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CAREER CO., LTD. (JP:6198)
:6198
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CAREER CO., LTD.
(6198)
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Select Model
Rating:62Neutral
Price Target:
¥323.00
▲(9.49% Upside)
CAREER CO., LTD. demonstrates strong financial performance with robust revenue growth and a stable balance sheet. However, the recent negative operating cash flow and bearish technical indicators are concerns. The stock's valuation is slightly high, but the dividend yield offers some compensation. Overall, the stock is moderately attractive, with financial stability being its strongest aspect.
CAREER CO., LTD. (6198) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.51B
Dividend Yield2.12%
Average Volume (3M)4.82K
Price to Earnings (P/E)138.8
Beta (1Y)0.23
Revenue Growth-7.36%
EPS Growth-93.85%
CountryJP
Employees317
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)-1.34
Shares Outstanding8,624,320
10 Day Avg. Volume3,840
30 Day Avg. Volume4,823
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥323.00Price Target Upside9.49% Upside
Rating ConsensusHold
Number of Analyst Covering1
CAREER CO., LTD. Business Overview & Revenue Model
Company DescriptionCareer Co., Ltd. provides human resources services for aging society in Japan. The company engages in general worker dispatch, outsourcing, recruitment consulting and advertisement, business contract; and paid employment placement businesses. It also offers staffing services for nurses and caregivers who support these services, staff introductions, and home-visit care services; employment support services for people with disabilities; HR tech services; and temporary staffing services. CAREER CO., LTD. was founded in 2009 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyCAREER CO., LTD. generates revenue primarily through its staffing and workforce solutions. The company earns fees by placing temporary and permanent employees with client organizations. In temporary staffing, it charges clients an hourly rate for the workers it provides, a portion of which is used to pay the employees while the rest is retained as revenue. For permanent placements, the company receives a one-time fee, often calculated as a percentage of the placed employee's annual salary. In addition to these core services, CAREER CO., LTD. may engage in outsourcing services where it manages specific business processes or functions on behalf of clients. Strategic partnerships with companies in key industries enhance its market reach and contribute to its earnings.
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.78
Positive
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.85
Very Positive
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.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.97B | 16.71B | 17.79B | 16.34B | 14.18B | 12.25B |
| Gross Profit | 3.43B | 3.66B | 4.00B | 3.63B | 3.25B | 2.57B |
| EBITDA | 250.99M | 469.44M | 678.00M | 419.88M | 412.12M | 93.24M |
| Net Income | 115.76M | 249.85M | 378.75M | 195.61M | 68.91M | -39.34M |
Balance Sheet | ||||||
| Total Assets | 4.41B | 4.41B | 5.11B | 4.93B | 4.83B | 3.50B |
| Cash, Cash Equivalents and Short-Term Investments | 1.97B | 2.15B | 2.75B | 2.23B | 1.61B | 1.59B |
| Total Debt | 918.76M | 800.00M | 1.00B | 1.21B | 1.22B | 932.43M |
| Total Liabilities | 2.50B | 2.40B | 3.07B | 3.28B | 3.44B | 2.23B |
| Stockholders Equity | 1.91B | 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
Negative
295.00
Price Trends
301.76
Negative
309.55
Negative
321.86
Negative
Market Momentum
-1.82
Negative
40.66
Neutral
32.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6198, the sentiment is Negative. The current price of 295 is below the 20-day moving average (MA) of 297.80, below the 50-day MA of 301.76, and below the 200-day MA of 321.86, indicating a bearish trend. The MACD of -1.82 indicates Negative momentum. The RSI at 40.66 is Neutral, neither overbought nor oversold. The STOCH value of 32.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6198.
CAREER CO., LTD. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | ¥3.40B | 29.79 | ― | ― | 11.07% | 53.36% | |
67 Neutral | ¥2.24B | 37.97 | -6.22% | 0.79% | 10.53% | ― | |
66 Neutral | ¥3.02B | 29.58 | 15.78% | ― | 7.14% | 185.13% | |
66 Neutral | ¥6.60B | 23.10 | 9.60% | 1.58% | 12.93% | ― | |
62 Neutral | ¥2.51B | 138.80 | ― | 2.12% | -7.36% | -93.85% | |
60 Neutral | ¥1.81B | -5.73 | 0.19% | ― | -1.16% | -253.09% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.