CRG HOLDINGS CO.,LTD. (7041) AI Stock Analysis

• Market Cap: ¥1.87B
• Dividend Yield: 2.56%
• Average Volume (3M): 11.07K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.23
• Revenue Growth: -3.92%
• EPS Growth: N/A
• Country: JP
• Employees: 477
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 15.17
• Shares Outstanding: 5,557,200
• 10 Day Avg. Volume: 24,600
• 30 Day Avg. Volume: 11,073
• PEG Ratio: <0.01
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.15
• P/FCF Ratio: -1.03
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: ¥326.00 ▲(1.56% Upside)

CRG HOLDINGS CO.,LTD. is currently facing significant financial and operational challenges. The most impactful factor is the poor financial performance, with declining revenue, high leverage, and negative cash flows. Technical analysis shows weak momentum, and the valuation is unattractive due to a negative P/E ratio. These factors combined result in a low overall stock score.

Positive Factors

Comprehensive Service Offering

CRG HOLDINGS' diverse service offerings allow it to cater to various client needs, enhancing its market position and potential for revenue growth across multiple sectors.

Strategic Partnerships

Strategic partnerships can lead to expanded market reach and service enhancement, potentially driving long-term growth and competitive advantage.

Stable Gross Profit Margin

A stable gross profit margin indicates consistent cost management in core operations, which can support profitability as revenue challenges are addressed.

Negative Factors

Declining Revenue

Declining revenue suggests challenges in maintaining market share or demand, which could impact long-term growth if not addressed.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth opportunities.

Negative Cash Flow

Negative cash flow suggests operational challenges and liquidity constraints, which may hinder the company's ability to sustain operations and invest in future growth.

CRG HOLDINGS CO.,LTD. Business Overview & Revenue Model

Company Description

CRG HOLDINGS CO., LTD. (7041) is a Japan-based company primarily engaged in the human resources and staffing industry. The company provides comprehensive staffing solutions, offering temporary staffing, permanent placement, and human resource consulting services. CRG HOLDINGS focuses on connecting skilled professionals with businesses across various sectors, including manufacturing, technology, healthcare, and finance.

How the Company Makes Money

CRG HOLDINGS CO., LTD. generates revenue primarily through its staffing services. It earns income by charging client companies for the placement of temporary and permanent staff. The company may also receive fees for human resource consulting services, where it provides expertise in labor market trends and workforce management. Key revenue streams include fees from temporary staffing contracts, permanent placement fees, and consulting service charges. Additionally, strategic partnerships with businesses across different industries may enhance its service offerings and expand its market reach, thus contributing to its earnings.

CRG HOLDINGS CO.,LTD. Financial Statement Overview

Summary

CRG HOLDINGS CO.,LTD. is facing significant financial challenges. The income statement shows declining revenue and profitability, with net income turning negative. The balance sheet indicates high leverage and reduced equity, while cash flow analysis reveals negative free cash flow and operational cash flow. These issues highlight the need for improved financial management.

Income Statement

The income statement shows a declining trend in revenue and profitability. The revenue has decreased from 20.8 billion to 17.1 billion yen, and net income has turned negative, indicating financial challenges. Gross profit margin is relatively stable, but the net profit margin has significantly deteriorated, reflecting operational inefficiencies or increased costs.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio due to increased total debt, which presents a financial risk. The equity ratio has decreased, indicating higher leverage. Return on equity has turned negative, reflecting poor profitability. The company needs to manage its liabilities better to improve financial stability.

Cash Flow

Cash flow analysis shows negative free cash flow, indicating liquidity issues. Operating cash flow has turned negative, suggesting operational challenges. The free cash flow to net income ratio is unfavorable, highlighting cash management issues. The company needs to improve its cash generation to support operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.55B	17.09B	20.82B	21.38B	19.47B	20.15B
Gross Profit	4.06B	3.83B	4.05B	4.04B	3.66B	3.99B
EBITDA	332.54M	13.69M	236.60M	530.15M	538.10M	469.87M
Net Income	-218.82M	-369.36M	44.43M	287.65M	308.00M	215.21M
Balance Sheet
Total Assets	12.81B	13.25B	7.23B	5.81B	5.14B	5.02B
Cash, Cash Equivalents and Short-Term Investments	1.72B	2.46B	2.63B	2.02B	2.00B	2.11B
Total Debt	8.27B	8.47B	1.85B	509.55M	376.74M	544.42M
Total Liabilities	9.98B	10.49B	4.11B	2.74B	2.36B	2.55B
Stockholders Equity	2.83B	2.76B	3.12B	3.07B	2.78B	2.47B
Cash Flow
Free Cash Flow	0.00	-2.53B	-177.01M	580.55M	194.03M	615.98M
Operating Cash Flow	0.00	-1.76B	436.45M	652.22M	244.76M	671.60M
Investing Cash Flow	0.00	-1.49B	-1.10B	-742.38M	-188.07M	-67.41M
Financing Cash Flow	0.00	3.09B	1.28B	106.57M	-170.97M	-474.00M

CRG HOLDINGS CO.,LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 321.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7041, the sentiment is Positive. The current price of 321 is below the 20-day moving average (MA) of 333.75, below the 50-day MA of 331.78, and below the 200-day MA of 325.75, indicating a bullish trend. The MACD of 4.17 indicates Negative momentum. The RSI at 58.87 is Neutral, neither overbought nor oversold. The STOCH value of 39.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7041.

CRG HOLDINGS CO.,LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7064	67 Neutral	¥2.89B	12.30	―	―	17.81%	-28.68%
7043	65 Neutral	¥2.51B	42.61	―	0.65%	14.27%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6558	50 Neutral	¥1.70B	―	―	―	-12.60%	-335.07%
9331	49 Neutral	¥1.57B	―	―	―	3.33%	-80.47%
7041	40 Underperform	¥1.87B	12.12	―	2.56%	-3.92%	―