Recruit Holdings Co Ltd (JP:6098)
:6098
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Recruit Holdings Co
(6098)
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Rating:73Outperform
Price Target:
¥7,154.00
▼(-8.29% Downside)
Action:ReiteratedDate:03/26/26
Score is driven primarily by strong financial quality (improving margins, low leverage, excellent free-cash-flow conversion) and a constructive earnings call with upgraded guidance. The main offset is weak technicals (below major moving averages and negative MACD), while valuation is acceptable but supported by a low dividend yield.
Positive Factors
Cash generation quality
Recruit's near-parity of free cash flow to net income indicates durable cash conversion, supporting reinvestment, buybacks and buffer through cycles. Strong FCF reduces refinancing risk and funds strategic initiatives (MMT/AI) without heavy borrowing, enhancing long-term financial resilience.
Negative Factors
Japan revenue weakness
A contracting core domestic market reduces a stable revenue base and forces higher marketing investment to recover placement volumes. Prolonged weakness in Japan would pressure group revenue stability and require sustained spending, harming medium-term profit conversion if recovery stalls.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation quality
Recruit's near-parity of free cash flow to net income indicates durable cash conversion, supporting reinvestment, buybacks and buffer through cycles. Strong FCF reduces refinancing risk and funds strategic initiatives (MMT/AI) without heavy borrowing, enhancing long-term financial resilience.
Read all positive factors
Recruit Holdings Co (6098) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥8.71T
Dividend Yield0.27%
Average Volume (3M)4.91M
Price to Earnings (P/E)21.4
Beta (1Y)0.96
Revenue Growth1.23%
EPS Growth26.94%
CountryJP
Employees51,373
SectorCommunication Services
Sector Strength97
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding1,472,504,200
10 Day Avg. Volume4,607,310
30 Day Avg. Volume4,913,210
Financial Highlights & Ratios
PEG Ratio1.40
Price to Book (P/B)7.12
Price to Sales (P/S)3.24
P/FCF Ratio19.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥9,100.00Price Target Upside16.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Recruit Holdings Co Business Overview & Revenue Model
Company Description
Recruit Holdings Co., Ltd. is a global human resource and staffing company headquartered in Tokyo, Japan. Founded in 1960, the company operates through various segments, including Staffing, which provides temporary staffing services, and Solutions...
How the Company Makes Money
Recruit primarily makes money through a mix of (1) HR technology, (2) online job advertising/HR services, and (3) staffing solutions. In HR technology, revenue is generated mainly from subscription and usage-based fees paid by employers for access...
Recruit Holdings Co Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.60T | 3.56T | 3.42T | 3.43T | 2.87T | 2.27T |
| Gross Profit | 2.10T | 1.98T | 1.85T | 1.88T | 1.53T | 1.03T |
| EBITDA | 724.30B | 655.82B | 575.94B | 491.73B | 504.90B | 285.97B |
| Net Income | 461.87B | 408.50B | 353.65B | 269.80B | 296.83B | 131.39B |
Balance Sheet | ||||||
| Total Assets | 2.70T | 2.77T | 3.14T | 2.79T | 2.42T | 2.20T |
| Cash, Cash Equivalents and Short-Term Investments | 592.44B | 808.63B | 1.14T | 877.37B | 669.55B | 501.04B |
| Total Debt | 147.05B | 208.94B | 221.13B | 254.95B | 271.42B | 417.77B |
| Total Liabilities | 1.12T | 1.14T | 1.14T | 1.15T | 1.05T | 1.10T |
| Stockholders Equity | 1.56T | 1.62T | 2.00T | 1.63T | 1.36T | 1.09T |
Cash Flow | ||||||
| Free Cash Flow | 613.19B | 602.41B | 465.43B | 361.44B | 375.23B | 228.28B |
| Operating Cash Flow | 623.11B | 610.36B | 535.36B | 438.19B | 439.61B | 286.60B |
| Investing Cash Flow | -74.83B | -61.05B | -68.79B | -32.68B | -70.74B | -40.37B |
| Financing Cash Flow | -803.56B | -880.48B | -334.65B | -252.06B | -254.37B | -172.71B |
Recruit Holdings Co Technical Analysis
Negative
7801.00
Price Trends
7236.30
Negative
7813.42
Negative
8047.78
Negative
Market Momentum
-192.28
Negative
44.89
Neutral
42.52
Neutral
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 7801 is above the 20-day moving average (MA) of 6599.45, above the 50-day MA of 7236.30, and below the 200-day MA of 8047.78, indicating a bearish trend. The MACD of -192.28 indicates Negative momentum. The RSI at 44.89 is Neutral, neither overbought nor oversold. The STOCH value of 42.52 is Neutral, 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | ¥256.18B | 16.33 | 28.98% | 5.57% | 4.09% | 17.10% | |
75 Outperform | ¥140.84B | 20.10 | ― | 2.38% | 20.17% | 32.32% | |
73 Outperform | ¥8.71T | 21.38 | 27.29% | 0.27% | 1.23% | 26.94% | |
66 Neutral | ¥520.35B | 15.57 | 19.18% | 3.59% | 6.95% | 13.63% | |
62 Neutral | ¥47.58B | 5.28 | ― | 3.16% | 15.79% | 113.14% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
42 Neutral | ¥70.93B | -1,275.30 | -6.02% | 0.77% | -9.70% | -108.59% |
* Communication Services Sector Average
JP:6098
Recruit Holdings Co
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2,658.00
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27.62%
Recruit Holdings Co Corporate Events
Recruit Holdings to Record ¥312.1 Billion in Subsidiary Dividends in FY2025 Non-Consolidated Results
Mar 19, 2026
Recruit Holdings said it will book ¥312.1 billion in dividends from four consolidated subsidiaries as operating revenue in its non-consolidated results for the fiscal year ending March 2026. The internal dividend stream from units including R...
