Recruit Holdings Co (6098) AI Stock Analysis

• Market Cap: ¥13.40T
• Dividend Yield: 0.26%
• Average Volume (3M): 4.13M
• Price to Earnings (P/E): 34.1
• Beta (1Y): 1.24
• Revenue Growth: 4.13%
• EPS Growth: 20.26%
• Country: JP
• Employees: 51,373
• Sector: Industrials
• Sector Strength: 93
• Industry: Staffing & Employment Services
• EPS (TTM): 45.31
• Shares Outstanding: 1,563,975,100
• 10 Day Avg. Volume: 4,154,410
• 30 Day Avg. Volume: 4,129,753
• PEG Ratio: 3.37
• Price to Book (P/B): 8.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.52
• 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: ¥10,560.02
• Price Target Upside: 14.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 68 Neutral
• Price Target: ¥8,958.00 ▼(-3.16%Downside)

Recruit Holdings Co receives a strong score for financial performance, driven by consistent revenue growth and robust cash flow. However, the valuation is a potential concern due to a high P/E ratio and low dividend yield. Technical analysis presents a mixed picture with moderate momentum indicators. Overall, the financial stability and cash generation are the most significant strengths.

Recruit Holdings Co Business Overview & Revenue Model

Company Description

Recruit Holdings Co., Ltd. is a Japan-based holding company primarily engaged in providing integrated human resources services. It operates through three main segments: HR Technology, Staffing, and Media & Solutions. The HR Technology segment includes services like global job search engines, while the Staffing segment offers temporary staffing services in Japan and overseas. The Media & Solutions segment provides marketing solutions and platforms for various industries, including housing, beauty, and dining.

How the Company Makes Money

Recruit Holdings generates revenue through several key streams. The HR Technology segment, which includes platforms like Indeed and Glassdoor, earns money primarily through advertising services paid by employers looking to attract candidates. The Staffing segment generates income by providing temporary staffing services, charging client companies for matching them with suitable candidates. The Media & Solutions segment derives revenue from selling advertising space and offering marketing solutions to businesses in sectors like real estate, beauty, and dining. The company also benefits from strategic partnerships and acquisitions that enhance its service offerings and market reach.

Recruit Holdings Co Financial Statement Overview

Summary

Recruit Holdings Co exhibits a strong financial position with consistent revenue and profit growth. The company demonstrates effective cost management, operational effectiveness, and robust cash flow metrics. A low debt-to-equity ratio and high return on equity further strengthen its financial stability.

Income Statement

Recruit Holdings Co shows a strong income statement performance with consistent revenue growth, achieving a growth rate of 4.13% in the latest year. The gross profit margin is robust at 55.73%, indicating effective cost management. The net profit margin improved to 11.49%, reflecting enhanced profitability. EBIT and EBITDA margins are strong at 14.81% and 18.43%, respectively, demonstrating efficient operations. Overall, the company maintains a healthy trajectory in its revenue and profit margins.

Balance Sheet

The balance sheet of Recruit Holdings Co reflects stability and low leverage. The debt-to-equity ratio is low at 0.13, indicating minimal reliance on debt. The return on equity stands at 25.25%, showcasing effective shareholder returns. The equity ratio of 58.34% further underscores a strong equity base relative to total assets. The company maintains a conservative financial position, which reduces risk and enhances financial stability.

Cash Flow

Recruit Holdings Co demonstrates robust cash flow metrics with a significant increase in free cash flow, growing by 29.46% year-over-year. The operating cash flow to net income ratio is high at 1.49, indicating strong cash generation relative to net income. The free cash flow to net income ratio of 1.47 further supports strong cash flow performance. The company is efficiently converting income into cash, enhancing its financial flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.56T	3.42T	3.43T	2.87T	2.27T
Gross Profit	1.98T	1.96T	2.00T	1.65T	1.15T
EBITDA	655.82B	575.94B	491.73B	504.90B	297.00B
Net Income	408.50B	353.65B	269.80B	296.83B	131.39B
Balance Sheet
Total Assets	2.77T	3.14T	2.79T	2.42T	2.20T
Cash, Cash Equivalents and Short-Term Investments	808.63B	1.14T	884.00B	671.45B	540.09B
Total Debt	208.94B	221.13B	254.95B	271.42B	417.77B
Total Liabilities	1.14T	1.14T	1.15T	1.05T	1.10T
Stockholders Equity	1.62T	2.00T	1.63T	1.36T	1.09T
Cash Flow
Free Cash Flow	602.41B	465.43B	361.44B	375.23B	228.28B
Operating Cash Flow	610.36B	535.36B	438.19B	439.61B	286.60B
Investing Cash Flow	-61.05B	-68.79B	-32.68B	-70.74B	-40.37B
Financing Cash Flow	-880.48B	-334.65B	-252.06B	-254.37B	-172.71B

Recruit Holdings Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9250.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6098, the sentiment is Positive. The current price of 9250 is above the 20-day moving average (MA) of 8400.20, above the 50-day MA of 8309.16, and above the 200-day MA of 9216.82, indicating a neutral trend. The MACD of 199.72 indicates Negative momentum. The RSI at 61.97 is Neutral, neither overbought nor oversold. The STOCH value of 84.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6098.

