Recruit Holdings Co (6098) AI Stock Analysis

• Market Cap: ¥12.51T
• Dividend Yield: 0.29%
• Average Volume (3M): 5.25M
• Price to Earnings (P/E): 28.8
• Beta (1Y): 1.19
• Revenue Growth: 1.23%
• EPS Growth: 26.94%
• Country: JP
• Employees: 51,373
• Sector: Communication Services
• Sector Strength: 97
• Industry: Staffing & Employment Services
• EPS (TTM): 89.15
• Shares Outstanding: 1,563,912,100
• 10 Day Avg. Volume: 4,365,760
• 30 Day Avg. Volume: 5,246,456
• PEG Ratio: 0.86
• Price to Book (P/B): 5.18
• Price to Sales (P/S): 3.04
• P/FCF Ratio: 22.28
• 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: ¥11,399.88
• Price Target Upside: 46.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 315.09
• Revenue Forecast (FY): ¥3.61T

• Rating: 67 Neutral
• Price Target: ¥8,785.00 ▲(12.61% Upside)

Recruit Holdings Co's strong financial performance, characterized by robust revenue growth and profitability, is the primary driver of its stock score. However, technical indicators suggest mixed momentum, and the high P/E ratio indicates potential overvaluation, which tempers the overall score.

Positive Factors

Revenue Growth

The robust revenue growth rate indicates strong market demand and effective business strategies, positioning the company for continued expansion.

Profitability Margins

High profitability margins reflect efficient operations and pricing power, supporting long-term financial stability and shareholder value.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial flexibility and reduces risk, enabling strategic investments and growth.

Negative Factors

Decline in Free Cash Flow

A decline in free cash flow growth may limit the company's ability to invest in new opportunities and return capital to shareholders, impacting future growth.

Stockholders' Equity Decrease

A decrease in stockholders' equity could signal potential financial strain or reduced investor confidence if the trend continues.

Annual Revenue Volatility

Volatility in revenue can indicate market challenges or operational issues, potentially affecting long-term growth and stability.

Recruit Holdings Co Business Overview & Revenue Model

Company Description

Recruit 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 Money

Recruit Holdings generates revenue primarily through its Staffing segment, which earns money by charging fees for placing temporary and permanent staff across various industries. The company also derives substantial income from its Solutions segment, which includes job advertising and recruitment services provided through platforms like Indeed and Glassdoor. These platforms charge employers for job postings and premium services, contributing to a significant portion of the company’s revenue. Additionally, Recruit Holdings benefits from strategic partnerships and acquisitions that enhance its service offerings and market reach, such as its acquisition of Indeed in 2012, which has become a major driver of growth and profitability.

Recruit Holdings Co Financial Statement Overview

Summary

Recruit Holdings Co exhibits strong profitability with a consistent gross profit margin and healthy EBIT and EBITDA margins. The balance sheet is solid with low leverage and strong return on equity. However, negative revenue growth and declining free cash flow growth are concerns.

Income Statement

Recruit Holdings Co shows strong profitability with a consistent gross profit margin above 55% and a net profit margin around 12% in the TTM. However, the revenue growth rate has been negative recently, indicating a potential slowdown in growth. The EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of approximately 0.14 in the TTM, indicating low leverage. The return on equity is strong at over 26%, showcasing effective use of equity to generate profits. The equity ratio is stable, suggesting a balanced capital structure.

Cash Flow

Cash flow metrics indicate a robust operating cash flow to net income ratio of around 0.80, demonstrating good cash generation relative to earnings. However, the recent decline in free cash flow growth is a concern, though the free cash flow to net income ratio remains high at nearly 0.98, indicating strong cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.55T	3.56T	3.42T	3.43T	2.87T	2.27T
Gross Profit	2.07T	1.98T	1.85T	1.88T	1.53T	1.03T
EBITDA	680.77B	655.82B	575.94B	491.73B	504.90B	285.97B
Net Income	434.39B	408.50B	353.65B	269.80B	296.83B	131.39B
Balance Sheet
Total Assets	2.55T	2.77T	3.14T	2.79T	2.42T	2.20T
Cash, Cash Equivalents and Short-Term Investments	535.10B	808.63B	1.14T	884.00B	671.45B	540.09B
Total Debt	188.47B	208.94B	221.13B	254.95B	271.42B	417.77B
Total Liabilities	1.07T	1.14T	1.14T	1.15T	1.05T	1.10T
Stockholders Equity	1.47T	1.62T	2.00T	1.63T	1.36T	1.09T
Cash Flow
Free Cash Flow	586.85B	602.41B	465.43B	361.44B	375.23B	228.28B
Operating Cash Flow	597.53B	610.36B	535.36B	438.19B	439.61B	286.60B
Investing Cash Flow	-92.46B	-61.05B	-68.79B	-32.68B	-70.74B	-40.37B
Financing Cash Flow	-743.86B	-880.48B	-334.65B	-252.06B	-254.37B	-172.71B

