Open Up Group Inc. (2154) AI Stock Analysis

• Market Cap: ¥164.27B
• Dividend Yield: 4.19%
• Average Volume (3M): 344.70K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.60
• Revenue Growth: 6.86%
• EPS Growth: 6.50%
• Country: JP
• Employees: 32,739
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 44.01
• Shares Outstanding: 91,812,100
• 10 Day Avg. Volume: 187,430
• 30 Day Avg. Volume: 344,703
• 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: ¥2,024.00
• Price Target Upside: 11.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥2,024.00 ▲(11.52% Upside)

Open Up Group Inc. scores well due to its strong financial performance, characterized by efficient cost management and a solid capital structure. The valuation is attractive with a reasonable P/E ratio and a high dividend yield. However, technical indicators suggest a neutral to slightly bearish trend, which slightly offsets the positive financial and valuation aspects.

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: Positive
• Last Price: 1815.00
• 50DMA: Negative
• 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 Positive. The current price of 1815 is above the 20-day moving average (MA) of 1812.55, below the 50-day MA of 1819.96, and above the 200-day MA of 1765.01, indicating a neutral trend. The MACD of -13.19 indicates Positive momentum. The RSI at 50.41 is Neutral, neither overbought nor oversold. The STOCH value of 60.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
2146	81 Outperform	111.41B	19.63	25.62%	5.46%	13.16%	-40.17%
2124	76 Outperform	185.10B	24.96	31.01%	2.31%	19.22%	20.94%
2154	73 Outperform	¥164.27B	12.38	―	4.19%	6.86%	6.50%
4848	71 Outperform	62.19B	12.99	19.03%	3.48%	0.16%	-21.98%
9744	66 Neutral	256.95B	20.04	―	5.01%	4.40%	0.23%
2168	48 Neutral	82.82B	-9.92	-6.42%	0.68%	-13.31%	-109.06%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Open Up Group Inc. Corporate Events

Open Up Group Inc. Enhances Share Liquidity with Off-Floor Distribution

Open Up Group Inc. has completed an off-floor distribution of 1,700,000 shares at a price of 1,758 yen per share on the Tokyo Stock Exchange. This move, prompted by a major shareholder’s decision to sell shares, aims to improve the liquidity of the company’s stock, addressing a longstanding challenge and potentially enhancing market activity.

The most recent analyst rating on (JP:2154) stock is a Buy with a Yen2022.00 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. to Enhance Share Liquidity with Off-Floor Distribution

Open Up Group Inc. has announced an off-floor distribution of 1,700,000 shares on the Tokyo Stock Exchange, scheduled for September 2, 2025, at a price of 1,758 yen per share. This move is intended to improve the liquidity of the company’s shares, following a major shareholder’s decision to sell a portion of their holdings. The distribution aims to enhance market activity and accessibility for investors, although it may be subject to cancellation or postponement due to market conditions.

The most recent analyst rating on (JP:2154) stock is a Buy with a Yen2022.00 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. Completes Strategic Share Repurchase

Open Up Group Inc. has successfully completed the repurchase of 2,050,000 of its own common stock shares, representing 2.23% of the total shares outstanding, through the ToSTNeT-3 trading system. This strategic move, costing approximately 3.98 billion yen, aims to improve capital efficiency and enhance shareholder value, reflecting the company’s commitment to optimizing its financial structure.

Open Up Group Inc. Announces Treasury Stock Repurchase Plan

Open Up Group Inc. has announced a plan to repurchase treasury shares through the Tokyo Stock Exchange’s ToSTNeT-3 system. This move follows a notification from a major shareholder intending to sell shares, and aims to improve capital efficiency and enhance earnings per share for existing shareholders. The company plans to acquire up to 2,050,000 shares, representing 2.23% of its outstanding shares, with a maximum expenditure of 4 billion yen.

Open Up Group Inc. Announces Dividend Payout and Future Payout Ratio Increase

Open Up Group Inc. announced a dividend payout from retained earnings with a record date of June 30, 2025, maintaining a dividend per share of 45 yen. The company plans to increase its dividend payout ratio to 60% or more from the fiscal year ending June 2026, reflecting its commitment to enhancing shareholder returns while considering the business environment and financial position.

Open Up Group Inc. Reports Revenue Growth and Increased Dividends for FY2025

Open Up Group Inc. reported its consolidated financial results for the fiscal year ending June 30, 2025, showing an 8.5% increase in revenue to 187,954 million yen. The company also announced an increase in annual dividends per share from 65.00 yen to 75.00 yen, reflecting a positive outlook and commitment to returning value to shareholders.

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.