Diversified Business ModelA multi-sector holding model (real estate, telecom, technology) provides durable revenue diversification and cross‑business synergies. Over months this reduces single‑market exposure, supports more stable cashflows, and gives management flexibility to reallocate capital across subsidiaries.

Improving Cash GenerationThe shift to positive free cash flow and stronger operating cash flow signals better cash conversion despite accounting losses. Sustained FCF supports working capital, debt servicing and selective reinvestment, materially improving the company's ability to stabilize operations long term.

Signs Of Earnings RecoveryReported improvements versus prior negative earnings suggest operational adjustments and cost management are taking effect. If sustained, this trend can restore profitability, improve stakeholder confidence, and reduce reliance on financing over a multi‑month horizon.

Bears Say

High LeverageElevated debt levels create persistent financial risk: higher interest burden, constrained strategic flexibility, and greater sensitivity to cash‑flow disruption. Over several months this limits investment capacity and raises default or refinancing risk if operating performance falters.

Revenue Decline And Margin PressureMulti‑year revenue decline combined with shrinking gross margins indicates secular or execution challenges in core operations. Persisting top‑line weakness and margin erosion hamper sustainable profitability and make long‑term recovery dependent on structural revenue fixes or cost transformation.

Negative Return On EquityA negative ROE shows the company is not generating returns on shareholder capital, reflecting ongoing losses. Over months this undermines capital accumulation, limits retained earnings for reinvestment, and can pressure the balance sheet if losses persist.

2778 FAQ

What was Palemo Holdings Co.,Ltd.’s price range in the past 12 months?

Palemo Holdings Co.,Ltd. lowest stock price was ¥114.00 and its highest was ¥212.00 in the past 12 months.

What is Palemo Holdings Co.,Ltd.’s market cap?

Palemo Holdings Co.,Ltd.’s market cap is ¥1.79B.

When is Palemo Holdings Co.,Ltd.’s upcoming earnings report date?

Palemo Holdings Co.,Ltd.’s upcoming earnings report date is Mar 27, 2026 which is in 34 days.

How were Palemo Holdings Co.,Ltd.’s earnings last quarter?

Palemo Holdings Co.,Ltd. released its earnings results on Dec 26, 2025. The company reported -¥8.11 earnings per share for the quarter, missing the consensus estimate of N/A by -¥8.11.

Is Palemo Holdings Co.,Ltd. overvalued?

According to Wall Street analysts Palemo Holdings Co.,Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Palemo Holdings Co.,Ltd. pay dividends?

Palemo Holdings Co.,Ltd. pays a Semiannually dividend of ¥6 which represents an annual dividend yield of N/A. See more information on Palemo Holdings Co.,Ltd. dividends here

What is Palemo Holdings Co.,Ltd.’s EPS estimate?

Palemo Holdings Co.,Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Palemo Holdings Co.,Ltd. have?

Palemo Holdings Co.,Ltd. has 12,051,384 shares outstanding.

What happened to Palemo Holdings Co.,Ltd.’s price movement after its last earnings report?

Palemo Holdings Co.,Ltd. reported an EPS of -¥8.11 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went down -1.515%.

Which hedge fund is a major shareholder of Palemo Holdings Co.,Ltd.?

Currently, no hedge funds are holding shares in JP:2778

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Palemo Holdings Co.,Ltd.

Palemo Holdings Co.,Ltd. owns and operates a chain of specialty stores for women's apparel in Japan. It is also involved in the delivery agency business. The company was formerly known as Palemo Co., Ltd. and changed its name to Palemo Holdings Co.,Ltd. in August 2017. The company was incorporated in 1976 and is headquartered in Nagoya, Japan.