Link and Motivation Inc. (2170) AI Stock Analysis

• Market Cap: ¥54.48B
• Dividend Yield: 2.96%
• Average Volume (3M): 338.46K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 1.20
• Revenue Growth: 10.63%
• EPS Growth: 7.42%
• Country: JP
• Employees: 1,484
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 6.53
• Shares Outstanding: 110,937,010
• 10 Day Avg. Volume: 315,560
• 30 Day Avg. Volume: 338,456
• PEG Ratio: 0.50
• Price to Book (P/B): 5.64
• Price to Sales (P/S): 1.70
• P/FCF Ratio: 11.65
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥594.00 ▲(17.86% Upside)

Link and Motivation Inc. scores well due to its strong financial performance, characterized by profitability and efficient cash generation. The valuation is reasonable with a fair P/E ratio and attractive dividend yield. However, technical indicators suggest a neutral to slightly bearish trend, which tempers the overall score.

Positive Factors

Sustained Profitability & Margins

Income statement trends show rising gross and net margins and healthy EBIT/EBITDA margins, indicating durable cost discipline and pricing power. Sustained margins support reinvestment in services and tech, underpin long-term cash generation and shareholder returns.

Strong Cash Generation

TTM free cash flow growth and a healthy operating cash flow-to-net income ratio demonstrate efficient conversion of earnings into cash. This supports capex for platform development, dividend sustainability, debt reduction, and strategic investments over the medium term.

Diversified Services & Structural Tailwind

A mix of consulting, customized training and subscription software provides multiple revenue streams and cross-sell opportunities. Combined with secular demand for workplace wellbeing and productivity solutions, this supports durable demand and expansion of recurring software revenue.

Negative Factors

Moderate Equity Ratio / Leverage Risk

Balance sheet shows improved leverage but only a moderate equity ratio, leaving a smaller capital buffer against shocks. If the company cannot sustain debt reduction, limited equity cushioning could constrain capital flexibility for M&A or cyclical downturns over the medium term.

Revenue Mix Predictability

A material portion of revenue derives from one‑off customized training fees, which reduces revenue predictability versus pure subscription models. Until recurring SaaS-like revenue grows, top-line and margin visibility may remain more volatile across economic cycles.

Limited Forward Guidance / Disclosures

Absence of guidance and empty earnings highlights reduces transparency into near-term planning and makes it harder for investors to assess management's forward view. This can hinder market confidence and obscure visibility for planning over the next several quarters.

Link and Motivation Inc. Business Overview & Revenue Model

Company Description

Link and Motivation Inc. provides consulting and cloud services in Japan. It offers consulting, training package, and cloud services for employee engagement; corporate branding services; personnel placement and temp staff services; and venture incubation services, as well as operates career schools and examination preparatory schools. Link and Motivation Inc. was incorporated in 2000 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Link and Motivation Inc. generates revenue through a combination of consulting services, training programs, and software solutions. Key revenue streams include fees for customized training sessions aimed at improving employee performance and motivation, as well as subscriptions to their software platforms that facilitate employee engagement and organizational feedback. The company may also engage in partnerships with businesses and educational institutions to deliver specialized programs and workshops, further diversifying its income sources. Additionally, the growing emphasis on workplace wellbeing and productivity creates a favorable market environment for their services, contributing positively to their earnings.

Link and Motivation Inc. Financial Statement Overview

Summary

Link and Motivation Inc. demonstrates strong financial health with consistent revenue and profit growth, efficient cost management, and a stable balance sheet. However, cash flow growth has faced some challenges, which slightly impacts the overall score.

Income Statement

Link and Motivation Inc. demonstrates strong profitability with a consistent increase in gross profit margin and net profit margin over the years. The company has shown a positive revenue growth rate, particularly in the TTM period, indicating a healthy upward trajectory. EBIT and EBITDA margins are also improving, reflecting efficient cost management and operational effectiveness.

