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

• Market Cap: ¥29.44B
• Dividend Yield: 4.82%
• Average Volume (3M): 21.60K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.69
• 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: ¥2,538.00 ▲(1.97% 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

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, enabling the company to invest in growth opportunities and withstand economic downturns.

Operational Efficiency

Sustained operational efficiency through stable EBIT and EBITDA margins indicates effective cost management and the ability to maintain profitability despite revenue fluctuations.

Diverse Revenue Streams

Diverse revenue streams from multiple services reduce dependency on a single income source, enhancing resilience against sector-specific downturns and supporting long-term growth.

Negative Factors

Declining Revenue Growth

Inconsistent revenue growth can hinder the company's ability to scale operations and invest in new initiatives, potentially impacting long-term competitiveness and market position.

Profitability Pressure

Declining profit margins suggest challenges in maintaining cost efficiency or pricing power, which could affect future earnings and shareholder returns if not addressed.

Cash Flow Concerns

Decreasing cash flow trends may limit the company's ability to fund operations and growth initiatives internally, potentially leading to increased reliance on external financing.

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: Positive
• Last Price: 2489.00
• 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:6070, the sentiment is Positive. The current price of 2489 is above the 20-day moving average (MA) of 2488.70, above the 50-day MA of 2437.92, and above the 200-day MA of 2272.44, indicating a bullish trend. The MACD of 17.09 indicates Positive momentum. The RSI at 53.26 is Neutral, neither overbought nor oversold. The STOCH value of 29.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6070.

Careerlink Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6089	75 Outperform	¥25.64B	14.30	―	3.92%	1.18%	-5.05%
2301	74 Outperform	¥24.71B	12.48	―	3.84%	2.69%	-13.40%
9332	73 Outperform	¥22.84B	14.58	―	3.16%	4.92%	-27.88%
6539	73 Outperform	¥24.95B	24.02	―	5.61%	21.90%	0.46%
6070	64 Neutral	¥29.44B	12.56	―	4.82%	-1.06%	3.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2471	61 Neutral	¥20.30B	11.18	―	3.89%	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.

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.

Careerlink Co., Ltd. Revises Financial Forecasts Upward Amid Strong Order Growth

Careerlink Co., Ltd. has revised its financial forecasts for the first half of the fiscal year ending March 31, 2026, due to higher-than-anticipated orders in its BPO-related and manufacturing services. This has led to an expected increase in net sales and profits, with operating profit projected to rise by 58%. The company plans to invest in strengthening its management foundation and expanding its business capabilities, while maintaining its full-year forecast amidst an uncertain business environment.