Artner Co., Ltd. (2163) AI Stock Analysis

• Market Cap: ¥22.01B
• Dividend Yield: 4.05%
• Average Volume (3M): 44.44K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.87
• Revenue Growth: 8.88%
• EPS Growth: 12.64%
• Country: JP
• Employees: 1,397
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 23.77
• Shares Outstanding: 10,627,920
• 10 Day Avg. Volume: 22,840
• 30 Day Avg. Volume: 44,440
• PEG Ratio: 0.79
• Price to Book (P/B): 4.18
• Price to Sales (P/S): 1.77
• P/FCF Ratio: 17.36
• 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: 84 Outperform
• Price Target: ¥2,472.00 ▲(19.25% Upside)

The score is driven primarily by strong financial performance: improving margins, strong ROE, and a debt-free balance sheet with solid cash conversion. Technicals are supportive due to a clear uptrend, but momentum indicators are stretched, adding near-term volatility risk. Valuation is supportive with a reasonable P/E and a high dividend yield.

Positive Factors

Balance Sheet Health

A debt-free balance sheet significantly reduces financial risk and enhances financial stability, allowing for more strategic investments and growth opportunities.

Cash Generation Ability

Strong cash generation supports sustainable operations and provides flexibility for reinvestment, dividends, or strategic acquisitions, reinforcing long-term business health.

Strategic Acquisition

The acquisition of JOUHOU GIKEN enhances Artner's service offerings in key industries, aligning with its growth strategy and potentially boosting market position and enterprise value.

Negative Factors

Moderate Revenue Growth

While consistent, the moderate revenue growth may limit rapid expansion potential, requiring strategic initiatives to accelerate growth and enhance competitive positioning.

Gross Margin Variability

Variability in gross margins can indicate challenges in cost management or pricing power, potentially impacting profitability if not addressed effectively.

Dependence on Staffing Model

Reliance on staffing and dispatch services exposes Artner to labor market fluctuations and competitive pressures, which could affect margins and growth if not diversified.

Artner Co., Ltd. Business Overview & Revenue Model

Company Description

Artner Co.,Ltd. provides worker dispatching and employment placement services in Japan. The company is also involved in the design and development of machinery, electronic devices, and electric circuits; and development of software. It serves engineers and corporate clients. Artner Co.,Ltd. was founded in 1962 and is headquartered in Yokohama, Japan.

How the Company Makes Money

Artner Co., Ltd. generates revenue primarily through its staffing services, where it places skilled workers in temporary or permanent positions within client companies. The company charges fees for these placements, which can be based on the duration of the assignment or a percentage of the employee's salary. In addition to staffing fees, Artner may earn revenue from outsourcing services, where they provide managed services or complete projects on behalf of clients. The company's partnerships with various industries and its focus on technology and engineering sectors contribute significantly to its revenue streams.

Artner Co., Ltd. Financial Statement Overview

Summary

High-quality fundamentals: strong and improving profitability (gross ~37%, operating ~16%, net ~11%), steady revenue growth through 2025, and rising EBIT/net income. Balance sheet is exceptionally low-risk with zero debt and strong ROE (~20%–27%). Cash conversion is solid with free cash flow closely tracking net income, though FCF has shown some year-to-year fluctuations and growth is steady rather than high.

Income Statement

Profitability is strong and improving: the latest annual period shows healthy gross margin (~37%), solid operating margin (~16%), and net margin (~11%). Revenue has grown consistently from 2020–2025, with the latest year up ~9%, and earnings have scaled alongside sales (EBIT and net income rising each year). The main weakness is that top-line growth is moderate rather than high-growth, and gross margin has shown some variability over the period (notably lower in 2022–2023 versus 2021).

Balance Sheet

Balance sheet quality is excellent: total debt is reported at zero across all periods, which materially reduces financial risk. Equity and total assets have steadily expanded, and returns on equity are consistently strong (roughly ~20% to ~27%), indicating efficient profitability on the capital base. The primary limitation is that, without leverage, future return expansion relies more heavily on continued operating performance rather than balance-sheet optimization.

