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

• Market Cap: ¥2.29B
• Dividend Yield: 2.32%
• Average Volume (3M): 5.51K
• Price to Earnings (P/E): 126.6
• Beta (1Y): 0.23
• Revenue Growth: -7.36%
• EPS Growth: -93.85%
• Country: JP
• Employees: 317
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): -1.34
• Shares Outstanding: 8,624,320
• 10 Day Avg. Volume: 3,850
• 30 Day Avg. Volume: 5,506
• PEG Ratio: -0.37
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 0.19
• P/FCF Ratio: -28.80
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ¥281.00 ▲(1.08% Upside)

The overall stock score is primarily influenced by strong financial performance, though recent negative operating cash flow is a concern. Technical analysis indicates bearish momentum, and the high P/E ratio suggests overvaluation, offsetting the positive dividend yield.

CAREER CO., LTD. Business Overview & Revenue Model

Company Description

Career 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 Money

CAREER CO., LTD. generates revenue primarily through its recruitment and staffing services. The company earns fees from employers for successfully placing candidates in job positions, which usually includes a one-time placement fee based on the candidate's salary. Additionally, the company may offer subscription-based services to businesses seeking ongoing recruitment support or access to their talent database. Another significant revenue stream comes from career development services, where they provide training and skill enhancement programs for job seekers. Strategic partnerships with educational institutions and corporations also contribute to their revenue by expanding their service offerings and client base.

CAREER CO., LTD. Financial Statement Overview

Summary

The company shows strong revenue growth and profitability with a stable financial structure and low leverage. However, the recent negative operating cash flow is a concern that needs monitoring.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.50B	16.71B	17.79B	16.34B	14.18B	12.25B
Gross Profit	3.29B	3.66B	4.00B	3.63B	3.25B	2.57B
EBITDA	99.03M	469.44M	678.00M	419.88M	412.12M	93.24M
Net Income	17.18M	249.85M	378.75M	195.61M	68.91M	-39.34M
Balance Sheet
Total Assets	4.50B	4.41B	5.11B	4.93B	4.83B	3.50B
Cash, Cash Equivalents and Short-Term Investments	1.92B	2.15B	2.75B	2.23B	1.61B	1.59B
Total Debt	1.01B	800.00M	1.00B	1.21B	1.22B	932.43M
Total Liabilities	2.59B	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

• Technical Analysis Sentiment: Negative
• Last Price: 278.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 278 is above the 20-day moving average (MA) of 276.05, below the 50-day MA of 287.74, and below the 200-day MA of 313.81, indicating a bearish trend. The MACD of -5.72 indicates Positive momentum. The RSI at 27.11 is Positive, neither overbought nor oversold. The STOCH value of 37.08 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6538	73 Outperform	¥6.22B	21.79	―	1.62%	12.93%	―
6563	67 Neutral	¥3.30B	28.84	―	―	11.07%	53.36%
4766	66 Neutral	¥3.04B	29.79	―	―	7.14%	185.13%
7043	65 Neutral	¥2.51B	42.61	―	0.71%	10.53%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6198	56 Neutral	¥2.29B	126.56	―	2.32%	-7.36%	-93.85%
6558	50 Neutral	¥1.56B	―	―	―	-12.60%	-335.07%