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Careerlink Co., Ltd. (JP:6070)
:6070
Japanese Market

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

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JP

Careerlink Co., Ltd.

(6070)

Rating:64Neutral
Price Target:
¥2,268.00
▲(8.41%Upside)
The overall stock score of Careerlink Co., Ltd. is driven by a solid balance sheet and attractive valuation metrics, offset by weaker cash flow trends and neutral technical indicators. The stock offers a strong dividend yield, making it appealing to income-focused investors despite operational challenges.

Careerlink Co., Ltd. (6070) vs. iShares MSCI Japan ETF (EWJ)

Careerlink Co., Ltd. Business Overview & Revenue Model

Company DescriptionCareerlink Co., Ltd. (6070) is a Japan-based company primarily engaged in providing comprehensive human resource services. The company operates in the sectors of staffing, business process outsourcing, and related human resource services. Careerlink offers a variety of workforce solutions, including temporary staffing, permanent placement, and specialized outsourcing services, catering to a wide array of industries.
How the Company Makes MoneyCareerlink Co., Ltd. generates revenue through multiple streams associated with its human resource services. The primary revenue stream is temporary staffing, where the company provides businesses with temporary workers and charges clients for these services based on contract terms, typically involving a markup on the wages paid to temporary employees. Another significant source of income is business process outsourcing, where Careerlink handles certain business functions or processes for its clients, charging fees for the services rendered. In addition, the company earns revenue from permanent placement services by receiving fees from clients when successfully placing a candidate in a permanent position. Key factors contributing to Careerlink's earnings include its strong client relationships, a wide network of job seekers and industry expertise. The company may also engage in strategic partnerships to enhance its service offerings and expand its market reach.

Careerlink Co., Ltd. Financial Statement Overview

Summary
Careerlink Co., Ltd. demonstrates a stable financial position with a strong balance sheet and manageable leverage. However, there are concerns with declining operating cash flow and inconsistent revenue growth, which slightly dampen the overall financial performance.
Income Statement
65
Positive
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
72
Positive
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
60
Neutral
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
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
41.55B40.40B43.79B52.54B39.79B30.28B
Gross Profit
8.61B8.20B9.13B14.41B8.73B6.51B
EBIT
3.09B2.69B3.28B7.61B4.08B2.73B
EBITDA
3.28B2.93B3.54B7.91B4.25B2.85B
Net Income Common Stockholders
2.10B1.83B2.20B5.71B2.88B2.05B
Balance SheetCash, Cash Equivalents and Short-Term Investments
5.10B10.72B9.93B5.10B7.03B6.44B
Total Assets
21.81B19.88B21.21B21.81B16.54B11.52B
Total Debt
1.07B689.16M1.05B1.07B980.70M862.43M
Net Debt
-4.03B-10.04B-8.88B-4.03B-6.05B-5.57B
Total Liabilities
8.28B4.97B6.73B8.28B8.14B6.04B
Stockholders Equity
13.46B14.82B14.39B13.46B8.34B5.43B
Cash FlowFree Cash Flow
0.002.65B6.25B-1.40B565.18M2.67B
Operating Cash Flow
0.002.71B6.77B-1.21B976.89M2.74B
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
Negative
Last Price2092.00
Price Trends
50DMA
2114.68
Negative
100DMA
2185.39
Negative
200DMA
2265.06
Negative
Market Momentum
MACD
-6.18
Positive
RSI
43.61
Neutral
STOCH
20.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6070, the sentiment is Negative. The current price of 2092 is below the 20-day moving average (MA) of 2115.05, below the 50-day MA of 2114.68, and below the 200-day MA of 2265.06, indicating a bearish trend. The MACD of -6.18 indicates Positive momentum. The RSI at 43.61 is Neutral, neither overbought nor oversold. The STOCH value of 20.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6070.

