LIKE, Inc. (2462) AI Stock Analysis

• Market Cap: ¥29.86B
• Dividend Yield: 3.9%
• Average Volume (3M): 25.28K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.47
• Revenue Growth: 5.66%
• EPS Growth: -10.44%
• Country: JP
• Employees: 5,334
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 20.62
• Shares Outstanding: 20,464,800
• 10 Day Avg. Volume: 29,670
• 30 Day Avg. Volume: 25,283
• PEG Ratio: -0.90
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 13.94
• 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): 149.4
• Revenue Forecast (FY): ¥66.87B

• Rating: 75 Outperform
• Price Target: ¥1,827.00 ▲(18.25% Upside)
• Action: Reiterated Date: 10/16/25
• Date: Action: Reiterated 10/16/25

LIKE, Inc. has a solid financial foundation with steady revenue growth and stable profitability, though it faces challenges in operational efficiency and cash flow management. The technical indicators show a positive price trend, and the valuation metrics suggest the stock is fairly valued with an attractive dividend yield. These factors collectively contribute to a strong overall stock score.

Positive Factors

Diversified revenue model

LIKE, Inc.'s multi-pronged monetization (subscriptions, ads, in-app purchases, platform integrations) creates recurring and transactional revenue streams. This diversification lowers single-channel risk, supports steady cash inflows, and improves resilience to shifts in any one monetization avenue over months.

Consistent revenue growth trend

The company's steady top-line expansion, including a recent 2.23% period rise and a reported ~7.5% revenue growth metric, indicates persistent user adoption and monetization. Sustained revenue growth supports reinvestment in product and partnerships, improving medium-term competitive positioning.

Improved leverage management

Reduction in leverage metrics points to stronger balance-sheet flexibility and lower financing risk. Improved debt-to-equity enhances capacity to fund strategic initiatives, absorb shocks, and invest in growth without immediate dilution or costly refinancing, strengthening medium-term financial stability.

Negative Factors

Margin erosion

Declining gross and operating margins suggest rising cost pressures or weakening pricing power. Persistent margin erosion will reduce operating leverage, constrain free cash generation, and force difficult trade-offs between investment, marketing, and profitability unless structural efficiency improvements are made.

Volatile free cash flow

Material swings in free cash flow complicate capital allocation, dividend planning, and M&A execution. Volatility increases reliance on external financing during down cycles and reduces predictability of internally funded growth, making multi-quarter strategic investments harder to sustain without buffer capital.

Declining return on equity

A falling ROE implies lower capital efficiency and weaker returns to investors versus prior periods. If persistent, declining ROE can signal suboptimal asset allocation or margin pressure, undermining shareholder value and limiting the firm's ability to attract capital for long-term strategic initiatives.

LIKE, Inc. Business Overview & Revenue Model

Company Description

LIKE Co., Ltd. provides a range of human resource services in Japan. The company's services include temporary staffing, outsourcing, recruitment, and educational support; and outsourced and public childcare services. It also operates nursing homes that offer nursing care related services. The company was formerly known as J-COM Holdings Co., Ltd. and changed its name to LIKE Co., Ltd. in December 2016. LIKE Co., Ltd. was founded in 1993 and is headquartered in Osaka, Japan.

How the Company Makes Money

LIKE, Inc. generates revenue through a multi-faceted business model. Key revenue streams include subscription services for premium app features, advertising partnerships with brands seeking to reach targeted audiences, and in-app purchases that enhance user experience. Additionally, the company has strategic partnerships with social media platforms, providing integration services that allow brands to leverage LIKE, Inc.'s technology for enhanced visibility and engagement. These partnerships not only expand the company's user base but also create opportunities for co-branded marketing initiatives, further driving revenue growth.

LIKE, Inc. Financial Statement Overview

Summary

LIKE, Inc. demonstrates steady revenue growth and stable profitability, but faces challenges in operational efficiency and cash flow management. The balance sheet reflects improved leverage, yet there is room for enhancing equity strength.

