S-Pool, Inc. (2471) AI Stock Analysis

• Market Cap: ¥20.30B
• Dividend Yield: 3.76%
• Average Volume (3M): 534.38K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.60
• Revenue Growth: 6.74%
• EPS Growth: 7.56%
• Country: JP
• Employees: 1,055
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 8.79
• Shares Outstanding: 79,007,510
• 10 Day Avg. Volume: 409,540
• 30 Day Avg. Volume: 534,383
• PEG Ratio: -0.47
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 5.56
• 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: 52 Neutral
• Price Target: ¥262.00 ▼(-4.03% Downside)

The score is held back primarily by weakening financial quality (higher leverage, net margin decline, and volatile free cash flow) and a clear bearish price trend below major moving averages. These risks are partially offset by a reasonable P/E and a comparatively strong dividend yield.

Positive Factors

Consistent improving operating cash flow

S-Pool's steadily rising operating cash flow indicates the core business generates durable cash, supporting reinvestment, working capital and shareholder distributions without sole reliance on external financing. This underpins resilience over a multi-quarter horizon.

Improving gross margin and healthy EBIT margins

Rising gross margins and stable EBIT margins reflect sustained pricing power and operational efficiency in its HR tech/consulting mix. These structural margin gains support long-term profitability even if top-line growth moderates, enhancing cash generation potential.

Diversified, recurring revenue mix

A mix of licensing, subscriptions and consulting plus partner channels creates recurring revenue and cross-sell opportunities, lowering customer concentration risk and improving revenue predictability over months to years versus firms reliant on one-off project fees.

Negative Factors

Material increase in leverage

A sustained jump in debt-to-equity weakens financial flexibility and raises solvency risk if earnings or cash flow deteriorate. Higher fixed interest obligations reduce margin for error and constrain capital allocation for growth or buybacks over the medium term.

Sharp revenue and net margin deterioration in 2025

A pronounced revenue decline and narrowing net margin signal demand or execution issues that can persist without corrective action. Structural revenue losses erode scale, pressure margins and can require costly margin-restoring investments, hurting medium-term stability.

Volatile free cash flow and uneven cash conversion

Irregular free cash flow undermines reliable funding for capex, dividends and debt reduction. Even with positive operating cash flow, swingy FCF increases refinancing risk and complicates planning, threatening durable capital allocation and balance sheet repair.

S-Pool, Inc. Business Overview & Revenue Model

Company Description

S-Pool, Inc. provides human resources and outsourcing business solutions in Japan. It offers temporary staffing and recruitment services primarily focuses on operations that require communication skills. The company also provides outsourcing services, such as share-based outsourcing services, employment services, logistics outsourcing services, and part-time job application reception outsourcing services. S-Pool, Inc. was founded in 1999 and is headquartered in Tokyo, Japan.

How the Company Makes Money

S-Pool, Inc. generates revenue through multiple streams, primarily by providing software licensing for its human resource management systems and consulting services tailored to workforce management. The company also earns income from subscription fees for its cloud-based applications, which allow clients to access its software on a recurring basis. Significant partnerships with technology firms and corporate clients enhance its product offerings and client base, contributing to steady revenue growth. Additionally, S-Pool may derive income from training services and support packages, further diversifying its revenue sources.

S-Pool, Inc. Financial Statement Overview

Summary

Profitability has been solid with improving gross margin and healthy EBIT margins in 2023–2025, but fundamentals weakened with a sharp reported revenue decline in 2025, a meaningful net margin drop versus 2024, higher leverage (debt-to-equity ~2.3–2.4x since 2023), and uneven free cash flow despite consistently positive operating cash flow.

Income Statement

Profitability is solid for the sector, with gross margin improving over time (about 30% in 2020 to ~37% in 2025) and operating profitability remaining healthy in recent years (EBIT margin ~9–11% in 2023–2025). However, earnings momentum has weakened: revenue growth is slightly negative in 2023–2024 and shows a very large decline in 2025, while net margin fell meaningfully in 2025 versus 2024 (roughly 5.5% vs ~8.2%), indicating pressure on the bottom line despite stable revenue levels previously.

Balance Sheet

The balance sheet has become materially more leveraged. Debt-to-equity moved from below 1x in 2020–2022 to roughly ~2.3–2.4x in 2023–2025, which raises financial risk and reduces flexibility if operating conditions soften. Equity has grown, and returns on equity remain respectable (mid-teens in 2025; above 20% in 2023–2024), but the step-up in debt is the key weakness and makes the capital structure less conservative than earlier years.

Cash Flow

Operating cash flow is consistently positive and improved in absolute terms over time (roughly ¥2.2B in 2020 to ¥5.6B in 2025), which supports business resilience. That said, cash conversion is not particularly strong: free cash flow has been volatile (negative in 2023, much stronger in 2025), and free cash flow growth is unstable (sharp drop in 2025 after a strong 2024). Free cash flow relative to net income improved in 2025 versus 2024, but overall cash generation quality looks uneven year to year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	26.03B	25.55B	25.78B	26.65B	24.86B
Gross Profit	9.73B	9.45B	8.91B	8.74B	7.53B
EBITDA	6.19B	6.18B	5.39B	4.00B	3.34B
Net Income	1.44B	2.10B	1.73B	1.96B	1.88B
Balance Sheet
Total Assets	41.67B	39.71B	33.38B	17.03B	15.32B
Cash, Cash Equivalents and Short-Term Investments	3.58B	3.81B	3.38B	3.21B	3.94B
Total Debt	24.47B	24.00B	19.82B	4.64B	4.87B
Total Liabilities	31.46B	29.89B	24.88B	9.60B	9.21B
Stockholders Equity	10.21B	9.84B	8.51B	7.44B	6.08B
Cash Flow
Free Cash Flow	3.72B	1.74B	-74.00M	87.00M	27.00M
Operating Cash Flow	5.62B	5.07B	4.10B	2.86B	2.19B
Investing Cash Flow	-2.10B	-3.39B	-4.57B	-2.85B	-2.51B
Financing Cash Flow	-3.75B	-1.24B	640.00M	-737.00M	1.74B

