OpenWork Inc. (5139) AI Stock Analysis

• Market Cap: ¥19.65B
• Dividend Yield: N/A
• Average Volume (3M): 41.11K
• Price to Earnings (P/E): 23.0
• Beta (1Y): 1.16
• Revenue Growth: 28.90%
• EPS Growth: 29.06%
• Country: JP
• Employees: 126
• Sector: Technology
• Sector Strength: 88
• Industry: Internet Content & Information
• EPS (TTM): 1.06
• Shares Outstanding: 21,342,240
• 10 Day Avg. Volume: 43,040
• 30 Day Avg. Volume: 41,106
• PEG Ratio: 1.99
• Price to Book (P/B): 3.20
• Price to Sales (P/S): 4.72
• P/FCF Ratio: 15.56
• 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): 49.9
• Revenue Forecast (FY): ¥5.10B

• Rating: 62 Neutral
• Price Target: ¥1,021.00 ▼(-3.41% Downside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is driven by strong financial quality (notably a very conservative, debt-free balance sheet and solid profitability), but is held back by weak technical momentum (below key moving averages with bearish MACD and low RSI/Stoch). Valuation appears moderate with a P/E near 24 and no dividend data to offset risk.

Positive Factors

Conservative, debt‑free balance sheet

A debt‑free, steadily strengthening balance sheet materially lowers solvency risk and preserves financial optionality. Over the next several months this supports capital allocation flexibility for product investment, M&A or buffering cyclical shocks without refinancing pressure.

Sustained revenue scaling

Consistent multi‑year revenue scaling indicates durable product‑market fit and addressable market expansion. Sustained top‑line growth provides the runway for operating leverage and long‑term margin recovery if management maintains growth investments and cost control.

Generally strong cash generation

Free cash flow tracking net income across multiple years supports earnings quality and internal funding of operations and capex. Reliable cash generation enhances resilience, funds reinvestment, and reduces dependence on external financing over a medium horizon.

Negative Factors

Gross margin compression

A sharp 2025 gross margin decline signals a structural change in cost base or business mix that can permanently depress profitability and cash flow if it continues. Resolving margin pressure may require pricing power restoration, cost restructuring, or higher‑margin product mix shifts.

Weaker cash conversion in 2025

OCF covering net income by under 1x in 2025 indicates earnings did not fully convert to cash that year, reducing near‑term liquidity quality. Persisting weak cash conversion would constrain reinvestment capacity and make the company more sensitive to working capital swings.

Moderate capital efficiency

Mid‑to‑low double‑digit ROE implies capital is not deployed with top‑quartile efficiency. With a conservative, low‑leverage balance sheet, improving shareholder returns depends on higher organic growth, margin expansion, or strategic capital deployment to lift long‑term profitability.

OpenWork Inc. Business Overview & Revenue Model

Company Description

OpenWork Inc. develops and manages a job and recruitment information platform in Japan. The company operates OpenWork, a platform that offers company reviews, company evaluation scores, salary information, overtime hours, corporate performance data, recruiting process information, and CVs/resumes of candidates. It also offers alternative data services on Japanese companies. The company was incorporated in 2007 and is based in Shibuya, Japan. OpenWork Inc. is a subsidiary of Link and Motivation Inc.

How the Company Makes Money

OpenWork Inc. generates revenue primarily through fees charged for its staffing and recruitment services. The company earns money by placing temporary and permanent employees with client companies, where it typically charges a percentage of the employee's salary as a placement fee. Additionally, OpenWork Inc. provides HR consulting services, which contribute to its revenue streams. Significant partnerships with various businesses and a strong network within the employment sector enhance its ability to generate consistent earnings.

OpenWork Inc. Financial Statement Overview

Summary

Strong overall fundamentals supported by a debt-free, steadily strengthening balance sheet and consistently healthy profitability. Key risks are the sharp 2025 gross margin compression and some variability in cash conversion (2025 operating cash flow covering net income by less than 1x).

