Recruit Holdings Co (6098) AI Stock Analysis

• Market Cap: ¥11.74T
• Dividend Yield: 0.27%
• Average Volume (3M): 4.91M
• Price to Earnings (P/E): 27.1
• Beta (1Y): 1.15
• 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: 4,607,310
• 30 Day Avg. Volume: 4,913,210
• 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: ¥10,600.00
• Price Target Upside: 35.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥9,972.00 ▲(27.83% 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

Sustained TTM revenue growth near 50% indicates strong secular demand and successful scaling across staffing and Solutions platforms. Persistent high top-line expansion enables reinvestment in product, global market share gains, and long-term operating leverage that can boost durable earnings power.

Profitability Margins

High and broad-based margins across gross, EBIT and EBITDA reflect pricing power and operational efficiency in both staffing and ad-based Solutions. Durable margins provide a buffer through cycles, support sustained free cash flow generation, and fund R&D, product development, and M&A over the medium term.

Balance Sheet Strength

Very low leverage combined with a high ROE and healthy equity ratio indicates prudent capital allocation and strong returns on shareholder funds. This financial strength supports strategic investments and acquisition flexibility, and reduces refinancing risk during economic downturns.

Negative Factors

Cash Conversion Pressure

A recent dip in free cash flow growth and OCF/net income below 1.0 suggest weaker cash conversion versus earnings. If cash conversion remains muted, the company's ability to sustainably fund dividends, buybacks, and acquisitions without tapping capital markets could be constrained over the next several quarters.

Revenue Volatility Risk

The noted prior-period revenue decline signals potential cyclicality or execution risk in bookings and ad demand. Persistent top-line variability can erode operating leverage, complicate long-range planning, and pressure margins and investment cadence even if long-term growth resumes.

Erosion of Equity Base

A declining stockholders' equity trend, if continued, reduces the firm's capital cushion and may limit future financial flexibility. Over time this can constrain leverage capacity for M&A, raise funding costs, and prompt scrutiny of capital return versus reinvestment policies by long-term investors.

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, which offers recruitment and workforce solutions. Recruit Holdings is also known for its significant investment in the online job marketplace Indeed and the professional networking site Glassdoor, positioning itself as a leader in the HR technology sector.

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 financial health with robust revenue growth and profitability margins, supported by a stable balance sheet and effective cash flow management. However, the slight decline in annual revenue and free cash flow growth suggests potential volatility.

Income Statement

Recruit Holdings Co has demonstrated strong revenue growth with a TTM growth rate of 49.8%, indicating robust demand in its sector. The company maintains healthy profitability margins, with a gross profit margin of 58.2% and a net profit margin of 12.2% in the TTM. The EBIT and EBITDA margins are also strong at 16.2% and 19.2%, respectively, showcasing efficient operations. However, the slight decline in annual revenue in the previous period suggests potential volatility.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.13, indicating prudent financial management. The return on equity is impressive at 27.7%, highlighting effective use of shareholder funds. The equity ratio stands at 57.6%, suggesting a stable capital structure. However, the decrease in stockholders' equity over the periods could be a concern if it continues.

Cash Flow

Cash flow analysis shows a slight decline in free cash flow growth in the TTM, which could indicate challenges in converting revenue into cash. The operating cash flow to net income ratio is 0.80, and the free cash flow to net income ratio is 0.98, both reflecting strong cash generation relative to earnings. Despite the recent dip in free cash flow, the company has historically maintained positive cash flow growth.

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: Negative
• Last Price: 7801.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 7801 is below the 20-day moving average (MA) of 8861.30, below the 50-day MA of 8602.12, and below the 200-day MA of 8301.72, indicating a bearish trend. The MACD of -136.39 indicates Positive momentum. The RSI at 34.63 is Neutral, neither overbought nor oversold. The STOCH value of 7.33 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9744	85 Outperform	¥264.92B	18.98	28.98%	5.57%	4.09%	17.10%
2146	79 Outperform	¥123.43B	20.83	―	7.51%	8.28%	-36.32%
2181	76 Outperform	¥614.43B	15.58	19.18%	3.59%	6.95%	13.63%
2124	76 Outperform	¥162.72B	20.18	―	2.38%	20.17%	32.32%
6098	67 Neutral	¥11.74T	27.06	27.29%	0.27%	1.23%	26.94%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Recruit Holdings Co Corporate Events

Recruit Holdings Nears Halfway Mark in ¥250 Billion Share Buyback Program

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 billion through market purchases and ToSTNeT-3 transactions. Cumulatively, from the start of the program on October 17 through December 31, 2025, the company has repurchased 18,315,000 shares, or 48.2% of the approved maximum of 38 million shares, at a total cost of about ¥147.0 billion, representing 58.79% of the ¥250 billion budget, signaling an ongoing commitment to returning capital to shareholders and potentially supporting its share price and capital efficiency through April 30, 2026.

The most recent analyst rating on (JP:6098) stock is a Hold with a Yen8785.00 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 Strategic Share Repurchase

Recruit Holdings Co., Ltd. announced the completion of a share repurchase through the ToSTNeT-3 system, aimed at improving capital efficiency and maximizing shareholder returns. The repurchase involved 1,424,300 shares, representing 0.10% of the total shares, with a total purchase amount of 11.5 billion yen. This move reflects the company’s strategic approach to balancing business investments with shareholder interests.

The most recent analyst rating on (JP:6098) stock is a Hold with a Yen8170.00 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 Share Repurchase Plan

Recruit Holdings Co., Ltd. has 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 2,500,000 shares, representing 0.18% of its total shares, at the closing price of ¥8,096. This move is part of a broader strategy authorized by the board to repurchase up to 38,000,000 shares by April 2026, potentially enhancing shareholder value and optimizing capital structure.

The most recent analyst rating on (JP:6098) stock is a Hold with a Yen8170.00 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 in Share Repurchase Program

Recruit Holdings Co., Ltd. announced the status of its share repurchase program, initially resolved by the Board of Directors in October 2025. Between December 1 and December 8, 2025, the company repurchased 1.2 million shares of its common stock for approximately 9.85 billion yen through market purchases on the Tokyo Stock Exchange. This move is part of a larger plan to repurchase up to 38 million shares by April 2026, which could impact the company’s stock value and shareholder equity.

The most recent analyst rating on (JP:6098) stock is a Hold with a Yen8170.00 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 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.

The most recent analyst rating on (JP:6098) stock is a Hold with a Yen8170.00 price target. To see the full list of analyst forecasts on Recruit Holdings Co stock, see the JP:6098 Stock Forecast page.

Recruit Holdings 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.

The most recent analyst rating on (JP:6098) stock is a Hold with a Yen8221.00 price target. To see the full list of analyst forecasts on Recruit Holdings Co stock, see the JP:6098 Stock Forecast page.