OpenWork Inc. (5139) AI Stock Analysis

• Market Cap: ¥24.32B
• Dividend Yield: N/A
• Average Volume (3M): 41.11K
• Price to Earnings (P/E): 25.7
• Beta (1Y): 1.18
• Revenue Growth: 28.90%
• EPS Growth: 29.06%
• Country: JP
• Employees: 126
• Sector: Technology
• Sector Strength: 88
• Industry: Internet Content & Information
• EPS (TTM): 16.66
• Shares Outstanding: 21,342,240
• 10 Day Avg. Volume: 43,040
• 30 Day Avg. Volume: 41,106
• PEG Ratio: 0.94
• Price to Book (P/B): 2.53
• Price to Sales (P/S): 4.61
• P/FCF Ratio: 20.74
• 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: 78 Outperform
• Price Target: ¥1,205.00 ▲(14.00% Upside)

The score is driven primarily by strong financial performance (high recent profitability, debt-free balance sheet, and solid cash generation). Technicals are supportive but show some near-term stretch (very high Stochastic). Valuation is the main constraint with a ~24.24 P/E and no dividend yield provided.

Positive Factors

Revenue Growth

The acceleration in revenue growth indicates a strengthening market position and increased demand for the company's offerings, supporting long-term business expansion.

Balance Sheet Health

A debt-free balance sheet reduces financial risk and enhances financial stability, providing flexibility for future investments and growth opportunities.

Cash Generation

Strong cash generation supports the company's ability to reinvest in growth, return capital to shareholders, and withstand economic downturns, ensuring long-term sustainability.

Negative Factors

Margin Volatility

Volatility in margins can lead to unpredictable earnings and cash flows, complicating financial planning and potentially impacting investor confidence over time.

Historical Cash Flow Variability

Fluctuations in cash conversion indicate potential challenges in maintaining consistent cash flow, which could affect the company's ability to fund operations and growth consistently.

Efficiency with Capital

While financially safe, the company could improve capital efficiency to enhance returns, potentially limiting its competitiveness and shareholder value creation in the long run.

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 fundamentals overall: accelerating revenue growth in 2024, high profitability (gross margin ~67%, net margin ~21%, EBIT margin ~29%), debt-free balance sheet with growing equity, and solid cash generation with good earnings quality in 2024. Main risk is historical volatility in margins and cash conversion, reducing consistency.

Income Statement

Revenue growth accelerated meaningfully in 2024 (up ~5.1% vs ~0.4% in 2023), while profitability remained strong with high gross margin (~67%) and net margin (~21%). Operating profitability is also robust (EBIT margin ~29%). A key weakness is margin volatility across the period (notably much lower margins in 2020–2021 and an unusually low 2022 gross margin figure relative to later years), suggesting the business has had step-changes or classification effects that reduce consistency.

Balance Sheet

The balance sheet is conservatively positioned with zero debt across all years provided, which materially reduces financial risk. Equity has grown steadily (from ~JPY 2.6B in 2020 to ~JPY 6.5B in 2024), supporting a strengthening capital base. Returns on equity improved over time (to ~11.7% in 2024), though still not exceptionally high—implying the company is very safe financially but could potentially be more efficient with capital.

Cash Flow

Cash generation is solid and well-supported by earnings: operating cash flow slightly exceeds net income in 2024 (~1.03x), and free cash flow is very close to net income (~0.97x), indicating good earnings quality. Free cash flow also stepped up strongly in 2024 (near doubling year-over-year), reinforcing momentum. The main drawback is historical variability (e.g., operating cash flow fell below net income in 2021 at ~0.75x), showing cash conversion can fluctuate.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.11B	3.54B	2.92B	2.04B	1.54B	1.46B
Gross Profit	1.47B	2.38B	2.03B	1.36B	324.22M	237.74M
EBITDA	1.40B	1.04B	862.28M	617.74M	330.33M	255.33M
Net Income	1.01B	757.43M	613.00M	403.00M	232.43M	166.51M
Balance Sheet
Total Assets	7.68B	7.24B	6.39B	5.13B	3.06B	2.85B
Cash, Cash Equivalents and Short-Term Investments	6.82B	6.62B	5.95B	4.80B	2.81B	2.59B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.08B	783.22M	665.00M	461.85M	250.53M	273.26M
Stockholders Equity	6.60B	6.46B	5.72B	4.67B	2.81B	2.58B
Cash Flow
Free Cash Flow	1.40B	787.04M	735.00M	547.36M	178.28M	288.06M
Operating Cash Flow	1.41B	807.85M	755.00M	554.33M	187.47M	293.82M
Investing Cash Flow	-13.00M	-20.81M	-34.00M	-6.97M	39.97M	-5.75M
Financing Cash Flow	-531.00M	-84.03M	434.89M	1.44B	0.00	8.68M

OpenWork Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1057.00
• 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:5139, the sentiment is Positive. The current price of 1057 is below the 20-day moving average (MA) of 1107.35, above the 50-day MA of 1044.32, and above the 200-day MA of 1052.39, indicating a bullish trend. The MACD of 20.29 indicates Positive momentum. The RSI at 63.81 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5139.

OpenWork Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2477	78 Outperform	¥20.12B	18.53	―	1.21%	8.09%	8.53%
5139	78 Outperform	¥24.32B	25.75	―	―	28.90%	29.06%
3989	77 Outperform	¥28.16B	19.29	―	3.37%	14.35%	-6.62%
3901	74 Outperform	¥20.65B	13.40	―	3.10%	9.20%	2.32%
3662	70 Outperform	¥19.94B	17.27	―	1.85%	0.63%	-1.84%
7047	70 Outperform	¥29.80B	13.18	―	0.11%	31.33%	34.22%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%