Careerlink Co., Ltd. (6070) AI Stock Analysis

• Market Cap: ¥31.21B
• Dividend Yield: 4.69%
• Average Volume (3M): 21.60K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.67
• Revenue Growth: -1.06%
• EPS Growth: 3.51%
• Country: JP
• Employees: 928
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 56.98
• Shares Outstanding: 12,605,700
• 10 Day Avg. Volume: 25,130
• 30 Day Avg. Volume: 21,603
• PEG Ratio: -0.82
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 0.63
• P/FCF Ratio: 9.60
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥2,823.00 ▲(8.45% Upside)

Careerlink Co., Ltd. has a solid financial foundation with a strong balance sheet, but faces challenges in profitability and cash flow. The technical indicators suggest bearish sentiment, while the valuation is attractive with a good dividend yield. The lack of recent earnings call data limits further insights.

Positive Factors

Balance sheet strength

A low debt-to-equity ratio and healthy equity ratio provide enduring financial flexibility. For a staffing firm this reduces refinancing risk through cycles, enabling investment in growth, M&A, or resilience during slower demand periods without forcing asset sales.

Positive free cash flow

Sustained positive free cash flow, even if trending down, supports dividend payments, reinvestment, and balance sheet repair. Positive FCF underpins durable capital allocation choices and reduces reliance on external funding across multi-month horizons.

Operational efficiency

Stable EBIT/EBITDA margins indicate the core staffing operations generate lasting operating profits. Margin resilience reflects cost controls and pricing power that help preserve cash generation and competitive positioning over several quarters.

Negative Factors

Declining operating cash flow

A downward trend in operating cash flow weakens the firm's ability to self-fund working capital and expansion. Over months this can constrain hiring, client onboarding, or IT investment in a service business where timely cash conversion matters for growth execution.

Weak revenue trends

Negative and inconsistent revenue growth signals challenges scaling the staffing business or retaining client demand. Persistently weak top-line trends can erode operating leverage and make margin recovery more difficult across subsequent quarters.

Pressure on profitability margins

Declining gross and net margins suggest cost or pricing pressures that reduce earnings quality. For a staffing services firm, margin compression can persist if client pricing weakens or labor costs rise, limiting free cash flow and investment capacity.

Careerlink Co., Ltd. Business Overview & Revenue Model

Company Description

Careerlink Co., Ltd. provides human resource services in Japan. It offers human resource services for business process outsourcing, customer relationship management, and sales support related businesses; and general office works. The company also provides temporary staffing, recruitment, and contracting human resource services for food processing and manufacturing/processing businesses, and cleaning of buildings and hotels, etc. The company was founded in 1996 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Careerlink Co., Ltd. generates revenue primarily through its online recruitment platform, where it charges employers for job postings and access to its extensive resume database. The company offers various subscription models, allowing businesses to choose packages that best fit their hiring needs. Additionally, Careerlink earns income from recruitment process outsourcing services, where it manages the entire hiring process for clients, charging fees based on the complexity and volume of recruitment. Strategic partnerships with educational institutions and industry organizations also enhance its offerings and can lead to additional revenue through sponsored job fairs and training programs.

Careerlink Co., Ltd. Financial Statement Overview

Summary

Careerlink Co., Ltd. demonstrates a stable financial position with a robust balance sheet and manageable leverage. However, profitability margins and revenue growth show some weaknesses, and the cash flow situation needs careful monitoring.

Income Statement

Careerlink Co., Ltd. shows a mixed performance on the income statement. The gross profit margin and net profit margin have seen slight declines, indicating pressure on profitability. Revenue growth has been inconsistent, with significant fluctuations over the years. However, the company maintains a reasonable EBIT and EBITDA margin, suggesting operational efficiency.

Balance Sheet

The balance sheet of Careerlink Co., Ltd. is relatively strong with a low debt-to-equity ratio, indicating conservative leverage. The equity ratio is healthy, reflecting financial stability. The return on equity has shown some volatility but remains positive, suggesting decent shareholder returns.