Recruit Holdings to Retire 5.8% of Outstanding Shares
Mar 11, 2026
Recruit Holdings Co., Ltd. said its board has approved the retirement of 91,408,000 shares of treasury stock, representing 5.84% of shares outstanding before the move. The retirement, scheduled for March 23, 2026, will reduce the total number of i...
Recruit Holdings Lifts FY2025 Outlook on Strong U.S. HR Tech Growth
Feb 9, 2026
Recruit Holdings, the Japanese HR technology and recruitment conglomerate, reported solid growth in its U.S. HR technology business for the third quarter of FY2025, with quarterly U.S. revenue up 10.1% year on year in dollar terms and average reve...
Recruit Holdings Reshapes Executive Lineup Across Global Segments for FY2026
Feb 9, 2026
Recruit Holdings Co., Ltd. has announced a broad slate of executive appointments effective April 1, 2026, aligning leadership across its holding company and three main segments: HR Technology, Staffing and Marketing Matching Technologies. The resh...
Recruit Holdings Unveils 2026 Board and Audit Committee Slate
Feb 9, 2026
Recruit Holdings has announced its slate of candidates for the Board of Directors and Audit and Supervisory Board for the fiscal year 2026, with final approval pending at the June 2026 annual shareholders meeting. The proposed board continues the ...
Recruit Holdings Lifts FY2025 Profit Outlook as Margins Strengthen
Feb 9, 2026
Recruit Holdings reported modest revenue growth but robust profit expansion for the nine months ended December 31, 2025, with sales up 1.5% to ¥2.74 trillion and operating income rising 21.1% as margin improvements and cost discipline boosted...
Recruit Holdings Nears Full Use of ¥250 Billion Share Buyback Authorization
Feb 5, 2026
Recruit Holdings has completed the share repurchase program it launched in October 2025, buying back a total of 30,427,000 shares of its common stock for approximately 250 billion yen by February 4, 2026. The repurchases, conducted via market purc...
Recruit Holdings Completes ¥16.5 Billion Share Buyback via ToSTNeT-3
Feb 3, 2026
Recruit Holdings has completed the repurchase of 2 million shares of its common stock, or about 0.14% of shares outstanding (excluding treasury stock), via the Tokyo Stock Exchange’s off-auction ToSTNeT-3 system for a total of ¥16.5 bil...
Recruit Holdings Sets Terms for Next Tranche of Share Buyback via ToSTNeT-3
Feb 2, 2026
Recruit Holdings has set the specific terms for the next phase of its ongoing share repurchase program, confirming it will buy back up to 2 million shares, or about 0.14% of its outstanding common stock (excluding treasury shares), via the Tokyo S...
Recruit Holdings Nears Completion of ¥250 Billion Share Buyback Program
Feb 2, 2026
Recruit Holdings Co., Ltd. reported that it repurchased 8,622,800 shares of its common stock on the Tokyo Stock Exchange between January 1 and January 31, 2026, for a total of approximately ¥75.2 billion, as part of a broader share buyback pr...
Recruit Holdings to Sell Asian Placement Subsidiary RIR to Fullcast Holdings
Jan 22, 2026
Recruit Holdings announced that its subsidiary Recruit Co., Ltd. will transfer all shares of its consolidated subsidiary RGF International Recruitment Holdings Limited, which operates placement services primarily in Asia, to Fullcast Holdings for ...
Recruit Holdings Nears Halfway Mark in ¥250 Billion Share Buyback Program
Jan 5, 2026
Recruit Holdings has continued executing the share repurchase program authorized by its board in October 2025, buying back 6,479,700 common shares on the Tokyo Stock Exchange between December 1 and 31, 2025, for a total of approximately ¥54.8...
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.