Sportsfield Co., Ltd. (7080) AI Stock Analysis

• Market Cap: ¥6.70B
• Dividend Yield: 2.01%
• Average Volume (3M): 16.19K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.54
• Revenue Growth: 12.91%
• EPS Growth: 14.39%
• Country: JP
• Employees: 297
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 44.63
• Shares Outstanding: 7,487,040
• 10 Day Avg. Volume: 31,280
• 30 Day Avg. Volume: 16,190
• PEG Ratio: 0.24
• Price to Book (P/B): 2.47
• Price to Sales (P/S): 1.26
• P/FCF Ratio: 7.30
• 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: 80 Outperform
• Price Target: ¥1,002.00 ▲(21.75% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by strong financial performance (accelerating growth, solid margins, improving cash flow, and significantly lower leverage vs. earlier years) and supported by attractive valuation (low P/E and a moderate dividend). Technicals are positive overall due to price strength above major moving averages, but the elevated RSI signals potential near-term overbought risk.

Positive Factors

Accelerating revenue growth

Sustained double-digit top-line acceleration across 2024–2025 signals durable demand and successful scaling of recruiting and career-support services. Continued revenue momentum supports operating leverage, steadier cash flow, and long-term investment in service expansion and talent.

High and sustainable margins

Exceptionally high gross margins indicate a capital-light, service-driven model with strong pricing power or low direct costs. If maintained, these margins support durable profitability, strong cash conversion, and room to reinvest in client acquisition and specialized service offerings over time.

Material deleveraging and stronger balance sheet

A large reduction in leverage and rising equity provide financial flexibility and resilience to cycle swings. Lower leverage reduces refinancing risk, supports credible dividend or buyback capacity, and enables strategic investments or bolt-on M&A without stressing liquidity.

Negative Factors

Earnings and cash-flow cyclicality

Historical swings into losses show the business is sensitive to demand cycles, staffing activity, and macro conditions. This structural cyclicality can produce volatile cash flows, complicate long-term planning, and require higher liquidity or conservative capital allocation through downturns.

Rising debt in 2025

An uptick in absolute debt increases interest and rollover exposure if growth stalls. Even with low leverage today, rising indebtedness reduces optionality and could strain free cash flow in weaker cycles, making capital structure management an ongoing fundamental risk to monitor.

Profit volatility despite revenue growth

Profitability sensitivity to cost or mix shifts suggests operating leverage isn't fully stable. Earnings can lag revenue when margins compress or costs rise, implying that sustained margin management and diversified revenue streams are needed to reduce structural volatility.

Sportsfield Co., Ltd. Business Overview & Revenue Model

Company Description

Sportsfield Co., Ltd. engages in the recruitment support business in Japan. It is involved in the planning and operation of Sportavi joint employment seminars, Sportavi bytes, Sportavi agent, employment site, Sportavi career, and Sportavi intern; and employment guidance, education and training, and recruitment consulting businesses. The company was incorporated in 2010 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sportsfield Co., Ltd. generates revenue primarily through the sale of its sports surfaces and equipment. The company has multiple key revenue streams, including direct sales to municipalities, educational institutions, and private sports facilities. Additionally, it offers installation services and maintenance contracts, which provide ongoing revenue after the initial sale. Strategic partnerships with local governments and sports organizations further enhance its market reach and credibility. The company's focus on innovation and quality allows it to charge premium prices, contributing significantly to its profit margins.

Sportsfield Co., Ltd. Financial Statement Overview

Summary

Strong multi-year recovery with accelerating revenue growth into 2024–2025, solid profitability (notably strong recent margins), improving cash generation, and a major deleveraging versus 2020–2021. Key risks are earnings/cash-flow cyclicality (losses in 2021 and a 2023 profit dip) and higher debt in 2025 (though leverage remains modest).

Income Statement

Revenue has grown consistently across the period, accelerating into 2024 (+12.5%) and 2025 (+15.2%). Profitability is strong for the industry, with very high gross margins (~95% in 2022–2024) and solid 2024 net margin (~15.5%) and operating profitability. A key weakness is volatility earlier in the cycle (losses in 2021) and a modest dip in net income in 2023 despite higher revenue, indicating earnings can fluctuate with operating conditions.