Recruit Holdings Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7801.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 7801 is below the 20-day moving average (MA) of 8093.95, below the 50-day MA of 7949.78, and below the 200-day MA of 8215.01, indicating a bullish trend. The MACD of 154.88 indicates Negative momentum. The RSI at 62.64 is Neutral, neither overbought nor oversold. The STOCH value of 83.76 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	79 Outperform	¥113.54B	19.18	―	7.66%	8.28%	-36.32%
2181	76 Outperform	¥649.65B	16.47	19.18%	3.67%	6.95%	13.63%
2124	76 Outperform	¥175.23B	21.73	―	2.44%	20.17%	32.32%
6028	73 Outperform	¥503.45B	30.90	19.92%	1.86%	8.63%	8.13%
6098	67 Neutral	¥12.51T	28.84	27.29%	0.29%	1.23%	26.94%
9744	66 Neutral	¥269.82B	19.24	28.98%	5.68%	4.09%	17.10%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Recruit Holdings Co Corporate Events

Recruit Holdings Announces Progress in Share Repurchase Program

Recruit Holdings Co., Ltd. announced the status of its share repurchase program, which was resolved by the Board of Directors in October 2025. The company repurchased over 6.5 million shares in November 2025, with a total purchase price of approximately 50.9 billion yen. This move is part of a larger plan to repurchase up to 38 million shares by April 2026, potentially impacting the company’s market positioning by enhancing shareholder value and optimizing capital structure.

Recruit Holdings Reports Mixed Financial Results with Positive Outlook

Recruit Holdings Co., Ltd. reported its financial results for the six months ending September 30, 2025, showing a slight decrease in revenue by 0.3% to 1,793.5 billion yen. However, the company experienced growth in other financial metrics, with operating income rising by 16.2% and profit for the period increasing by 11.7%. The company also revised its full-year financial guidance, projecting a 1.2% increase in revenue and a 15.4% rise in operating income. These results and projections indicate a positive outlook for Recruit Holdings, despite the slight dip in revenue, and suggest a strong operational performance and strategic positioning in the HR industry.

Recruit Holdings Completes Share Repurchase to Boost Capital Efficiency

Recruit Holdings Co., Ltd. has completed a share repurchase of 1,111,100 shares through the ToSTNeT-3 system, aiming to improve capital efficiency and maximize shareholder returns. The repurchase, valued at approximately 8.5 billion yen, is part of a broader plan to buy back up to 38 million shares by April 2026, reflecting the company’s strategic focus on optimizing its financial position and market conditions.

Recruit Holdings Initiates Strategic Share Repurchase Plan

Recruit Holdings Co., Ltd. announced a share repurchase plan through the Tokyo Stock Exchange’s Off-Auction Own Share Repurchase Trading System (ToSTNeT-3), with a maximum of 1,500,000 shares to be repurchased initially. This move is part of a broader strategy to repurchase up to 38,000,000 shares, representing 2.68% of its total shares, with a maximum expenditure of 250 billion yen, aimed at enhancing shareholder value and optimizing capital structure.

Recruit Holdings Announces Strategic Share Repurchase Plan

Recruit Holdings Co., Ltd. announced a share repurchase program, aiming to buy back up to 38 million shares for a maximum of 250 billion yen. This move is part of the company’s strategy to enhance capital efficiency and shareholder value, aligning with its policy to reduce its net cash position and potentially use repurchased shares for strategic M&A or stock compensation.

Recruit Holdings Completes Share Repurchase to Enhance Shareholder Value

Recruit Holdings Co., Ltd. announced the completion of its share repurchase program through the ToSTNeT-3 system, as resolved by its Board of Directors. This move aims to improve capital efficiency and maximize shareholder returns, reflecting the company’s strategic focus on financial health and market conditions.

Recruit Holdings Announces Strategic Share Repurchase Plan

Recruit Holdings Co., Ltd. announced a share repurchase plan through the Tokyo Stock Exchange’s Off-Auction Own Share Repurchase Trading System (ToSTNeT-3). The company plans to repurchase up to 15 million shares, representing 1.05% of its total shares, with a maximum purchase amount of 130 billion yen. This strategic move is aimed at optimizing capital structure and potentially enhancing shareholder value, though the final number of shares repurchased will depend on market conditions.

Recruit Holdings Announces Strategic Share Repurchase Plan

Recruit Holdings Co., Ltd. announced a share repurchase plan to buy back up to 15 million shares, totaling a maximum of 130 billion yen. This decision is aimed at improving capital efficiency and maximizing shareholder returns, aligning with the company’s long-term business strategy. The repurchase will be funded by the company’s own funds, ensuring sufficient liquidity for ongoing operations. The move reflects Recruit Holdings’ strong financial position and commitment to strategic growth, potentially impacting its market positioning and stakeholder value.