Income Statement

LIKE, Inc. has shown consistent revenue growth over the years, with a 2.23% increase in the latest period. The gross profit margin has slightly decreased, indicating potential cost pressures. Net profit margin remains stable, reflecting efficient cost management. However, EBIT and EBITDA margins have declined, suggesting a need for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio has improved over time, indicating better leverage management. Return on equity has decreased, suggesting reduced profitability from shareholders' investments. The equity ratio shows a stable capital structure, but the company should focus on enhancing its equity base to reduce financial risk.

Cash Flow

Operating cash flow has been stable, but free cash flow growth has been volatile, with a significant increase in the latest period. The operating cash flow to net income ratio indicates efficient cash generation relative to net income. However, the free cash flow to net income ratio suggests room for improvement in cash flow management.

Breakdown	May 2024	May 2023	May 2022	May 2021	May 2020
Income Statement
Total Revenue	62.34B	60.47B	60.02B	57.64B	54.27B
Gross Profit	8.80B	9.17B	9.66B	10.15B	9.78B
EBITDA	5.07B	5.39B	6.10B	7.06B	7.12B
Net Income	2.10B	2.45B	2.57B	3.27B	3.26B
Balance Sheet
Total Assets	40.45B	38.50B	39.45B	39.38B	37.71B
Cash, Cash Equivalents and Short-Term Investments	8.84B	9.44B	10.67B	10.62B	9.54B
Total Debt	11.85B	12.31B	14.56B	16.32B	16.74B
Total Liabilities	22.65B	21.69B	23.98B	25.36B	25.77B
Stockholders Equity	17.80B	16.82B	15.47B	14.02B	11.94B
Cash Flow
Free Cash Flow	1.93B	2.16B	3.31B	3.06B	3.75B
Operating Cash Flow	3.79B	3.64B	4.80B	4.71B	5.70B
Investing Cash Flow	-2.16B	-1.43B	-1.48B	-1.67B	-1.81B
Financing Cash Flow	-2.29B	-3.41B	-3.27B	-1.96B	-7.44B

LIKE, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1545.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2462, the sentiment is Neutral. The current price of 1545 is below the 20-day moving average (MA) of 1574.25, below the 50-day MA of 1549.32, and above the 200-day MA of 1462.48, indicating a neutral trend. The MACD of 14.21 indicates Positive momentum. The RSI at 46.34 is Neutral, neither overbought nor oversold. The STOCH value of 65.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2462.

LIKE, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2462	75 Outperform	¥29.86B	12.88	―	3.90%	5.66%	-10.44%
9248	67 Neutral	¥14.21B	5.38	―	3.88%	15.50%	―
9418	67 Neutral	¥316.20B	17.22	―	0.82%	19.48%	19.77%
4685	66 Neutral	¥44.11B	11.38	―	2.70%	17.96%	30.46%
9435	66 Neutral	¥1.87T	15.00	―	1.59%	14.45%	29.21%
9564	65 Neutral	¥11.04B	15.32	―	1.11%	21.85%	13.02%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

LIKE, Inc. Corporate Events

LIKE, Inc. Delivers Strong First-Half Profit Growth and Confirms Full-Year Outlook, Stable Dividend

LIKE, Inc. reported consolidated net sales of ¥31.9 billion for the six months ended November 30, 2025, up 9.8% year on year, with operating profit edging up 1.3% to ¥735 million and ordinary profit climbing 34.5% to ¥1.05 billion. Profit attributable to owners of parent jumped 50.1% to ¥660 million, lifting basic earnings per share to ¥34.43, while the equity-to-asset ratio improved to 45.5% despite a slight decrease in total assets. The company maintained its previously announced full-year forecast, projecting net sales of ¥65.2 billion and a 31.1% rise in profit attributable to owners of parent to ¥2.75 billion, and confirmed an annual dividend plan of ¥60 per share for the fiscal year ending May 31, 2026, signaling continued shareholder returns alongside expected profit growth.

The most recent analyst rating on (JP:2462) stock is a Hold with a Yen1649.00 price target. To see the full list of analyst forecasts on LIKE, Inc. stock, see the JP:2462 Stock Forecast page.