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Recruit Holdings Co Ltd (JP:6098)
:6098

Recruit Holdings Co (6098) AI Stock Analysis

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JP

Recruit Holdings Co

(OTC:6098)

Rating:67Neutral
Price Target:
¥8,933.00
▲(11.22%Upside)
Recruit Holdings Co exhibits strong financial performance, which heavily influences the overall score. Technical analysis shows mixed signals with potential for upward momentum, but valuation concerns due to high P/E ratio and low dividend yield limit the score. The absence of earnings call data or significant corporate events leaves financial performance as the dominant factor.

Recruit Holdings Co (6098) vs. iShares MSCI Japan ETF (EWJ)

Recruit Holdings Co Business Overview & Revenue Model

Company DescriptionRecruit Holdings Co., Ltd. provides HR technology and business solutions. The company operates through three segments: HR Technology, Media & Solutions, and Staffing. The HR Technology segment provides various technological solutions that help job seekers and employers in navigating hiring and recruitment. The Media & Solutions segment operates an online advertising platform for businesses in various industries, including housing, beauty, marriage, travel, and dining; and provides business management software as a service solutions for small and medium-sized companies. It also operates media platforms that publish information about jobs and new openings to support business clients' recruiting activities. The Staffing segment provides temporary staffing service in Japan, North America, Europe, and Australia. The company was founded in 1960 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyRecruit Holdings Co. generates revenue through several key streams. Its HR Technology segment, which includes global job search engines such as Indeed and Glassdoor, primarily earns money through pay-per-click advertising models and premium job posting services. The Staffing segment contributes through the provision of temporary staffing services, earning fees from client companies for matching them with suitable candidates. Additionally, the Media & Solutions segment, which covers marketing and promotional services for various industries like real estate, travel, and dining, generates income from advertising and information service fees. Strategic partnerships and acquisitions further bolster its market presence and revenue potential, allowing for cross-platform synergies and expanded service offerings.

Recruit Holdings Co Earnings Call Summary

Earnings Call Date:May 09, 2025
(Q3-2024)
|
% Change Since: -5.71%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment with notable achievements in revenue growth and strategic progress in HR Technology, but also challenges such as decreased revenue in Matching & Solutions and revised lower global market outlooks. Despite these challenges, the company remains optimistic about future growth and strategic initiatives.
Q3-2024 Updates
Positive Updates
Consolidated Revenue Increase
Consolidated revenue increased by 3.5% to ¥896.9 billion, despite a decrease in Matching & Solutions revenue due to strategic shifts.
Revised Full-Year Guidance
The full-year guidance has been revised to a single figure at the upper end of the range, indicating strong financial performance expectations.
HR Technology Monetization Progress
U.S. revenue for HR Technology increased year-on-year, with revenue per paid job ad exceeding the decrease in the number of paid job ads.
Completion of Share Repurchase Program
The largest share repurchase program to date was completed, with considerations for a new program being made.
Steady Growth in HR Tech Japan
Japan's HR Tech revenue grew by about 60%, with the majority attributed to Indeed PLUS.
Negative Updates
Decrease in Matching & Solutions Revenue
Revenue in Matching & Solutions decreased due to the strategic shift of job advertising service to Indeed PLUS.
Challenges in Global Market Outlook
The outlook for Japan and the rest of the world has been revised lower due to stronger-than-expected U.S. dollar assumptions.
Seasonal Decline in HR Technology Revenue
Quarter-over-quarter, Q3 revenue for HR Technology decreased due to typical holiday seasonality and moderated hiring activities.
HR Technology Volume Decline
Overall volume in HR Technology is declining, though offset by an increase in unit prices.
Company Guidance
In the Q3 FY2024 earnings call for Recruit Holdings, several key metrics and updates were provided. The consolidated revenue for Q3 increased by 3.5% to ¥896.9 billion, despite a decrease in revenue from Matching & Solutions due to the shift of HR Solutions job advertising services to Indeed PLUS. Revenue in HR Technology and Japan staffing saw an increase. The company revised its full-year guidance to a single figure at the upper end of the range, reflecting stable performance. Notably, U.S. revenue in HR Technology increased year-on-year in Q3, although it decreased quarter-over-quarter due to seasonal hiring moderation. The company completed its largest share repurchase program on February 7, 2025, and is considering a new program based on investment capacity and market conditions. The company plans to provide further market outlook and guidance in May with their full-year financial results.

