Link and Motivation Inc. (2170) AI Stock Analysis

• Market Cap: ¥48.81B
• Dividend Yield: 3.53%
• Average Volume (3M): 252.29K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 1.24
• Revenue Growth: 12.41%
• EPS Growth: 37.84%
• Country: JP
• Employees: 1,484
• Sector: Industrials
• Sector Strength: 89
• Industry: Consulting Services
• EPS (TTM): 7.01
• Shares Outstanding: 109,000,000
• 10 Day Avg. Volume: 248,770
• 30 Day Avg. Volume: 252,290
• PEG Ratio: 2.16
• Price to Book (P/B): 4.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.14
• 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: ¥576.00
• Price Target Upside: 19.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥544.00 ▲(12.40%Upside)

Link and Motivation Inc. demonstrates strong financial performance with growth and profitability, supported by a solid balance sheet and cash flow. Valuation metrics suggest the stock is attractively priced with a strong dividend yield. However, technical indicators reveal moderate bearish momentum, which slightly tempers the overall outlook.

Link and Motivation Inc. Business Overview & Revenue Model

Company Description

Link and Motivation Inc. is a Japanese company that operates in the human resources and organizational consulting sector. The company specializes in providing services that enhance organizational productivity and employee motivation through consulting, educational programs, and technology-based solutions. Their core services include management consulting, employee training, and the development of motivational tools to improve workplace engagement and efficiency.

How the Company Makes Money

Link and Motivation Inc. generates revenue through its diverse range of consulting and educational services aimed at businesses seeking to enhance their organizational performance. Key revenue streams include fees from management consulting services, which offer strategic advice and solutions for improving workplace motivation and productivity. Additionally, the company earns income from conducting workshops and webinars focused on employee training and development. Technology-based solutions, such as software platforms that track and enhance employee engagement, also contribute to their earnings. The company may have partnerships with educational institutions and corporations that further bolster its revenue through collaborative projects and long-term service contracts.

Link and Motivation Inc. Financial Statement Overview

Summary

Link and Motivation Inc. displays strong financial health with consistent revenue growth and improving profitability. The balance sheet reflects a stable financial position with manageable leverage, while cash flow statements indicate effective cash utilization. The company is well-positioned for continued growth, but should monitor debt levels to maintain financial flexibility.

Income Statement

The company exhibits strong revenue growth with a 3% increase in TTM revenue compared to the previous annual report. Gross and net profit margins are solid, indicating efficient cost management and profitability. EBIT and EBITDA margins also reflect healthy operational performance. Overall, the income statement highlights a positive growth trajectory with improving profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, suggesting a balanced approach to leverage. The return on equity has improved, indicating better use of shareholder funds. However, the equity ratio is moderate, reflecting a reasonable level of financial stability. The company maintains a healthy asset base, but vigilance on debt levels is recommended.

Cash Flow

Cash flow analysis reveals robust operating cash flow, indicating strong cash generation from core activities. While free cash flow decreased slightly from the previous period, the company maintains a solid free cash flow to net income ratio, reflecting efficient cash conversion. The cash flow statement demonstrates effective cash management and sustainable cash generation capabilities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.46B	33.97B	32.78B	32.64B	35.28B
Gross Profit	19.88B	17.70B	16.07B	15.34B	14.65B
EBITDA	7.20B	6.33B	5.38B	4.79B	3.61B
Net Income	3.69B	2.84B	2.06B	918.00M	-930.00M
Balance Sheet
Total Assets	33.18B	30.84B	28.91B	30.06B	41.08B
Cash, Cash Equivalents and Short-Term Investments	8.62B	7.39B	6.12B	4.93B	6.46B
Total Debt	11.63B	11.10B	11.13B	13.88B	28.38B
Total Liabilities	18.79B	17.90B	17.61B	21.41B	36.17B
Stockholders Equity	11.29B	10.16B	9.16B	7.49B	3.76B
Cash Flow
Free Cash Flow	5.46B	3.69B	2.52B	3.10B	3.05B
Operating Cash Flow	5.64B	4.34B	3.55B	4.32B	3.97B
Investing Cash Flow	-1.94B	286.00M	-269.00M	-728.00M	1.97B
Financing Cash Flow	-2.49B	-3.35B	-2.08B	-5.12B	-1.65B

Link and Motivation Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 484.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2170, the sentiment is Negative. The current price of 484 is below the 20-day moving average (MA) of 489.98, below the 50-day MA of 510.69, and below the 200-day MA of 537.92, indicating a bearish trend. The MACD of -2.95 indicates Negative momentum. The RSI at 41.14 is Neutral, neither overbought nor oversold. The STOCH value of 27.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2170.

Link and Motivation Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9168	80 Outperform	¥30.36B	19.78		0.73%	28.44%	16.33%
4763	77 Outperform	¥33.44B	13.80		2.73%	2.71%	-3.80%
9644	77 Outperform	¥26.36B	25.35		4.67%	14.16%	61.59%
2170	72 Outperform	¥48.81B	13.23		3.53%	12.41%	37.84%
Sector *	71 Outperform	¥255.75B	13.62	8.48%	4.48%	6.34%	13.16%
4792	66 Neutral	¥31.56B	10.99		7.23%	2.63%	0.62%
7033	65 Neutral	¥27.35B	12.95		1.84%	16.97%	26.12%

Link and Motivation Inc. Corporate Events

Link and Motivation Inc. Completes Acquisition of Unipos Inc.

Link and Motivation Inc. has successfully completed the acquisition of Unipos Inc., making it a wholly owned subsidiary. This strategic move, finalized through a series of share exchanges and transfers, is expected to strengthen Link and Motivation’s market position by integrating Unipos’s capabilities and offerings into its portfolio.

Link and Motivation Inc. Corrects Share Exchange Details in Unipos Acquisition

Link and Motivation Inc. announced a correction to a previous notice regarding its acquisition of Unipos Inc., making Unipos a wholly owned subsidiary. The correction involves the number of treasury shares held by Link and Motivation and the number of new shares to be issued during the share exchange, which impacts the share exchange ratio and the overall transaction structure.

Link and Motivation to Acquire Unipos as Wholly Owned Subsidiary

Link and Motivation Inc. has announced a strategic move to make Unipos Inc. a wholly owned subsidiary through a share exchange agreement. This transaction, set to be completed by August 1, 2025, involves acquiring shares from Sansan, Inc. and aims to consolidate Unipos’ operations under Link and Motivation, potentially enhancing its market position and operational synergies.

Link and Motivation Inc. Reports Strong Q1 Growth and Strategic Alliances

Link and Motivation Inc. reported a significant increase in revenues and gross profit for the first quarter of 2025, with operating income rising by 52.7%. The company plans a dividend payout and has expanded its Motivation Cloud service to SMEs, securing a referral agreement with The San-in Godo Bank, Ltd. Additionally, a capital alliance with GO inc. aims to enhance purpose-driven management support.

Link and Motivation Inc. Reports Strong Q1 2025 Financial Performance

Link and Motivation Inc. reported a significant increase in its financial performance for the first quarter of 2025, with revenues rising by 12.8% and net income attributable to owners of the parent increasing by 42.1% compared to the same period last year. The company has also announced a higher dividend per share for 2025, reflecting its robust financial health and commitment to delivering value to its shareholders.

Link and Motivation Inc. Completes Treasury Shares Disposal

Link and Motivation Inc. has completed the payment procedures for the disposal of 46,000 treasury shares as restricted stock, which was resolved by its Board of Directors. This disposal is part of the company’s strategic financial management, potentially impacting its equity structure and aligning the interests of its directors and employees with corporate goals.