Palemo Holdings Co.,Ltd. (JP:2778)
:2778
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Palemo Holdings Co.,Ltd.
(2778)
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Rating:43Neutral
Price Target:
¥122.00
▼(-4.69% Downside)
Action:ReiteratedDate:03/28/26
The score is held down primarily by weakening fundamentals—multi-year revenue contraction, margin/profit volatility, and a 2026 return to negative operating/free cash flow. Technicals also remain bearish with the stock trading below key moving averages and a negative MACD, offering only a modest offset from near-oversold readings. Valuation provides limited support because the negative P/E reflects unstable earnings and there is no dividend yield data.
Positive Factors
Gross-profit stability / pricing resilience
Stable gross profit implies the company retains pricing and merchandising effectiveness despite volume pressure. That durability supports longer-term margin preservation, reduces the need for aggressive discounting, and provides a structural buffer while management works to restore top-line growth.
Negative Factors
Multi-year revenue contraction
Five consecutive years of falling revenue, capped by a steep 2026 decline, point to structural demand erosion or market-share loss. Persistent top-line contraction undermines scale economics, limits pricing power over time, and makes sustainable margin recovery and reinvestment materially more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Gross-profit stability / pricing resilience
Stable gross profit implies the company retains pricing and merchandising effectiveness despite volume pressure. That durability supports longer-term margin preservation, reduces the need for aggressive discounting, and provides a structural buffer while management works to restore top-line growth.
Read all positive factors
Palemo Holdings Co.,Ltd. (2778) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.43B
Dividend YieldN/A
Average Volume (3M)71.97K
Price to Earnings (P/E)88.3
Beta (1Y)0.96
Revenue Growth-6.40%
EPS Growth-590.11%
CountryJP
Employees135
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)0.48
Shares Outstanding12,051,384
10 Day Avg. Volume66,600
30 Day Avg. Volume71,970
Financial Highlights & Ratios
PEG Ratio-0.61
Price to Book (P/B)1.20
Price to Sales (P/S)0.13
P/FCF Ratio-5.55
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Palemo Holdings Co.,Ltd. Business Overview & Revenue Model
Company Description
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...
How the Company Makes Money
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Palemo Holdings Co.,Ltd. Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
52
Neutral
Cash Flow
37
Negative
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.41B | 14.08B | 15.04B | 15.94B | 17.51B | 17.91B |
| Gross Profit | 9.71B | 7.43B | 7.90B | 8.28B | 9.14B | 9.35B |
| EBITDA | 497.65M | 331.47M | 386.86M | 612.78M | 766.40M | -417.38M |
| Net Income | -6.83M | 21.40M | -47.63M | 411.77M | 562.00M | -1.39B |
Balance Sheet | ||||||
| Total Assets | 7.03B | 6.23B | 7.02B | 8.47B | 8.82B | 9.22B |
| Cash, Cash Equivalents and Short-Term Investments | 1.86B | 1.28B | 2.04B | 2.95B | 3.04B | 2.21B |
| Total Debt | 1.79B | 1.64B | 1.93B | 2.92B | 3.49B | 3.49B |
| Total Liabilities | 5.35B | 4.66B | 5.44B | 6.83B | 7.57B | 8.80B |
| Stockholders Equity | 1.68B | 1.58B | 1.58B | 1.64B | 1.25B | 418.48M |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -340.24M | 250.40M | 434.84M | 24.57M | -400.13M |
| Operating Cash Flow | 0.00 | -124.13M | 363.48M | 565.81M | 207.26M | -158.58M |
| Investing Cash Flow | 0.00 | -332.96M | -218.86M | -80.72M | 362.78M | 107.19M |
| Financing Cash Flow | 0.00 | -310.91M | -1.05B | -584.75M | 264.96M | 125.43M |
Palemo Holdings Co.,Ltd. Technical Analysis
Negative
128.00
Price Trends
140.32
Negative
137.61
Negative
142.00
Negative
Market Momentum
-6.27
Negative
37.65
Neutral
38.89
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 128 is above the 20-day moving average (MA) of 124.95, below the 50-day MA of 140.32, and below the 200-day MA of 142.00, indicating a bearish trend. The MACD of -6.27 indicates Negative momentum. The RSI at 37.65 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥41.83B | -29.01 | ― | 3.62% | -0.98% | -29.86% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
45 Neutral | ¥2.47B | 46.31 | ― | ― | 2.54% | ― | |
43 Neutral | ¥1.43B | 88.28 | ― | ― | -6.40% | -590.11% | |
43 Neutral | ¥8.01B | -1.54 | ― | ― | -34.49% | ― | |
41 Neutral | ¥8.10B | -1.51 | ― | ― | -7.88% | -11.22% |
* Consumer Cyclical Sector Average
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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.