Improving Cash GenerationFree cash flow turning positive and improving operating cash flow provide a durable source of internal funding. This strengthens the company's ability to service debt, fund working capital and capex, and reduces reliance on external financing, improving long-term financial flexibility.

Diversified Business ModelA diversified holding structure across real estate, telecom and technology creates multiple revenue channels and cross-subsidiary synergies. This reduces exposure to a single industry cycle, supports steadier consolidated cash flows, and enables redeployment of capital into higher-return areas.

Stable Equity BaseA positive equity ratio provides a capital buffer against losses and supports creditor confidence. A relatively stable equity base helps absorb shocks, enables restructuring or strategic investments, and preserves access to capital markets or bank financing when execution needs arise.

Bears Say

High Leverage RiskSustained high leverage increases interest and refinancing burdens, constraining operational flexibility. In downturns, elevated debt amplifies solvency risk and limits ability to invest or weather revenue shortfalls, making long-term recovery more dependent on rapid deleveraging or external capital.

Declining Revenue TrendA multiyear revenue decline erodes scale economics and reduces margins. Persistent top-line weakness limits reinvestment capacity and makes margin recovery harder, increasing reliance on cost cuts or asset sales rather than sustainable organic growth to restore profitability.

Negative Returns And ProfitabilityNegative ROE and slim or negative net margins indicate the company is not currently creating shareholder value. Over the medium term this can limit investor confidence and retention of capital, forcing tougher strategic choices like disposals or dilutive financing to stabilize the balance sheet.

2778 FAQ

What was Palemo Holdings Co.,Ltd.’s price range in the past 12 months?

Palemo Holdings Co.,Ltd. lowest stock price was ¥114.00 and its highest was ¥212.00 in the past 12 months.

What is Palemo Holdings Co.,Ltd.’s market cap?

Palemo Holdings Co.,Ltd.’s market cap is ¥1.79B.

When is Palemo Holdings Co.,Ltd.’s upcoming earnings report date?

Palemo Holdings Co.,Ltd.’s upcoming earnings report date is Mar 27, 2026 which is in 32 days.

How were Palemo Holdings Co.,Ltd.’s earnings last quarter?

Palemo Holdings Co.,Ltd. released its earnings results on Dec 26, 2025. The company reported -¥8.11 earnings per share for the quarter, missing the consensus estimate of N/A by -¥8.11.

Is Palemo Holdings Co.,Ltd. overvalued?

According to Wall Street analysts Palemo Holdings Co.,Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Palemo Holdings Co.,Ltd. pay dividends?

Palemo Holdings Co.,Ltd. pays a Semiannually dividend of ¥6 which represents an annual dividend yield of N/A. See more information on Palemo Holdings Co.,Ltd. dividends here

What is Palemo Holdings Co.,Ltd.’s EPS estimate?

Palemo Holdings Co.,Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Palemo Holdings Co.,Ltd. have?

Palemo Holdings Co.,Ltd. has 12,051,384 shares outstanding.

What happened to Palemo Holdings Co.,Ltd.’s price movement after its last earnings report?

Palemo Holdings Co.,Ltd. reported an EPS of -¥8.11 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went down -1.515%.

Which hedge fund is a major shareholder of Palemo Holdings Co.,Ltd.?

Currently, no hedge funds are holding shares in JP:2778

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Palemo Holdings Co.,Ltd.

Palemo Holdings Co.,Ltd. owns and operates a chain of specialty stores for women's apparel in Japan. It is also involved in the delivery agency business. The company was formerly known as Palemo Co., Ltd. and changed its name to Palemo Holdings Co.,Ltd. in August 2017. The company was incorporated in 1976 and is headquartered in Nagoya, Japan.