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UT Group Co.,Ltd.
(2146)
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Rating:73Outperform
Price Target:
¥246.00
▲(23.62% Upside)
Action:Upgraded
Date:08/11/26
The score is driven primarily by solid financial performance (healthy profitability, strong cash conversion, and improved leverage) and supportive valuation (high ~6.0% dividend yield with a ~16.2 P/E). The main restraint is technicals: the stock is well above major moving averages and RSI is very high (~83.8), indicating stretched momentum and higher near-term pullback risk.
Positive Factors
Cash conversion
Nearly one-for-one free cash flow to reported net income demonstrates high earnings quality and durable cash generation. This sustained cash conversion supports ongoing operations, funds reinvestment or shareholder distributions, and provides a buffer to absorb cyclical swings in staffing demand.
Negative Factors
Revenue volatility
Large consecutive-year swings in revenue reflect demand sensitivity and make forward planning difficult. For a staffing/outsourcing business, volatile topline undermines utilization forecasting and contract renewal visibility, increasing the risk that margin and cashflow targets prove harder to sustain.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash conversion
Nearly one-for-one free cash flow to reported net income demonstrates high earnings quality and durable cash generation. This sustained cash conversion supports ongoing operations, funds reinvestment or shareholder distributions, and provides a buffer to absorb cyclical swings in staffing demand.
Read all positive factors
UT Group Co.,Ltd. (2146) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥138.38B
Dividend Yield5.79%
Average Volume (3M)257.81K
Price to Earnings (P/E)16.8
Beta (1Y)1.08
Revenue Growth-12.99%
EPS Growth45.36%
CountryJP
Employees34,772
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)13.66
Shares Outstanding601,634,770
10 Day Avg. Volume397,440
30 Day Avg. Volume257,806
Financial Highlights & Ratios
PEG Ratio-0.89
Price to Book (P/B)3.62
Price to Sales (P/S)0.67
P/FCF Ratio14.77
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)12.66
Revenue Forecast (FY)¥170.72B
UT Group Co.,Ltd. Business Overview & Revenue Model
Company Description
UT Group Co., Ltd. is a Japanese company based in Tokyo that specializes in human resources, providing permanent employee dispatch and outsourcing solutions across diverse sectors such as manufacturing, design and development, and construction. Th...
How the Company Makes Money
UT Group primarily makes money by providing workforce solutions to client companies and charging fees tied to labor placement and ongoing staffing operations. Key revenue streams include: (1) temporary staffing/dispatch services, where UT Group as...
UT Group Co.,Ltd. Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 167.35B | 166.85B | 194.75B | 167.03B | 170.63B | 156.77B |
| Gross Profit | 32.09B | 30.06B | 29.85B | 30.44B | 33.10B | 27.77B |
| EBITDA | 13.61B | 12.55B | 16.23B | 11.39B | 10.08B | 6.53B |
| Net Income | 7.81B | 7.12B | 8.96B | 6.36B | 3.83B | 3.14B |
Balance Sheet | ||||||
| Total Assets | 62.40B | 63.47B | 66.35B | 68.46B | 71.63B | 64.11B |
| Cash, Cash Equivalents and Short-Term Investments | 28.59B | 29.51B | 31.71B | 29.32B | 31.97B | 25.83B |
| Total Debt | 9.14B | 9.86B | 7.91B | 12.29B | 16.42B | 19.91B |
| Total Liabilities | 30.48B | 31.33B | 30.02B | 34.01B | 41.70B | 42.87B |
| Stockholders Equity | 30.58B | 30.79B | 34.99B | 33.23B | 28.91B | 20.35B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 7.55B | 5.62B | 3.95B | 12.94B | 2.23B |
| Operating Cash Flow | 0.00 | 7.60B | 5.68B | 3.99B | 13.00B | 2.28B |
| Investing Cash Flow | 0.00 | -331.00M | 5.87B | -210.00M | -2.14B | -6.30B |
| Financing Cash Flow | 0.00 | -9.47B | -9.14B | -6.43B | -4.75B | 4.55B |
UT Group Co.,Ltd. Technical Analysis
Positive
199.00
Price Trends
189.47
Positive
185.04
Positive
187.38
Positive
Market Momentum
13.35
Negative
72.98
Negative
79.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2146, the sentiment is Positive. The current price of 199 is below the 20-day moving average (MA) of 209.15, above the 50-day MA of 189.47, and above the 200-day MA of 187.38, indicating a bullish trend. The MACD of 13.35 indicates Negative momentum. The RSI at 72.98 is Negative, neither overbought nor oversold. The STOCH value of 79.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2146.
UT Group Co.,Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | ¥257.87B | 17.03 | 32.73% | 5.84% | 2.95% | 19.02% | |
78 Outperform | ¥22.54T | 40.75 | 33.09% | 0.21% | 9.31% | 43.87% | |
76 Outperform | ¥677.37B | 14.88 | 20.65% | 4.42% | 9.70% | 30.96% | |
73 Outperform | ¥138.38B | 16.84 | ― | 7.51% | -12.99% | 45.36% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
46 Neutral | ¥63.28B | -18.68 | -2.64% | 0.77% | -0.24% | 59.25% |
* Industrials Sector Average
JP:2146
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UT Group Co.,Ltd. Corporate Events
UT Group Delivers Record Quarterly Operating Profit on Workforce Optimization
Aug 7, 2026
UT Group Co., Ltd. reported its highest-ever quarterly operating income for the first quarter of the fiscal year ending March 31, 2027, driven by improved gross margins and lower recruitment expenses despite only a slight increase in net sales. Th...