Income Statement

Revenue has scaled strongly from 2022–2024 with solid growth rates, and profitability is consistently healthy with net margins generally around the high-teens to low-20% range. The key watch-out is volatility in gross margin—2025 shows a sharp drop versus 2022–2024 levels, which suggests either a change in cost structure, accounting classification, or business mix that could pressure future earnings quality if it persists.

Balance Sheet

The balance sheet is very conservative with no reported debt across periods, and equity has steadily increased alongside asset growth—supporting financial resilience and flexibility. With leverage effectively absent, the main limitation is that returns on equity are only moderate (roughly mid-to-low double digits in recent years), implying strong safety but not best-in-class capital efficiency.

Cash Flow

Cash generation is generally strong and closely tracks earnings, with free cash flow broadly in line with net income across multiple years—supporting earnings quality. However, operating cash flow covered net income by less than 1x in 2025, and free cash flow growth has been uneven (including a decline in 2021), indicating some variability in cash conversion year-to-year.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.11B	4.65B	3.54B	2.92B	2.04B	1.54B
Gross Profit	1.47B	1.20B	2.38B	2.03B	1.36B	324.22M
EBITDA	1.40B	1.22B	1.04B	862.28M	617.74M	330.33M
Net Income	1.01B	837.09M	757.43M	613.00M	403.00M	232.43M
Balance Sheet
Total Assets	7.68B	8.41B	7.24B	6.39B	5.13B	3.06B
Cash, Cash Equivalents and Short-Term Investments	6.82B	7.63B	6.62B	5.95B	4.80B	2.81B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.08B	1.54B	783.22M	665.00M	461.85M	250.53M
Stockholders Equity	6.60B	6.87B	6.46B	5.72B	4.67B	2.81B
Cash Flow
Free Cash Flow	1.40B	1.41B	787.04M	735.00M	547.36M	178.28M
Operating Cash Flow	1.41B	1.42B	807.85M	755.00M	554.33M	187.47M
Investing Cash Flow	-13.00M	-3.01B	-20.81M	-34.00M	-6.97M	39.97M
Financing Cash Flow	-531.00M	-434.01M	-84.03M	434.89M	1.44B	0.00

OpenWork Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1057.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5139, the sentiment is Negative. The current price of 1057 is above the 20-day moving average (MA) of 1048.20, below the 50-day MA of 1072.86, and below the 200-day MA of 1073.87, indicating a bearish trend. The MACD of -44.37 indicates Positive momentum. The RSI at 42.53 is Neutral, neither overbought nor oversold. The STOCH value of 56.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5139.

OpenWork Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7047	79 Outperform	¥32.32B	11.63	―	0.11%	31.33%	34.22%
4194	67 Neutral	¥295.05B	16.85	―	―	23.28%	26.56%
7082	65 Neutral	¥6.81B	15.19	―	―	3.38%	47.24%
5139	62 Neutral	¥19.65B	23.01	―	―	28.90%	29.06%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4176	58 Neutral	¥7.05B	25.09	―	―	42.83%	26.89%
5243	54 Neutral	¥38.19B	79.11	―	―	22.37%	655.34%

OpenWork Inc. Corporate Events

OpenWork Outlines 2025 Results, 2026 Outlook and 2030 Growth Strategy

OpenWork Inc. released materials covering its financial results for the fiscal year ended Dec. 31, 2025, along with an overview of key business topics during the period. The company also presented earnings forecasts for the 2026 fiscal year and a growth strategy roadmap through 2030, signaling a focus on long-term performance and providing stakeholders with guidance on future operational and strategic direction.

Although the detailed figures and operational metrics are not included in the excerpt, the structure of the disclosure indicates an intent to give investors and other stakeholders visibility into recent performance, near-term expectations, and longer-term ambitions. This comprehensive approach can help the market assess OpenWork’s trajectory, understand its strategic priorities, and gauge how management plans to sustain or accelerate growth over the rest of the decade.

The most recent analyst rating on (JP:5139) stock is a Buy with a Yen1367.00 price target. To see the full list of analyst forecasts on OpenWork Inc. stock, see the JP:5139 Stock Forecast page.