Link-U Group Inc. (4446) AI Stock Analysis

• Market Cap: ¥5.39B
• Dividend Yield: N/A
• Average Volume (3M): 27.18K
• Price to Earnings (P/E): 37.0
• Beta (1Y): 0.87
• Revenue Growth: 44.93%
• EPS Growth: -49.63%
• Country: JP
• Employees: 192
• Sector: Technology
• Sector Strength: 65
• Industry: Software - Application
• EPS (TTM): 10.26
• Shares Outstanding: 14,172,900
• 10 Day Avg. Volume: 5,100
• 30 Day Avg. Volume: 27,180
• PEG Ratio: -1.83
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Number of Analyst Covering: 0

Link-U Group Inc. demonstrates strong financial health with solid revenue growth and profitability backed by a robust balance sheet. Technical indicators show moderate strength with stable momentum, though caution is advised due to high stochastic levels. Valuation metrics suggest the stock is on the expensive side, lacking a dividend yield to attract income investors. Overall, the company's stable financial performance is the primary driver of its stock score.

Link-U Group Inc. Business Overview & Revenue Model

Company Description

Link-U Group Inc. (4446) is a technology company that operates primarily in the digital solutions sector. The company specializes in providing cutting-edge software and IT services, focusing on developing and managing platforms that enhance digital content distribution and data management. Link-U Group Inc. aims to deliver innovative solutions that cater to the needs of various industries, leveraging its expertise in technology to drive efficiency and growth.

How the Company Makes Money

Link-U Group Inc. generates revenue through the development and licensing of its software platforms and IT services. The company offers subscription-based models for its digital solutions, allowing clients to access and utilize its platforms for a recurring fee. Additionally, Link-U Group Inc. engages in strategic partnerships with other technology firms and content providers, facilitating the distribution of digital content and earning commissions or service fees. The company also invests in research and development to continuously innovate and introduce new products, thereby expanding its market reach and increasing its revenue potential.

Link-U Group Inc. Financial Statement Overview

Summary

Link-U Group Inc. presents a solid financial position with strong revenue growth and profitability. The balance sheet reflects financial stability with low leverage, while cash flow generation supports ongoing operations. Although profitability margins and cash flow conversion ratios indicate room for further optimization, the company's financial health remains robust.

Income Statement

Link-U Group Inc. shows strong profitability with a consistent increase in revenue and net income over the years. The gross profit margin stands at approximately 57.6% for the latest period, indicating efficient cost management. The net profit margin is at 6.3%, and the company has demonstrated a positive revenue growth rate of around 17% annually. However, a slight decline in EBIT margin from the previous year indicates potential challenges in operational efficiency.

Balance Sheet

The company maintains a robust balance sheet with an equity ratio of 53.6%, reflecting strong financial stability. The debt-to-equity ratio is 0.32, indicating low leverage. However, the return on equity (ROE) of 9.2% suggests moderate returns on shareholders' investments, which could be improved.

Cash Flow

Link-U Group Inc.'s cash flow is stable, with a positive operating cash flow to net income ratio of 0.50, suggesting effective cash generation relative to its earnings. The free cash flow growth rate is 3.2%, indicating steady cash flow growth. However, the free cash flow to net income ratio of 0.16 highlights room for improvement in converting profits into free cash flow.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
4.07B	3.66B	3.13B	2.28B	1.63B	1.34B
	Gross Profit
2.17B	2.11B	1.74B	1.37B	1.10B	890.54M
	EBIT
353.53M	353.68M	434.04M	86.53M	225.56M	433.73M
	EBITDA
483.31M	510.25M	441.98M	181.19M	301.14M	465.65M
	Net Income Common Stockholders
182.93M	229.75M	204.26M	16.27M	157.21M	295.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.42B	1.90B	1.76B	923.96M	1.04B	1.43B
	Total Assets
5.69B	4.64B	4.10B	2.86B	2.62B	2.29B
	Total Debt
1.51B	800.66M	684.70M	0.00	0.00	0.00
	Net Debt
-901.38M	-1.10B	-1.07B	-923.96M	-1.04B	-1.43B
	Total Liabilities
2.74B	1.86B	1.79B	729.67M	438.22M	313.72M
	Stockholders Equity
2.61B	2.49B	2.27B	2.06B	2.11B	1.98B
Cash Flow		Free Cash Flow
0.00	37.58M	363.99M	24.35M	83.21M	207.55M
	Operating Cash Flow
0.00	115.31M	401.47M	74.06M	255.67M	222.93M
	Investing Cash Flow
0.00	-29.86M	-193.35M	-104.56M	-639.45M	-376.56M
	Financing Cash Flow
0.00	56.13M	557.80M	-139.66M	-8.34M	190.19M

Link-U Group Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 380.00
• 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:4446, the sentiment is Negative. The current price of 380 is above the 20-day moving average (MA) of 375.05, below the 50-day MA of 383.32, and below the 200-day MA of 449.42, indicating a neutral trend. The MACD of 1.78 indicates Negative momentum. The RSI at 49.91 is Neutral, neither overbought nor oversold. The STOCH value of 20.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4446.

Link-U Group Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3921	82 Outperform	¥21.40B	15.23		2.62%	9.79%	55.96%
3697	77 Outperform	€389.73B	57.86	19.04%	―	20.02%	-5.47%
4446	72 Outperform	¥5.39B	37.05		―	44.93%	-49.63%
3923	72 Outperform	¥421.78B	57.76		0.19%	30.19%	137.93%
6191	70 Outperform	$21.74B	10.05	16.02%	0.55%	7.20%	87.54%
Sector *	60 Neutral	$10.96B	10.27	-6.73%	2.97%	7.73%	-11.60%
3994	52 Neutral	€249.79B	―	-17.75%	―	28.35%	-2.49%

Link-U Group Inc. Corporate Events

Link-U Group Reports Strong Revenue Growth Amid Profit Challenges

Link-U Group Inc. reported a significant increase in revenue for the six months ended January 31, 2025, with a 58.7% year-on-year growth. Despite the revenue growth, the profit attributable to owners of the parent decreased by 39.9%, highlighting challenges in maintaining profitability amidst expansion. The company’s forecast for the full year ending July 31, 2025, anticipates continued revenue growth and a substantial increase in operating profit, indicating a positive outlook for future financial performance.