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

• Market Cap: ¥22.73B
• Dividend Yield: 3.79%
• Average Volume (3M): 174.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: 2.69%
• EPS Growth: -13.40%
• Country: JP
• Employees: 144
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): -31.80
• Shares Outstanding: 15,560,000
• 10 Day Avg. Volume: 120,480
• 30 Day Avg. Volume: 174,223
• PEG Ratio: -0.89
• 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): 184.8
• Revenue Forecast (FY): ¥13.30B

• Rating: 84 Outperform
• Price Target: ¥2,087.00 ▲(17.45% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

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

High profitability

Sustained high gross and operating margins provide structural earnings resilience and internal funding capacity. In a services model, these margins support reinvestment in platform and events, cushion cyclical downturns in hiring, and underpin durable cash generation and dividend capacity.

Debt-free, conservative balance sheet

A zero-debt balance sheet materially lowers financial risk and preserves optionality. This conservatism supports capital allocation for event execution, platform development, or share returns without refinancing risk, making the business more resilient across graduate recruiting cycles.

Niche, recurring recruiting business model

Specialization in new-graduate and early-career recruiting creates repeatable, cyclical revenue tied to corporate hiring cycles. Diverse revenue streams—advertising, events, and employer services—enhance client stickiness and create multiple monetization levers across recruiting seasons.

Negative Factors

Slowing recent revenue growth

A deceleration to ~3% top-line growth reduces the runway for scale economics and limits the company’s ability to expand absolute profits. For a niche staffing/media player, persistent slower growth may indicate market saturation or weaker corporate hiring demand versus prior expansion phases.

Margin and return softening

Declining net margins and softer returns point to either pricing pressure, higher costs, or mix shifts. This reduces retained earnings and could limit future investment or dividend growth, undermining return on incremental capital and weakening long-term profitability trends.

Volatile cash conversion

Although recent free cash flow is strong, inconsistent operating cash conversion makes long-term free cash flow less predictable. That volatility complicates capital planning for events and platform investment and raises execution risk for sustained shareholder returns.

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

High-quality fundamentals: strong profitability (gross ~63%, operating ~24%, net ~17%), debt-free balance sheet, and robust free cash flow (~99% of net income) with a sharp latest-year increase. Offsetting factors include slower recent revenue growth (~3%) and some margin/return softening versus the prior year.

Income Statement

Profitability is a clear strength: the latest annual period shows strong gross profitability (~63%) and healthy operating and net profitability (operating profit ~24%, net profit ~17%). Revenue has grown meaningfully over the last several years (from ~¥5.7B in 2020 to ~¥11.0B in 2025), but the most recent year shows slower top-line growth (~3%) and some margin compression versus 2024 (net profit down from ~21% to ~17%), indicating profitability may be moderating after a strong prior year.

Balance Sheet

The balance sheet is conservatively positioned with no debt reported across periods, which materially reduces financial risk and supports resilience in a cyclical employment-services environment. Equity has steadily increased over time (supporting asset growth), and returns on equity remain solid (mid-teens in 2024 and low-teens in 2025). The main watch-out is that returns softened versus the prior year, suggesting incremental capital is currently earning a bit less than before.

Cash Flow

Cash generation is strong and improving: the latest annual free cash flow rose sharply (up ~56%) and is nearly equal to reported earnings (free cash flow is ~99% of net income), which is a high-quality signal. Operating cash flow also closely matches earnings in the latest period, though it was weaker in 2024 (operating cash flow was lower relative to net income), showing some year-to-year volatility in cash conversion.

Breakdown	TTM	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	10.70B	11.02B	10.73B	8.78B	6.77B	6.22B
Gross Profit	6.94B	6.89B	6.92B	5.72B	4.38B	4.06B
EBITDA	2.54B	2.63B	2.87B	2.46B	1.75B	1.96B
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	13.53B
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	1.61B
Stockholders Equity	13.70B	14.88B	14.48B	13.27B	12.23B	11.91B
Cash Flow
Free Cash Flow	1.21B	1.89B	1.38B	2.24B	1.48B	1.67B
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: Negative
• Last Price: 1777.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2301, the sentiment is Negative. The current price of 1777 is below the 20-day moving average (MA) of 1785.00, below the 50-day MA of 1800.34, and above the 200-day MA of 1746.96, indicating a bearish trend. The MACD of -51.22 indicates Positive momentum. The RSI at 27.47 is Positive, neither overbought nor oversold. The STOCH value of 5.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥22.73B	-13.94	―	3.79%	2.69%	-13.40%
3991	78 Outperform	¥10.38B	13.11	―	1.72%	3.95%	4.50%
6539	73 Outperform	¥25.95B	24.11	―	5.45%	21.90%	0.46%
4377	67 Neutral	¥33.65B	30.08	―	0.39%	41.23%	50.13%
4433	64 Neutral	¥16.24B	65.84	―	3.66%	8.62%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3900	51 Neutral	¥10.68B	426.22	―	2.24%	32.39%	-127.51%

GAKUJO Co., Ltd. Corporate Events

Gakujo Boosts Re-Shukatsu Brand with Targeted TV Ad Campaign

Gakujo has launched TV commercials for its Re-Shukatsu Series, featuring actor Rihito Itagaki, to highlight the service’s benefits across multiple career stages and reinforce its message of “respect for all job hunting.” The campaign is designed to make Re-Shukatsu better known and understood among a broad demographic of job seekers, particularly those from their teens to their 30s.

