B	-5.40B	-3.62B

JAC Recruitment Co., Ltd. Technical Analysis

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

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 below the 20-day moving average (MA) of 1086.70, above the 50-day MA of 1056.48, and above the 200-day MA of 978.79, indicating a neutral trend. The MACD of 2.54 indicates Positive momentum. The RSI at 47.36 is Neutral, neither overbought nor oversold. The STOCH value of 50.28 is Neutral, 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
2146	79 Outperform	¥113.54B	19.18	―	7.66%	8.28%	-36.32%
2124	76 Outperform	¥175.23B	21.73	―	2.44%	20.17%	32.32%
4848	72 Outperform	¥57.94B	10.74	―	3.70%	3.47%	-0.05%
2154	71 Outperform	¥166.45B	12.31	―	4.08%	0.27%	9.15%
7088	70 Outperform	¥89.55B	28.33	―	3.51%	9.97%	22.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2168	42 Neutral	¥70.17B	-9.05	-6.02%	0.80%	-9.70%	-108.59%

JAC Recruitment Co., Ltd. Corporate Events

JAC Recruitment Executes Share Repurchase to Boost Capital Efficiency

JAC Recruitment Co., Ltd. has executed a repurchase of 300,000 of its own shares through the Tokyo Stock Exchange’s Off-Auction Own Share Repurchase Trading System. This move is aimed at improving capital efficiency and enhancing shareholder returns, reflecting a flexible capital policy in response to the business environment.

JAC Recruitment Announces Share Buyback Plan

JAC Recruitment Co., Ltd. announced a share repurchase plan, intending to buy back up to 500,000 of its common stock shares, representing 0.31% of its outstanding shares, for a total of up to 1 billion yen. This move, executed through the ToSTNeT-3 trading system, is part of a strategic initiative to enhance shareholder value and optimize capital structure, with the final purchase results to be disclosed after trading closes on November 18, 2025.

JAC Recruitment Announces Strategic Stock Repurchase Plan

JAC Recruitment Co., Ltd. has announced a stock repurchase plan authorized by its Board of Directors, aiming to buy back up to 500,000 shares of its common stock, which represents 0.31% of its outstanding shares, for a total of up to 1 billion yen. This move is intended to improve capital efficiency and enhance shareholder returns, reflecting a flexible capital policy in response to the business environment.

JAC Recruitment Releases Nine-Month Financial Results for 2025

JAC Recruitment Co., Ltd. has released its consolidated net sales and related results for the nine months ending September 30, 2025, focusing on its domestic recruitment business. This disclosure aims to provide transparency to shareholders and stakeholders, excluding data from its overseas operations and CareerCross Co., Ltd. The report highlights the company’s financial performance and operational metrics, which are crucial for assessing its market positioning and strategic direction.

JAC Recruitment Reports Robust Financial Growth for 2025

JAC Recruitment Co., Ltd. reported significant growth in its financial performance for the nine months ending September 30, 2025, with a 20% increase in net sales and a 44.4% rise in profit attributable to owners of the parent compared to the previous year. The company has revised its financial forecast for the full year, anticipating further growth in net sales and profit, indicating a strong market position and positive outlook for stakeholders.

JAC Recruitment Revises Earnings and Dividend Forecasts for FY 2025

JAC Recruitment Co., Ltd. has revised its consolidated earnings and dividends forecast for the fiscal year ended December 31, 2025, following a board meeting. The revision reflects improved financial performance due to cost reductions and tax credits, resulting in increased operating and ordinary income. The company also adjusted its dividend forecast, emphasizing a stable dividend increase policy while retaining reserves for future business development.