Pasona Group (2168) AI Stock Analysis

• Market Cap: ¥86.78B
• Dividend Yield: 0.65%
• Average Volume (3M): 237.40K
• Price to Earnings (P/E): 1.0
• Beta (1Y): 0.70
• Revenue Growth: -11.30%
• EPS Growth: 6369.78%
• Country: JP
• Employees: 8,735
• Sector: Services
• Sector Strength: N/A
• Industry: Staffing & Employment Services
• EPS (TTM): -61.35
• Shares Outstanding: 40,190,300
• 10 Day Avg. Volume: 131,550
• 30 Day Avg. Volume: 237,403
• PEG Ratio: -0.38
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.89
• 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

• Rating: 79 Outperform
• Price Target: ¥2,784.00 ▲(20.78%Upside)

Pasona Group scores well overall, driven by strong financial and technical performance. The company's robust balance sheet and revenue growth are significant strengths. Technical indicators show bullish momentum, although caution is advised due to potential overbought conditions. Valuation factors suggest the stock may be undervalued, but the modest dividend yield is a consideration for income investors.

Pasona Group Business Overview & Revenue Model

Company Description

Pasona Group Inc. is a leading human resource solutions provider based in Japan. The company operates across various sectors, offering a comprehensive range of HR services, including staffing, career consulting, outsourcing, and talent development. Pasona Group focuses on enhancing employment opportunities and providing innovative HR solutions tailored to meet the needs of businesses and individuals, thereby contributing to the development of a more dynamic workforce.

How the Company Makes Money

Pasona Group generates revenue primarily through its staffing services, which include temporary staffing, permanent placement, and contract staffing solutions. The company also earns from outsourcing services, where it manages and executes HR functions for client organizations, thereby optimizing their operations. Additionally, Pasona Group offers career consulting and training services, which contribute to its earnings by helping individuals improve their skills and career prospects. The company leverages strategic partnerships and collaborative projects to expand its service offerings and market reach, further enhancing its revenue potential.

Pasona Group Financial Statement Overview

Summary

Pasona Group exhibits strong financial performance with consistent revenue growth and solid profitability. The balance sheet is robust with low leverage, indicating a stable financial position. However, the negative free cash flow due to high capital expenditures needs attention to ensure long-term sustainability.

Income Statement

Pasona Group has demonstrated a strong revenue base with consistent growth over the years. The gross profit margin remains healthy, indicating efficient cost management. However, recent declines in EBIT and EBITDA margins suggest increasing operational costs or pricing pressures. The net profit margin has improved significantly, reflecting effective cost control and possibly better financial management. Overall, the income statement shows a robust performance with room for improvement in operational efficiency.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio indicating prudent financial leverage. Return on equity is commendable, showcasing effective use of equity capital. The equity ratio is solid, suggesting a stable capital structure with a healthy proportion of equity funding relative to assets. Pasona Group demonstrates a stable financial position, minimizing risks associated with high leverage.

Cash Flow

The cash flow statement reflects a mixed scenario. Operating cash flow has been positive, indicating good cash generation from core operations. However, the free cash flow has been negative due to high capital expenditures, which could be a concern if not leading to future growth. The operating cash flow to net income ratio is reasonable, suggesting that net income is being effectively converted into cash. Improvements in free cash flow management could enhance financial flexibility.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	331.35B	356.73B	372.58B	366.10B	334.54B	324.98B
Gross Profit	75.97B	84.83B	91.53B	89.67B	82.97B	76.69B
EBITDA	105.77B	113.01B	20.23B	27.21B	24.40B	15.39B
Net Income	91.98B	95.89B	6.10B	8.62B	6.78B	594.00M
Balance Sheet
Total Assets	285.92B	301.09B	275.50B	203.75B	151.64B	140.44B
Cash, Cash Equivalents and Short-Term Investments	160.50B	192.28B	123.07B	66.95B	54.53B	49.12B
Total Debt	36.36B	42.34B	58.33B	53.16B	33.82B	35.92B
Total Liabilities	138.50B	146.43B	203.88B	136.60B	101.86B	98.13B
Stockholders Equity	141.37B	148.49B	54.00B	49.99B	38.16B	31.81B
Cash Flow
Free Cash Flow	0.00	-12.75B	-7.66B	-6.20B	10.12B	4.72B
Operating Cash Flow	0.00	7.40B	5.96B	10.12B	18.87B	11.42B
Investing Cash Flow	0.00	94.81B	-12.50B	-29.62B	-9.66B	-6.96B
Financing Cash Flow	0.00	-13.44B	-2.29B	23.54B	-5.15B	12.10B

