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

• Market Cap: ¥20.61B
• Dividend Yield: 4.05%
• Average Volume (3M): 44.44K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.79
• Revenue Growth: 8.88%
• EPS Growth: 12.64%
• Country: JP
• Employees: 1,397
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): N/A
• Shares Outstanding: 10,627,920
• 10 Day Avg. Volume: 22,840
• 30 Day Avg. Volume: 44,440
• PEG Ratio: -122.00
• Price to Book (P/B): 4.21
• Price to Sales (P/S): 1.83
• P/FCF Ratio: 15.65
• 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): 124.2
• Revenue Forecast (FY): ¥12.00B

• Rating: 66 Neutral
• Price Target: ¥2,105.00 ▲(1.54% Upside)
• Action: Downgraded Date: 03/14/26
• Date: Action: Downgraded 03/14/26

Overall score is supported primarily by strong financial quality (profitability and cash flow) and a solid dividend yield, but is meaningfully offset by weak technicals showing bearish momentum and the recent slowdown in revenue growth alongside new debt in 2026.

Positive Factors

Strong free cash flow generation

Consistent free cash flow growth and tight cash conversion (FCF tracking net income and rising to ~1.41B) provide durable internal funding. This underpins dividends, working capital and reinvestment in recruiting/training, and cushions the balance sheet against cyclical stress.

Healthy margins and profitability

Sustained operating and net margins indicate efficient delivery of engineering services and pricing power. Strong profitability supports reinvestment in skill development, funds shareholder returns, and creates a margin buffer to absorb wage inflation or temporary demand softness over several quarters.

Stable staffing-based business model

A recurring, fee-based staffing model tied to billable time creates predictable revenue when utilization is maintained. The model scales with headcount and higher-value assignments can lift average billing, giving structural revenue resilience across manufacturing and engineering cycles.

Negative Factors

Revenue growth slowdown

A marked deceleration in top-line growth reduces operating leverage and the margin expansion runway. Slower revenue makes it harder to fund growth initiatives internally and raises reliance on winning higher-margin contracts or improving utilization to sustain profit growth over multiple quarters.

New leverage on balance sheet

The introduction of meaningful debt after a debt-free period shifts financial risk profile. Interest and amortization obligations reduce flexibility for dividend policy, hiring or M&A and introduce refinancing and covenant risk if cash flow weakens or growth stalls over the medium term.

Dependency on recruiting and utilization

Margins and revenue are highly sensitive to the firm’s ability to recruit, retain and deploy skilled engineers. Structural tightness in engineering labor markets or rising personnel costs can compress spreads and limit scalability, making operational execution a persistent risk.

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 makes money primarily by providing engineering talent and technical services to client companies under staffing/dispatch and contracted service arrangements. The core revenue stream is service fees billed to clients for the work performed by dispatched/assigned engineers (typically based on billable time and/or agreed project terms), with gross profit generated from the spread between client billing rates and the company’s personnel-related costs (wages, benefits, recruiting, and training). Additional revenue can come from contracted engineering work where the company delivers defined development/design outputs for a fixed fee or milestone-based payments; however, null regarding the specific share of these streams for Artner. Key factors influencing earnings include engineer utilization (billable rate), the ability to secure higher-value assignments (which can raise billing rates), recruiting and retention of engineers, and labor cost control. null regarding any significant disclosed partnerships materially contributing to revenue.

Artner Co., Ltd. Financial Statement Overview

Summary

Strong multi-year revenue growth with solid profitability and high cash conversion. Key risks are the recent deceleration in revenue growth and the appearance of debt in 2026, indicating a shift toward higher leverage/investment.

Income Statement

Revenue shows a strong multi-year uptrend (about +68% from 2021 to 2026 annual), though growth has decelerated recently (2026 annual revenue growth ~4% vs ~10% in 2025). Profitability looks solid and improving through 2025 with healthy operating and net margins (2025 net margin ~11% and operating margin ~16%). A key watch item is margin consistency into 2026 since margin details weren’t provided for that year, but earnings remained roughly stable versus 2025.

Balance Sheet

The balance sheet is conservatively positioned with no reported debt from 2021–2025 and a meaningful equity base that has steadily grown. Return on equity has been strong (roughly 20%–27% across 2021–2025), suggesting efficient capital use. In 2026 annual, debt appears on the balance sheet (~1.04B) and assets step up materially versus 2025, indicating a change in financing and/or investment posture; while leverage still looks manageable relative to equity, the direction of debt is the main incremental risk.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow generally track earnings closely (free cash flow running near net income in 2021–2025), supporting earnings quality. Free cash flow has grown materially over the period (from ~0.85B in 2021 to ~1.41B in 2026 annual), although growth can be lumpy (declines in 2022 and a slight dip in 2026). Overall, cash conversion remains strong and provides flexibility even with the higher 2026 debt balance.

Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	11.55B	12.05B	11.13B	10.11B	9.24B	8.10B
Gross Profit	4.34B	4.57B	4.11B	3.54B	3.07B	2.80B
EBITDA	1.98B	1.86B	1.84B	1.55B	1.23B	1.09B
Net Income	1.36B	1.26B	1.26B	1.05B	895.15M	728.78M
Balance Sheet
Total Assets	7.06B	9.06B	6.69B	6.11B	5.67B	5.09B
Cash, Cash Equivalents and Short-Term Investments	4.68B	4.73B	4.59B	4.28B	3.98B	3.55B
Total Debt	0.00	1.04B	0.00	0.00	0.00	0.00
Total Liabilities	2.03B	3.84B	1.98B	1.84B	1.63B	1.51B
Stockholders Equity	5.03B	5.22B	4.71B	4.27B	4.05B	3.58B
Cash Flow
Free Cash Flow	1.43B	1.41B	1.13B	1.11B	858.46M	760.67M
Operating Cash Flow	1.44B	1.42B	1.18B	1.13B	872.60M	770.93M
Investing Cash Flow	-80.23M	-1.39B	-49.98M	-5.97M	-24.09M	33.64M
Financing Cash Flow	-866.81M	110.22M	-819.13M	-818.54M	-426.83M	-270.04M

Artner Co., Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2163, the sentiment is Negative. The current price of 2073 is above the 20-day moving average (MA) of 1987.20, above the 50-day MA of 2047.44, and above the 200-day MA of 1958.51, indicating a bearish trend. The MACD of -25.92 indicates Positive momentum. The RSI at 38.25 is Neutral, neither overbought nor oversold. The STOCH value of 26.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2163.

Artner Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9332	73 Outperform	¥20.67B	8.06	―	3.09%	4.92%	-27.88%
6539	73 Outperform	¥25.95B	24.11	―	5.45%	21.90%	0.46%
6089	70 Outperform	¥27.72B	8.25	―	3.86%	1.18%	-5.05%
2163	66 Neutral	¥20.61B	17.48	―	4.05%	8.88%	12.64%
4433	64 Neutral	¥16.24B	65.84	―	3.66%	8.62%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2471	52 Neutral	¥19.43B	14.32	―	3.76%	6.74%	7.56%

Artner Co., Ltd. Corporate Events

Artner Announces Share Buyback to Boost Capital Efficiency and Shareholder Returns

Artner Co., Ltd. has authorized a new share buyback program, resolving at its board meeting on March 13, 2026 to repurchase up to 30,000 common shares, or 0.28% of its outstanding stock, for a maximum of ¥50 million via market purchases on the Tokyo Stock Exchange between March 16 and April 30, 2026. The company aims to enhance shareholder returns and capital efficiency through this buyback, and plans to consider the acquired treasury shares within future capital policies, including potential use in stock-based compensation, signaling a focus on long-term enterprise value and aligning management and employee incentives with shareholder interests.

The most recent analyst rating on (JP:2163) stock is a Buy with a Yen2621.00 price target. To see the full list of analyst forecasts on Artner Co., Ltd. stock, see the JP:2163 Stock Forecast page.

Artner Raises Annual Dividend to ¥84 Per Share for FY2026

Artner Co., Ltd. has announced that its board resolved to pay a year-end dividend of ¥42 per share for the fiscal year ended January 31, 2026, matching its prior forecast and the previous year’s year-end level. This brings the total annual dividend to ¥84 per share, up from ¥82 in the previous fiscal year, and the payment, funded from retained earnings, is subject to approval at the shareholders’ meeting in April.

Management reiterated that providing stable and progressively increasing dividends is a top-priority policy, guided by a target payout ratio of 50%. The decision to raise the annual dividend reflects the company’s comprehensive assessment of business performance and its operating environment, underscoring a continued commitment to shareholder returns and a strengthening of its financial foundation.

The most recent analyst rating on (JP:2163) stock is a Buy with a Yen2621.00 price target. To see the full list of analyst forecasts on Artner Co., Ltd. stock, see the JP:2163 Stock Forecast page.

Artner Delivers Strong First Consolidated Results and Lifts Dividend Outlook

Artner Co., Ltd. reported consolidated net sales of ¥12.0 billion and operating profit of ¥1.82 billion for the fiscal year ended January 31, 2026, marking its first year of consolidated financial reporting. Profit attributable to owners of parent reached ¥1.26 billion, with robust profitability metrics including a 15.1% operating margin, 24.1% return on equity, and an equity ratio of 57.7%, supported by solid operating cash flow of ¥1.41 billion and year-end cash and equivalents of ¥4.73 billion.

The company maintained a shareholder-friendly capital policy, raising its annual dividend to ¥84 per share for fiscal 2026 and planning a further increase to ¥86 in fiscal 2027, implying a payout ratio above 70%. For the year ending January 31, 2027, Artner forecasts a 16.4% rise in net sales to ¥14.0 billion and a 10.7% increase in operating profit to ¥2.02 billion, while integrating two newly consolidated subsidiaries, CLIP SOFT Corporation and JOUHOU GIKEN, Ltd., to strengthen its group capabilities and earnings base.

The most recent analyst rating on (JP:2163) stock is a Buy with a Yen2621.00 price target. To see the full list of analyst forecasts on Artner Co., Ltd. stock, see the JP:2163 Stock Forecast page.