Open Up Group Inc. (2154) AI Stock Analysis

• Market Cap: ¥167.10B
• Dividend Yield: 4.01%
• Average Volume (3M): 225.52K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.59
• Revenue Growth: 0.27%
• EPS Growth: 9.15%
• Country: JP
• Employees: 32,739
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 43.55
• Shares Outstanding: 91,822,815
• 10 Day Avg. Volume: 183,630
• 30 Day Avg. Volume: 225,516
• PEG Ratio: 1.83
• Price to Book (P/B): 1.88
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 11.09
• 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): 143.52
• Revenue Forecast (FY): ¥175.65B

• Rating: 77 Outperform
• Price Target: ¥2,119.00 ▲(15.10% Upside)
• Action: Reiterated Date: 02/08/26
• Date: Action: Reiterated 02/08/26

The score is driven primarily by strong financial quality (improving margins, solid cash conversion, and low leverage) and supportive valuation (low P/E with a high dividend yield). Offsetting these positives are TTM revenue contraction and only moderate/neutral technical signals, with near-term weakness versus the 20-day average.

Positive Factors

Improving Profitability

Sustained mid-single-digit net margins and near-10% EBIT margin indicate durable earnings power from services and SaaS mix. Higher margins versus prior years imply structural cost discipline and pricing power that support cash flow and reinvestment over the next 2–6 months.

Conservative Balance Sheet

Very low leverage provides financial flexibility to fund investments or weather demand shocks. A conservative capital structure reduces refinancing risk and supports strategic initiatives, making the company more resilient across business cycles.

Strong Cash Conversion

Nearly one-to-one conversion of earnings to free cash flow and positive FCF growth point to high quality earnings and internal funding capacity. Reliable cash conversion supports dividends, debt service and discretionary investment without relying on external capital.

Negative Factors

Revenue Contraction

A durable decline in top-line activity undermines growth optionality and limits operating leverage benefits. Continued revenue contraction could pressure margins, reduce reinvestment capacity, and make sustaining profitability harder absent new client wins or product expansion.

Recent Increase in Debt

Rising debt, even from a low base, reduces the margin of safety and increases fixed obligations. If the trend continues it could constrain flexibility for M&A or capex and slightly elevate refinancing and interest-rate exposure over the medium term.

Moderate Operating Cash Flow Coverage

Relatively low operating cash flow coverage versus obligations suggests cash generation can be variable and may not fully cover all uses each period. This raises the importance of maintaining margins and working-capital discipline to avoid funding gaps.

Open Up Group Inc. Business Overview & Revenue Model

Company Description

BeNext-Yumeshin Group Co. engages in engineer dispatching, subcontracting, outsourcing, and recruiting business for the technology and manufacturing fields in Japan and internationally. It is also involved in the development of automotive software; and dispatching, placement, and introduction of personnel. In addition, the company offers employment for disabled people. The company was formerly known as BeNEXT Group Inc. and changed its name to BeNext-Yumeshin Group Co. in April 2021. BeNext-Yumeshin Group Co. was founded in 1959 and is based in Tokyo, Japan.

How the Company Makes Money

Open Up Group Inc. generates revenue primarily through a multi-faceted business model that includes software licensing, subscription services, and consulting fees. The company offers its proprietary software solutions on a subscription basis, allowing clients to access ongoing updates and support while ensuring a steady stream of recurring revenue. Additionally, Open Up Group provides consulting services to help organizations implement and optimize their digital strategies, which contributes to its revenue through one-time project fees. Strategic partnerships with key players in the technology and finance sectors further enhance its market reach and create additional revenue opportunities through joint ventures and collaborative projects.

Open Up Group Inc. Financial Statement Overview

Summary

Strong profitability and cash conversion (TTM net margin ~7.7%, EBIT margin ~9.7%, free cash flow to net income ~0.97) with a conservative balance sheet (debt-to-equity ~0.13, ROE ~17%). Main risk is TTM revenue contraction (~-5.7%) and a noticeable step-up in debt versus the last annual report.

