Pasona Group (2168) AI Stock Analysis

• Market Cap: ¥70.17B
• Dividend Yield: 0.79%
• Average Volume (3M): 128.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: -9.70%
• EPS Growth: -108.59%
• Country: JP
• Employees: 8,735
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): -15.92
• Shares Outstanding: 40,190,300
• 10 Day Avg. Volume: 154,590
• 30 Day Avg. Volume: 128,443
• PEG Ratio: 0.09
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.29
• P/FCF Ratio: -6.36
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: ¥1,799.00 ▼(-3.49% Downside)

The overall stock score of 42 reflects significant financial and technical challenges. The company's declining revenue and profitability, coupled with cash flow issues, weigh heavily on the score. Technical indicators show bearish momentum, and the valuation is unattractive with a negative P/E ratio. These factors collectively suggest a cautious outlook for the stock.

Pasona Group Business Overview & Revenue Model

Company Description

Pasona Group Inc. provides human resources, temporary staffing, and contracting and outsourcing services in Japan. Its business process outsourcing (BPO) services include expert, place and search, Career development support, fringe benefit outsourcing, health promotion management, public solution, DX promotion, and human resources consulting/education and training services, as well as JOB HUB Platform. The company also offers life solutions, which include childcare support, infants/children education and human resources development, nursing care training facility operation, nursing care and work balance support, housekeeping agency operation, and safe and secure environment development services. In addition, it provides support for global human resources recruitment, overseas expansion consulting, expat employee management, employee support, and training/human resources development; and employment support and relocation promotion, regional promotion, sales channel development support, and inbound tourism services. The company was founded in 1976 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Pasona Group generates revenue through multiple key streams, primarily from its staffing and recruitment services. The company earns fees from client companies when they hire temporary staff or when it places permanent candidates. These fees are typically based on the salary of the employees placed or a percentage of the contract value. Additionally, Pasona Group offers consulting services that help organizations optimize their workforce, which also contributes to their revenue. The company has formed strategic partnerships with various organizations to enhance its service offerings and expand its reach, further solidifying its position in the competitive HR services market. Factors such as economic conditions, labor market trends, and the demand for skilled labor can significantly impact the company's earnings.

Pasona Group Financial Statement Overview

Summary

Pasona Group faces significant financial challenges. The income statement reflects declining revenue and profitability, with a negative net profit margin. The balance sheet shows moderate stability with reduced leverage, but cash flow issues are prominent, with negative free cash flow and declining cash flow ratios.

Income Statement

The income statement shows a concerning decline in revenue and profitability. The company experienced a negative revenue growth rate of -6.67% in the most recent year, and net income turned negative, resulting in a net profit margin of -2.80%. The EBIT and EBITDA margins have also deteriorated significantly, indicating operational challenges.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio improved to 0.24, suggesting a reduction in leverage. However, the return on equity has turned negative due to the net loss, which is a concern. The equity ratio remains stable, indicating a solid capital structure.

Cash Flow

The cash flow statement highlights significant challenges, with free cash flow turning negative and a free cash flow growth rate of -Infinity. The operating cash flow to net income ratio is positive, but the free cash flow to net income ratio is negative, indicating cash flow issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	309.24B	309.24B	356.73B	372.58B	366.10B	334.54B
Gross Profit	67.71B	67.96B	84.83B	91.53B	89.67B	82.97B
EBITDA	-160.00M	-2.40B	113.01B	23.01B	27.71B	21.45B
Net Income	-8.66B	-8.66B	95.89B	6.10B	8.62B	6.78B
Balance Sheet
Total Assets	265.04B	265.04B	301.09B	275.50B	203.75B	151.64B
Cash, Cash Equivalents and Short-Term Investments	139.27B	139.27B	192.28B	123.07B	66.95B	54.53B
Total Debt	32.68B	32.68B	42.34B	58.33B	53.16B	33.82B
Total Liabilities	123.91B	123.91B	146.43B	203.88B	136.60B	101.86B
Stockholders Equity	134.93B	134.93B	148.49B	54.00B	49.99B	38.16B
Cash Flow
Free Cash Flow	0.00	-14.00B	-12.75B	-7.66B	-6.20B	10.12B
Operating Cash Flow	0.00	4.33B	7.40B	5.96B	10.12B	18.87B
Investing Cash Flow	0.00	-47.60B	94.81B	-12.50B	-29.62B	-9.66B
Financing Cash Flow	0.00	-15.05B	-13.44B	-2.29B	23.54B	-5.15B

