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

• Market Cap: ¥296.60B
• Dividend Yield: 1.46%
• Average Volume (3M): 642.83K
• Price to Earnings (P/E): 19.3
• Beta (1Y): -0.45
• Revenue Growth: 12.02%
• EPS Growth: -15.70%
• Country: JP
• Employees: 3,804
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 27.73
• Shares Outstanding: 185,091,630
• 10 Day Avg. Volume: 494,980
• 30 Day Avg. Volume: 642,826
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥1,927.00 ▼(-1.23% Downside)

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

Sustained free cash flow provides durable funding for capex, technology upgrades, and working capital in logistics. It supports reinvestment without heavy new borrowing, enables shareholder returns, and cushions the firm through cyclical freight demand swings over months.

Robust, low-leverage balance sheet

A conservative capital structure and strong equity base give long-term financial flexibility: ability to pursue strategic investments, weather downturns, and negotiate favorable terms with carriers. Low leverage reduces refinancing risk across economic cycles.

Consistent revenue and margin improvement

Sustained top-line growth alongside rising gross and net margins signals structural improvements in pricing, cost control, and service mix. This underpins durable profitability, allowing the company to invest in tech and scale operations profitably over the medium term.

Negative Factors

Recent dip in net income

A recent decline in net income, even if small, can indicate margin pressure or one-off costs; if it persists it could reduce retained earnings and slow reinvestment. Monitoring is needed to ensure operational improvements offset any recurring margin headwinds.

Modest uptick in debt

A rising debt trend, even from low leverage, erodes financial headroom and raises fixed obligations. If operating cash flows weaken, higher debt increases refinancing and interest risk, limiting strategic optionality in a capital-intensive logistics environment.

No recent corporate events or catalysts

Absence of recent strategic announcements, partnerships, or M&A reduces visible growth catalysts. In logistics, network expansion and alliances materially shift market position; lack of disclosed moves may slow medium-term market-share gains and strategic momentum.

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

Company Description

PAL GROUP Holdings Co., Ltd. (2726) is a leading entity in the logistics and transportation sector, headquartered in Taiwan. The company specializes in providing comprehensive supply chain solutions, including freight forwarding, warehousing, and distribution services. With a strong focus on technological integration, PAL GROUP aims to enhance operational efficiency and customer satisfaction across various industries, including e-commerce, manufacturing, and retail.

How the Company Makes Money

PAL GROUP generates revenue primarily through its diverse logistics services, which include freight forwarding, warehousing, and distribution. The company charges clients for these services based on the volume and complexity of the logistics operations. Key revenue streams include contract logistics for large clients, spot freight services for smaller shipments, and value-added services such as inventory management and order fulfillment. Additionally, strategic partnerships with major shipping lines and carriers enhance PAL GROUP's bargaining power and operational reach, allowing it to offer competitive pricing and reliable services, further contributing to its revenue growth.

PAL GROUP Holdings Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals driven by excellent cash flow (90) and solid profitability trends (income statement 88), supported by a robust, low-leverage balance sheet (85). A slight recent dip in net income and a modest uptick in debt are key items to monitor.

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	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	28.42B	22.81B	20.59B	17.36B	7.95B	2.54B
Net Income	13.37B	11.85B	12.85B	9.96B	4.00B	270.00M
Balance Sheet
Total Assets	160.56B	147.93B	126.92B	112.51B	93.73B	108.19B
Cash, Cash Equivalents and Short-Term Investments	90.54B	85.72B	67.23B	63.84B	52.25B	63.09B
Total Debt	12.82B	14.20B	12.31B	12.47B	12.40B	28.63B
Total Liabilities	83.21B	74.57B	63.48B	57.32B	46.34B	63.83B
Stockholders Equity	74.83B	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: 1951.00
• 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 1951 is above the 20-day moving average (MA) of 1760.30, below the 50-day MA of 1957.06, and below the 200-day MA of 2117.81, indicating a bearish trend. The MACD of -89.37 indicates Positive momentum. The RSI at 25.98 is Positive, neither overbought nor oversold. The STOCH value of 8.20 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
7606	74 Outperform	¥70.10B	19.07	―	2.73%	10.48%	-34.38%
2792	72 Outperform	¥41.38B	12.03	―	3.62%	-0.98%	-29.86%
8214	72 Outperform	¥153.88B	17.90	―	4.49%	2.21%	4.36%
8219	71 Outperform	¥132.32B	14.00	5.53%	6.09%	-1.03%	4.12%
2726	70 Outperform	¥296.60B	19.28	―	1.46%	12.02%	-15.70%
8185	66 Neutral	¥34.27B	16.70	―	4.07%	-9.86%	-14.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

