Palemo Holdings Co.,Ltd. (2778) AI Stock Analysis

• Market Cap: ¥1.79B
• Dividend Yield: N/A
• Average Volume (3M): 117.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: -6.82%
• EPS Growth: -146.83%
• Country: JP
• Employees: 135
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Apparel - Retail
• EPS (TTM): -2.06
• Shares Outstanding: 12,051,384
• 10 Day Avg. Volume: 49,690
• 30 Day Avg. Volume: 117,953
• PEG Ratio: -0.60
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥163.00
• Price Target Upside: 11.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• 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. Business Overview & Revenue Model

Company Description

Palemo 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 Money

Palemo 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

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

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

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	15.04B	15.94B	17.51B	17.91B	18.26B
Gross Profit	7.90B	8.28B	9.14B	9.35B	9.39B
EBITDA	164.02M	741.92M	767.79M	-1.02B	-1.50B
Net Income	-47.63M	411.77M	562.00M	-1.39B	-1.88B
Balance Sheet
Total Assets	6.99B	8.43B	8.77B	9.22B	9.99B
Cash, Cash Equivalents and Short-Term Investments	2.04B	2.95B	3.04B	2.21B	2.14B
Total Debt	1.93B	2.92B	3.49B	3.49B	3.35B
Total Liabilities	5.41B	6.78B	7.52B	8.80B	8.18B
Stockholders Equity	1.58B	1.64B	1.25B	418.48M	1.81B
Cash Flow
Free Cash Flow	250.40M	428.84M	10.76M	-401.89M	-1.42B
Operating Cash Flow	363.48M	565.81M	207.26M	-158.58M	-1.16B
Investing Cash Flow	-218.86M	-80.72M	362.78M	107.19M	76.94M
Financing Cash Flow	-1.05B	-584.75M	264.96M	125.43M	970.67M

Palemo Holdings Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 146.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8013	64 Neutral	¥2.33B	23.46		―	0.39%	-288.31%
Sector *	63 Neutral	$17.18B	10.68	-8.50%	2.94%	1.62%	-25.72%
2778	54 Neutral	¥1.79B	―		―	-6.82%	-146.83%
7615	51 Neutral	¥1.28B	―		6.32%	-26.51%	39.12%
7603	49 Neutral	¥9.88B	―		―	-10.95%	-19.17%
9878	47 Neutral	¥2.74B	―		1.02%	-11.63%	-1321.05%