UT Group Sets First-Quarter FY3/2027 Dividend at ¥3.77 Per Share Under 100% Payout Policy
Aug 7, 2026
UT Group Co., Ltd. has declared a first-quarter dividend for the fiscal year ending March 2027, setting the payout at ¥3.77 per share for shareholders of record as of June 30, 2026. The total dividend distribution will amount to ¥2.239 b...
UT Group Launches Share Buyback to Fund Employee Stock Grants and Boost Capital Efficiency
Aug 7, 2026
UT Group has resolved to repurchase up to 5.0 million of its common shares, representing about 0.8% of its outstanding stock, for a maximum total of 671 million yen through market purchases on the Tokyo Stock Exchange between August 10 and Novembe...
UT Group Delivers Strong Q1 Profit Growth but Guides for Weaker Full-Year Earnings
Aug 7, 2026
UT Group Co., Ltd. reported first-quarter FY3/2027 consolidated results with net sales inching up 1.2% to ¥42.25 billion, while operating income surged 42.4% to ¥3.51 billion and net income attributable to owners jumped 44.9% to ¥2....
UT Group Completes ¥525 Million Share Buyback Program
Aug 7, 2026
UT Group Co., Ltd., a TSE Prime Market-listed company, has been actively managing its shareholder base and capital structure through market transactions in its own common shares. The group’s latest actions underscore a continued focus on opt...
UT Group Restructures Largest Shareholder Stake via Wakayama’s Asset Management LLC
Aug 7, 2026
UT Group Co., Ltd. announced that its largest shareholder status will shift from its chairman, Yoichi Wakayama, to his asset management vehicle, Wakayama Yoichi Office LLC, following an internal transfer of shares scheduled for August 31, 2026. Th...
UT Group Nears Completion of Share Buyback Program
Aug 4, 2026
UT Group Co., Ltd. reported the progress of its share repurchase program authorized by the Board of Directors in May 2026, detailing common share acquisitions executed on the Tokyo Stock Exchange in July. The company bought 959,300 shares for 172,...
UT Group Reports Progress on Ongoing Share Repurchase Program
Jul 2, 2026
UT Group Co., Ltd. reported the progress of its share repurchase program authorized by its board in mid-May 2026, detailing common share acquisitions executed on the Tokyo Stock Exchange during June. The company bought 1,281,000 shares for about 2...
UT Group Finds Board Highly Effective, Flags Need for Deeper Strategic Deliberation
Jun 2, 2026
UT Group has completed its fifth annual evaluation of its Board of Directors’ effectiveness, covering directors and audit and supervisory board members via an externally compiled web-based self-assessment. The review found the board broadly ...
UT Group Reports Progress on Share Buyback Program
Jun 2, 2026
UT Group Co., Ltd. reported the progress of its share repurchase program, authorized by its board on May 14, 2026 and executed on the Tokyo Stock Exchange. During the period from May 15 to May 31, 2026, the company acquired 564,900 common shares f...
UT Group Revamps Board to Boost Digital Strategy and Governance
May 27, 2026
UT Group Co., Ltd. has announced a slate of director changes, with the reappointment of Chairman and Representative Director Yoichi Wakayama and President and Representative Director Manabu Sotomura, along with outside directors Taisuke Igaki and ...
UT Group Targets Profit Growth and 8% Margin Under Fifth Medium-Term Plan
May 15, 2026
UT Group Co., Ltd. has outlined its Fifth Medium-Term Business Plan through the fiscal year ending March 2029, targeting net sales of 185.0 billion yen, gross income of 35.0 billion yen, operating income of 15.0 billion yen, and net income of 9.1 ...
UT Group Corrects Consolidated Financial Statements for FY Ended March 31, 2026
May 15, 2026
UT Group Co., Ltd. announced a partial amendment to its consolidated financial statements for the fiscal year ended March 31, 2026, prepared under Japanese GAAP. The revision follows the discovery of items requiring correction in the consolidated ...
UT Group boosts profit margins despite revenue drop and signals 100% payout policy
May 14, 2026
UT Group Co., Ltd. reported consolidated net sales of ¥166.9 billion for the fiscal year ended March 31, 2026, down 14.3% year on year, while operating income rose 31.5% to ¥10.6 billion and ordinary income climbed 31.0% to ¥10.8 bi...
UT Group Hikes Year-End Dividend After Earnings Beat Targets
May 14, 2026
UT Group Co., Ltd. has revised its dividend forecast for the fiscal year ended March 31, 2026, deciding at its board meeting to raise the year-end dividend from a previously planned ¥2.60 per share to ¥4.00 per share, on a post–sto...
UT Group Launches Share Buyback to Fund Employee Stock Grants and Boost Capital Efficiency
May 14, 2026
UT Group Co., Ltd. has approved a share buyback program to support stock-based employee compensation and enhance capital efficiency as part of its broader human capital investment strategy. The company plans to repurchase up to 3.9 million common ...
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.