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

• Market Cap: ¥25.68B
• Dividend Yield: 3.13%
• Average Volume (3M): 352.40K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.69
• Revenue Growth: 2.66%
• EPS Growth: -3.15%
• Country: JP
• Employees: 1,055
• Sector: Industrials
• Sector Strength: 91
• Industry: Staffing & Employment Services
• EPS (TTM): 24.50
• Shares Outstanding: 79,007,510
• 10 Day Avg. Volume: 253,490
• 30 Day Avg. Volume: 352,400
• PEG Ratio: -1.55
• Price to Book (P/B): 2.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.12
• 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

S-Pool, Inc. receives an overall stock score of 71, highlighting its strengths in financial performance and valuation. The company's stable revenue growth and profitability are supported by efficient operations, but high leverage is a concern. Despite this, the stock's valuation is appealing with a low P/E ratio and solid dividend yield. Technical indicators suggest a stable to slightly positive trend, although the stock faces some long-term pressure.

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. makes money primarily through its staffing and outsourcing services. The company earns revenue by providing temporary and contract workers to various industries, charging client companies for the placement and management of these workers. Additionally, S-Pool generates income through employment support services, assisting job seekers in finding employment and receiving fees from partner companies for successful placements. The company's financial performance is bolstered by its strategic partnerships with businesses across different sectors, ensuring a steady demand for its workforce solutions.

S-Pool, Inc. Financial Statement Overview

Summary

S-Pool, Inc. demonstrates solid financial health with stable income and cash flow statements, though balance sheet leverage poses potential risks. The company maintains steady revenue growth and profitability, supported by efficient operations, yet should cautiously manage debt levels to mitigate financial risks.

Income Statement

S-Pool, Inc. shows a healthy gross profit margin of 38.06% and a stable EBIT margin of 11.34% TTM. However, the net profit margin decreased slightly to 7.44% from 8.21% in the previous year. The revenue growth rate is modest at 1.85% TTM, indicating steady but not rapid growth. Stability in EBITDA margin at 25.06% TTM highlights operational efficiency.

Balance Sheet

The debt-to-equity ratio is relatively high at 2.72, indicating significant leverage, which could pose financial risk. However, the equity ratio is 23.22%, which shows a moderate equity buffer. ROE stands at 21.83% TTM, demonstrating effective use of equity to generate profits, although it has decreased from previous levels.

Cash Flow

The free cash flow growth rate is minimal at 0.87% TTM, reflecting consistent cash generation. Operating cash flow to net income ratio is strong at 2.37, indicating robust cash earnings. However, the free cash flow to net income ratio is lower at 0.90, suggesting some constraints in free cash flow relative to net income.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
26.03B	25.55B	25.78B	26.65B	24.86B	21.01B
	Gross Profit
9.91B	9.45B	8.91B	8.74B	7.53B	6.38B
	EBIT
2.95B	2.78B	2.78B	3.09B	2.67B	2.23B
	EBITDA
6.52B	6.18B	5.39B	5.19B	3.34B	2.73B
	Net Income Common Stockholders
1.94B	2.10B	1.73B	1.81B	1.88B	1.58B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.98B	3.81B	3.38B	3.21B	3.94B	2.51B
	Total Assets
15.87B	39.71B	33.38B	17.03B	15.32B	11.30B
	Total Debt
5.48B	24.00B	19.82B	4.64B	4.87B	2.86B
	Net Debt
1.50B	20.19B	16.45B	1.43B	928.00M	349.00M
	Total Liabilities
9.78B	29.89B	24.88B	9.60B	9.21B	6.84B
	Stockholders Equity
6.05B	9.84B	8.51B	7.44B	6.08B	4.46B
Cash Flow		Free Cash Flow
1.75B	1.74B	-74.00M	87.00M	27.00M	102.00M
	Operating Cash Flow
4.59B	5.07B	4.10B	2.86B	2.19B	2.23B
	Investing Cash Flow
-2.86B	-3.39B	-4.57B	-2.85B	-2.51B	-2.05B
	Financing Cash Flow
-2.69B	-1.24B	640.00M	-737.00M	1.74B	215.00M

S-Pool, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 319.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2471, the sentiment is Positive. The current price of 319 is above the 20-day moving average (MA) of 303.95, above the 50-day MA of 300.64, and above the 200-day MA of 312.80, indicating a bullish trend. The MACD of 6.60 indicates Negative momentum. The RSI at 63.83 is Neutral, neither overbought nor oversold. The STOCH value of 93.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2471.

S-Pool, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4318	80 Outperform	¥39.63B	11.05		4.54%	10.22%	2.21%
2471	71 Outperform	¥25.68B	13.02		3.13%	2.66%	-3.15%
Sector *	64 Neutral	$4.44B	11.99	5.16%	249.23%	4.01%	-11.87%

S-Pool, Inc. Corporate Events

S-Pool Announces Share Acquisition Rights Issuance Details

S-Pool, Inc. has announced the determination of details regarding the issuance of share acquisition rights, which are paid-in stock options, to its executive directors and employees, as well as employees of its subsidiaries. This decision follows a board resolution made earlier in April 2025. The issuance involves a total of 12,250 share acquisition rights, which will translate into 1,225,000 common shares upon exercise. This move is likely aimed at incentivizing and retaining key personnel within the company and its subsidiaries.

S-Pool, Inc. Announces Share Options to Boost Corporate Value

S-Pool, Inc. announced the issuance of share acquisition rights to its Executive Directors and employees, as well as employees of its subsidiaries. This initiative is designed to boost motivation and morale, aiming to enhance business performance and corporate value over the medium to long term. The share options are set at a fair price and are contingent upon meeting performance targets, which aligns with the interests of existing shareholders by minimizing share dilution.

S-Pool, Inc. Reports Q1 2025 Financial Results with Revenue Growth but Declining Profits

S-Pool, Inc. reported its consolidated financial results for the three months ended February 28, 2025, showing a revenue increase of 8.4% year-on-year, reaching 6,131 million yen. Despite this revenue growth, the profit attributable to owners of the parent decreased by 62.4% compared to the previous year. The company’s total assets and equity showed a slight decline, and the forecast for the fiscal year ending November 30, 2025, anticipates a modest revenue growth of 5% with a decrease in profit attributable to owners of the parent by 9.2%.

S-Pool, Inc. Emphasizes Governance and Transparency in Corporate Strategy

S-Pool, Inc. has outlined its corporate governance framework, emphasizing diversity, ethical behavior, and transparency. The company is committed to enhancing management efficiency and societal trust through compliance and internal controls. Despite not having a formal CEO succession plan or policy-based shareholdings, S-Pool maintains a diverse board and prioritizes independent oversight to ensure effective governance.