PAL GROUP Holdings Co., Ltd. (JP:2726)
:2726
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PAL GROUP Holdings Co., Ltd.
(2726)
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Rating:70Outperform
Price Target:
¥1,588.00
▼(-18.61% Downside)
Action:UpgradedDate:01/15/26
The score is primarily supported by strong financial performance (notably robust free cash flow and a low-leverage balance sheet). This is partially offset by weak technicals—price below key moving averages with negative MACD and very depressed momentum—while valuation is only moderately supportive (P/E ~20 and ~1.7% yield).
Positive Factors
Strong free cash flow generation
Consistent growth in free cash flow and strong operating cash conversion provide durable internal funding for capex, inventory and brand investment. Reliable FCF supports reinvestment, dividend flexibility and resilience through retail cycles without heavy external financing.
Negative Factors
Recent dip in net income and modest debt uptick
A recent decline in net income combined with increasing debt, even if modest, could erode cushion provided by low leverage if trends continue. Persistent profit weakness would reduce internal funding, raise leverage ratios and constrain strategic flexibility over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent growth in free cash flow and strong operating cash conversion provide durable internal funding for capex, inventory and brand investment. Reliable FCF supports reinvestment, dividend flexibility and resilience through retail cycles without heavy external financing.
Read all positive factors
PAL GROUP Holdings Co., Ltd. (2726) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥263.70B
Dividend Yield1.46%
Average Volume (3M)642.83K
Price to Earnings (P/E)19.6
Beta (1Y)-0.30
Revenue Growth12.02%
EPS Growth-15.70%
CountryJP
Employees3,804
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)27.73
Shares Outstanding185,091,630
10 Day Avg. Volume494,980
30 Day Avg. Volume642,826
Financial Highlights & Ratios
PEG Ratio-3.08
Price to Book (P/B)3.78
Price to Sales (P/S)1.29
P/FCF Ratio14.01
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)116.7
Revenue Forecast (FY)¥254.50B
PAL GROUP Holdings Co., Ltd. Business Overview & Revenue Model
Company Description
PAL GROUP Holdings CO., LTD. engages in the apparel, and miscellaneous goods and accessories businesses primarily in Japan. The company engages in the manufacture, wholesale, and retail of apparel products, including men's and women's clothing and...
How the Company Makes Money
The company makes money mainly through sales of apparel and related lifestyle products under its portfolio of brands. Revenue is generated when customers purchase products via (1) directly operated retail stores and (2) online channels (e-commerce...
PAL GROUP Holdings Co., Ltd. Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
85
Very Positive
Cash Flow
90
Very Positive
| Breakdown | TTM | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 | Feb 2021 |
|---|---|---|---|---|---|---|
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 | 28.87B | 26.18B | 20.87B | 17.86B | 9.01B | 2.28B |
| Net Income | 13.37B | 11.85B | 12.84B | 9.95B | 4.00B | 270.00M |
Balance Sheet | ||||||
| Total Assets | 160.56B | 148.82B | 127.66B | 113.08B | 93.92B | 108.47B |
| Cash, Cash Equivalents and Short-Term Investments | 90.54B | 85.72B | 67.23B | 63.84B | 52.25B | 63.09B |
| Total Debt | 12.82B | 14.74B | 12.85B | 12.97B | 12.95B | 29.07B |
| Total Liabilities | 83.21B | 75.46B | 64.21B | 57.89B | 46.53B | 64.11B |
| Stockholders Equity | 74.83B | 70.89B | 63.44B | 55.18B | 47.33B | 44.35B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 19.15B | 10.49B | 14.67B | 6.49B | -297.00M |
| 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 | -582.00M | -1.19B |
| Financing Cash Flow | 0.00 | -4.36B | -5.67B | -2.83B | -18.23B | 10.10B |
PAL GROUP Holdings Co., Ltd. Technical Analysis
Negative
1951.00
Price Trends
1577.53
Negative
1793.42
Negative
2012.55
Negative
Market Momentum
-50.31
Positive
38.11
Neutral
26.87
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2726, the sentiment is Negative. The current price of 1951 is above the 20-day moving average (MA) of 1489.40, above the 50-day MA of 1577.53, and below the 200-day MA of 2012.55, indicating a bearish trend. The MACD of -50.31 indicates Positive momentum. The RSI at 38.11 is Neutral, neither overbought nor oversold. The STOCH value of 26.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2726.
PAL GROUP Holdings Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥19.42T | 29.11 | 19.84% | 0.90% | 9.56% | 16.37% | |
72 Outperform | ¥40.77B | -29.01 | ― | 3.62% | -0.98% | -29.86% | |
72 Outperform | ¥71.07B | 3.05 | ― | 2.73% | 10.48% | -34.38% | |
71 Outperform | ¥125.14B | 24.22 | 5.53% | 6.09% | -1.03% | 4.12% | |
70 Outperform | ¥263.70B | 19.60 | ― | 1.46% | 12.02% | -15.70% | |
68 Neutral | ¥733.67B | 16.45 | 8.48% | 2.02% | ― | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
JP:2726
PAL GROUP Holdings Co., Ltd.
1,443.00
-42.52
-2.86%
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PAL GROUP Holdings Co., Ltd. Corporate Events
PAL GROUP Holdings Revamps Board and Audit Team Ahead of 2026 Shareholders’ Meeting
Jan 13, 2026
PAL GROUP Holdings has announced a series of board and audit personnel changes, set to be finalized at its 54th Ordinary General Meeting of Shareholders on May 27, 2026, as part of an update to its governance structure. Effective March 1, 2026, Di...
PAL GROUP Holdings to Raise Year-End Dividend on Strong Earnings
Jan 13, 2026
PAL GROUP Holdings will propose a year-end dividend of ¥40 per share for the fiscal year ending February 28, 2026, up from its previous forecast of ¥30, with a total payout of ¥6.9 billion sourced from retained earnings and an expec...
PAL GROUP Delivers Strong Nine-Month Earnings and Ups Dividend Payout After Stock Split
Jan 13, 2026
PAL GROUP Holdings reported robust results for the nine months ended November 30, 2025, with net sales rising 15.6% year on year to ¥176.35 billion and operating profit up 17.9% to ¥21.54 billion, while profit attributable to owners of p...
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.