GAKUJO Co., Ltd. (2301) AI Stock Analysis

• Market Cap: ¥25.31B
• Dividend Yield: 3.79%
• Average Volume (3M): 174.22K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.63
• Revenue Growth: 2.69%
• EPS Growth: -13.40%
• Country: JP
• Employees: 144
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 83.23
• Shares Outstanding: 15,560,000
• 10 Day Avg. Volume: 120,480
• 30 Day Avg. Volume: 174,223
• PEG Ratio: -0.87
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 1.98
• P/FCF Ratio: 11.56
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 84 Outperform
• Price Target: ¥2,087.00 ▲(17.45% Upside)

The score is driven primarily by strong financial quality (solid profitability, debt-free balance sheet, and strong free cash flow). Technicals are supportive with the stock trading above key moving averages and positive momentum indicators, while valuation remains reasonable with an attractive dividend yield.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet reduces financial risk and enhances resilience, providing the company with flexibility to invest in growth opportunities.

Strong Cash Generation

Strong cash generation supports ongoing operations and investments, enabling the company to sustain growth and return value to shareholders.

Commitment to Shareholder Returns

Increasing dividends demonstrate a commitment to returning profits to shareholders, which can attract and retain investors, supporting long-term stock stability.

Negative Factors

Slower Revenue Growth

Slower revenue growth may indicate challenges in expanding market share or product adoption, potentially impacting future profitability and competitive positioning.

Margin Compression

Margin compression suggests increased costs or pricing pressures, which could affect profitability if not addressed, impacting long-term financial health.

Decline in Profits

Declining profits can signal operational inefficiencies or market challenges, potentially hindering the company's ability to invest in growth and innovation.

GAKUJO Co., Ltd. Business Overview & Revenue Model

Company Description

Gakujo Co., Ltd. provides human resource and recruitment services in Japan. The company engages in the new graduate and mid-career recruitment, employment support, career change events, and job-hunting support activities. It also provides internship career support, training, and recruitment tool production services, as well as recruitment outsourcing and advertising services. The company was founded in 1976 and is headquartered in Tokyo, Japan.

How the Company Makes Money

GAKUJO Co., Ltd. generates revenue primarily through its employment and recruitment services. Key revenue streams include fees collected from companies for participating in job fairs and recruitment events, subscriptions, and advertisements on its employment information websites, and charges for publishing recruitment-related content in its publications. The company also earns from offering career seminars and consulting services to educational institutions and corporate clients. Strategic partnerships with universities and corporations further enhance its service offerings and client base, contributing to its financial performance.

GAKUJO Co., Ltd. Financial Statement Overview

Summary

GAKUJO Co., Ltd. excels with strong revenue growth and profitability margins. The balance sheet is robust with zero debt and high equity, ensuring financial stability. However, the decrease in free cash flow poses a concern for future investment capabilities.

Income Statement

GAKUJO Co., Ltd. shows robust revenue growth with a 22.13% increase from the previous year, indicating a strong expansion trajectory. The company maintains high profitability, evidenced by a gross profit margin of 66.39% and a net profit margin of 20.78%. Both EBIT and EBITDA margins are strong at 24.75% and 26.73% respectively, showcasing operational efficiency. However, the rapid growth may pose challenges in sustaining such high margins in the future.

Balance Sheet

The balance sheet is remarkably strong with no debt, resulting in a debt-to-equity ratio of 0. The equity ratio stands high at 86.45%, indicating financial stability and low leverage risk. The return on equity is impressive at 15.40%, reflecting effective use of shareholders' funds. The company’s solid equity base provides a buffer against market fluctuations.

