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Recruit Holdings Co Ltd (JP:6098)
:6098

Recruit Holdings Co (6098) AI Stock Analysis

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Recruit Holdings Co

(OTC:6098)

69Neutral
Recruit Holdings Co's overall stock score reflects strong financial performance and strategic growth initiatives in HR Technology. However, challenges in global market outlook and a high P/E ratio raise concerns about valuation. Technical indicators suggest potential volatility, and while the earnings call shows optimism, it also highlights key risks and strategic shifts impacting the company's performance.

Recruit Holdings Co (6098) vs. S&P 500 (SPY)

Recruit Holdings Co Business Overview & Revenue Model

Company DescriptionRecruit Holdings Co., Ltd. is a Japanese multinational company that operates across several sectors, including human resources technology, staffing, and media & solutions. Founded in 1960 and headquartered in Tokyo, Recruit Holdings owns and operates a diverse portfolio of businesses worldwide, with a strong presence in the recruitment and job search markets through well-known platforms like Indeed and Glassdoor. The company also provides staffing services and operates various media and marketing solutions, catering to a wide range of industries.
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 Financial Statement Overview

Summary
Recruit Holdings Co exhibits strong financial performance with consistent revenue growth, robust profitability margins, and excellent cash flow generation. The company maintains a low leverage risk and high equity ratio, contributing to its financial stability and ability to support growth initiatives.
Income Statement
Recruit Holdings Co demonstrates strong financial performance with a consistent revenue growth trajectory. The gross profit margin is robust at 57.5% TTM, reflecting efficient cost management. Net profit margin of 10.6% TTM is healthy, showcasing profitability. The revenue growth rate of 3.6% from the previous year indicates steady expansion. The EBIT margin of 14.3% and EBITDA margin of 16.5% are indicative of solid operational efficiency.
Balance Sheet
80
The company maintains a strong balance sheet with an equity ratio of 61.8% TTM, reflecting a solid financial foundation. The debt-to-equity ratio is low at 0.11, indicating minimal leverage risk. The return on equity stands at 20.9% TTM, demonstrating effective use of equity to generate profits. The company's strong equity position highlights its financial stability and ability to withstand economic fluctuations.
Cash Flow
Cash flow performance is exceptional with a free cash flow growth rate of 26.7% compared to the previous year. The operating cash flow to net income ratio is 1.63, indicating strong cash generation relative to profits. The free cash flow to net income ratio of 1.57 suggests effective cash management and reinvestment capabilities, supporting future growth initiatives.
Breakdown
Mar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
3.42T3.43T2.87T2.27T2.40T
Gross Profit
1.96T2.00T1.65T1.15T1.29T
EBIT
402.53B344.30B378.93B162.82B206.01B
EBITDA
575.94B491.73B504.90B297.00B363.97B
Net Income Common Stockholders
353.65B269.80B296.83B131.39B179.88B
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.14T884.00B671.45B540.09B461.37B
Total Assets
3.14T2.79T2.42T2.20T2.00T
Total Debt
221.13B254.95B271.42B417.77B408.41B
Net Debt
-915.73B-622.42B-398.13B-83.28B-12.84B
Total Liabilities
1.14T1.15T1.05T1.10T1.00T
Stockholders Equity
2.00T1.63T1.36T1.09T988.45B
Cash FlowFree Cash Flow
465.43B361.44B375.23B228.28B220.07B
Operating Cash Flow
535.36B438.19B439.61B286.60B303.32B
Investing Cash Flow
-68.79B-32.68B-70.74B-40.37B-88.99B
Financing Cash Flow
-334.65B-252.06B-254.37B-172.71B-192.72B

Recruit Holdings Co Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price8518.00
Price Trends
50DMA
8125.42
Positive
100DMA
9486.59
Negative
200DMA
9306.28
Negative
Market Momentum
MACD
88.91
Negative
RSI
62.23
Neutral
STOCH
93.67
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6098, the sentiment is Neutral. The current price of 8518 is above the 20-day moving average (MA) of 7657.65, above the 50-day MA of 8125.42, and below the 200-day MA of 9306.28, indicating a neutral trend. The MACD of 88.91 indicates Negative momentum. The RSI at 62.23 is Neutral, neither overbought nor oversold. The STOCH value of 93.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6098.