Pasona Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2305.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2168, the sentiment is Positive. The current price of 2305 is above the 20-day moving average (MA) of 2261.15, above the 50-day MA of 2160.81, and above the 200-day MA of 2035.43, indicating a bullish trend. The MACD of 23.01 indicates Negative momentum. The RSI at 60.17 is Neutral, neither overbought nor oversold. The STOCH value of 93.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2168.

Pasona Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2146	86 Outperform	¥97.50B	10.86		4.20%	16.59%	40.77%
2168	79 Outperform	¥86.78B	1.00	90.72%	0.65%	-11.30%	6369.78%
7088	77 Outperform	¥63.82B	22.11		4.76%	10.90%	40.18%
9164	75 Outperform	¥87.80B	31.64		5.01%	7.66%	-35.51%
4848	74 Outperform	¥61.25B	13.28		3.53%	-2.99%	-27.98%
6070	68 Neutral	¥25.86B	14.19		5.49%	-7.75%	-16.92%
Sector *	54 Neutral	HK$1.01B	5.91	-17.10%	7.67%	12.55%	-102.16%

Pasona Group Corporate Events

Pasona Group Revises Financial Forecasts Amid Extraordinary Losses

Pasona Group Inc. has recorded significant extraordinary losses due to expenses related to its ‘PASONA NATUREVERSE’ pavilion at the 2025 Osaka-Kansai Expo, leading to a downward revision of its full-year consolidated financial forecasts for the fiscal year ended May 2025. Despite challenges such as the discontinuation of its Outsourcing segment and lower-than-expected project acquisitions, the company plans to improve earnings and return to profitability in the next fiscal year by focusing on expanding operating profit in Expert Solutions and improving profitability in Regional Revitalization & Tourism Solutions.

Pasona Group Updates on Share Repurchase Progress

Pasona Group Inc. has announced the status of its ongoing share repurchase program, which was initially resolved in January 2025. As of May 31, 2025, the company has repurchased 830,800 shares for approximately JPY 1.73 billion, with the aim of acquiring up to 2 million shares by January 2026. This move is part of Pasona’s strategy to enhance shareholder value and optimize its capital structure.

Pasona Group Completes Treasury Stock Cancellation and Share Repurchase

Pasona Group Inc. has announced the completion of its treasury stock cancellation and the status of its share repurchase program. The company repurchased 227,200 shares in April 2025, with a total expenditure of JPY 470,744,195, and has canceled 1,500,000 shares, reducing the total number of issued shares to 40,190,300. This move is part of a broader strategy to optimize capital structure and potentially enhance shareholder value.

Pasona Group Announces Leadership Change Amid 50th Anniversary

Pasona Group Inc. announced a significant change in its management structure, marking its 50th anniversary. The current Group CEO and President, Yasuyuki Nambu, will resign to allow a younger generation to lead, with Hirotaka Wakamoto and Shintaro Nakao taking on new leadership roles, aiming to accelerate decision-making and adapt to global changes.

Pasona Group to Cancel 1.5 Million Treasury Shares to Boost Capital Efficiency

Pasona Group Inc. announced its decision to cancel 1,500,000 shares of its treasury stock, representing 3.60% of the total issued shares, to improve capital efficiency and enhance shareholder returns. This move, approved by the Board of Directors, is part of the company’s strategy to optimize its capital structure and potentially increase the value delivered to shareholders.

Pasona Group Reports Financial Decline for Nine-Month Period

Pasona Group Inc. reported a significant decline in its financial performance for the nine months ending February 28, 2025, with net sales dropping by 13.8% and a notable loss in operating and ordinary profit compared to the previous year. The company’s financial position showed a decrease in total assets and net assets, reflecting challenges in the current market environment.