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TechnoPro Holdings Inc. (JP:6028)
:6028
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TechnoPro Holdings
(OTC:6028)
Rating:75Outperform
Price Target:
¥4,497.00
▲(8.07%Upside)
TechnoPro Holdings (6028) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$439.72B
Dividend Yield1.43%
Average Volume (3M)640.86K
Price to Earnings (P/E)25.4
Beta (1Y)0.75
Revenue Growth9.46%
EPS Growth6.97%
CountryJP
Employees28,746
SectorIndustrials
Sector Strength84
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)47.70
Shares Outstanding104,500,000
10 Day Avg. Volume654,260
30 Day Avg. Volume640,856
Financial Highlights & Ratios
PEG Ratio-58.77
Price to Book (P/B)4.42
Price to Sales (P/S)0.00
P/FCF Ratio16.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3,999.42Price Target Upside-3.88% Downside
Rating ConsensusHold
Number of Analyst Covering1
TechnoPro Holdings Business Overview & Revenue Model
Company DescriptionTechnoPro Holdings (6028) is a leading technology-focused staffing and services company based in Japan. The company operates in sectors such as engineering, IT, and research and development, providing a range of solutions including temporary staffing, outsourcing, and consultant dispatch services. TechnoPro Holdings is known for its expertise in delivering specialized human resources to various industries, supporting their technological and innovation needs.
How the Company Makes MoneyTechnoPro Holdings makes money primarily through its staffing and outsourcing services. The company generates revenue by placing skilled professionals and consultants in client organizations for temporary or extended periods. These placements are often based on specific projects or ongoing operational needs, allowing TechnoPro to charge clients based on the duration and complexity of the services provided. Key revenue streams include fees from temporary staffing services, project-based outsourcing contracts, and consulting engagements. The company also benefits from partnerships with leading firms in sectors like automotive, electronics, and IT, which drive consistent demand for its specialized workforce solutions.
TechnoPro Holdings Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 31.14%|
Next Earnings Date:Aug 11, 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 showcases strong financial performance with consistent revenue growth, solid profitability margins, and a healthy balance sheet characterized by strong equity and low leverage. Cash flow management is efficient, although there are fluctuations in free cash flow growth.Income Statement
TechnoPro Holdings demonstrates strong income statement metrics with consistent revenue growth, highlighted by a robust 6.92% TTM revenue growth rate. The company maintains healthy margins, with a gross profit margin of 27.18% and a net profit margin of 7.45% for TTM. The EBIT margin of 11.92% and EBITDA margin of 12.44% further support operational efficiency. These strengths indicate a stable and growing profitability trajectory.88
Very Positive
Balance Sheet
The balance sheet is solid with a favorable debt-to-equity ratio of 0.24, reflecting prudent financial leverage. The equity ratio stands at 53.16%, indicating strong equity backing. Although the return on equity (ROE) is 21.71%, which is quite commendable, the slight decrease in total assets from previous years suggests cautious asset management.82
Very Positive
Cash Flow
Cash flow analysis reveals strong operating cash flow to net income ratio of 1.38, indicating efficient cash generation from operations. The TTM free cash flow growth rate is negative due to a decrease in free cash flow, yet the free cash flow to net income ratio at 1.35 remains robust, reflecting effective cash utilization. Overall, cash flow management appears efficient despite some fluctuations.85
Very Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 234.39B | 219.22B | 199.85B | 178.76B | 161.32B | 158.41B | Gross Profit |
| 63.71B | 58.81B | 52.90B | 46.86B | 39.73B | 40.23B | EBIT |
| 27.94B | 21.92B | 21.84B | 20.64B | 19.46B | 15.77B | EBITDA |
| 29.18B | 25.51B | 25.08B | 24.20B | 22.30B | 18.57B | Net Income Common Stockholders |
| 17.47B | 14.68B | 15.37B | 15.43B | 13.24B | 10.82B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 37.23B | 45.24B | 41.07B | 42.60B | 37.35B | 25.07B | Total Assets |
| 151.36B | 152.65B | 144.02B | 141.97B | 117.99B | 107.97B | Total Debt |
| 18.96B | 22.89B | 24.12B | 25.54B | 17.82B | 19.41B | Net Debt |
| -18.27B | -22.35B | -11.25B | -11.90B | -14.70B | -3.39B | Total Liabilities |
| 69.97B | 70.75B | 67.25B | 71.54B | 59.26B | 58.46B | Stockholders Equity |
| 80.46B | 80.74B | 75.53B | 68.72B | 57.23B | 48.23B |
| Cash Flow | Free Cash Flow | ||||
| 23.58B | 30.57B | 20.72B | 18.16B | 21.73B | 17.39B | Operating Cash Flow |
| 24.12B | 31.18B | 21.42B | 18.86B | 22.08B | 18.06B | Investing Cash Flow |
| -1.70B | -785.00M | -4.45B | -7.97B | -1.37B | -1.50B | Financing Cash Flow |
| -24.69B | -20.93B | -19.23B | -6.55B | -11.11B | -14.93B |
TechnoPro Holdings Technical Analysis
Positive
4161.00
Price Trends
3629.57
Positive
3373.41
Positive
3106.01
Positive
Market Momentum
145.12
Positive
66.46
Neutral
80.82
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 4161 is above the 20-day moving average (MA) of 4044.05, above the 50-day MA of 3629.57, and above the 200-day MA of 3106.01, indicating a bullish trend. The MACD of 145.12 indicates Positive momentum. The RSI at 66.46 is Neutral, neither overbought nor oversold. The STOCH value of 80.82 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 (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
86 Outperform | ¥95.66B | 10.65 | 4.28% | 16.59% | 40.77% | ||
79 Outperform | ¥82.82B | 0.95 | 90.72% | 0.66% | -11.30% | 6369.78% | |
78 Outperform | ¥654.19B | 17.81 | 18.49% | 3.47% | 9.35% | 21.50% | |
76 Outperform | ¥163.05B | 24.44 | 2.62% | 17.37% | 7.93% | ||
75 Outperform | $439.72B | 25.42 | 21.58% | 1.43% | 9.46% | 6.97% | |
66 Neutral | $247.37B | 19.57 | 26.03% | 0.93% | 4.77% | -7.66% | |
66 Neutral | $4.44B | 12.08 | 5.34% | 5.82% | 4.17% | -11.81% |
* Industrials Sector Average
Performance Comparison
JP:6028
TechnoPro Holdings
4,161.00
1,632.27
64.55%
JP:2124
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978.00
352.60
56.38%
JP:2146
UT Group Co.,Ltd.
2,365.00
-544.82
-18.72%
JP:2168
Pasona Group
2,162.00
56.69
2.69%
JP:2181
PERSOL HOLDINGS CO
284.30
79.16
38.59%
JP:9744
Meitec
3,188.00
277.46
9.53%
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.