Balance Sheet

The balance sheet shows a stable financial position with a manageable debt-to-equity ratio, which has improved over time. Return on equity is strong, indicating effective use of shareholder funds to generate profits. The equity ratio suggests a balanced approach to financing with a reasonable level of equity relative to total assets.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth in the TTM period, but the company maintains a healthy operating cash flow to net income ratio. The free cash flow to net income ratio is robust, indicating efficient cash generation relative to net income, although there is room for improvement in free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.21B	37.46B	33.97B	32.78B	32.64B	30.79B
Gross Profit	21.73B	19.88B	17.70B	16.07B	15.34B	14.65B
EBITDA	7.79B	7.20B	6.33B	5.38B	4.79B	3.61B
Net Income	3.72B	3.69B	2.84B	2.06B	918.00M	-995.00M
Balance Sheet
Total Assets	40.70B	33.18B	30.84B	28.91B	30.06B	41.08B
Cash, Cash Equivalents and Short-Term Investments	10.19B	8.62B	7.39B	6.12B	4.93B	6.46B
Total Debt	15.25B	11.63B	11.10B	11.13B	13.88B	28.38B
Total Liabilities	22.52B	18.79B	17.90B	17.61B	21.41B	36.17B
Stockholders Equity	14.96B	11.29B	10.16B	9.06B	7.49B	3.76B
Cash Flow
Free Cash Flow	5.83B	5.46B	3.69B	2.52B	3.10B	3.05B
Operating Cash Flow	5.90B	5.64B	4.34B	3.55B	4.32B	3.97B
Investing Cash Flow	-1.60B	-1.94B	286.00M	-269.00M	-728.00M	1.97B
Financing Cash Flow	-2.25B	-2.49B	-3.35B	-2.08B	-5.12B	-1.65B

Link and Motivation Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 504.00
• 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:2170, the sentiment is Positive. The current price of 504 is below the 20-day moving average (MA) of 515.17, above the 50-day MA of 499.87, and below the 200-day MA of 511.34, indicating a bullish trend. The MACD of 8.89 indicates Negative momentum. The RSI at 68.67 is Neutral, neither overbought nor oversold. The STOCH value of 87.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
4792	72 Outperform	¥34.93B	14.69	―	4.39%	2.46%	-31.77%
9644	72 Outperform	¥25.11B	22.72	―	3.50%	15.91%	36.39%
2170	71 Outperform	¥54.48B	15.28	―	2.96%	10.63%	7.42%
9168	68 Neutral	¥17.17B	11.41	―	1.04%	23.25%	14.29%
4763	66 Neutral	¥34.42B	9.84	―	2.71%	4.27%	27.62%
7033	66 Neutral	¥23.26B	12.57	―	2.18%	17.87%	5.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Link and Motivation Inc. Corporate Events

Link and Motivation Inc. Reports Strong Financial Growth and Strategic Partnerships

Link and Motivation Inc. reported significant year-on-year increases in revenues, gross profit, and operating income for the nine months ending September 2025. The company has partnered with Fukuoka Financial Group to expand its Motivation Cloud Basic offering to approximately 52,000 companies, enhancing its market reach. Additionally, the integration of Unipos Inc.’s Peer Bonus service into Motivation Cloud has driven a 26.7% increase in monthly fee revenue, reflecting strong growth in their cloud business segment.

The most recent analyst rating on (JP:2170) stock is a Hold with a Yen569.00 price target. To see the full list of analyst forecasts on Link and Motivation Inc. stock, see the JP:2170 Stock Forecast page.

Link and Motivation Inc. Expands Shareholder Benefits Program

Link and Motivation Inc. has announced an expansion of its shareholder benefits program, introducing a wider range of gift options, including the addition of the QUO Card. This initiative aims to express gratitude to shareholders and enhance corporate value by offering more convenient and diverse reward options, potentially strengthening shareholder relations and increasing stakeholder satisfaction.

The most recent analyst rating on (JP:2170) stock is a Hold with a Yen569.00 price target. To see the full list of analyst forecasts on Link and Motivation Inc. stock, see the JP:2170 Stock Forecast page.

Link and Motivation Inc. Reports Strong Financial Growth and Strategic Expansion

Link and Motivation Inc. reported a 10% increase in revenues for the first nine months of 2025 compared to the previous year, with operating income rising by 11.1%. The company also announced the addition of Unipos to its scope of consolidation, indicating strategic expansion. The financial results suggest a strong performance trajectory, with dividends per share expected to increase significantly by the end of the year, reflecting a positive outlook for stakeholders.

The most recent analyst rating on (JP:2170) stock is a Hold with a Yen569.00 price target. To see the full list of analyst forecasts on Link and Motivation Inc. stock, see the JP:2170 Stock Forecast page.