Link and Motivation Inc. (JP:2170)
:2170
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Link and Motivation Inc.
(2170)
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Rating:63Neutral
Price Target:
¥681.00
▲(35.12% Upside)
Action:ReiteratedDate:03/24/26
The score is driven primarily by solid underlying operations and consistently positive free cash flow, but it is capped by the sharp decline in 2025 net profitability and still-elevated leverage. Technicals are mixed with a weaker near-term trend, and valuation is only moderately supportive due to the negative P/E despite a ~3% dividend yield.
Positive Factors
Consistent positive free cash flow
Link and Motivation's consistently positive, high-quality free cash flow (about ¥5.2B in 2025 and ~97–98% correlation with net income) provides durable internal funding for investment, dividends, and debt service. That cash resilience cushions cyclical consulting demand and supports strategic reinvestment over the medium term.
Negative Factors
Sharp 2025 net margin decline
The pronounced drop in net margin despite stable EBIT implies meaningful non-operating pressures (taxes, one-offs, interest), reducing earnings resilience. Persistent bottom-line volatility threatens dividend sustainability, credit metrics and management flexibility if such items recur over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent positive free cash flow
Link and Motivation's consistently positive, high-quality free cash flow (about ¥5.2B in 2025 and ~97–98% correlation with net income) provides durable internal funding for investment, dividends, and debt service. That cash resilience cushions cyclical consulting demand and supports strategic reinvestment over the medium term.
Read all positive factors
Link and Motivation Inc. (2170) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥54.27B
Dividend Yield2.96%
Average Volume (3M)338.46K
Price to Earnings (P/E)34.1
Beta (1Y)1.14
Revenue Growth10.85%
EPS Growth-55.42%
CountryJP
Employees1,484
SectorIndustrials
Sector Strength72
IndustryConsulting Services
Share Statistics
EPS (TTM)-8.46
Shares Outstanding110,937,010
10 Day Avg. Volume315,560
30 Day Avg. Volume338,456
Financial Highlights & Ratios
PEG Ratio-0.60
Price to Book (P/B)4.07
Price to Sales (P/S)1.33
P/FCF Ratio10.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)31.5
Revenue Forecast (FY)¥46.94B
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 inc...
How the Company Makes Money
Link and Motivation Inc. generates revenue through its consulting services, which help companies improve organizational performance and employee engagement. It also makes money from its education and training programs that support skill developmen...
Link and Motivation Inc. Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
62
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 41.52B | 37.46B | 33.97B | 32.78B | 32.64B |
| Gross Profit | 22.61B | 19.88B | 17.70B | 16.07B | 15.34B |
| EBITDA | 7.50B | 7.40B | 6.26B | 5.02B | 5.42B |
| Net Income | 1.62B | 3.69B | 2.84B | 2.06B | 919.00M |
Balance Sheet | |||||
| Total Assets | 41.00B | 33.18B | 30.84B | 28.91B | 30.06B |
| Cash, Cash Equivalents and Short-Term Investments | 11.37B | 8.61B | 7.39B | 6.11B | 4.92B |
| Total Debt | 15.54B | 11.63B | 11.10B | 11.13B | 13.88B |
| Total Liabilities | 24.18B | 18.79B | 17.90B | 17.66B | 21.41B |
| Stockholders Equity | 13.59B | 11.29B | 10.16B | 9.06B | 7.49B |
Cash Flow | |||||
| Free Cash Flow | 5.16B | 5.46B | 4.22B | 3.42B | 3.99B |
| Operating Cash Flow | 5.25B | 5.64B | 4.34B | 3.55B | 4.32B |
| Investing Cash Flow | -2.68B | -1.94B | 738.00M | 1.18B | -1.48B |
| Financing Cash Flow | 237.00M | -2.49B | -3.81B | -3.53B | -4.37B |
Link and Motivation Inc. Technical Analysis
Neutral
504.00
Price Trends
550.99
Positive
526.01
Positive
518.73
Positive
Market Momentum
5.72
Positive
44.62
Neutral
6.04
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2170, the sentiment is Neutral. The current price of 504 is below the 20-day moving average (MA) of 572.14, below the 50-day MA of 550.99, and below the 200-day MA of 518.73, indicating a neutral trend. The MACD of 5.72 indicates Positive momentum. The RSI at 44.62 is Neutral, neither overbought nor oversold. The STOCH value of 6.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2170.
Link and Motivation Inc. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥787.30B | 18.08 | ― | 1.30% | 27.81% | 23.24% | |
72 Outperform | ¥24.40B | 16.33 | ― | 3.50% | 12.08% | 16.50% | |
72 Outperform | ¥108.21B | 16.22 | ― | 3.44% | 8.76% | 11.13% | |
71 Outperform | ¥22.42B | 8.70 | ― | 2.18% | ― | ― | |
64 Neutral | ¥30.71B | 31.60 | ― | 4.39% | 7.87% | -23.10% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥54.27B | 34.13 | ― | 2.96% | 10.85% | -55.42% |
* Industrials Sector Average
JP:2170
Link and Motivation Inc.
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Link and Motivation Inc. Corporate Events
Link and Motivation Reports One-Quarter Progress on ¥6 Billion Share Buyback
Apr 1, 2026
Link and Motivation Inc. has reported progress on its ongoing share repurchase program authorized by the board in February 2026, under which it may buy back up to 12 million shares, or about 10.82% of its outstanding stock, for a maximum of ¥...
Link and Motivation to Grant Restricted Stock via Disposal of Treasury Shares
Mar 26, 2026
Link and Motivation Inc. has approved the disposal of 45,900 treasury shares as restricted stock compensation, priced at 543 yen per share for a total value of 24.9 million yen. The shares will be allotted on April 24, 2026 to three executive offi...
Link and Motivation Reports Early Progress on ¥6 Billion Share Buyback Program
Mar 2, 2026
Link and Motivation Inc. has disclosed the progress of its ongoing share repurchase program authorized by its board on February 12, 2026, under which it executed market purchases of 752,100 common shares for a total of approximately ¥409 mill...
Link and Motivation Sets Record Results and Bets on Recurring Revenue Growth
Feb 12, 2026
Link and Motivation reported strong results for the fiscal year ended December 31, 2025, with significant year-on-year increases in revenue and gross profit, and revenues reaching a record high. The company also announced its largest-ever share re...
Link and Motivation Launches ¥6 Billion Share Buyback to Lift Capital Efficiency
Feb 12, 2026
Link and Motivation Inc. has approved a share repurchase program under its articles of incorporation and the Companies Act, reflecting a flexible capital policy aimed at improving capital efficiency and shareholder returns. The move follows progre...
Link and Motivation Secures ¥6 Billion Syndicated Loan to Fund Share Buyback
Feb 12, 2026
Link and Motivation Inc. has approved a syndicated loan agreement of up to ¥6 billion to fund a previously announced share repurchase program, reinforcing its capital efficiency strategy without pledging collateral. The facility, arranged and...
Link and Motivation Takes Goodwill Impairment as Career School Shifts Online
Feb 12, 2026
Link and Motivation Inc. reported consolidated revenues for 2025 that were broadly in line with its earlier forecast, but operating income and net income fell significantly short, with net income attributable to owners less than half the projected...
Link and Motivation Faces Profit Squeeze in 2025 but Targets Strong Earnings Rebound in 2026
Feb 12, 2026
Link and Motivation Inc. reported 2025 consolidated revenues of ¥41.5 billion, up 10.9% year on year, but operating income fell 23.4% and net income attributable to owners of the parent dropped 56.1%, reflecting margin pressure despite top-li...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.