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

• Market Cap: ¥24.88B
• Dividend Yield: 5.7%
• Average Volume (3M): 17.83K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.71
• Revenue Growth: -7.75%
• EPS Growth: -16.92%
• Country: JP
• Employees: 928
• Sector: Industrials
• Sector Strength: 88
• Industry: Staffing & Employment Services
• EPS (TTM): 43.27
• Shares Outstanding: 12,600,700
• 10 Day Avg. Volume: 17,400
• 30 Day Avg. Volume: 17,826
• PEG Ratio: -0.51
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 442.12
• 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

• Rating: 64 Neutral
• Price Target: ¥2,268.00 ▲(7.79%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. Business Overview & Revenue Model

Company Description

Careerlink 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 Money

Careerlink 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

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
41.55B	40.40B	43.79B	52.54B	39.79B	30.28B
	Gross Profit
8.61B	8.20B	9.13B	14.41B	8.73B	6.51B
	EBIT
3.09B	2.69B	3.28B	7.61B	4.08B	2.73B
	EBITDA
3.28B	2.93B	3.54B	7.91B	4.25B	2.85B
	Net Income Common Stockholders
2.10B	1.83B	2.20B	5.71B	2.88B	2.05B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.93B	10.72B	9.93B	5.10B	7.03B	6.44B
	Total Assets
19.58B	19.88B	21.21B	21.81B	16.54B	11.52B
	Total Debt
837.00M	689.16M	1.05B	1.07B	980.70M	862.43M
	Net Debt
-9.09B	-10.04B	-8.88B	-4.03B	-6.05B	-5.57B
	Total Liabilities
5.18B	4.97B	6.73B	8.28B	8.14B	6.04B
	Stockholders Equity
14.30B	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: Negative
• Last Price: 2104.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 2104 is below the 20-day moving average (MA) of 2107.85, below the 50-day MA of 2108.98, and below the 200-day MA of 2264.51, indicating a bearish trend. The MACD of -6.03 indicates Positive momentum. The RSI at 46.21 is Neutral, neither overbought nor oversold. The STOCH value of 30.46 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6539	79 Outperform	¥23.10B	22.25		6.06%	63.38%	-8.52%
2301	74 Outperform	¥25.04B	11.97		3.73%	16.99%	7.51%
2471	74 Outperform	¥27.26B	14.08		2.90%	2.66%	-3.15%
9332	67 Neutral	¥20.48B	10.61		3.52%	4.85%	1.50%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
6070	64 Neutral	¥24.88B	13.65		5.70%	-7.75%	-16.92%
6089	64 Neutral	¥20.80B	18.00		4.83%	1.07%	-58.62%

Careerlink Co., Ltd. Corporate Events

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

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

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

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

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

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

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

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.