Linical Co., Ltd. (2183) AI Stock Analysis

• Market Cap: ¥7.81B
• Dividend Yield: 5.3%
• Average Volume (3M): 14.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: -15.42%
• EPS Growth: -879.08%
• Country: JP
• Employees: 662
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -33.24
• Shares Outstanding: 24,740,000
• 10 Day Avg. Volume: 18,600
• 30 Day Avg. Volume: 14,993
• PEG Ratio: 0.05
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 12.00
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: ¥306.00 ▲(1.32% Upside)

The overall stock score reflects significant financial performance challenges, with declining revenues and profitability issues being the most impactful. Technical analysis indicates bearish momentum, while the high dividend yield offers some valuation support.

Positive Factors

Strong Liquidity

Linical's strong liquidity position, evidenced by a negative net debt and a reasonable equity ratio, provides a cushion against liabilities, supporting operational stability and the ability to invest in growth opportunities.

Service Model Resilience

The company's service-based revenue model, with diverse contract types, ensures steady income streams and adaptability to client needs, reinforcing its market position in the clinical research sector.

Partnerships and Collaborations

Strategic partnerships enhance Linical's service offerings and expand its client base, bolstering its capabilities in drug development and providing a competitive edge in the industry.

Negative Factors

Declining Revenue

A significant drop in revenue impacts Linical's profitability and growth potential, necessitating strategic adjustments to regain financial performance and market competitiveness.

Negative Profit Margins

Negative profit margins highlight operational inefficiencies and financial challenges, requiring cost management and revenue enhancement strategies to achieve sustainable profitability.

Declining Cash Flow

Although free cash flow is positive, its decline signals potential cash management issues that could limit Linical's ability to invest in growth and manage financial obligations effectively.

Linical Co., Ltd. Business Overview & Revenue Model

Company Description

Linical Co., Ltd. (2183) is a prominent clinical research organization based in Japan, specializing in providing comprehensive services to pharmaceutical and biotechnology companies. The company operates in the healthcare sector, focusing on drug development, clinical trials, and regulatory support. Linical offers a range of core services including project management, data management, biostatistics, and medical writing, aimed at facilitating the efficient and effective advancement of new therapies from initial research through to market approval.

How the Company Makes Money

Linical Co., Ltd. generates revenue primarily through its clinical research services offered to pharmaceutical and biotechnology firms. The company's revenue model is based on service contracts, which can include fixed price agreements, milestone payments, and time-and-materials contracts. Key revenue streams stem from conducting clinical trials, managing regulatory submissions, and providing consulting services tailored to clients' needs. Additionally, Linical has established significant partnerships with various healthcare organizations and research institutions, which enhance its service offerings and contribute to its earnings by expanding its client base and capabilities in drug development.

Linical Co., Ltd. Financial Statement Overview

Summary

Linical Co., Ltd. faces challenges in profitability with declining revenues and losses impacting the income statement. The balance sheet is stable with moderate leverage and strong liquidity, while cash flows are positive but declining, highlighting the need for improved operational performance.

Income Statement

The income statement shows declining performance with total revenue decreasing from the previous year, leading to negative net income in the latest period. The gross profit margin is approximately 19.23%, but the net profit margin is negative due to the loss. Revenue growth has been inconsistent, with a significant drop in the most recent period, and EBIT and EBITDA margins have deteriorated.

Balance Sheet

The balance sheet indicates moderate strength with a stable equity base, though the debt-to-equity ratio is approximately 0.32, suggesting moderate leverage. The equity ratio is around 43.24%, providing a reasonable cushion against liabilities. However, the net debt position is negative, indicating strong liquidity.

