PERSOL HOLDINGS CO (2181) AI Stock Analysis

• Market Cap: ¥567.62B
• Dividend Yield: 3.59%
• Average Volume (3M): 8.21M
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.53
• Revenue Growth: 6.95%
• EPS Growth: 13.63%
• Country: JP
• Employees: 65,730
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 4.72
• Shares Outstanding: 2,278,437,700
• 10 Day Avg. Volume: 6,131,050
• 30 Day Avg. Volume: 8,214,589
• PEG Ratio: 0.69
• Price to Book (P/B): 2.90
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 8.63
• 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
• EPS Forecast (FY): 18.67
• Revenue Forecast (FY): ¥1.53T

• Rating: 66 Neutral
• Price Target: ¥260.00 ▼(-0.04% Downside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is driven primarily by solid fundamentals (growth, improved operating performance, and strong cash conversion) and supportive valuation (moderate P/E with a high dividend yield). These positives are tempered by weak technicals, with the stock trading below major moving averages and negative momentum indicators, plus some financial sensitivity from thin margins and a recent increase in debt.

Positive Factors

Revenue Growth Momentum

Sustained and recently accelerating revenue indicates durable demand for core staffing and HR services. Persistent top-line growth supports scale advantages in sales, compliance and placement operations, enabling continued investment in service platforms and improving operating leverage over multiple quarters.

Strong Cash Conversion

Free cash flow tracking net income demonstrates earnings quality and reliable cash generation. That persistent cash conversion supports dividends, working capital needs and selective reinvestment, reducing reliance on external funding and improving long-term financial flexibility.

Manageable Leverage and Capital Efficiency

Moderate, improving leverage and rising shareholders’ equity signal stronger balance-sheet flexibility. Combined with recent stronger ROE, this supports disciplined capital allocation and gives the company room to fund growth or weather cyclical staffing slumps without immediate capital structure stress.

Negative Factors

Thin, Volatile Net Margins

The staffing business inherently produces narrow spreads between client billing and employment costs; thin, historically volatile net margins reduce earnings predictability. Margin pressure from wage inflation or pricing passthrough limits durability of profits and amplifies earnings downside in slower hiring cycles.

Recent Increase in Total Debt

An uptick in absolute debt increases sensitivity to cashflow shifts and interest rate variability. Even with moderate leverage metrics today, a trend of rising debt can constrain strategic flexibility, elevate refinancing risk, and reduce capacity for opportunistic investments if revenues soften.

Weakening Free Cash Flow Growth

Although cash conversion is strong in level terms, negative FCF growth in the trailing period and only moderate cash coverage versus debt reduce the operational cushion. This limits ability to absorb prolonged downturns or pursue sizable M&A without changing financing patterns.

PERSOL HOLDINGS CO Business Overview & Revenue Model

Company Description

PERSOL HOLDINGS CO (2181) is a leading human resource and staffing company based in Japan, operating primarily in the staffing and recruitment sector. The company offers a range of services including temporary staffing, permanent placement, and outsourcing solutions across various industries. PERSOL is known for its innovative workforce solutions, leveraging technology to enhance recruitment processes and improve the match between candidates and job opportunities. The company operates under several brands, catering to diverse market needs and providing tailored HR solutions to businesses and job seekers.

How the Company Makes Money

PERSOL HOLDINGS generates revenue primarily through its staffing and recruitment services, which include placement fees for permanent hires and fees for temporary staffing services. The company charges clients based on a percentage of the employee's salary for permanent placements, while for temporary staffing, it earns revenue through hourly wages paid by clients, which include a markup over the wages of the temporary workers. Additionally, PERSOL has diversified its revenue streams by offering outsourcing and consulting services related to human resource management. Strategic partnerships with other businesses and technology platforms enhance their service offerings and efficiency, further contributing to revenue growth. The company's strong market presence in Japan, coupled with its ongoing investment in digital solutions, positions it favorably for sustained earnings.

PERSOL HOLDINGS CO Financial Statement Overview

Summary

Solid multi-year revenue growth with improved operating profitability and strong cash conversion. Offsets include structurally thin/volatile net margins for the staffing model, a recent increase in total debt, and negative TTM free cash flow growth.

Income Statement

Revenue has grown steadily over the last several years and accelerated in TTM (Trailing-Twelve-Months), indicating solid demand and scale. Profitability is stable at the gross level (roughly consistent gross margin), while operating profitability has improved versus earlier years, supporting stronger earnings power. The key weakness is that net margins remain thin for the business model and have been somewhat volatile historically, which can make earnings more sensitive to cost pressures and cycle changes.

Balance Sheet

Leverage looks manageable, with debt-to-equity staying in a moderate range and improving from prior peak levels, which supports balance sheet flexibility. Shareholders’ equity has grown over time, and returns on equity are strong in the most recent periods, pointing to effective capital use. The main concern is that total debt has risen in the latest period versus the prior year, which could increase sensitivity to downturns if profitability softens.

