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Palemo Holdings Co.,Ltd. (JP:2778)
:2778
Japanese Market
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Palemo Holdings Co.,Ltd. (2778) AI Stock Analysis

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JP:2778

Palemo Holdings Co.,Ltd.

(2778)

Rating:54Neutral
Price Target:
¥152.00
▲(4.11%Upside)
Palemo Holdings Co., Ltd. is experiencing financial difficulties with negative profitability and a challenging valuation. While there is some improvement in cash flow, technical indicators are mixed, reflecting uncertainty in market conditions.

Palemo Holdings Co.,Ltd. (2778) vs. iShares MSCI Japan ETF (EWJ)

Palemo Holdings Co.,Ltd. Business Overview & Revenue Model

Company DescriptionPalemo Holdings Co.,Ltd. (2778) operates in the retail industry, primarily focusing on the fashion sector. The company engages in the planning, manufacturing, and retailing of apparel products and accessories. With a diverse range of clothing offerings, Palemo Holdings targets various customer demographics through its multiple retail brands, aiming to deliver fashionable and affordable clothing options.
How the Company Makes MoneyPalemo Holdings Co.,Ltd. earns revenue through the sale of its apparel and accessory products via its network of retail stores and online platforms. The company leverages its in-house design and production capabilities to maintain a competitive edge in the fast-paced fashion industry. Revenue streams are primarily derived from direct consumer sales, with a focus on expanding its market presence through strategic store locations and a strong e-commerce platform. Key factors contributing to its earnings include effective supply chain management, trend-responsive product lines, and customer loyalty programs. The company may also engage in collaborations or partnerships with other fashion brands or designers to enhance its product offerings and brand visibility.

Palemo Holdings Co.,Ltd. Financial Statement Overview

Summary
Palemo Holdings Co., Ltd. is navigating through financial challenges with some signs of improvement in cash flow and a stabilizing equity position. However, high leverage and inconsistent profitability remain concerns. Continued focus on revenue growth and cost management will be essential for sustained recovery.
Income Statement
60
Neutral
Palemo Holdings Co., Ltd. has faced a significant revenue decline from 2020 to 2025. The most recent year shows a negative net profit margin of -0.32% and a declining gross profit margin, reflecting challenges in cost management and profitability. However, there are improvements compared to the negative earnings in previous years, indicating some recovery efforts.
Balance Sheet
55
Neutral
The company's debt-to-equity ratio remains high, posing leverage-related risks. Despite a positive equity ratio of 22.6%, the return on equity is negative due to losses. Although the equity base is relatively stable, overall financial health is weakened by consistent liabilities exceeding assets.
Cash Flow
65
Positive
Operating cash flow has improved over the years, and free cash flow has turned positive in 2025, demonstrating better cash management. The free cash flow to net income ratio is favorable, indicating that the company can generate cash despite accounting losses.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue15.04B15.94B17.51B17.91B18.26B
Gross Profit7.90B8.28B9.14B9.35B9.39B
EBITDA164.02M741.92M767.79M-1.02B-1.50B
Net Income-47.63M411.77M562.00M-1.39B-1.88B
Balance Sheet
Total Assets6.99B8.43B8.77B9.22B9.99B
Cash, Cash Equivalents and Short-Term Investments2.04B2.95B3.04B2.21B2.14B
Total Debt1.93B2.92B3.49B3.49B3.35B
Total Liabilities5.41B6.78B7.52B8.80B8.18B
Stockholders Equity1.58B1.64B1.25B418.48M1.81B
Cash Flow
Free Cash Flow250.40M428.84M10.76M-401.89M-1.42B
Operating Cash Flow363.48M565.81M207.26M-158.58M-1.16B
Investing Cash Flow-218.86M-80.72M362.78M107.19M76.94M
Financing Cash Flow-1.05B-584.75M264.96M125.43M970.67M

Palemo Holdings Co.,Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price146.00
Price Trends
50DMA
152.32
Negative
100DMA
146.16
Negative
200DMA
139.53
Positive
Market Momentum
MACD
-1.12
Negative
RSI
44.43
Neutral
STOCH
47.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2778, the sentiment is Negative. The current price of 146 is below the 20-day moving average (MA) of 147.00, below the 50-day MA of 152.32, and above the 200-day MA of 139.53, indicating a neutral trend. The MACD of -1.12 indicates Negative momentum. The RSI at 44.43 is Neutral, neither overbought nor oversold. The STOCH value of 47.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2778.

Palemo Holdings Co.,Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
¥2.33B23.46
0.39%-288.31%
63
Neutral
$17.18B10.68-8.50%2.94%1.62%-25.72%
54
Neutral
¥1.79B
-6.82%-146.83%
51
Neutral
¥1.28B
6.32%-26.51%39.12%
49
Neutral
¥9.88B
-10.95%-19.17%
47
Neutral
¥2.74B
1.02%-11.63%-1321.05%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2778
Palemo Holdings Co.,Ltd.
146.00
-19.00
-11.52%
JP:7603
Mac House Co., Ltd.
440.00
67.00
17.96%
JP:7615
YU-WA Creation Holdings Co., Ltd.
91.00
-37.00
-28.91%
JP:8013
NAIGAI Co., Ltd.
284.00
23.00
8.81%
JP:9878
Sekido Co., Ltd.
980.00
203.00
26.13%
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 26, 2025