Pasona Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1864.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2168, the sentiment is Negative. The current price of 1864 is below the 20-day moving average (MA) of 1882.65, below the 50-day MA of 1933.50, and below the 200-day MA of 2087.66, indicating a bearish trend. The MACD of -13.40 indicates Negative momentum. The RSI at 44.75 is Neutral, neither overbought nor oversold. The STOCH value of 40.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2168.

Pasona Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2146	79 Outperform	¥113.54B	19.18	―	7.66%	8.28%	-36.32%
4848	72 Outperform	¥57.94B	10.74	―	3.70%	3.47%	-0.05%
7088	70 Outperform	¥89.55B	28.33	―	3.51%	9.97%	22.68%
9164	67 Neutral	―	―	―	―	4.85%	-51.19%
6070	64 Neutral	¥29.99B	12.79	―	4.73%	-1.06%	3.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2168	42 Neutral	¥70.17B	-9.05	-6.02%	0.79%	-9.70%	-108.59%

Pasona Group Corporate Events

Pasona Group Completes Share Repurchase

Pasona Group Inc. has completed the repurchase of 153,800 of its own shares, as part of a larger plan to repurchase up to 2,000,000 shares. This strategic move is likely aimed at enhancing shareholder value and optimizing capital structure, potentially impacting the company’s market positioning and investor relations positively.

Pasona Group Updates on Share Repurchase Progress

Pasona Group Inc. announced the status of its ongoing share repurchase program, which was initially resolved in January 2025. As of October 31, 2025, the company has repurchased 1,846,200 shares for approximately JPY 3.9 billion, progressing towards its maximum target of 2 million shares by January 2026. This strategic move is likely aimed at enhancing shareholder value and optimizing capital structure.

Pasona Group Restructures to Boost DX Talent and AI Solutions

Pasona Group Inc. has announced a strategic move to transfer part of its DX talent development and AI solutions business to its subsidiary, Smart Style Co., Ltd., through a simplified absorption-type company split effective January 5, 2026. This restructuring aims to enhance decision-making and agility, accelerating growth in these sectors and strengthening the group’s overall business capabilities, with Smart Style set to be renamed Pasona Data & Design Inc.

Pasona Group Finalizes Treasury Share Disposal for Stock Compensation

Pasona Group Inc. has completed the payment procedures for the disposal of 20,400 treasury shares as restricted stock compensation, a move initially resolved in September 2025. This action is part of their strategic compensation plan for directors and executive officers, potentially impacting the company’s financial structure and shareholder value.

Pasona Group’s Financial Results Show Resilience Amid Challenges

Pasona Group reported a slight increase in net sales for the three months ended August 31, 2025, but faced operating and ordinary profit losses. Despite these challenges, the company maintains a stable financial position with a solid equity-to-asset ratio. The forecast for the fiscal year ending May 31, 2026, anticipates growth in net sales and a return to profitability, indicating a positive outlook for future operations.

Pasona Group Updates on Share Repurchase Progress

Pasona Group Inc. announced the status of its ongoing share repurchase program, revealing that it has repurchased 157,500 shares at a total cost of JPY 342,363,793 during September 2025. This move is part of a larger plan approved in January 2025 to buy back up to 2,000,000 shares, indicating the company’s strategy to enhance shareholder value and optimize capital structure.

Pasona Group Implements Incentive Plan with Treasury Share Disposal

Pasona Group Inc. has announced the disposal of treasury shares as part of a new incentive plan utilizing restricted stock to enhance corporate value and promote value sharing with shareholders. This plan, approved at the recent Annual General Meeting, aims to incentivize directors and executive officers by providing compensation through the company’s common stock or monetary claims, aligning their interests with the company’s long-term goals.