PAL GROUP Holdings Co., Ltd. Corporate Events

PAL GROUP Holdings Revamps Board and Audit Team Ahead of 2026 Shareholders’ Meeting

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, Director Ryuta Inoue will be promoted to Senior Managing Director, while Executive Officer Manaka Inoue, currently head of the Corporate Planning Office, will become Director and Executive Officer overseeing the same function, and Outside Director Kensaku Teranishi will retire on May 27, 2026. In addition, current Auditor Mikiko Nakazawa will move to the role of Outside Director, and certified public accountant Chiharu Odagiri, who has extensive audit and outside director experience at multiple Japanese companies, has been nominated as a new Auditor, underscoring the company’s emphasis on strengthening its oversight, audit capabilities, and corporate governance framework.

The most recent analyst rating on (JP:2726) stock is a Hold with a Yen2246.00 price target. To see the full list of analyst forecasts on PAL GROUP Holdings Co., Ltd. stock, see the JP:2726 Stock Forecast page.

PAL GROUP Holdings to Raise Year-End Dividend on Strong Earnings

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 expected payout ratio of 41.2%. Citing higher sales and profits in the first nine months of the current fiscal year, the company is using the dividend increase to underscore its policy of stable shareholder returns and signal confidence in its earnings momentum ahead of a shareholder vote at the May 27, 2026 annual meeting.

The most recent analyst rating on (JP:2726) stock is a Hold with a Yen2246.00 price target. To see the full list of analyst forecasts on PAL GROUP Holdings Co., Ltd. stock, see the JP:2726 Stock Forecast page.

PAL GROUP Delivers Strong Nine-Month Earnings and Ups Dividend Payout After Stock Split

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 parent surged 56.2% to ¥14.0 billion, lifting basic earnings per share to ¥80.63 after reflecting a 2-for-1 stock split. The company’s financial position strengthened as total assets expanded to ¥168.40 billion and equity increased, and management raised its dividend stance by forecasting a total annual dividend equivalent to ¥80 per share on a pre-split basis for FY2025, while maintaining its full-year outlook of ¥231.0 billion in net sales and ¥16.85 billion in profit attributable to owners of parent, signaling confidence in sustained growth and enhanced shareholder returns.

The most recent analyst rating on (JP:2726) stock is a Hold with a Yen2246.00 price target. To see the full list of analyst forecasts on PAL GROUP Holdings Co., Ltd. stock, see the JP:2726 Stock Forecast page.

PAL GROUP Holdings Announces Board Changes

PAL GROUP Holdings Co., Ltd. announced a change in its Board of Directors, with Takayo Watanabe being appointed as the Director and Vice Chairman of the Board, effective immediately. This change in leadership is part of the company’s ongoing efforts to strengthen its governance and strategic direction.

The most recent analyst rating on (JP:2726) stock is a Buy with a Yen5312.00 price target. To see the full list of analyst forecasts on PAL GROUP Holdings Co., Ltd. stock, see the JP:2726 Stock Forecast page.

Leadership Change at PAL GROUP Holdings Co., Ltd.

PAL GROUP Holdings Co., Ltd. has announced a change in its leadership due to the resignation of its Chairman and Representative Director, Isamu Matsuo, who stepped down due to health reasons. Hirofumi Kojima, the current Representative Director and President, will assume the role of Chairman, aiming to enhance the company’s management structure for sustainable growth and improved corporate value.

The most recent analyst rating on (JP:2726) stock is a Buy with a Yen5312.00 price target. To see the full list of analyst forecasts on PAL GROUP Holdings Co., Ltd. stock, see the JP:2726 Stock Forecast page.