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

• Market Cap: ¥328.77B
• Dividend Yield: 1.65%
• Average Volume (3M): 585.39K
• Price to Earnings (P/E): 26.7
• Beta (1Y): -0.39
• Revenue Growth: 7.94%
• EPS Growth: -7.29%
• Country: JP
• Employees: 3,804
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Apparel - Retail
• EPS (TTM): 33.26
• Shares Outstanding: 92,544,000
• 10 Day Avg. Volume: 441,610
• 30 Day Avg. Volume: 585,390
• PEG Ratio: 0.08
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.40
• 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

• Rating: 76 Outperform
• Price Target: ¥4,059.00 ▲(11.36%Upside)

The stock of PAL GROUP Holdings Co., Ltd. is supported by strong financial performance, particularly in revenue growth and cash flow management. However, technical indicators present a mixed picture with short-term bearish momentum. The valuation suggests the stock may be slightly overvalued compared to peers, limiting potential upside.

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

Company Description

PAL GROUP Holdings Co., Ltd. (2726) is a Japanese company primarily engaged in the planning, development, and sale of fashion apparel, accessories, and lifestyle goods. The company operates through various segments, including fashion brands, lifestyle retail, and other related businesses, catering to a diverse customer base with a wide range of products that emphasize quality and style.

How the Company Makes Money

PAL GROUP Holdings generates revenue primarily through the sale of fashion and lifestyle products across its retail stores and online platforms. The company's key revenue streams include direct sales from its owned brand outlets and ecommerce channels. Additionally, PAL GROUP Holdings benefits from strategic partnerships and collaborations with other brands and designers to enhance their product offerings and market reach. The company also focuses on expanding its brand portfolio and customer base through effective marketing and innovative product development, which are significant contributors to its earnings.

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 cash flows are robust. Continued attention to net income growth and maintaining low debt levels will be key for sustained financial health.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	202.53B	207.82B	192.54B	164.48B	134.20B	108.52B
Gross Profit	112.71B	116.26B	106.28B	90.22B	74.31B	59.24B
EBITDA	23.37B	22.81B	20.59B	17.36B	7.95B	2.54B
Net Income	11.45B	11.85B	12.85B	9.96B	4.00B	270.00M
Balance Sheet
Total Assets	147.77B	147.93B	126.92B	112.51B	93.73B	108.19B
Cash, Cash Equivalents and Short-Term Investments	79.14B	85.72B	67.23B	63.84B	52.25B	63.09B
Total Debt	11.87B	14.20B	12.31B	12.47B	12.40B	28.63B
Total Liabilities	79.72B	74.57B	63.48B	57.32B	46.34B	63.83B
Stockholders Equity	68.05B	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: 3645.00
• 50DMA: Negative
• 100DMA: Positive
• 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 3645 is above the 20-day moving average (MA) of 3601.00, below the 50-day MA of 3727.70, and above the 200-day MA of 3184.53, indicating a neutral trend. The MACD of -21.00 indicates Positive momentum. The RSI at 47.27 is Neutral, neither overbought nor oversold. The STOCH value of 27.10 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
8219	84 Outperform	€111.89B	11.80	5.34%	8.64%	0.57%	-4.69%
8214	78 Outperform	¥138.36B	14.48		4.83%	2.65%	26.42%
2726	76 Outperform	¥328.77B	26.71		1.65%	7.94%	-7.29%
7606	74 Outperform	¥59.93B	13.56		3.61%	12.39%	-11.38%
2792	69 Neutral	¥44.14B	10.83		3.79%	2.00%	-28.32%
8185	68 Neutral	¥38.89B	14.47		2.83%	-1.59%	57.60%
Sector *	62 Neutral	$16.76B	11.38	-7.38%	2.96%	1.59%	-23.30%

PAL GROUP Holdings Co., Ltd. Corporate Events

PAL GROUP Holdings Announces Executive Promotion

PAL GROUP Holdings Co., Ltd. has announced an executive promotion within its ranks. Hiromitsu Shimao has been promoted to Senior Managing Executive Director and General Manager of the Administrative Division, effective May 28, 2025. This move reflects the company’s ongoing efforts to strengthen its leadership team and enhance its administrative capabilities.

PAL GROUP Holdings Announces Share Repurchase Plan

PAL GROUP Holdings Co., Ltd. has announced the repurchase of up to 750,000 of its own shares, representing 0.86% of its total issued shares, with a maximum repurchase price of 2 billion yen. This move, set to occur between May 27 and August 29, 2025, aims to enhance shareholder value and optimize capital structure, reflecting the company’s strategic financial management.

PAL GROUP Announces Secondary Offering Details

PAL GROUP Holdings Co., Ltd. has announced the selling price and other details for a secondary offering of its common stock. The offering includes a purchase and underwriting by underwriters and an over-allotment option, with a total selling price of 8,875,000,000 yen. This move is likely to impact the company’s financial positioning and market operations significantly.

PAL GROUP Holdings Announces Share Repurchase Plan

PAL GROUP Holdings Co., Ltd. has announced a resolution to repurchase its own shares to enhance shareholder returns and improve capital efficiency. This move is part of a broader strategy to mitigate the short-term impact on its stock supply and demand following a secondary offering, aiming to maintain stability for existing shareholders.

PAL GROUP Holdings Increases Dividend Amid Profit Decline

PAL GROUP Holdings Co., Ltd. has announced a decision to increase its dividend per share from ¥50 to ¥60 for the fiscal year ending February 28, 2025, despite a decrease in profits due to extraordinary losses. This move reflects the company’s dedication to shareholder returns and will be proposed at the upcoming General Meeting of Shareholders.

PAL GROUP Holdings Reports Strong Sales Growth and Increased Dividends for FY 2025

PAL GROUP Holdings Co., Ltd. reported its consolidated financial results for the fiscal year ended February 28, 2025, showing a notable increase in net sales by 7.9% and operating profit by 27.1% compared to the previous year. Despite a decline in profit attributable to owners of the parent by 7.8%, the company demonstrated strong cash flow from operating activities and increased its annual dividend payout, indicating a commitment to returning value to shareholders.