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

• Market Cap: ¥439.26B
• Dividend Yield: 1.2%
• Average Volume (3M): 685.52K
• Price to Earnings (P/E): 32.8
• Beta (1Y): -0.35
• Revenue Growth: 9.20%
• EPS Growth: -0.71%
• Country: JP
• Employees: 3,804
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Apparel - Retail
• EPS (TTM): 60.29
• Shares Outstanding: 92,544,000
• 10 Day Avg. Volume: 792,510
• 30 Day Avg. Volume: 685,523
• PEG Ratio: 9.24
• Price to Book (P/B): 5.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥4,222.00
• Price Target Upside: -15.22% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥5,312.00 ▲(6.67%Upside)

The overall stock score of 73.2 reflects a solid financial foundation and strong cash flow management, which are the most significant factors. However, technical analysis suggests that the stock may be overbought, and valuation concerns arise due to a high P/E ratio. These factors moderately impact the attractiveness of the stock.

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 accessories. It also offers miscellaneous daily goods. As of February 28, 2022, the company operated through a network of 902 stores. The company was formerly known as Pal Co., Ltd. and changed its name to PAL GROUP Holdings CO., LTD. in September 2016. PAL GROUP Holdings CO., LTD. was incorporated in 1973 and is headquartered in Osaka, Japan.

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. High revenue growth, improved profit margins, and efficient cost management contribute to its strong financial performance. The balance sheet shows low leverage and a strong equity base, while cash flows indicate robust cash generation.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	207.82B	192.54B	164.48B	134.20B	108.52B
Gross Profit	116.26B	106.28B	90.22B	74.31B	59.24B
EBITDA	22.81B	20.59B	17.36B	7.95B	2.54B
Net Income	11.85B	12.85B	9.96B	4.00B	270.00M
Balance Sheet
Total Assets	147.93B	126.92B	112.51B	93.73B	108.19B
Cash, Cash Equivalents and Short-Term Investments	85.72B	67.23B	63.84B	52.25B	63.09B
Total Debt	14.20B	12.31B	12.47B	12.40B	28.63B
Total Liabilities	74.57B	63.48B	57.32B	46.34B	63.83B
Stockholders Equity	70.89B	63.44B	55.18B	47.33B	44.35B
Cash Flow
Free Cash Flow	19.15B	10.29B	14.55B	6.33B	-381.00M
Operating Cash Flow	22.04B	13.46B	17.03B	7.97B	1.45B
Investing Cash Flow	792.00M	-4.40B	-2.60B	-679.00M	-1.19B
Financing Cash Flow	-4.36B	-5.67B	-2.83B	-18.13B	10.10B

PAL GROUP Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4980.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2726, the sentiment is Positive. The current price of 4980 is above the 20-day moving average (MA) of 4148.25, above the 50-day MA of 3830.20, and above the 200-day MA of 3357.54, indicating a bullish trend. The MACD of 322.10 indicates Negative momentum. The RSI at 84.63 is Negative, neither overbought nor oversold. The STOCH value of 92.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
8214	78 Outperform	¥140.71B	14.70		3.26%	2.65%	26.42%
2726	73 Outperform	¥439.26B	32.82		1.20%	9.20%	-0.71%
Sector *	64 Neutral	£1.74B	10.51	6.12%	256.36%	0.55%	-33.64%
9B7	―	€641.91M	11.01	5.34%	6.05%	―	―
7606	76 Outperform	¥62.38B	14.06		2.51%	12.39%	-11.38%
8185	74 Outperform	¥38.69B	14.40		2.84%	-5.75%	49.48%
2792	69 Neutral	¥40.94B	10.95		3.74%	2.00%	-28.32%

PAL GROUP Holdings Co., Ltd. Corporate Events

PAL GROUP Holdings Announces Stock Split and Dividend Adjustment

PAL GROUP Holdings Co., Ltd. has announced a stock split, amending its Articles of Incorporation, and revising its dividend forecast. The stock split aims to increase share liquidity and attract more investors by reducing the minimum investment unit, doubling the number of shares from 92,544,000 to 185,088,000. The dividend forecast is adjusted to reflect the split, maintaining the overall payout value, which demonstrates the company’s commitment to shareholder interests and market adaptability.

PAL GROUP Holdings Reports Strong Q1 Results and Announces Stock Split

PAL GROUP Holdings Co., Ltd. reported a significant increase in its financial performance for the three months ended May 31, 2025, with net sales rising by 14.2% and profit attributable to owners of the parent increasing by 24.7% compared to the previous year. The company also announced a 2-for-1 stock split effective September 1, 2025, which is expected to enhance stock liquidity and potentially attract more investors.

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.