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PERSOL HOLDINGS CO LTD (JP:2181)
:2181
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PERSOL HOLDINGS CO
(OTC:2181)
Rating:72Outperform
Price Target:
¥311.00
▲(9.55% Upside)
PERSOL HOLDINGS CO (2181) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$645.10B
Dividend Yield3.28%
Average Volume (3M)7.46M
Price to Earnings (P/E)19.1
Beta (1Y)0.60
Revenue Growth7.71%
EPS Growth3.01%
CountryJP
Employees65,730
SectorIndustrials
Sector Strength75
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)4.86
Shares Outstanding2,278,437,700
10 Day Avg. Volume7,539,650
30 Day Avg. Volume7,458,816
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue0.44
Enterprise Value/Gross Profit1.93
Enterprise Value/Ebitda7.01
Forecast
1Y Price Target
$355.56Price Target Upside25.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
PERSOL HOLDINGS CO Business Overview & Revenue Model
Company DescriptionPERSOL HOLDINGS CO (2181) is a prominent Japanese company operating in the human resources and staffing sector. The company provides a comprehensive range of HR services, including temporary staffing, permanent placement, outsourcing, and consulting services. PERSOL HOLDINGS is known for its extensive network and expertise in workforce solutions, catering to diverse industries and helping organizations meet their talent and organizational needs.
How the Company Makes MoneyPERSOL HOLDINGS CO generates revenue primarily through its staffing and workforce solutions services. The company earns income by providing temporary and permanent staffing services, where it charges client companies for supplying personnel to meet their workforce demands. Additionally, PERSOL HOLDINGS offers outsourcing services, allowing companies to delegate certain business processes or functions, which also contributes to its revenue. Consulting services provide another revenue stream, offering strategic HR solutions and advice to businesses. The company's broad client base, extensive service offerings, and strong industry partnerships significantly enhance its revenue-generating capabilities.
PERSOL HOLDINGS CO Earnings Call Summary
Earnings Call Date:Aug 08, 2025
(Q2-2024)
| % Change Since: |
Next Earnings Date:Nov 07, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue growth in several SBUs, particularly in the Career and Technology segments, alongside improved free cash flow. However, there were notable challenges including declines in operating profit and adjusted EBITDA, as well as increased expenses. The overall sentiment is mixed with significant achievements balanced by substantial challenges.Q2-2024 Updates
Positive Updates
Revenue Increase
Revenue increased by 7.8% year-on-year to JPY 654.8 billion.
Career SBU Performance
Career SBU revenue increased by 29% and achieved a large increase in gross profit of JPY 11.1 billion year-on-year.
Technology SBU Growth
Technology SBU revenue increased by 14% compared to the previous year, with improved operating rates in IT and engineering departments.
Significant Free Cash Flow Improvement
Free cash flow was JPY 33 billion compared to JPY 12.8 billion last year, marking a significant improvement.
Asia Pacific SBU Success
Asia Pacific SBU revenue increased by 6% and adjusted EBITDA by 15%, with facility management performing steadily.
Negative Updates
Operating Profit Decline
Operating profit decreased by 22% year-on-year to JPY 26.3 billion.
Adjusted EBITDA Decline
Adjusted EBITDA decreased by 19% to JPY 75 billion.
BPO SBU Revenue Drop
BPO SBU saw a decline in revenue due to a significant drop in COVID-19 related revenue.
Increased Expenses
Personal expenses, including investment in human capital, increased by JPY 10.6 billion, and advertisement expenses increased by JPY 4 billion.
Company Guidance
The earnings call for Persol Holdings, symbol 2181.T, for the second quarter of 2024 highlighted several key financial metrics and strategic initiatives. Revenue increased by 7.8% year-on-year, reaching JPY 654.8 billion, while adjusted EBITDA was JPY 35 billion. The company reported an interim dividend of JPY 43, with a year-end dividend projected at JPY 4.3, following a 10-for-1 stock split. Operating profit fell by 22% to JPY 26.3 billion, and quarterly profit decreased by 23% to JPY 16.7 billion. The report emphasized strategic investments aligning with the midterm management plan 2026, particularly in the Career SBU, which experienced a 29% increase in revenue. The call also detailed growth strategies, including initiatives for reskilling and the expansion of the placement market, expected to grow at a CAGR of over 9% towards 2030. The company aims to maintain a balanced approach to cost control and strategic investment to ensure steady profit in the second half of the fiscal year.PERSOL HOLDINGS CO Financial Statement Overview
Summary
PERSOL HOLDINGS CO exhibits a solid financial position with consistent revenue and profit growth, effective cost management, and strong cash flow generation. The balance sheet reflects prudent leverage and strong equity, supporting long-term stability.Income Statement
PERSOL HOLDINGS CO has demonstrated strong revenue growth over the years, with a notable increase of 9.37% from 2024 to 2025. The gross profit margin shows a solid performance at approximately 22.88% for 2025, indicating efficient cost management. The net profit margin has improved to 2.47% in 2025, reflecting enhanced profitability. EBIT and EBITDA margins stand at 4.00% and 6.38% respectively, showing healthy operational efficiency. The consistent growth and profitability improvements highlight strong financial health.85
