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

• Market Cap: ¥2.62B
• Dividend Yield: 2.09%
• Average Volume (3M): 4.39K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.27
• Revenue Growth: -4.08%
• EPS Growth: -41.24%
• Country: JP
• Employees: 317
• Sector: Industrials
• Sector Strength: 86
• Industry: Staffing & Employment Services
• EPS (TTM): -6.05
• Shares Outstanding: 8,624,320
• 10 Day Avg. Volume: 5,700
• 30 Day Avg. Volume: 4,390
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥355.00
• Price Target Upside: 15.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ¥345.00 ▲(12.01%Upside)

CAREER CO., LTD. is positioned well financially, with strong revenue growth and a stable balance sheet, providing a solid foundation. However, recent negative cash flow and a lack of strong technical momentum or compelling valuation suggest a cautious outlook. The stock merits attention but also requires monitoring of cash flow improvements.

CAREER CO., LTD. Business Overview & Revenue Model

Company Description

CAREER CO., LTD. (6198) is a Japan-based company primarily engaged in the human resources and staffing industry. The company offers a range of services including temporary staffing, permanent placement, and outsourcing services. It caters to various sectors such as manufacturing, logistics, and office work, providing tailored workforce solutions to meet the diverse needs of its clients.

How the Company Makes Money

CAREER 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. exhibits strong revenue growth and a sound financial structure with low leverage, as indicated by the balance sheet. However, the negative operating cash flow in the latest period is a concern, impacting the overall financial performance score.

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

CAREER CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 308.00
• 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 308 is above the 20-day moving average (MA) of 305.15, below the 50-day MA of 312.78, and below the 200-day MA of 334.37, indicating a neutral trend. The MACD of -2.75 indicates Negative momentum. The RSI at 50.80 is Neutral, neither overbought nor oversold. The STOCH value of 68.11 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
4766	72 Outperform	¥3.13B	45.38		3.32%	5.45%	38.61%
6538	72 Outperform	¥4.39B	20.37		2.39%	13.99%	―
6563	67 Neutral	¥3.47B	38.09		―	26.41%	8.91%
6198	66 Neutral	¥2.62B	22.46		2.09%	-4.08%	-41.24%
Sector *	63 Neutral	C$7.32B	2.18	8.72%	2.40%	10.51%	-11.28%
7043	60 Neutral	¥2.10B	―		0.88%	4.29%	-2895.03%
6558	49 Neutral	¥1.74B	693.75		―	-1.16%	-253.09%