The commercials were aired from November to February, aligning with peak demand for Re-Shukatsu services, suggesting a strategic effort to convert heightened seasonal interest into greater brand recognition and usage. By investing in mass-media promotion at a key point in the job-hunting calendar, Gakujo aims to strengthen its market presence in mid-career and early-career recruitment support, potentially enhancing engagement from both candidates and corporate clients.

The most recent analyst rating on (JP:2301) stock is a Buy with a Yen2107.00 price target. To see the full list of analyst forecasts on GAKUJO Co., Ltd. stock, see the JP:2301 Stock Forecast page.

GAKUJO Posts Wider Quarterly Loss but Sticks to Robust Full-Year Profit Outlook

GAKUJO Co., Ltd., listed on the Tokyo Stock Exchange, reported a decline in net sales to ¥1.37 billion for the three months ended January 31, 2026, with operating and ordinary losses widening and a deeper quarterly net loss that pushed basic earnings per share further into negative territory. Despite this weak start and a slight reduction in total assets and equity, management is maintaining a bullish full-year outlook, forecasting double-digit growth in sales and profits and signaling confidence with a planned dividend increase for the 2026 fiscal year, which suggests expectations of a recovery in core operations and continued shareholder returns.

Net assets remained high with an equity-to-asset ratio above 90%, underscoring a solid balance sheet even as short-term performance deteriorated and losses expanded year on year. The company’s decision not to revise its existing earnings and dividend forecasts indicates it sees the first-quarter slump as temporary rather than structural, a stance that will be closely watched by investors assessing execution risk against the promised rebound in profitability.

The most recent analyst rating on (JP:2301) stock is a Buy with a Yen2107.00 price target. To see the full list of analyst forecasts on GAKUJO Co., Ltd. stock, see the JP:2301 Stock Forecast page.

GAKUJO Completes Treasury Share Disposal for Restricted Stock Compensation

GAKUJO Co., Ltd. has completed the payment procedures for the disposal of treasury shares used as restricted stock compensation, following a board resolution passed on January 23, 2026. The move underscores the company’s continued use of equity-based incentives to tie director remuneration more closely to long-term corporate value.

Under the transaction, GAKUJO disposed of 13,000 shares of its common stock at a price of 1,788 yen per share, for a total amount of 23,244,000 yen. All of these shares were allotted to three internal directors, excluding outside directors, reinforcing an incentive structure aimed at aligning core management with shareholder returns and corporate performance.

The most recent analyst rating on (JP:2301) stock is a Buy with a Yen2107.00 price target. To see the full list of analyst forecasts on GAKUJO Co., Ltd. stock, see the JP:2301 Stock Forecast page.

GAKUJO to Grant Restricted Treasury Shares to Directors Under Long-Term Incentive Plan

GAKUJO Co., Ltd. has approved the disposal of 13,000 shares of its treasury stock on February 20, 2026, as part of a restricted stock-based compensation plan for three internal directors, at a price of 1,788 yen per share for a total value of 23.24 million yen. This move is in line with a long-running compensation framework introduced in 2017 and approved by shareholders in 2018, designed to link director remuneration to medium- to long-term corporate performance and align management interests with shareholders. Under the plan, directors receive company shares in exchange for monetary compensation claims, subject to a lengthy 30-year transfer restriction period, with provisions for early lifting of restrictions in cases such as term expiration, retirement age, death, or other justifiable reasons. The structure is intended to encourage long-term engagement and value creation by management, reinforcing governance and incentive alignment rather than altering the company’s capital base in any material way.

The most recent analyst rating on (JP:2301) stock is a Buy with a Yen2107.00 price target. To see the full list of analyst forecasts on GAKUJO Co., Ltd. stock, see the JP:2301 Stock Forecast page.

GAKUJO Maintains Leadership and Governance Structure After 48th Shareholders’ Meeting

GAKUJO Co., Ltd. announced that its slate of directors and corporate auditors was elected at the 48th Ordinary General Meeting of Shareholders held on January 23, 2026, and that board roles were confirmed at a subsequent board meeting the same day. The appointments largely maintain the existing leadership structure, with Kiyokazu Nakai continuing as Representative Director and Chairman, Taishi Nakai remaining Representative Director, President and CEO, and Shinichiro Inui continuing as Director, while outside directors and outside corporate auditors, many registered as independent under TSE rules, were also reappointed. This continuity in board and audit roles underscores a strategy of stability in management and corporate governance, signaling to shareholders and other stakeholders a commitment to consistent oversight and adherence to Tokyo Stock Exchange governance standards.

The most recent analyst rating on (JP:2301) stock is a Buy with a Yen2107.00 price target. To see the full list of analyst forecasts on GAKUJO Co., Ltd. stock, see the JP:2301 Stock Forecast page.