Very Positive
Balance Sheet
The company's balance sheet reflects a strong equity position with an equity ratio of approximately 35.13% in 2025, indicating solid financial stability. The debt-to-equity ratio is managed well at 0.41, showcasing prudent financial leverage. Return on equity is commendable at 18.91% for 2025, reflecting effective use of shareholders' equity to generate profits. Overall, the balance sheet presents a stable financial foundation with manageable leverage.78
Positive
Cash Flow
PERSOL HOLDINGS CO has shown robust cash flow management, with a free cash flow growth rate of 2.32% from 2024 to 2025. The operating cash flow to net income ratio is strong at 1.92, indicating efficient conversion of profits into cash. The free cash flow to net income ratio is 1.78, further demonstrating strong cash generation. The company maintains positive cash flow trends, supporting its financial flexibility and growth prospects.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.45T | 1.45T | 1.33T | 1.22T | 1.06T | 950.72B |
| Gross Profit | 332.13B | 332.13B | 301.16B | 282.64B | 240.84B | 201.41B |
| EBITDA | 91.66B | 92.56B | 80.06B | 72.78B | 67.15B | 45.66B |
| Net Income | 35.87B | 35.87B | 29.97B | 22.76B | 31.91B | 15.34B |
Balance Sheet | ||||||
| Total Assets | 539.75B | 539.75B | 518.73B | 442.16B | 421.78B | 383.42B |
| Cash, Cash Equivalents and Short-Term Investments | 82.82B | 82.82B | 108.37B | 99.76B | 107.55B | 83.16B |
| Total Debt | 77.28B | 77.28B | 68.99B | 54.96B | 53.46B | 64.31B |
| Total Liabilities | 333.36B | 333.36B | 310.41B | 241.43B | 217.47B | 208.26B |
| Stockholders Equity | 189.63B | 189.63B | 192.35B | 185.51B | 183.00B | 157.12B |
Cash Flow | ||||||
| Free Cash Flow | 63.72B | 63.72B | 62.27B | 39.36B | 39.70B | 25.34B |
| Operating Cash Flow | 68.85B | 68.85B | 77.75B | 52.80B | 50.69B | 37.57B |
| Investing Cash Flow | -29.77B | -29.77B | -19.00B | -22.50B | -7.06B | -14.02B |
| Financing Cash Flow | -63.88B | -63.88B | -53.80B | -38.27B | -21.14B | -17.97B |
PERSOL HOLDINGS CO Technical Analysis
Positive
283.90
Price Trends
284.37
Negative
274.76
Positive
254.02
Positive
Market Momentum
-0.60
Negative
51.08
Neutral
74.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2181, the sentiment is Positive. The current price of 283.9 is above the 20-day moving average (MA) of 281.20, below the 50-day MA of 284.37, and above the 200-day MA of 254.02, indicating a neutral trend. The MACD of -0.60 indicates Negative momentum. The RSI at 51.08 is Neutral, neither overbought nor oversold. The STOCH value of 74.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2181.
PERSOL HOLDINGS CO Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $645.10B | 19.09 | 17.60% | 3.28% | 7.71% | 3.01% | |
64 Neutral | $10.73B | 15.65 | 7.61% | 2.01% | 2.80% | -14.92% | |
| ― | $1.72B | 20.18 | 29.36% | 6.31% | ― | ― | |
| ― | €468.16M | 0.97 | -6.30% | ― | ― | ― | |
| ― | $3.38B | 31.68 | 20.23% | 2.41% | ― | ― | |
81 Outperform | ¥110.35B | 19.44 | 5.56% | 13.16% | -40.17% | ||
76 Outperform | ¥174.40B | 24.87 | 2.40% | 19.22% | 20.94% |
* Industrials Sector Average
Performance Comparison
JP:2181
PERSOL HOLDINGS CO
281.80
9.18
3.37%
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TXHPF
TechnoPro Holdings
32.70
12.62
62.85%
JP:2124
JAC Recruitment Co., Ltd.
1,082.00
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42.13%
JP:2146
UT Group Co.,Ltd.
2,766.00
291.17
11.77%
PERSOL HOLDINGS CO Corporate Events
PERSOL HOLDINGS Reports Revenue Growth Amid Profit Decline in Q1 2025
Aug 8, 2025
PERSOL HOLDINGS CO., LTD. reported its consolidated financial results for the three months ended June 30, 2025, showing a 3.6% increase in revenue compared to the previous year. However, the company experienced declines in operating profit, profit before tax, and profit attributable to owners of the parent, with comprehensive income dropping significantly by 41.5%. The company maintains its financial forecast for the fiscal year ending March 31, 2026, with expectations of revenue growth and improved profitability, despite the current quarter’s challenges.
The most recent analyst rating on (JP:2181) stock is a Hold with a Yen260.00 price target. To see the full list of analyst forecasts on PERSOL HOLDINGS CO stock, see the JP:2181 Stock Forecast page.
PERSOL HOLDINGS Receives Significant Dividends from Subsidiaries
Jun 27, 2025
PERSOL HOLDINGS CO., LTD. announced that it has received dividends amounting to 39,073 million yen from its consolidated subsidiaries. This dividend income will be recorded under sales in the company’s non-consolidated financial statements for the fiscal year ending March 31, 2026, with no impact on the consolidated financial results.
The most recent analyst rating on (JP:2181) stock is a Hold with a Yen260.00 price target. To see the full list of analyst forecasts on PERSOL HOLDINGS CO stock, see the JP:2181 Stock Forecast page.
PERSOL HOLDINGS Announces Merger with Subsidiary to Boost Efficiency
Jun 24, 2025
PERSOL HOLDINGS CO., LTD. announced a merger with its wholly owned subsidiary, PERSOL FACILITY MANAGEMENT CO., LTD., effective August 1, 2025. This merger aims to enhance operational efficiency by integrating resources and operations within the group, with no new shares or cash payments involved due to the subsidiary’s full ownership.
The most recent analyst rating on (JP:2181) stock is a Hold with a Yen260.00 price target. To see the full list of analyst forecasts on PERSOL HOLDINGS CO stock, see the JP:2181 Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.