Careerlink Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥23.12B22.27
6.05%63.38%-8.52%
74
Outperform
¥24.59B12.11
4.14%16.99%7.51%
74
Outperform
¥27.57B14.24
2.87%2.66%-3.15%
67
Neutral
¥20.25B10.49
3.56%4.85%1.50%
66
Neutral
$4.50B12.295.40%248.66%4.13%-12.33%
64
Neutral
¥24.74B13.57
5.74%-7.75%-16.92%
64
Neutral
¥20.92B18.10
4.80%1.07%-58.62%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6070
Careerlink Co., Ltd.
2,092.00
-182.54
-8.03%
JP:2301
GAKUJO Co., Ltd.
1,729.00
5.83
0.34%
JP:2471
S-Pool, Inc.
353.00
47.72
15.63%
JP:6089
Will Group, Inc.
916.00
-16.65
-1.79%
JP:6539
MATCHING SERVICE JAPAN CO.LTD.
921.00
-68.00
-6.88%
JP:9332
NISSO HOLDINGS Co.,Ltd
625.00
-192.07
-23.51%

Careerlink Co., Ltd. Corporate Events

Careerlink Co., Ltd. Unveils Ambitious Medium-term Growth Plan
May 23, 2025

Careerlink Co., Ltd. has announced a new Medium-term Management Plan for the fiscal years 2026 to 2028, targeting an average annual growth of 5%. The plan includes expanding business locations and operational domains, developing new clients in the manufacturing sector, and investing in new business and infrastructure development. Despite recent declines in revenue and profit, the company projects significant growth in net sales and profits by 2028, while maintaining dividends at ¥120 per share.

Careerlink Co., Ltd. Announces Board of Directors Changes
May 14, 2025

Careerlink Co., Ltd. has announced a tentative decision on changes in its board of directors, which will be proposed at the upcoming Annual General Meeting of Shareholders. The re-election of key executives, including President Motoaki Narusawa, signals continuity in leadership, which may impact the company’s strategic direction and reassure stakeholders of stable governance.

Careerlink Co., Ltd. Proposes Amendments to Articles of Incorporation for Business Expansion
May 14, 2025

Careerlink Co., Ltd. has announced a proposal to amend its Articles of Incorporation to accommodate future business expansion. The proposed changes, which will be presented at the upcoming Annual General Meeting of Shareholders, include the addition of security services to the company’s business purposes, reflecting a strategic move to broaden its service offerings.

Careerlink Co., Ltd. Reports Decline in Fiscal Year 2025 Results, Anticipates Modest Recovery
May 14, 2025

Careerlink Co., Ltd. reported a decrease in its consolidated financial results for the fiscal year ending March 31, 2025, with net sales down by 7.7% and operating profit declining by 17.9% compared to the previous year. Despite the downturn, the company maintained its dividend payout, indicating a commitment to shareholder returns. The financial forecast for the next fiscal year anticipates a modest recovery in net sales and profits, suggesting a cautious optimism in the company’s future performance.

Careerlink Co., Ltd. Announces Board of Directors Changes
May 14, 2025

Careerlink Co., Ltd. has announced changes in its board of directors, which will be proposed at the upcoming Annual General Meeting of Shareholders. The re-elections of six directors, including President Motoaki Narusawa, aim to maintain leadership continuity and strategic direction. These changes are expected to reinforce the company’s governance and operational stability, potentially impacting its market positioning and stakeholder confidence positively.

Careerlink Co., Ltd. Proposes Amendments to Expand Business Scope
May 14, 2025

Careerlink Co., Ltd. has announced a proposal to amend its Articles of Incorporation to include security services as part of its business objectives, reflecting its plans for future business expansion. This strategic move is aimed at broadening the company’s service portfolio, potentially enhancing its competitive positioning and operational capabilities in the human resources sector.

Careerlink Co., Ltd. Reports Decline in Fiscal Year 2025 Results, Forecasts Modest Recovery
May 14, 2025

Careerlink Co., Ltd. reported a decline in its consolidated financial results for the fiscal year ended March 31, 2025, with net sales, operating profit, and ordinary profit all experiencing decreases compared to the previous year. Despite these declines, the company maintains a strong equity ratio and has forecasted modest growth in net sales and profits for the upcoming fiscal year, indicating a potential recovery and continued commitment to shareholder returns with consistent dividends.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.