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CAREER CO., LTD. (JP:6198)
:6198
Japanese Market

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

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JP

CAREER CO., LTD.

(6198)

Rating:66Neutral
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. (6198) vs. iShares MSCI Japan ETF (EWJ)

CAREER CO., LTD. Business Overview & Revenue Model

Company DescriptionCAREER 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 MoneyCAREER 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
78
Positive
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
85
Very Positive
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
60
Neutral
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
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
16.43B16.71B17.79B16.34B14.18B12.25B
Gross Profit
3.55B3.66B4.00B3.63B3.25B2.57B
EBIT
356.56M428.86M608.71M356.18M481.69M1.98M
EBITDA
381.32M469.44M678.00M419.88M412.12M93.24M
Net Income Common Stockholders
203.89M249.85M378.75M195.61M68.91M-39.34M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.46B2.15B2.75B2.23B1.61B1.59B
Total Assets
4.70B4.41B5.11B4.93B4.83B3.50B
Total Debt
800.00M800.00M1.00B1.21B1.22B932.43M
Net Debt
-1.66B-1.35B-1.75B-1.02B-390.57M-655.14M
Total Liabilities
2.75B2.40B3.07B3.28B3.44B2.23B
Stockholders Equity
1.95B2.00B1.93B1.55B1.33B1.24B
Cash FlowFree Cash Flow
0.00-110.74M770.05M701.67M-243.97M216.65M
Operating Cash Flow
0.00-91.23M788.66M938.02M-206.10M263.50M
Investing Cash Flow
0.00-21.34M-61.37M-312.20M-58.42M-68.18M
Financing Cash Flow
0.00-480.36M-210.34M-9.80M289.65M180.46M

CAREER CO., LTD. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price314.00
Price Trends
50DMA
321.08
Negative
100DMA
329.19
Negative
200DMA
345.67
Negative
Market Momentum
MACD
-1.43
Negative
RSI
48.25
Neutral
STOCH
29.67
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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥3.94B18.33
2.65%13.99%
72
Outperform
¥2.95B42.57
3.32%5.45%38.61%
67
Neutral
¥3.33B36.02
26.41%8.91%
66
Neutral
¥2.67B22.89
1.99%-4.08%-41.24%
66
Neutral
$4.52B12.345.41%3.62%4.15%-12.18%
60
Neutral
¥1.97B
0.90%4.29%-2895.03%
50
Neutral
¥1.81B693.75
5.27%-155.03%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6198
CAREER CO., LTD.
318.00
-53.00
-14.29%
JP:4766
PA Co., Ltd.
273.00
-48.44
-15.07%
JP:6538
CareerIndex, Inc.
193.00
18.46
10.58%
JP:6558
Cookbiz Co., Ltd.
644.00
-894.00
-58.13%
JP:6563
Mirai Works, Inc.
608.00
-242.00
-28.47%
JP:7043
Alue Co., Ltd.
773.00
-18.33
-2.32%
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.