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TechnoPro Holdings Inc. (JP:6028)
:6028
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TechnoPro Holdings
(OTC:6028)
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Rating:72Outperform
Price Target:
¥5,359.00
▲(10.61% Upside)
TechnoPro Holdings has a strong financial foundation, which is the most significant factor in its overall score. The technical analysis indicates a positive trend, although caution is advised due to potential overbought conditions. The valuation suggests the stock may be overvalued, which slightly offsets the positive financial and technical aspects.
TechnoPro Holdings (6028) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$502.93B
Dividend Yield1.86%
Average Volume (3M)906.50K
Price to Earnings (P/E)31.2
Beta (1Y)0.73
Revenue Growth9.01%
EPS Growth12.27%
CountryJP
Employees28,746
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)6.37
Shares Outstanding104,500,000
10 Day Avg. Volume512,490
30 Day Avg. Volume906,503
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.82
Enterprise Value/Revenue1.73
Enterprise Value/Gross Profit6.38
Enterprise Value/Ebitda15.14
Forecast
1Y Price Target
$5,363.87Price Target Upside10.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
TechnoPro Holdings Business Overview & Revenue Model
Company DescriptionTechnoPro Holdings (6028) is a leading Japanese company specializing in the provision of technology-focused staffing services. The company operates across various sectors, including IT, engineering, and R&D, offering comprehensive human resource solutions and expert consultancy services. TechnoPro Holdings is renowned for its ability to connect skilled professionals with companies that require specialized technical expertise, thus playing a crucial role in Japan's technology-driven industries.
How the Company Makes MoneyTechnoPro Holdings makes money primarily through its staffing services, where it connects skilled professionals with businesses in need of technology and engineering expertise. The company earns revenue by charging client companies for these staffing services, which may include temporary staffing, contract staffing, and permanent recruitment. Additionally, TechnoPro Holdings offers consultancy services, which contribute to its revenue by providing strategic advice and solutions tailored to meet the technical needs of its clients. The company's earnings are further enhanced through partnerships with various technology firms and enterprises that require ongoing access to specialized human resources.
TechnoPro Holdings Earnings Call Summary
Earnings Call Date:Aug 11, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance with significant revenue growth and strategic initiatives like share buybacks, but also highlights challenges such as rising costs and turnover issues. Overseas operations faced hurdles, yet the domestic business showed resilience.Q1-2025 Updates
Positive Updates
Revenue Growth
Revenue for the first quarter was JPY 57.8 billion, up 9.4% year-on-year, with GP up 10.2% year-on-year.
Improved GP and SG&A Ratios
GP margin improved by 0.2 points, and SG&A ratio fell below 15% to 14.8% in the first quarter.
Core Operating Profit Increase
Core operating profit and operating profit for the first quarter both increased by more than 20% year-on-year.
R&D Outsourcing Performance
Revenue grew by 11.0% with a 0.1 point increase in GP margin year-on-year, driven by an improvement in unit sales price.
Share Buyback Program
A JPY 5 billion share buyback program was launched, with JPY 3.6 billion worth of shares repurchased in the first quarter.
Successful Contract Renewals
Contracts expiring in September were renewed with significant aggregated price improvements.
Headcount Growth
The number of engineers increased by 7.9% year-on-year, with a revised forecast for further headcount increase by the end of the year.
Negative Updates
Worsening Turnover Ratio
Turnover ratio is increasing, with the LTM-based permanent employee turnover ratio rising to 9.3%.
Rising Costs
Deterioration in GP margin due to rising wages and higher SG&A ratio due to soaring recruitment costs.
Challenges in Overseas Operations
Robosoft's revenue fell short of the previous quarter, and Orion's OP was down 20% compared to the plan.
Surge in Resignations
The surge in resignations at TechnoPro continues, with increasing mobility of human resources in Japan.