Income Statement

Profitability has strengthened materially versus earlier years, with TTM (Trailing-Twelve-Months) gross margin at ~26.9% and net margin at ~7.7%, up from the weaker 2022–2023 range. Earnings power looks solid with TTM EBIT margin near ~9.7% and a steady EBITDA margin around ~11.0%. The key watch-out is growth: revenue is down ~5.7% in TTM (Trailing-Twelve-Months) after positive growth in the prior annual periods, signaling a near-term demand slowdown despite improved margins.

Balance Sheet

The balance sheet appears conservative, with low leverage and ample equity support (TTM debt-to-equity ~0.13). Returns on shareholder capital are strong (TTM return on equity ~17%), indicating good profitability relative to the capital base. The main drawback is the recent increase in debt versus the last annual report (debt rose meaningfully from 2025 annual to TTM), which slightly reduces flexibility even though leverage remains manageable.

Cash Flow

Cash generation is a clear strength: TTM (Trailing-Twelve-Months) free cash flow is close to net income (free cash flow to net income ~0.97), suggesting earnings are converting well into cash. TTM free cash flow growth is positive (~6.9%), supporting financial resilience even with softer revenue. The weakness is that operating cash flow coverage is moderate (TTM ~0.47), implying operating cash flow is not especially large relative to the company’s obligations/uses as captured by this dataset and may be more variable across periods.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	170.49B	187.95B	173.22B	150.70B	148.57B	98.89B
Gross Profit	45.79B	47.41B	42.00B	34.79B	34.43B	19.27B
EBITDA	18.80B	18.72B	16.87B	14.72B	13.43B	-23.08B
Net Income	13.16B	12.56B	11.77B	9.53B	6.97B	-27.12B
Balance Sheet
Total Assets	125.48B	122.70B	116.57B	101.49B	96.52B	129.37B
Cash, Cash Equivalents and Short-Term Investments	21.11B	20.35B	21.51B	16.08B	12.40B	21.09B
Total Debt	9.98B	5.03B	1.64B	1.53B	1.85B	11.20B
Total Liabilities	47.85B	43.83B	43.22B	36.48B	33.18B	33.21B
Stockholders Equity	77.59B	78.83B	73.20B	64.96B	63.31B	96.03B
Cash Flow
Free Cash Flow	16.95B	13.39B	18.45B	14.87B	14.94B	3.20B
Operating Cash Flow	17.51B	14.16B	19.18B	15.60B	15.50B	3.51B
Investing Cash Flow	-1.68B	-5.56B	-5.03B	611.00M	-2.16B	-1.38B
Financing Cash Flow	-12.30B	-9.68B	-8.89B	-12.67B	-22.05B	-6.58B

Open Up Group Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1841.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2154, the sentiment is Neutral. The current price of 1841 is below the 20-day moving average (MA) of 1884.40, below the 50-day MA of 1871.61, and above the 200-day MA of 1764.33, indicating a neutral trend. The MACD of -4.93 indicates Positive momentum. The RSI at 43.17 is Neutral, neither overbought nor oversold. The STOCH value of 9.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2154.

Open Up Group Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9744	85 Outperform	¥255.88B	18.34	28.98%	5.57%	4.09%	17.10%
2154	77 Outperform	¥167.10B	12.08	―	4.01%	0.27%	9.15%
2124	75 Outperform	¥139.69B	16.03	―	2.38%	20.17%	32.32%
6098	66 Neutral	¥8.93T	19.09	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	-14.23	-6.02%	0.77%	-9.70%	-108.59%

Open Up Group Inc. Corporate Events

Open Up Group to Cancel 1 Million Treasury Shares to Optimize Capital Structure

Open Up Group Inc. has resolved to cancel 1,000,000 of its common treasury shares, representing 1.1% of its outstanding shares, as part of a broader capital policy aimed at optimizing its balance sheet and enhancing capital efficiency. The cancellation, scheduled for February 27, 2026, signals a shareholder-friendly stance that may support EPS and overall capital returns, with the company indicating it will continue to review and implement optimal capital strategies in light of future corporate actions and funding needs while preserving financial stability.

