Stock Analysis & Valuation LIKE Co., Ltd. (2462.T)

• Previous Close: ¥1,527.00
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, ¥	Upside, %
Artificial intelligence (AI)	1779.62	17
Intrinsic value (DCF)	831.58	-46
Graham-Dodd Method	601.17	-61
Graham Formula	1202.16	-21

Strategic Investment Analysis

Company Overview

LIKE Co., Ltd. (2462.T) is a diversified Japanese conglomerate specializing in human resource services, including temporary staffing, outsourcing, recruitment, and educational support. Headquartered in Osaka, the company also operates in the outsourced and public childcare sectors and manages nursing homes, providing comprehensive care services. Originally founded in 1993 as J-COM Holdings Co., Ltd., the company rebranded to LIKE Co., Ltd. in December 2016. With a market capitalization of approximately ¥28.7 billion, LIKE Co. plays a significant role in Japan's industrial sector, addressing labor market needs and demographic challenges such as aging populations and childcare shortages. The company's diversified service portfolio positions it as a key player in Japan's HR and care industries, leveraging its expertise to meet evolving workforce demands.

Investment Summary

LIKE Co., Ltd. presents a stable investment opportunity with a low beta (0.046), indicating minimal volatility relative to the broader market. The company reported ¥60.5 billion in revenue and ¥2.45 billion in net income for FY 2024, with a diluted EPS of ¥127.55. Its strong cash position (¥9.44 billion) and manageable debt (¥12.31 billion) suggest financial resilience. However, the company operates in a competitive and highly regulated sector, with potential risks tied to labor market fluctuations and demographic shifts in Japan. The dividend yield, supported by a ¥58 per share payout, may appeal to income-focused investors, but growth prospects could be constrained by Japan's stagnant population trends.

Competitive Analysis

LIKE Co., Ltd. operates in Japan's highly fragmented HR and care services industry, competing with both specialized firms and larger conglomerates. Its competitive advantage lies in its diversified service offerings, spanning temporary staffing, childcare, and nursing care—a unique combination that mitigates sector-specific risks. The company benefits from Japan's aging population and labor shortages, which drive demand for its services. However, its market position is challenged by larger staffing firms with greater scale and international reach. LIKE Co.'s regional focus (Osaka-based) may limit its expansion compared to nationwide competitors. Its financial stability and niche expertise in care services provide differentiation, but pricing pressures and regulatory compliance remain ongoing challenges in Japan's tightly controlled labor and healthcare markets.

Major Competitors

• Pasona Group Inc. (2168.T): Pasona is a major Japanese staffing and HR services firm with a broader international presence compared to LIKE Co. It offers similar services, including temporary staffing and outsourcing, but has stronger corporate client relationships. However, Pasona lacks LIKE's focus on childcare and nursing care, which could be a disadvantage in Japan's aging society.
• Persol Holdings Co., Ltd. (9735.T): Persol is one of Japan's largest staffing companies, with extensive domestic and Southeast Asian operations. Its scale and technological investments in recruitment platforms give it an edge over LIKE Co. However, Persol's lack of dedicated childcare and elderly care services limits its exposure to these growing segments where LIKE has a niche advantage.
• Care Twentyone Corporation (6071.T): Care Twentyone specializes in nursing care services, directly competing with LIKE's elderly care segment. While it has deeper expertise in this niche, it lacks LIKE's diversified HR services, making it more vulnerable to single-sector risks. Its smaller scale also limits its ability to cross-sell services.