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

• Market Cap: ¥15.68B
• Dividend Yield: N/A
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): 101.1
• Beta (1Y): 0.72
• Revenue Growth: 32.04%
• EPS Growth: -32.55%
• Country: JP
• Employees: 192
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 6.59
• Shares Outstanding: 14,172,900
• 10 Day Avg. Volume: 2,538,080
• 30 Day Avg. Volume: 1,722,653
• PEG Ratio: -0.95
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 31.99
• 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: ¥1,211.00
• Price Target Upside: 9.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥1,211.00 ▲(9.49% Upside)

Link-U Group Inc.'s stock score is primarily driven by strong technical momentum, suggesting potential for further price appreciation. However, the high P/E ratio raises concerns about overvaluation, and financial performance indicates challenges in profitability and leverage management. Investors should weigh the growth potential against these risks.

Link-U Group Inc. Business Overview & Revenue Model

Company Description

Link-U Inc. engages in the server platform business in the fields of e-book and video distribution in Japan. It also provides application planning, development, and operation services. The company was incorporated in 2013 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Link-U Group Inc. generates revenue primarily through the sale of its connectivity products and services. Key revenue streams include subscription fees for internet services, one-time sales of networking hardware, and licensing fees for proprietary software solutions. The company also benefits from strategic partnerships with telecom providers and large enterprises, which allow it to expand its market reach and enhance its product offerings. Additionally, Link-U Group Inc. engages in consulting services, providing tailored solutions that drive further income through value-added services.

Link-U Group Inc. Financial Statement Overview

Summary

Link-U Group Inc. demonstrates strong revenue growth but faces challenges in maintaining profitability margins. The increased leverage on the balance sheet could pose risks if not managed carefully. Cash flow generation shows improvement, but volatility in free cash flow growth needs attention. Overall, the company is on a growth trajectory but must address profitability and leverage concerns to ensure long-term stability.

Income Statement

Link-U Group Inc. has shown strong revenue growth with an 18.79% increase in the latest year. However, profitability margins such as gross profit margin and net profit margin have declined compared to previous years, indicating potential cost pressures or pricing challenges. The EBIT and EBITDA margins have also decreased, suggesting reduced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased significantly, indicating higher leverage, which could pose risks if not managed properly. Return on equity has decreased, reflecting lower profitability on shareholders' investments. However, the equity ratio remains healthy, suggesting a stable financial structure.

Cash Flow

Operating cash flow has improved, but free cash flow growth is volatile, with a significant increase in the latest year. The free cash flow to net income ratio indicates a strong conversion of earnings to cash, but the operating cash flow to net income ratio is relatively low, suggesting potential challenges in cash generation from operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.84B	4.84B	3.66B	3.13B	2.28B	1.63B
Gross Profit	2.33B	2.33B	2.11B	1.74B	1.37B	1.10B
EBITDA	571.13M	571.23M	510.25M	441.98M	143.08M	301.14M
Net Income	154.97M	154.97M	229.75M	204.26M	33.85M	157.21M
Balance Sheet
Total Assets	5.72B	5.72B	4.64B	4.10B	2.86B	2.62B
Cash, Cash Equivalents and Short-Term Investments	1.65B	1.65B	1.90B	1.76B	923.96M	1.04B
Total Debt	1.98B	1.98B	800.66M	684.70M	0.00	0.00
Total Liabilities	3.08B	3.08B	1.86B	1.79B	729.67M	438.22M
Stockholders Equity	2.60B	2.60B	2.49B	2.27B	2.06B	2.11B
Cash Flow
Free Cash Flow	0.00	150.20M	37.58M	363.99M	24.35M	83.21M
Operating Cash Flow	0.00	222.56M	115.31M	401.47M	74.06M	255.67M
Investing Cash Flow	0.00	-112.81M	-29.86M	-193.35M	-104.56M	-639.45M
Financing Cash Flow	0.00	-362.03M	56.13M	557.80M	-139.66M	-8.34M

Link-U Group Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1106.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 1106 is above the 20-day moving average (MA) of 816.95, above the 50-day MA of 553.90, and above the 200-day MA of 420.58, indicating a bullish trend. The MACD of 242.99 indicates Negative momentum. The RSI at 60.63 is Neutral, neither overbought nor oversold. The STOCH value of 59.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
3841	77 Outperform	¥5.19B	24.76	―	2.99%	2.53%	-32.88%
4446	69 Neutral	¥15.68B	101.15	―	―	32.04%	-32.55%
4491	69 Neutral	¥5.20B	12.93	―	1.96%	6.83%	17.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4428	61 Neutral	¥5.61B	26.62	―	1.79%	12.78%	59.33%
7527	48 Neutral	¥5.68B	―	―	―	-50.54%	-4045.93%
2321	47 Neutral	¥9.77B	―	―	―	-1.68%	85.30%

Link-U Group Inc. Corporate Events

Link-U Group Revises Financial Forecasts Amid Market Challenges

Link-U Group Inc. has revised its financial forecasts for the fiscal year ending July 31, 2025, due to underperformance in existing businesses and the postponement of a new business launch. The company has faced challenges such as suspended orders from major clients, intensified competition in the manga service sector, and a delay in launching a new platform for the North American market, leading to a cautious approach in accepting new projects.

Link-U Group Inc. Reports Revenue Growth Amid Profit Challenges

Link-U Group Inc. reported a significant increase in revenue by 50.9% for the nine months ending April 30, 2025, compared to the previous year. However, the company faced a decline in operating profit and profit before tax, indicating challenges in managing costs or operational efficiencies. The financial forecast for the full year shows expected growth in revenue and operating profit, but a decrease in profit attributable to owners, suggesting potential strategic adjustments or market pressures.