Cash Flow

Cash generation is robust and well-aligned with earnings: operating cash flow is close to net income (about 0.93–1.12x over the period), and free cash flow also tracks net income closely (~0.95–0.99x), suggesting good earnings quality. Free cash flow has generally grown, including a strong increase in the latest year (~11%), though there have been occasional fluctuations (e.g., a decline in 2022), which is the key watch item.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.55B	11.13B	10.11B	9.24B	8.10B	7.17B
Gross Profit	4.34B	4.11B	3.54B	3.07B	2.80B	2.73B
EBITDA	1.98B	1.84B	1.55B	1.23B	1.09B	943.21M
Net Income	1.36B	1.26B	1.05B	895.15M	728.78M	628.56M
Balance Sheet
Total Assets	7.06B	6.69B	6.11B	5.67B	5.09B	4.43B
Cash, Cash Equivalents and Short-Term Investments	4.68B	4.59B	4.28B	3.98B	3.55B	3.02B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	2.03B	1.98B	1.84B	1.63B	1.51B	1.31B
Stockholders Equity	5.03B	4.71B	4.27B	4.05B	3.58B	3.12B
Cash Flow
Free Cash Flow	1.43B	1.13B	1.11B	858.46M	760.67M	851.36M
Operating Cash Flow	1.44B	1.18B	1.13B	872.60M	770.93M	899.28M
Investing Cash Flow	-80.23M	-49.98M	-5.97M	-24.09M	33.64M	-30.98M
Financing Cash Flow	-866.81M	-819.13M	-818.54M	-426.83M	-270.04M	-232.09M

Artner Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2073.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2163, the sentiment is Neutral. The current price of 2073 is below the 20-day moving average (MA) of 2132.76, above the 50-day MA of 2054.05, and above the 200-day MA of 1921.88, indicating a neutral trend. The MACD of 5.01 indicates Positive momentum. The RSI at 44.02 is Neutral, neither overbought nor oversold. The STOCH value of -7.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2163.

Artner Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2163	84 Outperform	¥22.01B	16.52	―	4.05%	8.88%	12.64%
2301	84 Outperform	¥25.08B	12.67	―	3.79%	2.69%	-13.40%
6089	73 Outperform	¥27.17B	15.16	―	3.86%	1.18%	-5.05%
9332	73 Outperform	¥22.64B	14.46	―	3.09%	4.92%	-27.88%
6539	73 Outperform	¥26.30B	25.32	―	5.45%	21.90%	0.46%
4433	64 Neutral	¥17.11B	26.32	―	3.66%	8.62%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Artner Co., Ltd. Corporate Events

Artner Co., Ltd. Updates Internal Control Framework for Enhanced Compliance and Efficiency

Artner Co., Ltd. has revised its ‘Basic Framework of the Internal Control System’ to enhance compliance, risk management, and operational efficiency. The updated framework includes measures such as a whistleblowing system, internal audits, and structured risk management meetings to ensure legal compliance and effective governance. These changes aim to strengthen the company’s internal controls, improve financial reporting accuracy, and streamline operations across its corporate group, potentially impacting its market positioning and stakeholder trust.

Artner Co., Ltd. Acquires JOUHOU GIKEN to Boost Technical Services

Artner Co., Ltd. has announced its decision to acquire JOUHOU GIKEN, Ltd., making it a subsidiary to enhance its service offerings in the automotive and aerospace industries. This strategic acquisition aligns with Artner’s medium-term business plan to expand its capabilities and improve enterprise value, positioning itself as a leader in providing comprehensive technical services.

Artner Co., Ltd. Announces Transition to Consolidated Financial Settlements

Artner Co., Ltd. has announced a transition to consolidated settlements of accounts following its acquisition of CLIP SOFT Corporation, which has become a subsidiary. This strategic shift is expected to integrate the financial results of CLIP SOFT with Artner’s, providing a more comprehensive financial outlook for FY2026, with projected net sales of 11,584 million yen and an operating profit of 1,855 million yen.