Recruit Holdings Co Financial Statement Overview

Summary
Recruit Holdings Co exhibits a strong financial position with consistent revenue and profit growth. Effective cost management and operational efficiency are reflected in robust profit margins. Stability is evident in the low leverage and strong cash flow performance, underscoring financial resilience.
Income Statement
85
Very Positive
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
80
Positive
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
78
Positive
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
Mar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
3.56T3.42T3.43T2.87T2.27T
Gross Profit
1.98T1.96T2.00T1.65T1.15T
EBIT
526.99B402.53B344.30B378.93B162.82B
EBITDA
655.82B575.94B491.73B504.90B297.00B
Net Income Common Stockholders
408.50B353.65B269.80B296.83B131.39B
Balance SheetCash, Cash Equivalents and Short-Term Investments
808.63B1.14T884.00B671.45B540.09B
Total Assets
2.77T3.14T2.79T2.42T2.20T
Total Debt
208.94B221.13B254.95B271.42B417.77B
Net Debt
-599.68B-915.73B-622.42B-398.13B-83.28B
Total Liabilities
1.14T1.14T1.15T1.05T1.10T
Stockholders Equity
1.62T2.00T1.63T1.36T1.09T
Cash FlowFree Cash Flow
602.41B465.43B361.44B375.23B228.28B
Operating Cash Flow
610.36B535.36B438.19B439.61B286.60B
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
Negative
Last Price8032.00
Price Trends
50DMA
8050.72
Negative
100DMA
8738.94
Negative
200DMA
9291.52
Negative
Market Momentum
MACD
-74.05
Positive
RSI
45.64
Neutral
STOCH
13.11
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6098, the sentiment is Negative. The current price of 8032 is below the 20-day moving average (MA) of 8316.55, below the 50-day MA of 8050.72, and below the 200-day MA of 9291.52, indicating a bearish trend. The MACD of -74.05 indicates Positive momentum. The RSI at 45.64 is Neutral, neither overbought nor oversold. The STOCH value of 13.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6098.

Recruit Holdings Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$11.45T29.1022.31%0.30%4.13%20.34%
66
Neutral
$4.46B12.155.40%4.71%4.16%-11.97%
$1.70B20.4226.03%0.03%
$4.36B18.3818.49%3.42%
$2.98B24.9321.58%<0.01%
86
Outperform
¥93.87B10.45
4.29%16.59%40.77%
76
Outperform
¥162.06B24.29
2.64%17.37%7.93%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6098
Recruit Holdings Co
8,032.00
-174.57
-2.13%
MEITF
Meitec
22.28
4.10
22.55%
TEMPF
PERSOL HOLDINGS CO
2.00
0.71
55.04%
TXHPF
TechnoPro Holdings
27.35
11.44
71.90%
JP:2124
JAC Recruitment Co., Ltd.
986.00
360.60
57.66%
JP:2146
UT Group Co.,Ltd.
2,400.00
-486.08
-16.84%

Recruit Holdings Co Corporate Events

Recruit Holdings Completes Major Share Repurchase
Jun 17, 2025

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
Jun 2, 2025

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
May 11, 2025

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
May 9, 2025

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
May 9, 2025

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
May 1, 2025

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.

Recruit Holdings Expands Share Repurchase Limit to Enhance Shareholder Returns
Apr 25, 2025

Recruit Holdings Co., Ltd. announced an expansion of its share repurchase limit, increasing the maximum number of shares to be repurchased from 52 million to 62 million. This decision is aimed at enhancing capital efficiency and shareholder returns, reflecting the company’s strategic approach to capital allocation amidst current market conditions.

Recruit Holdings Completes Share Repurchase to Enhance Capital Efficiency
Apr 18, 2025

Recruit Holdings Co., Ltd. has completed a share repurchase of 4,575,000 shares, representing 0.31% of its total shares, through the ToSTNeT-3 system. This move aims to improve capital efficiency and maximize shareholder returns, reflecting the company’s strategic approach to financial management and market conditions.

Recruit Holdings Announces Strategic Share Repurchase Plan
Apr 17, 2025

Recruit Holdings Co., Ltd. has announced a share repurchase plan, detailing its method through the Tokyo Stock Exchange’s Off-Auction Own Share Repurchase Trading System (ToSTNeT-3). The company plans to repurchase up to 9 million shares, representing 0.61% of its total shares, with a maximum purchase price of 450 billion yen. This move is part of a broader strategy to enhance shareholder value and optimize capital structure, potentially impacting market perceptions and investor confidence.

Recruit Holdings Updates on Share Repurchase Progress
Apr 17, 2025

Recruit Holdings Co., Ltd. announced the status of its share repurchase program, which was resolved by the Board of Directors in February 2025. As of April 17, 2025, the company has repurchased 37,024,200 shares, representing 71.20% of the upper limit, at a total purchase price of 298,128,794,800 yen. This strategic move is part of a broader plan to repurchase up to 52 million shares by December 2025, potentially impacting shareholder value and market perception.

Recruit Holdings to Record 196.4 Billion Yen in Dividends from Subsidiaries
Apr 4, 2025

Recruit Holdings Co., Ltd. announced that it will receive dividends totaling 196.4 billion yen from its consolidated subsidiaries, which will be recorded as operating revenue in its non-consolidated financial statements for the fiscal year ending March 2026. This financial maneuver will not affect the company’s consolidated financial results due to the elimination of intercompany transactions, ensuring stability in its overall financial positioning.

Recruit Holdings Announces Progress in Share Repurchase Program
Apr 1, 2025

Recruit Holdings Co., Ltd. announced the status of its share repurchase program, which was resolved by the Board of Directors on February 28, 2025. From March 3 to March 31, 2025, the company repurchased 14,608,700 shares, amounting to 28.09% of the maximum limit set for the program, with a total purchase price of 128,369,939,900 yen. This move is part of a broader strategy to optimize capital allocation and enhance shareholder value.

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.