Company Guidance
In the Q1 2025 earnings call, Toshihiro Hagiwara, CFO of TechnoPro Holdings, outlined the company's financial performance and strategic initiatives. The first-quarter revenue was JPY 57.8 billion, marking a 9.4% year-on-year increase, while the gross profit (GP) was JPY 15.4 billion, up 10.2% year-on-year, with a GP margin improvement of 0.2 points. SG&A expenses grew by only 2.3%, resulting in a reduction in the SG&A ratio to 14.8%. Core operating profit also rose by over 20% year-on-year to around JPY 7 billion, achieving 50% of the first-half guidance. The company is addressing challenges such as a slowing turnover ratio, rising wages affecting GP margin, and high recruitment costs by increasing unit sales prices and enhancing digital skills among engineers. The average monthly unit sales price increased by 2.5% year-on-year to JPY 685,000, with a planned annual price hike of over 2%. Despite challenges in the overseas markets, particularly in the U.K. and Southeast Asia, TechnoPro maintained its overall guidance for the fiscal year and continued its share buyback program, repurchasing JPY 3.6 billion worth of shares in the first quarter.TechnoPro Holdings Financial Statement Overview
Summary
TechnoPro Holdings exhibits strong financial performance across all statements. The income statement reflects consistent growth and profitability, the balance sheet shows financial stability with improved leverage, and the cash flow statement indicates efficient cash management. The company is well-positioned for future growth with a solid financial foundation.Income Statement
TechnoPro Holdings has demonstrated consistent revenue growth with a 1.95% increase in the latest year. The gross profit margin is healthy, and the net profit margin has improved over the years, indicating strong profitability. EBIT and EBITDA margins are stable, reflecting efficient operations. Overall, the income statement shows a positive growth trajectory and profitability.85
Very Positive
Balance Sheet
The company's debt-to-equity ratio has decreased over the years, indicating improved leverage management. Return on equity remains strong, showcasing effective use of equity to generate profits. The equity ratio is stable, suggesting a balanced capital structure. The balance sheet reflects financial stability with manageable debt levels.78
Positive
Cash Flow
TechnoPro Holdings has shown a positive free cash flow growth rate of 6.27%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is robust, suggesting efficient cash conversion. The free cash flow to net income ratio is consistently high, reflecting strong cash flow management. Overall, the cash flow statement indicates healthy liquidity and cash management.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 238.97B | 238.97B | 219.22B | 199.85B | 178.76B | 161.32B |
| Gross Profit | 64.90B | 64.90B | 58.81B | 52.90B | 46.86B | 39.73B |
| EBITDA | 27.35B | 27.52B | 25.51B | 25.08B | 24.20B | 22.30B |
| Net Income | 16.15B | 16.15B | 14.68B | 15.37B | 15.43B | 13.24B |
Balance Sheet | ||||||
| Total Assets | 147.37B | 147.37B | 152.65B | 144.02B | 141.97B | 117.99B |
| Cash, Cash Equivalents and Short-Term Investments | 43.69B | 43.69B | 45.24B | 41.07B | 42.60B | 37.35B |
| Total Debt | 18.64B | 18.64B | 22.89B | 24.12B | 25.54B | 17.82B |
| Total Liabilities | 66.31B | 66.31B | 70.75B | 67.25B | 71.54B | 59.26B |
| Stockholders Equity | 80.08B | 80.08B | 80.74B | 75.53B | 68.72B | 57.23B |
Cash Flow | ||||||
| Free Cash Flow | 25.05B | 25.05B | 30.57B | 20.72B | 18.16B | 21.73B |
| Operating Cash Flow | 25.47B | 25.47B | 31.18B | 21.42B | 18.86B | 22.08B |
| Investing Cash Flow | -1.76B | -1.76B | -785.00M | -4.45B | -7.97B | -1.37B |
| Financing Cash Flow | -25.04B | -25.04B | -20.93B | -19.23B | -6.55B | -11.11B |
TechnoPro Holdings Technical Analysis
Positive
4845.00
Price Trends
4766.02
Positive
4353.65
Positive
3673.89
Positive
Market Momentum
19.98
Positive
64.38
Neutral
85.78
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6028, the sentiment is Positive. The current price of 4845 is above the 20-day moving average (MA) of 4821.05, above the 50-day MA of 4766.02, and above the 200-day MA of 3673.89, indicating a bullish trend. The MACD of 19.98 indicates Positive momentum. The RSI at 64.38 is Neutral, neither overbought nor oversold. The STOCH value of 85.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6028.
TechnoPro Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | 111.41B | 19.80 | 25.62% | 5.46% | 13.16% | -40.17% | |
76 Outperform | 185.10B | 25.48 | 31.01% | 2.31% | 19.22% | 20.94% | |
76 Outperform | 626.24B | 18.14 | 18.92% | 3.45% | 7.71% | 3.01% | |
72 Outperform | $502.93B | 31.21 | 20.23% | 1.86% | 9.01% | 12.27% | |
66 Neutral | 256.95B | 20.15 | ― | 5.01% | 4.40% | 0.23% | |
48 Neutral | 82.82B | -9.92 | -6.42% | 0.68% | -13.31% | -109.06% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
JP:6028
TechnoPro Holdings
4,845.00
2,133.85
78.71%
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Pasona Group
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TEMPF
PERSOL HOLDINGS CO
1.65
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-6.78%
JP:2124
JAC Recruitment Co., Ltd.
1,125.00
388.78
52.81%
JP:2146
UT Group Co.,Ltd.
2,792.00
248.79
9.78%
TechnoPro Holdings Corporate Events
TechnoPro Holdings Considers Strategic Alternatives Amid Privatization Speculation
May 16, 2025
TechnoPro Holdings, Inc. has been reported to be considering privatization according to a media article, although the company has not officially confirmed this. While exploring various strategic alternatives to enhance shareholder value, the company has not made any decisions regarding privatization.
The most recent analyst rating on (JP:6028) stock is a Hold with a Yen2900.00 price target. To see the full list of analyst forecasts on TechnoPro Holdings stock, see the JP:6028 Stock Forecast page.
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.