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

• Market Cap: ¥4.90B
• Dividend Yield: N/A
• Average Volume (3M): 32.58K
• Price to Earnings (P/E): 49.3
• Beta (1Y): 0.68
• Revenue Growth: 51.83%
• EPS Growth: -62.04%
• Country: JP
• Employees: 192
• Sector: Technology
• Sector Strength: 92
• Industry: Software - Application
• EPS (TTM): -2.40
• Shares Outstanding: 14,172,900
• 10 Day Avg. Volume: 20,470
• 30 Day Avg. Volume: 32,583
• PEG Ratio: -1.61
• Price to Book (P/B): 1.78
• 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: ¥370.00
• Price Target Upside: 6.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ¥372.00 ▲(7.51%Upside)

Link-U Group Inc. has a robust financial foundation with strong revenue growth and financial stability. However, the stock appears overvalued with bearish technical indicators. The lack of dividend yield and high P/E ratio further contribute to the moderate score.

Link-U Group Inc. Business Overview & Revenue Model

Company Description

Link-U Group Inc. (4446) is a technology company based in Japan that specializes in providing cloud-based solutions and services. The company focuses on offering content distribution platforms, digital content management systems, and related services primarily for the publishing and media industries. Link-U's core offerings include platforms for digital comics and e-books, catering to a wide range of publishers and digital content creators.

How the Company Makes Money

Link-U Group Inc. generates revenue primarily through its cloud-based content distribution platforms. The company charges publishers and content creators for the use of its digital content management systems and distribution services. This includes subscription fees, licensing fees, and potentially revenue-sharing models with content owners. The company's significant partnerships with publishers and media companies enhance its ability to monetize digital content effectively.

Link-U Group Inc. Financial Statement Overview

Summary

Link-U Group Inc. exhibits strong financial performance with robust revenue growth and profitability. The balance sheet shows financial stability with low leverage, and cash flow generation supports ongoing operations. However, there is room for improvement in profitability margins and cash flow conversion ratios.

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

Link-U Group Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 346.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 346 is above the 20-day moving average (MA) of 337.65, below the 50-day MA of 357.22, and below the 200-day MA of 403.22, indicating a neutral trend. The MACD of -4.00 indicates Negative momentum. The RSI at 45.22 is Neutral, neither overbought nor oversold. The STOCH value of 84.31 is Negative, 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
3841	77 Outperform	¥5.19B	24.13		2.99%	14.90%	-1.40%
4491	69 Neutral	¥5.40B	13.57		1.89%	7.19%	-2.13%
Sector *	69 Neutral	¥232.71B	14.90	7.50%	2.59%	9.27%	5.76%
4446	65 Neutral	¥4.90B	49.27		―	51.83%	-62.04%
4428	61 Neutral	¥5.51B	40.76		1.82%	2.76%	-47.70%
7527	57 Neutral	¥6.02B	―		―	-40.06%	-1380.69%
2321	47 Neutral	¥5.72B	―		―	-3.01%	95.93%

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.