The most recent analyst rating on (JP:2154) stock is a Buy with a Yen2060.00 price target. To see the full list of analyst forecasts on Open Up Group Inc. stock, see the JP:2154 Stock Forecast page.

Open Up Group Lifts Profit and Dividend Despite Revenue Drop in First Half

Open Up Group reported consolidated revenue of ¥83.57 billion for the six months ended December 31, 2025, down 17.3% year on year, but slightly increased business profit and operating profit of about ¥8.9–9.1 billion, as well as a 10.2% rise in profit attributable to owners of the parent to ¥6.48 billion, reflecting improved profitability despite the revenue contraction. The company maintained a strong equity ratio of 61.8% and raised its interim dividend to ¥35 per share, with a full-year dividend forecast of ¥85 per share, while projecting a 9.0% decline in full-year revenue to ¥171 billion but modest growth in business and operating profits, signaling a strategy focused on earnings quality and shareholder returns amid a softening top line.

The most recent analyst rating on (JP:2154) stock is a Buy with a Yen2060.00 price target. To see the full list of analyst forecasts on Open Up Group Inc. stock, see the JP:2154 Stock Forecast page.

Open Up Group Posts Higher Engineer Utilization Rates Despite Mixed Headcount Trends in December

Open Up Group Inc. reported that its total number of domestic engineers stood at 24,441 at the end of December 2025, with an overall utilization rate of 94.9%, slightly higher month-on-month and up 1.0 percentage point year-on-year, indicating solid demand for its engineering workforce despite a marginal monthly decline in headcount. Within this, machinery, electric and IT engineers increased to 15,736 with utilization at 95.5%, while construction engineers declined to 8,705 but saw a modest improvement in utilization to 93.7%, suggesting continued strength in core technology fields and stable deployment levels in construction amid some contraction in staff numbers.

The most recent analyst rating on (JP:2154) stock is a Buy with a Yen2060.00 price target. To see the full list of analyst forecasts on Open Up Group Inc. stock, see the JP:2154 Stock Forecast page.

Open Up Group Lifts Engineer Headcount and Utilization Rates in November

Open Up Group reported that its total domestic engineer headcount rose to 24,446 at the end of November 2025, up 82 month-on-month and 295 year-on-year, with the overall utilization rate improving to 94.6%. The machinery, electric and IT segment led the gains with 15,689 engineers and a utilization rate of 95.4%, reflecting particularly strong demand compared with the same period last year, while the construction engineer division reached 8,757 staff with a slightly lower utilization of 93.3%, down versus November 2024, suggesting a more moderate environment in construction-related projects. These metrics, which the company discloses monthly, underscore continued expansion of its engineering workforce and generally high deployment levels, supporting its earnings potential and reinforcing its position as a major player in Japan’s technical staffing market.

The most recent analyst rating on (JP:2154) stock is a Buy with a Yen2110.00 price target. To see the full list of analyst forecasts on Open Up Group Inc. stock, see the JP:2154 Stock Forecast page.

Open Up Group Inc. Issues First Unsecured Bonds Worth JPY 5 Billion

Open Up Group Inc. has announced the issuance of its first unsecured bonds, totaling JPY 5 billion, with a maturity date set for December 11, 2028. This move is expected to impact the company’s financial operations by providing additional capital, potentially enhancing its market position and offering new opportunities for stakeholders.

The most recent analyst rating on (JP:2154) stock is a Buy with a Yen1951.00 price target. To see the full list of analyst forecasts on Open Up Group Inc. stock, see the JP:2154 Stock Forecast page.

Open Up Group Inc. Expands Workforce and Improves Utilization Rates

Open Up Group Inc. reported an increase in its total number of engineers and a slight improvement in utilization rates as of October 2025. The integration of new employees from recent acquisitions has contributed to this growth, indicating a strategic expansion in the Machinery & Electronics sector. This expansion is likely to enhance the company’s operational capacity and market positioning, potentially benefiting stakeholders through improved service delivery and increased market share.

The most recent analyst rating on (JP:2154) stock is a Buy with a Yen1951.00 price target. To see the full list of analyst forecasts on Open Up Group Inc. stock, see the JP:2154 Stock Forecast page.