Recruit Holdings Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2146	81 Outperform	¥101.22B	11.26		6.00%	16.59%	40.77%
2181	78 Outperform	¥661.69B	18.01	18.49%	3.29%	9.35%	21.18%
2124	76 Outperform	¥171.94B	25.77		2.47%	17.37%	7.93%
6028	74 Outperform	$484.25B	27.99	21.58%	1.93%	9.46%	6.97%
6098	68 Neutral	¥13.40T	34.08	22.31%	0.26%	4.13%	20.26%
9744	66 Neutral	¥245.61B	19.43	26.03%	0.94%	4.77%	-7.66%
Sector *	61 Neutral	C$6.52B	7.66	2.76%	2.74%	6.38%	-23.47%

Recruit Holdings Co Corporate Events

Recruit Holdings Finalizes Terms for Series 10 Stock Options

Recruit Holdings Co., Ltd. has finalized the terms for its Series 10 stock options, designated for its Directors of the Board and Senior Vice Presidents. This move is part of its strategic compensation plan, potentially impacting the company’s leadership incentives and aligning management interests with shareholder value.

The most recent analyst rating on (JP:6098) stock is a Buy with a Yen11000.00 price target. To see the full list of analyst forecasts on Recruit Holdings Co stock, see the JP:6098 Stock Forecast page.

Recruit Holdings Announces Workforce Reduction in HR Technology Segment

Recruit Holdings’ HR Technology segment announced a workforce reduction of approximately 1,300 employees, about 6% of its total workforce. Despite this reduction, the financial impact has been accounted for in the company’s fiscal guidance for the year ending March 31, 2026, and the guidance remains unchanged.

The most recent analyst rating on (JP:6098) stock is a Buy with a Yen12600.00 price target. To see the full list of analyst forecasts on Recruit Holdings Co stock, see the JP:6098 Stock Forecast page.

Recruit Holdings Issues Stock Options to Align Leadership with Shareholders

Recruit Holdings Co., Ltd. announced the issuance of stock options to its Directors and Senior Vice Presidents as a form of remuneration tied to stock price performance. This move is intended to align the interests of the company’s leadership with shareholders by encouraging a focus on stock price appreciation and corporate value growth, potentially impacting the company’s operational strategies and market positioning.

The most recent analyst rating on (JP:6098) stock is a Buy with a Yen11000.00 price target. To see the full list of analyst forecasts on Recruit Holdings Co stock, see the JP:6098 Stock Forecast page.

Recruit Holdings Completes Major Share Repurchase

Recruit Holdings Co., Ltd. has completed a significant portion of its share repurchase program, buying back 55,612,500 shares for approximately 450 billion yen. This move is part of a broader strategy to enhance shareholder value, with the company having increased its repurchase limit to 62 million shares, reflecting confidence in its financial health and market position.

The most recent analyst rating on (JP:6098) stock is a Buy with a Yen11000.00 price target. To see the full list of analyst forecasts on Recruit Holdings Co stock, see the JP:6098 Stock Forecast page.

Recruit Holdings Announces Progress on Share Repurchase Program

Recruit Holdings Co., Ltd. announced the status of its share repurchase program, which was resolved by the Board of Directors in February and April 2025. From March 3 to May 31, 2025, the company repurchased 49,979,200 shares, amounting to 80.61% of the upper limit, for a total purchase price of 404 billion yen. This move is part of a broader strategy to enhance shareholder value, with a maximum of 62 million shares authorized for repurchase by the end of the year.

The most recent analyst rating on (JP:6098) stock is a Buy with a Yen11000.00 price target. To see the full list of analyst forecasts on Recruit Holdings Co stock, see the JP:6098 Stock Forecast page.

Recruit Holdings to Record Significant Dividends from Subsidiary

Recruit Holdings Co., Ltd. announced that it will receive dividends totaling 145.8 billion yen from its subsidiary, RGF OHR USA, Inc., which will be recorded as operating revenue in its non-consolidated financial statements for the fiscal year ending March 2026. However, these dividends will not affect the company’s consolidated financial results due to their elimination as intercompany transactions, indicating a neutral impact on the overall financial health of the company.

Recruit Holdings Launches Stock Incentive Plan for Key Executives

Recruit Holdings Co., Ltd. has announced the execution of a stock incentive plan aimed at aligning the interests of its Directors and Key Management Personnel with those of shareholders. This long-term incentive plan, which involves purchasing company shares to be distributed based on performance, is designed to enhance enterprise value and ensure continued commitment from leadership. The plan’s implementation is expected to strengthen the company’s market position by fostering a performance-driven culture among its top executives.

Recruit Holdings Reports Strong Revenue Growth Amid Decline in Comprehensive Income

Recruit Holdings Co., Ltd. reported a 4.1% increase in revenue for the fiscal year ending March 31, 2025, reaching 3,557.4 billion yen. The company’s operating income rose by 21.9%, and profit attributable to owners increased by 15.5%. Despite these gains, total comprehensive income decreased by 31.0%. The company also announced a dividend increase, reflecting confidence in its financial stability. These results indicate a strong operational performance, though the decline in comprehensive income suggests challenges that may impact stakeholders.

Recruit Holdings Announces Progress in Share Repurchase Program

Recruit Holdings Co., Ltd. announced the status of its share repurchase program, initially resolved in February 2025, with a significant number of shares repurchased in April. The company aims to repurchase up to 62 million shares by December 2025, reflecting its strategic move to enhance shareholder value, which may impact its market positioning and stakeholder interests.