Steady Revenue Growth And Earnings RecoveryConsistent revenue growth from 2022–2025 and a return to positive earnings establish a durable operating baseline for the staffing business. That recovery indicates sustained demand and operational fixes, supporting predictable top-line cash flow and credibility with clients and lenders over the next 2–6 months.

Material Leverage ImprovementThe marked reduction in leverage and equity growth strengthens financial flexibility and reduces insolvency risk. A lower debt/equity ratio and solid ROE improve capacity to withstand shocks, support incremental investment or strategic hiring, and make refinancing or covenant management easier over a multi-quarter horizon.

2025 Cash‑flow ReboundThe rebound in operating and free cash flow demonstrates the company's ability to convert earnings into spendable cash when operations stabilize. This strengthens near-term liquidity, supports debt reduction or targeted reinvestment, and reduces dependence on external financing for working capital needs.

Bears Say

Modest And Declining MarginsDeclining gross margin and a modest net margin constrain the firm's ability to absorb cost inflation or invest in growth initiatives. Low margins reduce the buffer against demand shocks and limit retained earnings, making long-term margin recovery essential for durable profitability and capital accumulation.

Inconsistent Cash ConversionVolatile cash conversion—periods of negative operating cash flow in 2020–2021 and FCF at 46% of net income in 2025—signals working capital swings and operational sensitivity. Inconsistent cash flows can strain liquidity, complicate planning, and increase reliance on debt during downturns.

Sizable Remaining Debt ExposureAlthough leverage improved, the absolute level of debt (~¥580M) keeps refinancing and interest burden risks meaningful. Elevated debt reduces strategic optionality, raises vulnerability to margin compression, and could force conservative capital allocation if earnings dip, affecting long-term investment capacity.

4766 FAQ

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

PA Co., Ltd. lowest stock price was ¥211.00 and its highest was ¥319.00 in the past 12 months.

What is PA Co., Ltd.’s market cap?

PA Co., Ltd.’s market cap is ¥3.12B.

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

PA Co., Ltd.’s upcoming earnings report date is May 18, 2026 which is in 88 days.

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

PA Co., Ltd. released its earnings results on Feb 16, 2026. The company reported ¥1.78 earnings per share for the quarter, beating the consensus estimate of N/A by ¥1.78.

Is PA Co., Ltd. overvalued?

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

Does PA Co., Ltd. pay dividends?

PA Co., Ltd. pays a Notavailable dividend of ¥8.2 which represents an annual dividend yield of N/A. See more information on PA Co., Ltd. dividends here

What is PA Co., Ltd.’s EPS estimate?

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

How many shares outstanding does PA Co., Ltd. have?

PA Co., Ltd. has 11,229,800 shares outstanding.

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

PA Co., Ltd. reported an EPS of ¥1.78 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -2.069%.

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

Currently, no hedge funds are holding shares in JP:4766

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

PA Co., Ltd.

PA Co., Ltd. develops revitalization projects for individuals and businesses in Japan. The company offers in-house recruiting media for job seekers; and temporary staffing and recruitment services, as well as manages childcare and nursery schools. The company was incorporated in 1973 and is headquartered in Tokyo, Japan.