Recruit Holdings Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$510.42B25.0434.91%1.86%15.40%30.51%
76
Outperform
¥136.07B23.48
3.17%13.58%-5.97%
74
Outperform
¥116.37B18.73
2.14%12.93%-14.89%
69
Neutral
$11.95T33.3022.31%0.29%4.09%13.88%
65
Neutral
$404.30B22.2610.56%1.07%8.46%
64
Neutral
$4.30B11.845.23%249.82%4.06%-10.21%
56
Neutral
$1.79T-18.23%10.04%57.36%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6098
Recruit Holdings Co
8,613.00
1,695.90
24.52%
JP:2124
JAC Recruitment Co., Ltd.
820.00
96.31
13.31%
JP:2175
SMS Co., Ltd.
1,399.00
-602.40
-30.10%
JP:2432
DeNA Co
3,630.00
2,068.08
132.41%
JP:4755
Rakuten
893.50
85.80
10.62%
JP:2371
Kakaku
2,666.50
820.97
44.48%

Recruit Holdings Co Earnings Call Summary

Earnings Call Date:May 09, 2025
(Q3-2024)
|
% Change Since: 0.00%|
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 Corporate Events

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.

Recruit Holdings to Retire 85.9 Million Treasury Shares
Mar 12, 2025

Recruit Holdings Co., Ltd. has announced the retirement of 85,929,800 shares of its treasury stock, which accounts for 5.21% of its total shares issued prior to the retirement. This strategic move, set to be completed by March 24, 2025, will reduce the total number of shares issued to 1,563,912,149, potentially impacting the company’s stock value and shareholder equity.

Recruit Holdings Completes Share Repurchase to Boost Shareholder Returns
Mar 3, 2025

Recruit Holdings Co., Ltd. has completed a share repurchase transaction through the ToSTNeT-3 system, acquiring 7,197,500 shares at a total cost of 63.338 billion yen. This move is aimed at improving capital efficiency and maximizing shareholder returns, reflecting the company’s strategic focus on balancing investment opportunities with market conditions and financial forecasts.

Recruit Holdings to Initiate Significant Share Repurchase Program
Feb 28, 2025

Recruit Holdings Co., Ltd. has announced its plan to repurchase up to 52 million shares, representing 3.51% of its total shares, through a combination of market purchases and the ToSTNeT-3 trading system. This strategic move, with a maximum expenditure of 450 billion yen, aims to enhance shareholder value and optimize capital structure, potentially impacting the company’s market positioning and stakeholder interests.

Recruit Holdings Announces 450 Billion Yen Share Repurchase Program
Feb 28, 2025

Recruit Holdings Co., Ltd. has announced a share repurchase program with a maximum purchase price of 450 billion yen, aiming to improve capital efficiency and maximize shareholder returns. The company plans to use its own funds for the repurchases, maintaining strong liquidity and financial stability, while the acquired shares may be used for stock compensation, strategic M&A, or may be canceled.

Recruit Holdings Reveals Strategic Executive Appointments for FY2025
Feb 12, 2025

Recruit Holdings announced executive appointments effective April 1, 2025, signaling strategic leadership changes to reinforce its operational and market objectives. These appointments include key leadership roles across divisions such as HR Technology and Staffing, suggesting a focus on enhancing business development and reinforcing governance and risk management strategies.

Recruit Holdings Announces New Board Director Nomination
Feb 12, 2025

Recruit Holdings Co., Ltd. has announced the nomination of Tsuyoshi Kodera as an Independent Director for its Board, aiming to bolster management and supervision as well as enhance enterprise value. Kodera’s extensive experience in information security and global network services is expected to contribute to the company’s sustainable growth, while the resignation of Hiroki Totoki, who significantly contributed to the company’s global business expansion, marks a notable transition.

Recruit Holdings Completes Share Repurchase Program
Feb 10, 2025

Recruit Holdings Co., Ltd. has announced the completion of its share repurchase program, initially declared in July 2024. From February 1 to February 7, 2025, the company repurchased 1,066,500 shares for approximately 11.54 billion yen. The program, which allows for a maximum of 87 million shares or 5.67% of the total issued shares to be repurchased, is part of a broader strategy to enhance shareholder value and optimize capital structure.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.