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

• Market Cap: ¥25.04B
• Dividend Yield: 3.73%
• Average Volume (3M): 32.25K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.73
• Revenue Growth: 16.99%
• EPS Growth: 7.51%
• Country: JP
• Employees: 144
• Sector: Industrials
• Sector Strength: 88
• Industry: Staffing & Employment Services
• EPS (TTM): 47.21
• Shares Outstanding: 15,560,000
• 10 Day Avg. Volume: 35,570
• 30 Day Avg. Volume: 32,246
• PEG Ratio: 8.27
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.89
• 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

• Rating: 74 Outperform
• Price Target: ―

GAKUJO Co., Ltd. demonstrates strong financial performance with robust revenue growth and a solid balance sheet. However, technical indicators show bearish trends, which may be a concern for short-term investors. The stock's attractive valuation, with a low P/E ratio and a solid dividend yield, provides a compelling case for long-term investors.

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
9.59B	10.73B	8.78B	6.77B	6.22B	5.72B
	Gross Profit
6.33B	7.12B	5.87B	4.51B	4.19B	3.77B
	EBIT
2.47B	2.66B	2.31B	1.62B	1.82B	1.19B
	EBITDA
3.06B	2.87B	2.46B	2.14B	2.15B	1.49B
	Net Income Common Stockholders
2.03B	2.23B	1.75B	1.40B	1.38B	927.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.08B	6.05B	4.68B	4.56B	5.79B	4.90B
	Total Assets
15.08B	16.74B	15.61B	13.81B	13.43B	11.97B
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-4.36B	-4.93B	-4.38B	-4.46B	-5.19B	-4.62B
	Total Liabilities
1.63B	2.26B	2.34B	1.58B	1.52B	1.01B
	Stockholders Equity
13.46B	14.48B	13.27B	12.23B	11.91B	10.96B
Cash Flow		Free Cash Flow
499.33M	938.60M	2.04B	1.36B	1.57B	584.66M
	Operating Cash Flow
706.15M	1.63B	2.28B	1.49B	1.69B	706.45M
	Investing Cash Flow
102.57M	177.71M	-675.34M	-1.42B	-398.21M	-27.72M
	Financing Cash Flow
-662.85M	-1.26B	-682.46M	-793.09M	-684.93M	-752.34M

GAKUJO Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1770.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 1770 is above the 20-day moving average (MA) of 1710.95, above the 50-day MA of 1679.65, and below the 200-day MA of 1810.47, indicating a neutral trend. The MACD of 18.83 indicates Negative momentum. The RSI at 68.99 is Neutral, neither overbought nor oversold. The STOCH value of 72.58 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
6539	79 Outperform	¥23.10B	22.25		6.08%	63.38%	-8.52%
2301	74 Outperform	¥25.04B	11.97		3.73%	16.99%	7.51%
2471	74 Outperform	¥27.26B	14.08		2.90%	2.66%	-3.15%
9332	67 Neutral	¥20.48B	10.61		3.52%	4.85%	1.50%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
6070	64 Neutral	¥24.88B	13.65		5.70%	-7.75%	-16.92%
6089	64 Neutral	¥20.80B	18.00		4.83%	1.07%	-58.62%

GAKUJO Co., Ltd. Corporate Events

GAKUJO Co., Ltd. Introduces Employee Stock Incentive Program

GAKUJO Co., Ltd. has announced a new initiative to enhance employee motivation and corporate value by introducing a system to grant restricted stock to its employees through the Employee Stockholding Association. This move aims to align employee interests with shareholders and promote asset building for employees, potentially strengthening the company’s market position and stakeholder engagement.

GAKUJO Co., Ltd. Reports Q1 Financial Decline but Projects Recovery

GAKUJO Co., Ltd. reported a decline in its non-consolidated financial results for the three months ended January 31, 2025, with net sales decreasing by 2.2% compared to the previous year. Despite the current downturn, the company forecasts a recovery in financial performance for the full year ending October 31, 2025, with expected increases in net sales and profits, indicating a positive outlook for stakeholders.