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

• Market Cap: ¥355.62B
• Dividend Yield: 3.08%
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): 29.7
• 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: 2,058,640
• 30 Day Avg. Volume: 1,288,063
• 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: ¥5,312.00
• Price Target Upside: 172.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥5,312.00 ▲(172.97% 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 generates revenue through multiple streams, primarily from the sale of textiles and garments across various market segments. The company earns income from both wholesale and retail channels, supplying products to clothing brands, retailers, and direct consumers. Additionally, PAL GROUP has established strategic partnerships with international brands, enhancing its market reach and driving sales. The company's commitment to research and development allows it to introduce innovative products, which can command higher prices and improve profit margins. Furthermore, PAL GROUP benefits from economies of scale in its manufacturing operations, which helps lower production costs and increase overall profitability.

PAL GROUP Holdings Co., Ltd. Financial Statement Overview

Summary

PAL GROUP Holdings Co., Ltd. presents a strong financial position with high revenue growth, profitability, and excellent cash flow management. The company shows a commendable balance sheet with low leverage and a robust equity base, despite a slight increase in debt and a recent dip in net income.

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	215.11B	207.82B	192.54B	164.48B	134.20B	108.52B
Gross Profit	121.63B	116.26B	106.28B	90.22B	74.31B	59.24B
EBITDA	27.53B	22.81B	20.59B	17.36B	7.95B	2.54B
Net Income	12.88B	11.85B	12.85B	9.96B	4.00B	270.00M
Balance Sheet
Total Assets	162.07B	147.93B	126.92B	112.51B	93.73B	108.19B
Cash, Cash Equivalents and Short-Term Investments	87.60B	85.72B	67.23B	63.84B	52.25B	63.09B
Total Debt	12.93B	14.20B	12.31B	12.47B	12.40B	28.63B
Total Liabilities	88.63B	74.57B	63.48B	57.32B	46.34B	63.83B
Stockholders Equity	70.89B	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: Negative
• Last Price: 1946.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 1946 is below the 20-day moving average (MA) of 2408.35, below the 50-day MA of 2551.21, and below the 200-day MA of 1971.10, indicating a bearish trend. The MACD of -158.07 indicates Positive momentum. The RSI at 19.76 is Positive, neither overbought nor oversold. The STOCH value of 4.92 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2726	73 Outperform	¥355.62B	29.67	―	3.08%	12.02%	-15.70%
2792	69 Neutral	¥42.36B	12.30	―	3.65%	-0.98%	-29.86%
8219	67 Neutral	€115.43B	12.19	5.63%	6.56%	-0.46%	-1.91%
7606	67 Neutral	¥55.48B	13.50	―	3.24%	11.62%	-17.80%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8185	61 Neutral	¥32.16B	15.58	―	3.03%	-9.86%	-14.02%
8214	60 Neutral	¥137.69B	14.91	―	4.88%	2.37%	19.23%

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.