Open Up Group Inc. (2154) AI Stock Analysis

• Market Cap: ¥169.52B
• Dividend Yield: 4.14%
• Average Volume (3M): 403.76K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.59
• Revenue Growth: 6.86%
• EPS Growth: 6.50%
• Country: JP
• Employees: 32,739
• Sector: Industrials
• Sector Strength: 74
• Industry: Staffing & Employment Services
• EPS (TTM): 44.01
• Shares Outstanding: 91,812,100
• 10 Day Avg. Volume: 609,570
• 30 Day Avg. Volume: 403,756
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,022.00
• Price Target Upside: 7.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥2,022.00 ▲(7.96% Upside)

Open Up Group Inc. scores well due to its strong financial performance and attractive valuation. The company's solid capital structure and efficient cost management are significant strengths. However, technical analysis presents mixed signals, with short-term weakness offset by longer-term stability. The absence of recent earnings call data and corporate events limits additional insights.

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

Open Up Group Inc. demonstrates strong financial health with efficient cost management and a solid capital structure. The company maintains profitability and cash flow generation despite a decline in revenue growth. The low leverage and strong return on equity are positive indicators, but attention should be paid to the declining revenue trend.

Income Statement

Open Up Group Inc. shows a strong gross profit margin of approximately 24.5% in TTM, indicating efficient cost management. However, the net profit margin has slightly decreased to 6.35% from 6.79% in the previous year, reflecting some pressure on bottom-line profitability. The revenue growth rate is negative at -2.8% TTM, suggesting a decline in sales, which is a concern. Despite this, EBIT and EBITDA margins remain stable, showcasing operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.067, indicating a conservative approach to leverage. Return on equity is robust at 16.64%, reflecting strong profitability relative to shareholder equity. The equity ratio stands at a healthy level, suggesting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Operating cash flow to net income ratio is strong, indicating effective cash generation from operations. Free cash flow growth is positive at 9.5%, showing improvement in cash generation. However, the operating cash flow has decreased compared to the previous year, which could impact future liquidity if the trend continues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	187.95B	187.95B	173.22B	150.70B	148.57B	98.89B
Gross Profit	47.41B	47.41B	42.00B	34.79B	34.43B	19.27B
EBITDA	18.69B	18.72B	16.74B	14.72B	13.43B	-23.08B
Net Income	12.56B	12.56B	11.77B	9.53B	6.97B	-27.12B
Balance Sheet
Total Assets	122.70B	122.70B	116.57B	101.49B	96.52B	129.37B
Cash, Cash Equivalents and Short-Term Investments	20.35B	20.35B	21.51B	16.08B	12.40B	21.09B
Total Debt	5.03B	5.03B	1.64B	1.53B	1.85B	11.69B
Total Liabilities	43.83B	43.83B	43.22B	36.48B	33.18B	33.21B
Stockholders Equity	78.83B	78.83B	73.20B	64.96B	63.31B	96.03B
Cash Flow
Free Cash Flow	13.39B	13.39B	18.45B	14.87B	14.94B	3.20B
Operating Cash Flow	14.16B	14.16B	19.18B	15.60B	15.50B	3.51B
Investing Cash Flow	-5.56B	-5.56B	-5.03B	611.00M	-2.16B	-1.38B
Financing Cash Flow	-9.68B	-9.68B	-8.89B	-12.67B	-22.05B	-6.58B

Open Up Group Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1873.00
• 50DMA: Positive
• 100DMA: Positive
• 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:2154, the sentiment is Neutral. The current price of 1873 is below the 20-day moving average (MA) of 1876.75, above the 50-day MA of 1794.86, and above the 200-day MA of 1761.89, indicating a neutral trend. The MACD of 6.86 indicates Positive momentum. The RSI at 44.52 is Neutral, neither overbought nor oversold. The STOCH value of 35.18 is Neutral, 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
2154	71 Outperform	¥169.52B	12.81		4.14%	6.86%	6.50%
Sector *	64 Neutral	$10.73B	15.74	7.64%	2.01%	2.76%	-15.10%
MEITF	―	$1.72B	20.18	29.36%	6.31%	―	―
9D4	―	€468.16M	0.97	-6.30%	―	―	―
2146	81 Outperform	¥110.35B	19.44		5.56%	13.16%	-40.17%
2124	76 Outperform	¥174.40B	24.87		2.40%	19.22%	20.94%
4848	71 Outperform	¥61.67B	13.01		3.50%	0.16%	-21.98%

Open Up Group Inc. Corporate Events

Open Up Group Inc. Reports May 2025 Utilization Rates

Open Up Group Inc. reported its monthly utilization rates and number of domestic engineers for May 2025, indicating a slight increase in the overall utilization rate compared to the previous month. The company saw a year-on-year increase in the number of employees but a decrease in the utilization rate, reflecting changes in workforce dynamics and potentially impacting its operational efficiency.

Open Up Group Inc. Announces Subsidiary Merger to Boost Efficiency

Open Up Group Inc. announced a merger between its subsidiaries, Open Up Construction Inc. and Yumeshin Co., Ltd., to enhance operational efficiency and speed of execution in its construction segment. The merger, effective January 1, 2026, will see Yumeshin as the surviving entity, renamed Open Up Fielding Inc., with no changes to capital stock or issuance of new shares, as both companies are wholly owned by Open Up Group.

Open Up Group Inc. Announces Leadership Change

Open Up Group Inc. announced a leadership change with Yutaka Nishida assuming the role of President in addition to his current positions as Chairman and CEO. This change follows the resignation of Daio Sato, the current President and COO, effective at the end of June 2025, which may impact the company’s strategic direction and operational focus.

Open Up Group Reports April 2025 Engineer Utilization Rates

Open Up Group Inc. reported a slight decrease in the utilization rate of its engineers as of April 2025, despite an increase in the total number of engineers employed. The company saw a month-on-month increase of 103 engineers, with a utilization rate drop of 1.9 percentage points, reflecting potential challenges in optimizing workforce deployment.

Open Up Group Inc. Reports Revenue Growth and Increased Dividends

Open Up Group Inc. reported a 15.9% increase in revenue for the nine months ending March 31, 2025, compared to the previous year. The company’s financial position strengthened with a higher equity ratio, and it announced an increase in annual dividends, reflecting a positive outlook for stakeholders.