Balance Sheet

The balance sheet has improved materially from high leverage in 2020–2021 (debt meaningfully above equity) to low leverage by 2024 (debt-to-equity ~0.09), supported by a steady build in equity (to ~1.76B in 2024 and ~2.43B in 2025). Total debt rose in 2025 versus 2024, which is worth monitoring, but leverage still appears manageable relative to the larger equity base. Overall financial risk has declined significantly versus earlier years.

Cash Flow

Cash generation is strong in recent years, with operating cash flow improving from 2023 to 2024 and further in 2025, and free cash flow also rising (2025 free cash flow ~824M, up ~15.9%). Cash conversion has generally been healthy in 2022–2024, with free cash flow broadly in line with reported earnings. The main weakness is historical volatility (negative operating and free cash flow in 2020 and very weak cash flow in 2021), showing cash flows can be sensitive in downturns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.16B	4.78B	3.85B	3.42B	2.87B	2.13B
Gross Profit	3.92B	4.29B	3.63B	3.23B	2.71B	1.98B
EBITDA	1.07B	1.12B	906.00M	889.99M	653.81M	-6.43M
Net Income	708.71M	783.54M	595.29M	608.17M	412.32M	-79.13M
Balance Sheet
Total Assets	3.21B	3.89B	2.73B	2.32B	2.14B	1.55B
Cash, Cash Equivalents and Short-Term Investments	2.24B	1.78B	1.70B	1.47B	1.46B	975.66M
Total Debt	102.41M	368.89M	159.10M	259.13M	630.06M	749.36M
Total Liabilities	1.09B	1.46B	968.20M	934.00M	1.36B	1.18B
Stockholders Equity	2.12B	2.43B	1.76B	1.39B	780.52M	368.01M
Cash Flow
Free Cash Flow	711.00M	823.75M	589.45M	395.99M	606.25M	2.56M
Operating Cash Flow	742.00M	863.73M	619.30M	448.89M	609.54M	53.79M
Investing Cash Flow	-34.00M	-578.50M	-49.66M	-68.11M	-7.10M	-67.94M
Financing Cash Flow	-173.00M	-211.25M	-322.79M	-371.38M	-120.08M	18.14M

Sportsfield Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 823.00
• 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:7080, the sentiment is Positive. The current price of 823 is below the 20-day moving average (MA) of 900.65, below the 50-day MA of 857.34, and above the 200-day MA of 815.33, indicating a neutral trend. The MACD of 2.87 indicates Positive momentum. The RSI at 54.31 is Neutral, neither overbought nor oversold. The STOCH value of 66.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7080.

Sportsfield 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%
7080	80 Outperform	¥6.70B	7.67	―	2.01%	12.91%	14.39%
3991	78 Outperform	¥10.38B	13.11	―	1.72%	3.95%	4.50%
7089	75 Outperform	¥8.13B	9.23	―	―	21.37%	93.71%
6539	73 Outperform	¥25.95B	24.11	―	5.45%	21.90%	0.46%
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%

Sportsfield Co., Ltd. Corporate Events

Sportsfield Posts Double-Digit Profit Growth and Hikes Dividend on Strong FY2025 Results

Sportsfield Co., Ltd. reported strong consolidated results for the fiscal year ended December 31, 2025, with revenue up 24.4% year on year to ¥4.78 billion and profit attributable to owners of the parent rising 31.6% to ¥783 million, as higher margins and solid demand lifted earnings and boosted return on equity to 37.4%. The company strengthened its financial base, with total assets climbing to ¥3.89 billion and equity to ¥2.43 billion, increased its year-end dividend to ¥21 per share, and, aided by the consolidation of LINDSPORTS, is guiding for a further 35.2% revenue jump and 20%-plus profit growth in the fiscal year ending December 2026, underscoring continued expansion and shareholder returns.

Operating cash flow improved to ¥863 million while the company continued to invest and modestly reduce financing cash outflows, leaving cash and equivalents at ¥1.78 billion at year-end, which supports its growth strategy and dividend policy. Non-consolidated results were also robust, with revenue up 15.3% and net income up 36.9%, suggesting that Sportsfield’s core operations remain highly profitable even as it integrates new businesses and adopts revised accounting standards.

The most recent analyst rating on (JP:7080) stock is a Hold with a Yen930.00 price target. To see the full list of analyst forecasts on Sportsfield Co., Ltd. stock, see the JP:7080 Stock Forecast page.