Cash Flow

Cash flow analysis reveals declining free cash flow, but it remains positive. Free cash flow to net income ratio is not applicable due to negative net income, but the operating cash flow to net income ratio is positive, indicating operational cash generation despite financial losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.14B	10.44B	12.31B	12.52B	11.56B	10.28B
Gross Profit	2.18B	2.01B	3.78B	4.16B	3.61B	2.77B
EBITDA	-23.84M	40.97M	1.20B	1.89B	1.50B	801.38M
Net Income	-633.91M	-539.10M	338.27M	1.00B	790.49M	539.97M
Balance Sheet
Total Assets	15.22B	16.78B	18.54B	17.46B	15.72B	15.28B
Cash, Cash Equivalents and Short-Term Investments	5.53B	7.04B	7.47B	7.04B	5.99B	5.08B
Total Debt	2.22B	2.33B	2.90B	3.54B	4.10B	4.69B
Total Liabilities	8.53B	9.52B	10.30B	9.88B	9.17B	9.57B
Stockholders Equity	6.69B	7.25B	8.24B	7.58B	6.54B	5.71B
Cash Flow
Free Cash Flow	0.00	602.21M	1.03B	1.83B	1.59B	-44.89M
Operating Cash Flow	0.00	595.48M	1.06B	1.84B	1.63B	23.61M
Investing Cash Flow	0.00	-45.31M	-28.00M	-14.19M	20.76M	169.00M
Financing Cash Flow	0.00	-939.22M	-960.92M	-957.33M	-951.55M	-329.56M

Linical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 302.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2183, the sentiment is Negative. The current price of 302 is below the 20-day moving average (MA) of 315.90, below the 50-day MA of 332.56, and below the 200-day MA of 323.40, indicating a bearish trend. The MACD of -10.40 indicates Positive momentum. The RSI at 29.22 is Positive, neither overbought nor oversold. The STOCH value of 40.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2183.

Linical Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4584	55 Neutral	¥11.55B	35.91	―	―	83.60%	―
2183	52 Neutral	¥7.81B	-12.33	―	5.30%	-15.42%	-879.08%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
3750	45 Neutral	¥7.50B	-4.10	―	―	-93.79%	-1332.86%
4564	42 Neutral	€8.13B	-7.95	-63.25%	―	99.87%	40.60%
4893	41 Neutral	¥6.97B	-8.91	―	―	-12.01%	26.66%

Linical Co., Ltd. Corporate Events

Linical Co., Ltd. Revises Financial Forecast Amid Challenging Market Conditions

Linical Co., Ltd. has revised its financial forecast for the fiscal year ending March 2026, citing lower-than-expected sales and profits due to a challenging business environment and delays in project acquisitions. Despite securing large-scale projects in Japan and advancing contracts in Europe and the U.S., the company anticipates revenue shortfalls. Additionally, Linical recorded a loss on income tax adjustments due to the non-recoverability of certain deferred tax assets, impacting its financial outlook.

The most recent analyst rating on (JP:2183) stock is a Hold with a Yen348.00 price target. To see the full list of analyst forecasts on Linical Co., Ltd. stock, see the JP:2183 Stock Forecast page.

Linical Co., Ltd. Reports Decline in Financial Performance for H1 2025

Linical Co., Ltd. reported a decline in its consolidated financial results for the six months ended September 30, 2025, with net sales dropping by 10.4% compared to the previous year. The company experienced a significant decrease in operating income and profit attributable to owners of the parent, indicating financial challenges. Despite these results, the company has maintained its dividend forecast for the fiscal year ending March 31, 2026, suggesting a commitment to shareholder returns.

The most recent analyst rating on (JP:2183) stock is a Hold with a Yen348.00 price target. To see the full list of analyst forecasts on Linical Co., Ltd. stock, see the JP:2183 Stock Forecast page.

Linical Co., Ltd. Advances in Spinal Cord Injury Treatment with Promising Clinical Study

Linical Co., Ltd. is collaborating on a groundbreaking clinical study titled ‘A Single Center, Open Label, Single Group, Phase 1/2a Clinical Study to Evaluate the Safety and Exploratory Efficacy of Transplantation Therapy Using PSA-NCAM(+) NPC Derived From hESC Line in AIS-A Level of Sub-acute SCI.’ The study aims to assess the safety and preliminary effectiveness of using neural precursor cells derived from human embryonic stem cells to treat paralysis and related symptoms from sub-acute spinal cord injuries.