Cash Flow

GAKUJO Co., Ltd. exhibits a decrease in free cash flow by 53.91%, which is a concern, though it remains positive. The operating cash flow to net income ratio is 0.73, suggesting efficient cash conversion from profits. The free cash flow to net income ratio stands at 0.42, indicating room for improvement in cash retention.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.70B	11.02B	10.73B	8.78B	6.77B	6.22B
Gross Profit	6.94B	6.89B	7.12B	5.87B	4.51B	4.19B
EBITDA	2.98B	2.95B	2.87B	2.46B	2.14B	2.15B
Net Income	1.98B	1.89B	2.23B	1.75B	1.40B	1.38B
Balance Sheet
Total Assets	14.98B	17.11B	16.74B	15.61B	13.81B	13.43B
Cash, Cash Equivalents and Short-Term Investments	5.13B	6.18B	6.05B	4.68B	4.56B	5.79B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.28B	2.23B	2.26B	2.34B	1.58B	1.52B
Stockholders Equity	13.70B	14.88B	14.48B	13.27B	12.23B	11.91B
Cash Flow
Free Cash Flow	1.21B	1.89B	938.60M	2.04B	1.36B	1.57B
Operating Cash Flow	1.36B	1.90B	1.63B	2.28B	1.49B	1.69B
Investing Cash Flow	126.43M	368.45M	177.71M	-675.34M	-1.42B	-398.21M
Financing Cash Flow	-933.56M	-1.51B	-1.26B	-682.46M	-793.09M	-684.93M

GAKUJO Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1777.00
• 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:2301, the sentiment is Positive. The current price of 1777 is above the 20-day moving average (MA) of 1761.25, above the 50-day MA of 1674.86, and above the 200-day MA of 1710.10, indicating a bullish trend. The MACD of 25.64 indicates Positive momentum. The RSI at 65.33 is Neutral, neither overbought nor oversold. The STOCH value of 75.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2301.

GAKUJO Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2301	84 Outperform	¥25.31B	12.78	―	3.79%	2.69%	-13.40%
6089	73 Outperform	¥27.47B	15.32	―	3.86%	1.18%	-5.05%
9332	73 Outperform	¥23.59B	15.07	―	3.09%	4.92%	-27.88%
6539	73 Outperform	¥26.32B	25.34	―	5.45%	21.90%	0.46%
6070	64 Neutral	¥31.37B	13.38	―	4.69%	-1.06%	3.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2471	61 Neutral	¥22.04B	12.14	―	3.76%	6.74%	7.56%

GAKUJO Co., Ltd. Corporate Events

GAKUJO Co., Ltd. Announces Agenda for 48th Shareholders Meeting

GAKUJO Co., Ltd. has announced the agenda for its 48th Ordinary General Meeting of Shareholders, which includes proposals for dividends, the appointment of directors, and audit members. The company plans to prioritize business expansion and investment in new developments while returning surplus funds to shareholders. The meeting will address the reappointment of key directors and audit members, ensuring the company’s governance structure remains robust.

GAKUJO Co., Ltd. Announces Increased Year-End Dividend

GAKUJO Co., Ltd. has announced a resolution to pay a year-end dividend of 34 yen per share, with the record date set for October 31, 2025. This decision aligns with the company’s policy of returning profits to shareholders while balancing internal reserves for business growth. The annual dividend will increase to 67 yen per share, reflecting a 2 yen increase from the previous fiscal year, indicating a commitment to shareholder returns and future growth investments.

GAKUJO Launches New TV Commercial to Boost Re-Shukatsu Series

GAKUJO Co., Ltd. has launched a new TV commercial featuring actor Rihito Itagaki to promote its Re-Shukatsu series, which supports job seekers at various stages of their careers. This initiative underscores the company’s commitment to facilitating career transitions and advancements, potentially enhancing its market presence and stakeholder engagement.

GAKUJO Co., Ltd. Reports Financial Results for Fiscal Year 2025

GAKUJO Co., Ltd. announced its non-consolidated financial results for the fiscal year ended October 31, 2025, reporting a slight increase in net sales by 2.7% to 11,019 million yen. However, the company experienced declines in operating profit, ordinary profit, and net profit by 12.2%, 13.1%, and 15.1% respectively, compared to the previous year. Despite these challenges, the company has increased its annual dividend per share to 67 yen and forecasts further growth in net sales and profits for the next fiscal year, indicating a positive outlook for stakeholders.