Cash Flow

Cash generation is a clear strength: free cash flow remains high and closely tracks net income in TTM (Trailing-Twelve-Months), suggesting earnings quality is solid and cash conversion is healthy. Operating cash flow has generally been resilient across periods. Offsetting that, free cash flow growth turned negative in TTM (Trailing-Twelve-Months), and cash flow relative to debt is only moderate, implying less cushion if debt continues to trend up or if the operating environment weakens.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	1.52T	1.45T	1.33T	1.24T	1.06T	950.72B
Gross Profit	348.04B	332.13B	301.16B	282.64B	240.84B	201.41B
EBITDA	94.99B	92.56B	80.06B	72.78B	69.32B	45.66B
Net Income	39.10B	35.87B	29.97B	22.76B	31.91B	15.34B
Balance Sheet
Total Assets	605.25B	539.75B	518.73B	442.16B	421.78B	383.42B
Cash, Cash Equivalents and Short-Term Investments	88.43B	82.82B	108.37B	101.31B	107.55B	83.16B
Total Debt	117.67B	77.28B	68.99B	85.13B	53.46B	64.31B
Total Liabilities	379.35B	333.36B	310.41B	241.43B	217.47B	208.26B
Stockholders Equity	208.00B	189.63B	192.35B	169.67B	183.00B	155.56B
Cash Flow
Free Cash Flow	72.68B	63.72B	62.27B	39.36B	39.70B	25.34B
Operating Cash Flow	76.13B	68.85B	77.75B	52.80B	50.69B	37.57B
Investing Cash Flow	-51.57B	-29.77B	-19.00B	-22.50B	-7.06B	-14.02B
Financing Cash Flow	-35.55B	-63.88B	-53.80B	-38.27B	-21.14B	-17.97B

PERSOL HOLDINGS CO Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 260.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2181, the sentiment is Negative. The current price of 260.1 is above the 20-day moving average (MA) of 257.21, below the 50-day MA of 274.92, and below the 200-day MA of 273.73, indicating a bearish trend. The MACD of -10.04 indicates Positive momentum. The RSI at 35.84 is Neutral, neither overbought nor oversold. The STOCH value of 39.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2181.

PERSOL HOLDINGS CO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9744	85 Outperform	¥263.46B	18.88	28.98%	5.57%	4.09%	17.10%
2146	79 Outperform	¥128.89B	20.70	―	7.51%	8.28%	-36.32%
2124	75 Outperform	¥147.26B	16.89	―	2.38%	20.17%	32.32%
2181	66 Neutral	¥567.62B	14.18	19.18%	3.59%	6.95%	13.63%
6098	66 Neutral	¥9.95T	21.27	27.29%	0.27%	1.23%	26.94%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2168	42 Neutral	¥76.80B	-14.36	-6.02%	0.77%	-9.70%	-108.59%

PERSOL HOLDINGS CO Corporate Events

PERSOL HOLDINGS Delivers Record Q3 FY2025 Results and Targets AI-Driven Growth

PERSOL HOLDINGS reported record-high revenue and profit for the first three quarters of FY2025, with all strategic business units achieving revenue growth and key profit indicators such as adjusted EBITDA and operating profit progressing in line with full-year targets. Despite signs of caution in corporate hiring amid an uncertain macroeconomic outlook and ongoing assessment of AI effectiveness, the company plans to accelerate growth in the high-income segment, invest in AI to boost productivity, and aims to sustain steady revenue growth while targeting a 10% increase in adjusted EBITDA, reinforcing its earnings momentum ahead of a new mid-term management plan in May.

This performance underscores PERSOL’s strong operational footing and resilience in a cautious hiring market, positioning it to benefit from structural demand for specialized talent and technology-driven efficiency gains. The planned AI investments and focus on high-income domains are expected to enhance profitability and differentiate its service portfolio, with implications for sustained shareholder value and competitive strength in Japan’s staffing and career services sector.

The most recent analyst rating on (JP:2181) stock is a Buy with a Yen309.00 price target. To see the full list of analyst forecasts on PERSOL HOLDINGS CO stock, see the JP:2181 Stock Forecast page.

PERSOL HOLDINGS Lifts Nine-Month Profit and Confirms Full-Year Outlook as Group Expands

PERSOL HOLDINGS reported revenue of ¥1,154.3 billion for the nine months ended December 31, 2025, up 6.3% year on year, with operating profit rising 11.5% to ¥54.0 billion and profit attributable to owners of the parent increasing 10.4%. Earnings per share improved to ¥15.65, while adjusted EBITDA and adjusted profit also grew, supported in part by the consolidation of 11 new subsidiaries including Gojob SAS.

The company’s balance sheet strengthened as total assets reached ¥605.3 billion and equity attributable to owners of the parent climbed to ¥208.0 billion, though the equity ratio dipped slightly to 34.4%. PERSOL maintained its full-year forecast, targeting ¥1.54 trillion in revenue and a 14.3% rise in profit attributable to owners of the parent, and kept its dividend outlook unchanged at a total annual payout of ¥11.0 per share for the fiscal year ending March 31, 2026.

Shareholder returns were also supported by a reduction in treasury shares during the period, which helped lift per-share metrics despite a lower average share count. The combination of steady profit growth, unchanged bullish guidance, and continued group expansion through business combinations underscores management’s confidence in sustained demand for HR services and the company’s positioning in the staffing and human capital markets.

The most recent analyst rating on (JP:2181) stock is a Buy with a Yen309.00 price target. To see the full list of analyst forecasts on PERSOL HOLDINGS CO stock, see the JP:2181 Stock Forecast page.