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PERSOL HOLDINGS CO LTD (JP:2181)
:2181
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PERSOL HOLDINGS CO
(OTC:2181)
71Outperform
PERSOL HOLDINGS CO (2181) vs. S&P 500 (SPY)
Market Cap
$581.71B
Dividend Yield3.23%
Average Volume (3M)6.88M
Price to Earnings (P/E)16.0
Beta (1Y)0.72
Revenue Growth8.39%
EPS Growth93.77%
CountryJP
Employees65,730
SectorIndustrials
Sector Strength82
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)4.44
Shares Outstanding2,278,437,700
10 Day Avg. Volume5,280,950
30 Day Avg. Volume6,878,596
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$239.77Price Target Upside-9.86% Downside
Rating ConsensusHold
Number of Analyst Covering0
PERSOL HOLDINGS CO Business Overview & Revenue Model
Company DescriptionPersol Holdings Co., Ltd. provides human resource services under the PERSOL brand worldwide. The company offers general worker dispatching, permanent placement, outsourcing, and other services. It also provides temporary staffing services, such as clerical work, research, clinical development, sales, and light work; outsourcing services, including clerical work, government office contract, call center, helpdesk, CRO, and manufacturing; and temporary job placement services. In addition, the company offers permanent placement mid-career and new grad recruitment; career change media and direct recruiting; executive and advisory placement; outplacement support; and career training services. Further, it provides IT and business outsourcing, digital solutions and system development, business consulting, and engineering services; and digital solutions, such as employment, human resources management, and education, as well as incubation programs. Additionally, the company offers equipment/facility maintenance, outsourcing, human resource management consulting, and education/training services. The company was formerly known as Temp Holdings Co., Ltd. and changed its name to Persol Holdings Co., Ltd. in July 2017. The company was incorporated in 2008 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyPERSOL HOLDINGS CO. generates revenue primarily through its staffing services, which include temporary and permanent placements. The company earns fees by matching job seekers with employers and charging clients for these recruitment services. Additionally, PERSOL offers outsourcing services, where it manages specific business functions or processes for clients, often on a contract basis. The company also invests in technology solutions, developing HR-related software and platforms that contribute to its revenue streams. Strategic partnerships and acquisitions in the HR and technology sectors further enhance PERSOL's ability to expand its market presence and revenue potential.
PERSOL HOLDINGS CO Financial Statement Overview
Summary
Overall, PERSOL HOLDINGS CO exhibits strong financial health with consistent revenue growth, solid profit margins, and effective cash flow management. The balance sheet is well-managed, with moderate leverage and strong equity returns. The company's financial position is stable, with opportunities for further enhancing equity ratios and maintaining growth momentum in the highly competitive staffing industry.Income Statement
PERSOL HOLDINGS CO demonstrated strong revenue growth of 7.21% in the TTM (Trailing-Twelve-Months) compared to the previous annual period. The company achieved a healthy gross profit margin of 22.89% and a net profit margin of 2.52% in the TTM. The EBIT margin of 4.38% and EBITDA margin of 7.27% indicate good operational efficiency. The consistent revenue growth trajectory and solid profit margins reflect a robust income statement performance.78
Positive
Balance Sheet
The company maintains a strong balance sheet with a debt-to-equity ratio of 0.39, indicating moderate leverage. The return on equity (ROE) of 19.24% in the TTM signifies effective utilization of equity to generate profits. An equity ratio of 35.65% highlights a stable financial structure. The balance sheet reflects financial stability and prudent management of liabilities, though there is room for enhancing equity ratios.75
Positive
Cash Flow
PERSOL HOLDINGS CO achieved a substantial free cash flow growth of 21.22% in the TTM, demonstrating strong cash generation capability. The operating cash flow to net income ratio of 2.34 and free cash flow to net income ratio of 2.10 suggest efficient conversion of income into cash. The cash flow statement highlights robust liquidity and effective cash management strategies.82
Very Positive
| Breakdown | ||||
| Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.33T | 1.22T | 1.06T | 950.72B | 970.57B | Gross Profit |
| 301.16B | 282.64B | 240.84B | 201.41B | 213.99B | EBIT |
| 53.77B | 53.06B | 48.14B | 26.44B | 39.09B | EBITDA |
| 80.06B | 72.78B | 67.15B | 45.66B | 56.36B | Net Income Common Stockholders |
| 29.97B | 22.76B | 31.91B | 15.34B | 7.61B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 108.37B | 99.76B | 107.55B | 83.16B | 78.25B | Total Assets |
| 518.73B | 442.16B | 421.78B | 383.42B | 370.99B | Total Debt |
| 68.99B | 54.96B | 53.46B | 64.31B | 73.48B | Net Debt |
| -39.38B | -44.80B | -54.08B | -18.85B | -4.76B | Total Liabilities |
| 310.41B | 241.43B | 217.47B | 208.26B | 207.09B | Stockholders Equity |
| 192.35B | 185.51B | 183.00B | 157.12B | 147.85B |
| Cash Flow | Free Cash Flow | |||
| 62.27B | 39.36B | 39.70B | 25.34B | 15.18B | Operating Cash Flow |
| 77.75B | 52.80B | 50.69B | 37.57B | 28.59B | Investing Cash Flow |
| -19.00B | -22.50B | -7.06B | -14.02B | -17.58B | Financing Cash Flow |
| -53.80B | -38.27B | -21.14B | -17.97B | -1.99B |
PERSOL HOLDINGS CO Technical Analysis
Positive
266.00
Price Trends
244.53
Positive
236.63
Positive
244.55
Positive
Market Momentum
5.16
Negative
69.71
Neutral
84.89
Negative
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 266 is above the 20-day moving average (MA) of 248.54, above the 50-day MA of 244.53, and above the 200-day MA of 244.55, indicating a bullish trend. The MACD of 5.16 indicates Negative momentum. The RSI at 69.71 is Neutral, neither overbought nor oversold. The STOCH value of 84.89 is Negative, 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
Performance Comparison
JP:2181
PERSOL HOLDINGS CO
266.00
53.13
24.96%
RKUNF
Rakuten
5.94
0.80
15.56%
MTHRF
M3
13.10
2.81
27.31%
RCRRF
Recruit Holdings Co
56.84
11.34
24.92%
DE:FJT
Fuji Soft Incorporated
57.50
22.32
63.45%
JP:4318
Quick Co., Ltd.
2,139.00
-37.66
-1.73%
PERSOL HOLDINGS CO Earnings Call Summary
Earnings Call Date:Feb 14, 2025
(Q2-2024)
| % Change Since: 16.42%|
Next Earnings Date:May 13, 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 Corporate Events
PERSOL HOLDINGS Receives Significant Subsidiary Dividend
Feb 25, 2025
PERSOL HOLDINGS CO., LTD. announced the receipt of a significant dividend of 11,979 million yen from one of its consolidated subsidiaries. This dividend will be recorded as income in the company’s non-consolidated financial statements for the fiscal year ending March 31, 2025, but it will not affect the consolidated financial results.
PERSOL HOLDINGS Announces Significant Dividend Income
Feb 7, 2025
PERSOL HOLDINGS CO., LTD. announced the receipt of a substantial dividend amounting to ¥14,978 million from one of its consolidated subsidiaries. This dividend will be recorded as income in the company’s non-consolidated financial statements for the fiscal year ending March 31, 2025. However, as the dividend is from a consolidated subsidiary, it will not impact the consolidated financial results for the same period.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.