S-Pool, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 273.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2471, the sentiment is Negative. The current price of 273 is above the 20-day moving average (MA) of 265.40, above the 50-day MA of 265.86, and below the 200-day MA of 301.38, indicating a bearish trend. The MACD of -4.20 indicates Positive momentum. The RSI at 42.34 is Neutral, neither overbought nor oversold. The STOCH value of 19.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2471.

S-Pool, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2475	74 Outperform	¥31.64B	9.82	―	3.82%	1.22%	-5.35%
6089	73 Outperform	¥27.17B	15.16	―	3.86%	1.18%	-5.05%
9332	73 Outperform	¥22.64B	14.46	―	3.09%	4.92%	-27.88%
4433	64 Neutral	¥17.11B	26.32	―	3.66%	8.62%	―
6070	64 Neutral	¥31.21B	13.31	―	4.69%	-1.06%	3.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2471	52 Neutral	¥20.30B	13.94	―	3.76%	6.74%	7.56%

S-Pool, Inc. Corporate Events

S-Pool Sets Medium- to Long-Term Growth Strategy for Special Needs Employment Support

S-Pool, Inc. announced that it has formulated a medium- to long-term growth strategy for its Special Needs Employment Support Business, leveraging the operational track record and support know-how it has accumulated through farm-based employment programs for people with disabilities. By systematizing this strategy, the company aims to strengthen and expand its special needs employment services, which could deepen its role in supporting corporate disability employment, enhance its competitive positioning in the inclusive employment services market, and potentially broaden opportunities for workers with disabilities in Japan.

The most recent analyst rating on (JP:2471) stock is a Hold with a Yen291.00 price target. To see the full list of analyst forecasts on S-Pool, Inc. stock, see the JP:2471 Stock Forecast page.

S-Pool Swings to Operating Loss on Heavier Upfront Investments Despite Modest Sales Decline

S-Pool, Inc. reported a slight year-on-year decline in non-consolidated net sales for the fiscal year ended November 30, 2025, with revenue falling 2.4% to ¥2,879 million. Profitability weakened more sharply as the company recorded an operating loss of ¥281 million and saw ordinary profit and net profit fall about 21% and 12% respectively, with basic earnings per share slipping to ¥12.00. Management attributed the deterioration in profit to concentrated upfront investments in new businesses aimed at future growth, indicating a strategic emphasis on expansion at the expense of short-term margins, a move that may weigh on current earnings but is intended to strengthen the group’s longer-term business platform.

The most recent analyst rating on (JP:2471) stock is a Hold with a Yen291.00 price target. To see the full list of analyst forecasts on S-Pool, Inc. stock, see the JP:2471 Stock Forecast page.

S-Pool Posts Lower FY2025 Profit but Signals Earnings Rebound in 2026 Forecast

S-Pool reported modest revenue growth of 1.9% to ¥26.0 billion for the year ended November 30, 2025, but profitability weakened as operating profit fell 13.1% to ¥2.4 billion and profit attributable to owners of the parent declined 31.2% to ¥1.4 billion, leading to lower margins and a drop in return on equity. Despite the earnings decline, the company’s financial position remained relatively sound, with total assets rising to ¥41.7 billion and equity attributable to owners of the parent edging up, while operating cash flow improved to ¥5.6 billion and the annual dividend was maintained at ¥10 per share. Looking ahead to the fiscal year ending November 30, 2026, S-Pool forecasts a recovery in earnings, guiding for 3.1% revenue growth and a 13.0% increase in operating profit, with profit attributable to owners of the parent expected to rise 14.9%, suggesting management is positioning the business for a rebound after a weaker 2025 while continuing stable shareholder returns.

The most recent analyst rating on (JP:2471) stock is a Hold with a Yen291.00 price target. To see the full list of analyst forecasts on S-Pool, Inc. stock, see the JP:2471 Stock Forecast page.

S-Pool, Inc. Announces Leadership Transition to Drive Growth

S-Pool, Inc. announced a leadership transition with Giichi Shirakawa set to become the new President and Representative Director, effective February 26, 2026. This change is part of S-Pool’s strategy to strengthen its management structure and focus on expanding its Special Needs Employment Services, leveraging Shirakawa’s experience in digital transformation and talent development to drive sustainable growth and enhance competitiveness.

The most recent analyst rating on (JP:2471) stock is a Hold with a Yen296.00 price target. To see the full list of analyst forecasts on S-Pool, Inc. stock, see the JP:2471 Stock Forecast page.

S-Pool, Inc. Responds to Media Speculation on Leadership Change

S-Pool, Inc. has addressed recent media reports about a potential change in its President and Representative Director, stating that no official decision has been made yet. The company plans to discuss this matter in an upcoming Board of Directors meeting and will announce any significant decisions thereafter.

The most recent analyst rating on (JP:2471) stock is a Hold with a Yen296.00 price target. To see the full list of analyst forecasts on S-Pool, Inc. stock, see the JP:2471 Stock Forecast page.