CAREER CO., LTD. (6198) AI Stock Analysis

• Market Cap: ¥2.67B
• Dividend Yield: 1.99%
• Average Volume (3M): 7.84K
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.28
• Revenue Growth: -4.08%
• EPS Growth: -41.24%
• Country: JP
• Employees: 317
• Sector: Industrials
• Sector Strength: 90
• Industry: Staffing & Employment Services
• EPS (TTM): -6.05
• Shares Outstanding: 8,624,320
• 10 Day Avg. Volume: 14,020
• 30 Day Avg. Volume: 7,843
• PEG Ratio: 0.08
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.94
• 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: 66 Neutral
• Price Target: ―

CAREER CO., LTD. demonstrates robust financial health with strong revenue growth and a stable balance sheet, although recent negative operating cash flow is a concern. Technical analysis indicates bearish momentum, which might weigh on short-term performance. The valuation is reasonable, offering a moderate dividend yield, but overall, the stock shows mixed signals requiring cautious optimism.

CAREER CO., LTD. Business Overview & Revenue Model

Company Description

CAREER CO., LTD. (6198) is a Japanese company specializing in staffing and human resources services. The company operates primarily in the recruitment and staffing sector, offering a range of services that include temporary staffing, permanent placement, and outsourcing. Its core services are designed to meet the employment needs of businesses across various industries, providing them with skilled personnel and workforce solutions to enhance operational efficiency.

How the Company Makes Money

CAREER CO., LTD. generates revenue primarily through its staffing services. The company's main source of income is derived from fees charged to businesses for the provision of temporary and permanent staff. This includes charging client companies for the placement of temporary workers and earning a commission or service fee for successful permanent placements. Additionally, the company may engage in outsourcing services, where it manages certain business functions or processes on behalf of client companies, generating revenue through service contracts. Significant partnerships with industries requiring a flexible workforce, such as manufacturing, logistics, and retail, contribute to CAREER CO., LTD.'s earnings by ensuring a steady demand for its staffing solutions.

CAREER CO., LTD. Financial Statement Overview

Summary

CAREER CO., LTD. shows strong revenue growth and profitability, with a stable financial structure and low leverage. The main concern lies in the recent negative operating cash flow, which needs to be monitored closely. The company is well-positioned financially, but improving operational cash flows will be crucial for sustaining growth and stability.

Income Statement

The company demonstrated robust revenue growth over the years, particularly from 2021 to 2023, indicating a strong market position. The gross profit margin remains healthy, though there was a slight dip in gross profit in the TTM period. Net profit margins show a consistent increase, reflecting improved operational efficiency. However, the decline in EBIT and EBITDA margins in the TTM period suggests slight pressure on operating profits.

Balance Sheet

The balance sheet reveals a strong equity position with a commendable equity ratio. The debt-to-equity ratio is low, indicating good financial stability and low leverage risk. Return on equity is improving, showcasing effective use of shareholders' equity to generate profits. The company's cash reserves are substantial, providing a solid liquidity buffer.

Cash Flow

Cash flow analysis shows some challenges. Operating cash flow was negative in the latest annual report, suggesting potential liquidity issues. However, prior periods showed strong free cash flow, indicating the company's ability to generate cash from operations. The absence of free cash flow in the TTM data makes it difficult to assess recent trends accurately.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
16.43B	16.71B	17.79B	16.34B	14.18B	12.25B
	Gross Profit
3.55B	3.66B	4.00B	3.63B	3.25B	2.57B
	EBIT
356.56M	428.86M	608.71M	356.18M	481.69M	1.98M
	EBITDA
381.32M	469.44M	678.00M	419.88M	412.12M	93.24M
	Net Income Common Stockholders
203.89M	249.85M	378.75M	195.61M	68.91M	-39.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.46B	2.15B	2.75B	2.23B	1.61B	1.59B
	Total Assets
4.70B	4.41B	5.11B	4.93B	4.83B	3.50B
	Total Debt
800.00M	800.00M	1.00B	1.21B	1.22B	932.43M
	Net Debt
-1.66B	-1.35B	-1.75B	-1.02B	-390.57M	-655.14M
	Total Liabilities
2.75B	2.40B	3.07B	3.28B	3.44B	2.23B
	Stockholders Equity
1.95B	2.00B	1.93B	1.55B	1.33B	1.24B
Cash Flow		Free Cash Flow
0.00	-110.74M	770.05M	701.67M	-243.97M	216.65M
	Operating Cash Flow
0.00	-91.23M	788.66M	938.02M	-206.10M	263.50M
	Investing Cash Flow
0.00	-21.34M	-61.37M	-312.20M	-58.42M	-68.18M
	Financing Cash Flow
0.00	-480.36M	-210.34M	-9.80M	289.65M	180.46M

CAREER CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 314.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6198, the sentiment is Neutral. The current price of 314 is below the 20-day moving average (MA) of 317.65, below the 50-day MA of 321.08, and below the 200-day MA of 345.67, indicating a neutral trend. The MACD of -1.43 indicates Negative momentum. The RSI at 48.25 is Neutral, neither overbought nor oversold. The STOCH value of 29.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6198.

CAREER CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6538	76 Outperform	¥3.94B	18.33		2.65%	13.99%	―
4766	72 Outperform	¥2.95B	42.57		3.32%	5.45%	38.61%
6563	67 Neutral	¥3.33B	36.02		―	26.41%	8.91%
6198	66 Neutral	¥2.67B	22.89		1.99%	-4.08%	-41.24%
Sector *	66 Neutral	$4.52B	12.34	5.41%	3.62%	4.15%	-12.18%
7043	60 Neutral	¥1.97B	―		0.90%	4.29%	-2895.03%
6558	50 Neutral	¥1.81B	693.75		―	5.27%	-155.03%