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PERSOL HOLDINGS CO (JP:2181)
:2181

PERSOL HOLDINGS CO (2181) AI Stock Analysis

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PERSOL HOLDINGS CO

(OTC:2181)

Rating:78Outperform
Price Target:
¥310.00
▲(10.75%Upside)
PERSOL HOLDINGS CO's strong financial performance, marked by consistent revenue and profit growth, is the primary driver of its solid stock score. The technical analysis supports this with bullish trends, although caution is advised due to the near-overbought RSI. The stock's valuation is fair, with an attractive dividend yield contributing to its overall appeal.

PERSOL HOLDINGS CO (2181) vs. iShares MSCI Japan ETF (EWJ)

PERSOL HOLDINGS CO Business Overview & Revenue Model

Company DescriptionPERSOL HOLDINGS CO., LTD. is a leading Japanese human resources and employment solutions company, headquartered in Tokyo, Japan. The company operates across several sectors, including staffing services, outsourcing, and technology solutions, primarily within the Asia-Pacific region. PERSOL provides comprehensive HR services, encompassing temporary staffing, permanent placement, and career transition support, catering to a wide range of industries.
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 Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q2-2024)
|
% Change Since: 4.48%|
Next Earnings Date:Aug 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. These factors contribute to a robust financial outlook, positioning the company well within the staffing and employment services industry.
Income Statement
85
Very Positive
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.
Balance Sheet
78
Positive
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.
Cash Flow
82
Very Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue1.45T1.33T1.22T1.06T950.72B
Gross Profit332.13B301.16B282.64B240.84B201.41B
EBITDA92.56B80.06B72.78B67.15B45.66B
Net Income35.87B29.97B22.76B31.91B15.34B
Balance Sheet
Total Assets539.75B518.73B442.16B421.78B383.42B
Cash, Cash Equivalents and Short-Term Investments82.82B108.37B99.76B107.55B83.16B
Total Debt77.28B68.99B54.96B53.46B64.31B
Total Liabilities333.36B310.41B241.43B217.47B208.26B
Stockholders Equity189.63B192.35B185.51B183.00B157.12B
Cash Flow
Free Cash Flow63.72B62.27B39.36B39.70B25.34B
Operating Cash Flow68.85B77.75B52.80B50.69B37.57B
Investing Cash Flow-29.77B-19.00B-22.50B-7.06B-14.02B
Financing Cash Flow-63.88B-53.80B-38.27B-21.14B-17.97B

PERSOL HOLDINGS CO Technical Analysis

Technical Analysis Sentiment
Positive
Last Price279.90
Price Trends
50DMA
269.79
Positive
100DMA
253.63
Positive
200DMA
248.26
Positive
Market Momentum
MACD
3.28
Positive
RSI
54.62
Neutral
STOCH
25.39
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 279.9 is above the 20-day moving average (MA) of 279.48, above the 50-day MA of 269.79, and above the 200-day MA of 248.26, indicating a bullish trend. The MACD of 3.28 indicates Positive momentum. The RSI at 54.62 is Neutral, neither overbought nor oversold. The STOCH value of 25.39 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 (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
86
Outperform
¥96.34B10.73
4.23%16.59%40.77%
79
Outperform
€82.52B0.9590.72%0.68%-11.30%6369.78%
78
Outperform
¥633.29B17.2418.49%3.59%9.35%21.18%
76
Outperform
¥164.53B24.66
2.60%17.37%7.93%
75
Outperform
¥432.24B24.9921.58%2.88%9.46%6.97%
71
Outperform
¥255.26B12.948.49%3.09%6.34%12.95%
66
Neutral
¥241.47B19.1026.03%0.95%4.77%-7.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2181
PERSOL HOLDINGS CO
275.90
40.79
17.35%
JP:2124
JAC Recruitment Co., Ltd.
987.00
312.46
46.32%
JP:2146
UT Group Co.,Ltd.
2,429.00
-700.82
-22.39%
JP:2168
Pasona Group
2,192.00
210.31
10.61%
JP:9744
Meitec
3,176.00
-3.07
-0.10%
JP:6028
TechnoPro Holdings
4,194.00
1,547.72
58.49%

PERSOL HOLDINGS CO Corporate Events

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.

PERSOL HOLDINGS Announces Treasury Share Disposal for Employee Incentives
May 13, 2025

PERSOL HOLDINGS CO., LTD. announced the disposal of treasury shares as part of a Restricted Stock Compensation scheme aimed at incentivizing management-level employees and directors. This initiative is designed to enhance enterprise value and promote value sharing with shareholders, impacting 3,387 individuals across the company and its subsidiaries in Japan.

The most recent analyst rating on (JP:2181) stock is a Buy with a Yen390.00 price target. To see the full list of analyst forecasts on PERSOL HOLDINGS CO stock, see the JP:2181 Stock Forecast page.

PERSOL HOLDINGS Reports Strong Financial Growth and Announces Dividend Increase
May 13, 2025

PERSOL HOLDINGS CO., LTD. reported a significant increase in its consolidated financial results for the fiscal year ending March 31, 2025, with a 9.4% rise in revenue and a 19.7% increase in profit attributable to owners of the parent. The company also announced a dividend increase, reflecting its strong financial performance and commitment to shareholder returns. The stock split conducted in October 2023 has impacted earnings per share calculations, and the company has set a target dividend payout ratio of around 50% of adjusted EPS.

The most recent analyst rating on (JP:2181) stock is a Buy with a Yen390.00 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 Increased Year-End Dividend
May 13, 2025

PERSOL HOLDINGS CO., LTD. has announced an increase in its year-end dividend per share from 4.50 yen to 5.00 yen, reflecting its commitment to shareholder returns. This decision aligns with the company’s target payout ratio of approximately 50% of adjusted EPS, demonstrating its strategic focus on enhancing shareholder value.

The most recent analyst rating on (JP:2181) stock is a Buy with a Yen390.00 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.Date of analysis: May 27, 2025