Cash Flow

Cash flow analysis reveals some concerns, particularly with declining operating cash flow in recent years. Free cash flow remains positive but shows a downward trend, which could impact future investments. The company has managed to maintain a positive free cash flow to net income ratio, but the operating cash flow to net income ratio suggests potential issues with cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.51B	40.40B	43.79B	52.54B	39.79B	30.28B
Gross Profit	8.34B	8.20B	9.13B	14.41B	8.73B	6.51B
EBITDA	3.06B	2.93B	3.54B	7.91B	4.25B	2.85B
Net Income	1.91B	1.83B	2.20B	5.71B	2.88B	2.05B
Balance Sheet
Total Assets	19.47B	19.88B	21.21B	21.81B	16.54B	11.52B
Cash, Cash Equivalents and Short-Term Investments	11.28B	10.72B	9.93B	5.10B	7.03B	6.44B
Total Debt	670.03M	689.16M	1.05B	1.07B	980.70M	862.43M
Total Liabilities	5.33B	4.97B	6.73B	8.28B	8.14B	6.04B
Stockholders Equity	14.04B	14.82B	14.39B	13.46B	8.34B	5.43B
Cash Flow
Free Cash Flow	0.00	2.65B	6.25B	-1.40B	565.18M	2.67B
Operating Cash Flow	0.00	2.71B	6.77B	-1.21B	976.89M	2.74B
Investing Cash Flow	0.00	-129.78M	-614.74M	-319.32M	-282.06M	-48.00M
Financing Cash Flow	0.00	-1.79B	-1.32B	-405.00M	-98.60M	-177.04M

Careerlink Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2603.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6070, the sentiment is Neutral. The current price of 2603 is below the 20-day moving average (MA) of 2655.65, above the 50-day MA of 2580.20, and above the 200-day MA of 2349.76, indicating a neutral trend. The MACD of 20.24 indicates Positive momentum. The RSI at 51.71 is Neutral, neither overbought nor oversold. The STOCH value of 18.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6070.

Careerlink Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2301	84 Outperform	¥25.08B	12.60	―	3.79%	2.69%	-13.40%
6089	73 Outperform	¥27.17B	14.93	―	3.86%	1.18%	-5.05%
9332	73 Outperform	¥22.64B	14.40	―	3.09%	4.92%	-27.88%
6539	73 Outperform	¥26.30B	25.08	―	5.45%	21.90%	0.46%
6070	64 Neutral	¥31.21B	13.25	―	4.69%	-1.06%	3.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2471	52 Neutral	¥20.30B	13.67	―	3.76%	6.74%	7.56%

Careerlink Co., Ltd. Corporate Events

Careerlink Co., Ltd. Acquires Full Ownership of Subsidiary to Enhance Growth Strategy

Careerlink Co., Ltd. announced its decision to acquire 100% ownership of its subsidiary, Careerlink Factory Co., Ltd., by purchasing shares from other shareholders. This strategic move aims to streamline decision-making processes and optimize management resources, aligning with the company’s medium-term growth strategy. The acquisition is expected to have minimal impact on the company’s current financial results as Careerlink Factory is already a consolidated subsidiary.

The most recent analyst rating on (JP:6070) stock is a Hold with a Yen2538.00 price target. To see the full list of analyst forecasts on Careerlink Co., Ltd. stock, see the JP:6070 Stock Forecast page.

Careerlink Co., Ltd. Reports Strong Financial Growth in First Half of FY 2026

Careerlink Co., Ltd. reported a significant increase in its consolidated financial results for the first half of the fiscal year ending March 31, 2026, with net sales rising by 5.7% and operating profit surging by 63.1% compared to the previous year. This robust performance highlights the company’s strong market positioning and operational efficiency, suggesting positive implications for stakeholders and reinforcing its competitive stance in the staffing industry.

The most recent analyst rating on (JP:6070) stock is a Hold with a Yen2538.00 price target. To see the full list of analyst forecasts on Careerlink Co., Ltd. stock, see the JP:6070 Stock Forecast page.