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PAL GROUP Holdings Co., Ltd. (JP:2726)
:2726
Japanese Market
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PAL GROUP Holdings Co., Ltd. (2726) AI Stock Analysis

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JP:2726

PAL GROUP Holdings Co., Ltd.

(2726)

Rating:73Outperform
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. (2726) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionPAL 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 MoneyPAL 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
88
Very Positive
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
85
Very Positive
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
90
Very Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue207.82B192.54B164.48B134.20B108.52B
Gross Profit116.26B106.28B90.22B74.31B59.24B
EBITDA22.81B20.59B17.36B7.95B2.54B
Net Income11.85B12.85B9.96B4.00B270.00M
Balance Sheet
Total Assets147.93B126.92B112.51B93.73B108.19B
Cash, Cash Equivalents and Short-Term Investments85.72B67.23B63.84B52.25B63.09B
Total Debt14.20B12.31B12.47B12.40B28.63B
Total Liabilities74.57B63.48B57.32B46.34B63.83B
Stockholders Equity70.89B63.44B55.18B47.33B44.35B
Cash Flow
Free Cash Flow19.15B10.29B14.55B6.33B-381.00M
Operating Cash Flow22.04B13.46B17.03B7.97B1.45B
Investing Cash Flow792.00M-4.40B-2.60B-679.00M-1.19B
Financing Cash Flow-4.36B-5.67B-2.83B-18.13B10.10B

PAL GROUP Holdings Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4980.00
Price Trends
50DMA
3830.20
Positive
100DMA
3683.10
Positive
200DMA
3357.54
Positive
Market Momentum
MACD
322.10
Negative
RSI
84.63
Negative
STOCH
92.07
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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥140.71B14.70
3.26%2.65%26.42%
73
Outperform
¥439.26B32.82
1.20%9.20%-0.71%
64
Neutral
£1.74B10.516.12%256.36%0.55%-33.64%
€641.91M11.015.34%6.05%
76
Outperform
¥62.38B14.06
2.51%12.39%-11.38%
74
Outperform
¥38.69B14.40
2.84%-5.75%49.48%
69
Neutral
¥40.94B10.95
3.74%2.00%-28.32%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2726
PAL GROUP Holdings Co., Ltd.
4,980.00
3,329.73
201.77%
DE:9B7
AOYAMA TRADING Co., Ltd.
12.90
4.82
59.65%
JP:2792
HONEYS HOLDINGS CO. LTD.
1,470.00
-55.17
-3.62%
JP:7606
UNITED ARROWS LTD.
2,163.00
171.05
8.59%
JP:8185
Chiyoda Co., Ltd.
1,194.00
306.87
34.59%
JP:8214
AOKI Holdings, Inc.
1,685.00
436.15
34.92%

PAL GROUP Holdings Co., Ltd. Corporate Events

PAL GROUP Holdings Announces Stock Split and Dividend Adjustment
Jul 8, 2025

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
Jul 8, 2025

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
May 28, 2025

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
May 19, 2025

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
May 19, 2025

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
May 9, 2025

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.

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.Date of analysis: Jul 23, 2025