PAL GROUP Holdings Co., Ltd. (2726) AI Stock Analysis

• Market Cap: ¥384.86B
• Dividend Yield: 1.42%
• Average Volume (3M): 708.60K
• Price to Earnings (P/E): 32.1
• Beta (1Y): -0.39
• Revenue Growth: 12.02%
• EPS Growth: -15.70%
• Country: JP
• Employees: 3,804
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 22.75
• Shares Outstanding: 185,091,630
• 10 Day Avg. Volume: 461,060
• 30 Day Avg. Volume: 708,600
• PEG Ratio: -3.08
• Price to Book (P/B): 3.78
• Price to Sales (P/S): 1.29
• P/FCF Ratio: 14.01
• 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): 104.98
• Revenue Forecast (FY): ¥234.63B

• Rating: 68 Neutral
• Price Target: ¥2,245.00 ▲(15.07% Upside)

The overall stock score is primarily driven by strong financial performance, which is the most significant factor. The technical analysis and valuation provide mixed signals, with the stock appearing expensive but offering a decent dividend yield. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

PAL GROUP's revenue growth of 12% indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Flow Management

Effective cash flow management ensures PAL GROUP can fund operations and growth initiatives, maintaining financial health and flexibility.

Balance Sheet Health

A strong balance sheet with low leverage enhances PAL GROUP's ability to withstand economic fluctuations and invest in growth opportunities.

Negative Factors

Earnings Decline

A decline in net income may indicate challenges in maintaining profitability, which could impact future financial performance if not addressed.

EPS Growth Decline

A significant decline in EPS growth suggests potential issues with cost management or revenue generation, affecting investor confidence and valuation.

Net Income Volatility

Volatility in net income may reflect operational challenges or market pressures, requiring strategic adjustments to stabilize earnings.

PAL GROUP Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

PAL GROUP Holdings Co., Ltd. (2726) is a leading entity in the logistics and transportation sector, headquartered in Taiwan. The company specializes in providing comprehensive supply chain solutions, including freight forwarding, warehousing, and distribution services. With a strong focus on technological integration, PAL GROUP aims to enhance operational efficiency and customer satisfaction across various industries, including e-commerce, manufacturing, and retail.

How the Company Makes Money

PAL GROUP generates revenue primarily through its diverse logistics services, which include freight forwarding, warehousing, and distribution. The company charges clients for these services based on the volume and complexity of the logistics operations. Key revenue streams include contract logistics for large clients, spot freight services for smaller shipments, and value-added services such as inventory management and order fulfillment. Additionally, strategic partnerships with major shipping lines and carriers enhance PAL GROUP's bargaining power and operational reach, allowing it to offer competitive pricing and reliable services, further contributing to its revenue growth.

PAL GROUP Holdings Co., Ltd. Financial Statement Overview

Summary

PAL GROUP Holdings Co., Ltd. presents a solid financial position with strong growth dynamics and excellent cash flow management. The income statement reflects high revenue growth and profitability, the balance sheet demonstrates financial stability with low leverage and a strong equity base, and cash flows are robust, indicating efficient cash generation and usage.

Income Statement

The income statement reflects strong growth and profitability. Revenue has shown consistent growth over the years with a notable increase in gross profit margins. Net profit margins and EBIT margins have improved significantly, indicating efficient cost management and operational strength. However, there was a slight dip in net income in the most recent year, which should be monitored.

Balance Sheet

The balance sheet is robust with a strong equity base and low leverage. The debt-to-equity ratio is low, indicating financial stability and a conservative approach to debt. Return on Equity is commendable, reflecting efficient use of shareholder funds. The equity ratio suggests a healthy balance between assets and equity, although a slight increase in debt is observable.

Cash Flow

Cash flow performance is very strong, with consistent growth in free cash flow. The operating cash flow to net income ratio indicates a solid conversion of earnings into cash, and the free cash flow to net income ratio supports a sustainable cash generation model. The company has effectively managed capital expenditures, supporting growth without stressing cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	223.65B	207.82B	192.54B	164.48B	134.20B	108.52B
Gross Profit	126.46B	116.26B	106.28B	90.22B	74.31B	59.24B
EBITDA	28.42B	22.81B	20.59B	17.36B	7.95B	2.54B
Net Income	13.37B	11.85B	12.85B	9.96B	4.00B	270.00M
Balance Sheet
Total Assets	160.56B	147.93B	126.92B	112.51B	93.73B	108.19B
Cash, Cash Equivalents and Short-Term Investments	90.54B	85.72B	67.23B	63.84B	52.25B	63.09B
Total Debt	12.82B	14.20B	12.31B	12.47B	12.40B	28.63B
Total Liabilities	83.21B	74.57B	63.48B	57.32B	46.34B	63.83B
Stockholders Equity	74.83B	70.89B	63.44B	55.18B	47.33B	44.35B
Cash Flow
Free Cash Flow	0.00	19.15B	10.29B	14.55B	6.33B	-381.00M
Operating Cash Flow	0.00	22.04B	13.46B	17.03B	7.97B	1.45B
Investing Cash Flow	0.00	792.00M	-4.40B	-2.60B	-679.00M	-1.19B
Financing Cash Flow	0.00	-4.36B	-5.67B	-2.83B	-18.13B	10.10B

PAL GROUP Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1951.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2726, the sentiment is Neutral. The current price of 1951 is below the 20-day moving average (MA) of 2133.75, below the 50-day MA of 2078.84, and below the 200-day MA of 2084.26, indicating a neutral trend. The MACD of -8.50 indicates Positive momentum. The RSI at 48.58 is Neutral, neither overbought nor oversold. The STOCH value of 43.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2726.

PAL GROUP Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7606	74 Outperform	¥69.81B	19.26	―	2.69%	10.48%	-34.38%
8214	72 Outperform	¥149.26B	17.25	―	4.50%	2.21%	4.36%
8219	71 Outperform	¥125.39B	13.40	5.53%	6.04%	-1.03%	4.12%
2792	69 Neutral	¥42.64B	12.38	―	3.59%	-0.98%	-29.86%
2726	68 Neutral	¥384.86B	32.11	―	1.42%	12.02%	-15.70%
8185	66 Neutral	¥33.15B	16.71	―	4.13%	-9.86%	-14.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

PAL GROUP Holdings Co., Ltd. Corporate Events

PAL GROUP Holdings Announces Board Changes

PAL GROUP Holdings Co., Ltd. announced a change in its Board of Directors, with Takayo Watanabe being appointed as the Director and Vice Chairman of the Board, effective immediately. This change in leadership is part of the company’s ongoing efforts to strengthen its governance and strategic direction.

Leadership Change at PAL GROUP Holdings Co., Ltd.

PAL GROUP Holdings Co., Ltd. has announced a change in its leadership due to the resignation of its Chairman and Representative Director, Isamu Matsuo, who stepped down due to health reasons. Hirofumi Kojima, the current Representative Director and President, will assume the role of Chairman, aiming to enhance the company’s management structure for sustainable growth and improved corporate value.

PAL GROUP Holdings Reports Strong Financial Growth for H1 2025

PAL GROUP Holdings Co., Ltd. reported a strong financial performance for the six months ending August 31, 2025, with significant increases in net sales, operating profit, and profit attributable to owners of the parent compared to the previous year. The company also completed a 2-for-1 stock split, which is reflected in the earnings per share calculations. The positive financial results indicate robust growth and a solid market position, with expectations for continued performance improvements in the fiscal year ending February 28, 2026.