CareerIndex, Inc. (6538) AI Stock Analysis

• Market Cap: ¥6.08B
• Dividend Yield: 1.32%
• Average Volume (3M): 120.20K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.03
• Revenue Growth: 12.73%
• EPS Growth: N/A
• Country: JP
• Employees: 100
• Sector: Industrials
• Sector Strength: 72
• Industry: Information Technology Services
• EPS (TTM): 12.07
• Shares Outstanding: 21,158,762
• 10 Day Avg. Volume: 149,880
• 30 Day Avg. Volume: 120,200
• PEG Ratio: -0.13
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 5.75
• 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: 68 Neutral
• Price Target: ¥319.00 ▼(-10.39% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by improving financial performance (revenue growth, turnaround to profitability, and strong free-cash-flow expansion) and a supportive valuation (low P/E with a dividend). These positives are partly offset by weak technical momentum, with the stock below key moving averages and a negative MACD despite oversold readings.

Positive Factors

Revenue Growth

A durable 14% top-line gain indicates expanding product adoption or market share rather than a one-off spike. Sustained revenue growth provides a foundation for reinvestment, scale benefits and margin improvement over the next several quarters if execution remains steady.

Gross Margin Stability

Stable ~66% gross margins point to a resilient business model and pricing power or efficient cost structure at the core service level. High, steady gross margins support long-term operating leverage as revenue grows and protect profitability against moderate cost pressure.

Cash Flow & Balance Sheet

A 121% jump in free cash flow combined with a ~58% equity ratio and reduced leverage (D/E 0.38) shows stronger self-funding capacity and financial flexibility. This durable cash generation lowers refinancing risk and supports capex, R&D or selective M&A over time.

Negative Factors

Margin Volatility

The sharp swing from large losses to modest profit signals operational volatility and sensitivity to cost or demand swings. If revenue growth slows or costs re-emerge, profitability could compress quickly; management must sustain discipline to lock in gains.

Past High Leverage Risk

Although leverage improved to D/E 0.38, the firm's history of higher debt implies residual refinancing or covenant risk under stress. Future shocks or weaker cash flow could re-elevate funding costs and constrain strategic flexibility.

Small Scale in Competitive Industry

A 100-employee footprint in IT services limits capacity to scale large deals, diversify client base, or fund sustained R&D against bigger peers. Structural industry competition and scale advantages of larger firms can pressure margins and growth durability.

CareerIndex, Inc. Business Overview & Revenue Model

Company Description

Disruptors, Inc. engages in the business of job recruitment and customer collecting agency services. It operates through the following segment: Marketing Business and Digital Transformation Business. The company was founded by Hirotaka Itakura on November 30, 2005 and is headquartered in Tokyo, Japan.

How the Company Makes Money

CareerIndex generates revenue primarily through a subscription model, where employers pay fees to list job openings and access premium features such as enhanced visibility and advanced applicant tracking tools. Additionally, the company earns money from job seekers who may pay for premium services such as resume reviews, personalized career coaching, and access to exclusive job postings. Significant partnerships with educational institutions and professional organizations also contribute to its revenue by providing a steady stream of users looking for job placement assistance. Furthermore, CareerIndex may engage in data monetization by offering insights and analytics to clients based on user behavior and market trends.

CareerIndex, Inc. Financial Statement Overview

Summary

Strong recovery with 14% revenue growth (2024→2025), stable ~66% gross margin, and a sharp swing in net margin from -42.5% to +4.9%. Balance sheet is solid with ~58% equity ratio and improved leverage (debt-to-equity 0.38), while cash flow is a key strength with free cash flow up 121% and strong cash conversion.

Income Statement

CareerIndex, Inc. has demonstrated a strong revenue growth trajectory with a 14% increase from 2024 to 2025 and consistent gross profit margins around 66%. The net profit margin significantly improved from a loss of 42.5% in 2024 to a profit of 4.9% in 2025, indicating a substantial recovery. However, the company experienced fluctuations in EBIT and EBITDA margins due to past losses, which require careful management moving forward.

Balance Sheet

The company maintains a solid equity base with an equity ratio of approximately 58% in 2025. The debt-to-equity ratio has improved to 0.38, reflecting reduced leverage. Return on equity was strong at 9.6% in 2025, showcasing effective use of equity to generate profits. However, the industry-standard metrics suggest potential risks with past high debt levels that need to be monitored.

Cash Flow

CareerIndex, Inc. shows robust cash flow management with a significant increase in free cash flow by 121% from 2024 to 2025. The operating cash flow to net income ratio is strong, supporting the company's profitability. The free cash flow to net income ratio highlights effective cash conversion capabilities, although the company should continue to focus on sustaining these levels.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.51B	4.29B	3.77B	3.34B	3.06B	2.32B
Gross Profit	2.92B	2.85B	2.80B	2.85B	2.84B	2.11B
EBITDA	738.00M	657.00M	-1.29B	885.00M	1.15B	665.64M
Net Income	280.00M	211.00M	-1.60B	262.00M	585.00M	301.00M
Balance Sheet
Total Assets	3.78B	3.79B	4.02B	5.96B	5.15B	4.52B
Cash, Cash Equivalents and Short-Term Investments	1.03B	1.07B	990.00M	2.33B	2.41B	1.75B
Total Debt	759.00M	828.00M	1.23B	1.61B	790.00M	1.05B
Total Liabilities	1.60B	1.59B	1.94B	2.27B	1.52B	1.57B
Stockholders Equity	2.18B	2.20B	2.09B	3.69B	3.63B	2.95B
Cash Flow
Free Cash Flow	0.00	534.00M	241.00M	301.00M	983.00M	850.37M
Operating Cash Flow	0.00	539.00M	304.00M	328.00M	986.00M	899.07M
Investing Cash Flow	0.00	37.00M	-1.14B	-648.00M	-61.00M	-631.12M
Financing Cash Flow	0.00	-500.00M	-504.00M	207.00M	-259.00M	290.00M

CareerIndex, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 356.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6538, the sentiment is Negative. The current price of 356 is above the 20-day moving average (MA) of 328.00, above the 50-day MA of 347.62, and above the 200-day MA of 287.18, indicating a neutral trend. The MACD of -13.91 indicates Positive momentum. The RSI at 36.47 is Neutral, neither overbought nor oversold. The STOCH value of 25.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6538.

CareerIndex, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7361	79 Outperform	¥4.15B	12.28	―	2.09%	24.84%	2.56%
6538	68 Neutral	¥6.08B	10.20	―	1.32%	12.73%	―
9344	66 Neutral	¥4.64B	-1,169.79	―	3.66%	13.47%	-108.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4766	63 Neutral	¥2.53B	26.36	―	―	8.11%	255.15%
6563	59 Neutral	¥3.25B	37.39	―	―	5.06%	37.14%
6198	43 Neutral	¥2.06B	-18.54	―	2.66%	-10.61%	-160.10%