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Stock Analysis & ValuationOpenWork Inc. (5139.T)

Professional Stock Screener
Previous Close
¥1,145.00
Sector Valuation Confidence Level
Low
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)743.12-35
Intrinsic value (DCF)4786.76318
Graham-Dodd Method480.79-58
Graham Formula1009.55-12

Strategic Investment Analysis

Company Overview

OpenWork Inc. (5139.T) is a leading Japanese technology company specializing in job and recruitment information platforms. Headquartered in Shibuya, Japan, OpenWork operates its flagship platform, OpenWork, which provides comprehensive employment-related data, including company reviews, salary insights, corporate performance metrics, and candidate resumes. The company also offers alternative data services on Japanese firms, catering to businesses and job seekers alike. As a subsidiary of Link and Motivation Inc., OpenWork leverages its parent company’s expertise in human resources and corporate consulting. Operating in the Internet Content & Information sector, OpenWork plays a critical role in Japan’s labor market by enhancing transparency and efficiency in recruitment. With a strong digital presence and a growing demand for data-driven hiring solutions, OpenWork is well-positioned in Japan’s evolving HR tech landscape.

Investment Summary

OpenWork Inc. presents an intriguing investment opportunity in Japan’s HR technology sector, supported by its strong revenue growth (¥3.54B in FY 2024) and profitability (net income of ¥757M). The company’s zero debt and substantial cash reserves (¥6.62B) provide financial stability, while its negative beta (-0.22) suggests low correlation with broader market movements, potentially offering defensive characteristics. However, the lack of dividend payouts may deter income-focused investors. The company’s reliance on the domestic Japanese market could limit growth compared to global competitors, but its niche focus on alternative HR data and recruitment transparency provides a competitive edge. Investors should monitor user engagement metrics and potential expansion into adjacent HR tech services.

Competitive Analysis

OpenWork Inc. competes in Japan’s HR tech and recruitment information market, differentiating itself with a data-rich platform that aggregates company reviews, salary benchmarks, and corporate performance metrics. Its competitive advantage lies in its deep integration with Japan’s labor market, offering unique alternative data services that appeal to both job seekers and corporate clients. Unlike generalist job boards, OpenWork provides granular insights into workplace culture and compensation, enhancing its value proposition. However, the company faces competition from global HR platforms expanding into Japan, which may offer broader international job listings. OpenWork’s subsidiary relationship with Link and Motivation Inc. provides strategic HR industry expertise but may also limit operational independence. The company’s financial health (strong cash position, no debt) supports further platform enhancements and potential M&A activity to bolster market share.

Major Competitors

  • Lifenet Insurance Company (2120.T): Lifenet operates in Japan’s insurance sector but overlaps with OpenWork in providing digital platforms for employment-related services. Its strengths include a strong brand in financial services, but it lacks OpenWork’s specialized focus on recruitment data and HR analytics.
  • Careersigner Inc. (6070.T): Careersigner is a direct competitor in Japan’s online recruitment space, offering job matching and career support services. While it has a robust user base, it does not provide the same depth of company review data and salary transparency as OpenWork.
  • Sigmaxyz Holdings Inc. (6088.T): Sigmaxyz offers HR consulting and recruitment services, competing indirectly with OpenWork’s data platform. Its strength lies in corporate HR solutions, but it lacks a consumer-facing job review platform like OpenWork.
  • Mercari, Inc. (9218.T): Mercari operates a flea market app but has expanded into gig economy services, potentially competing for freelance job postings. Its strength is its large user base, but it does not specialize in traditional corporate recruitment data like OpenWork.
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