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Pasona Group
(2168)
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Rating:45Neutral
Price Target:
¥1,431.00
▼(-29.33% Downside)
Action:Reiterated
Date:10/16/26
The score is held down primarily by weakening financial performance—declining revenue, a return to losses, and sustained negative free cash flow—despite a relatively manageable balance sheet. Technicals add further pressure with the stock below key moving averages and bearish momentum indicators. Valuation is only mildly supportive due to a modest dividend yield, but the negative P/E reflects loss-making results.
Positive Factors
Manageable Leverage
Low-to-moderate leverage relative to equity gives Pasona a comparatively sturdier financial foundation despite earnings volatility. A sizable equity base can help absorb operating weakness and preserve flexibility for essential investment or restructuring over the next several quarters.
Negative Factors
Declining Revenue
A sustained revenue decline, culminating in a sharp latest-year contraction, signals weakening demand, reduced activity, or unfavorable service mix. Continued top-line pressure can limit operating leverage, constrain reinvestment, and make recovery dependent on successfully restoring client volumes.
Read all positive and negative factors
Positive Factors
Negative Factors
Manageable Leverage
Low-to-moderate leverage relative to equity gives Pasona a comparatively sturdier financial foundation despite earnings volatility. A sizable equity base can help absorb operating weakness and preserve flexibility for essential investment or restructuring over the next several quarters.
Read all positive factors
Pasona Group (2168) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥54.89B
Dividend Yield1.03%
Average Volume (3M)131.76K
Price to Earnings (P/E)―
Beta (1Y)0.67
Revenue Growth0.31%
EPS Growth70.47%
CountryJP
Employees9,028
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)-90.20
Shares Outstanding40,190,300
10 Day Avg. Volume165,030
30 Day Avg. Volume131,763
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)0.45
Price to Sales (P/S)0.18
P/FCF Ratio-3.76
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)N/A
Revenue Forecast (FY)N/A
Pasona Group Business Overview & Revenue Model
Company Description
Pasona Group Inc., together with its subsidiaries, engages in the provision of human resources consulting, recruitment, temporary staffing, education, training, and contracting and outsourcing services in Japan. The company offers HR and BPO solut...
How the Company Makes Money
Pasona Group primarily makes money by delivering HR services to corporate and public-sector clients and charging fees tied to the provision and management of labor and outsourced operations. Key revenue streams typically include: (1) Staffing/temp...
Pasona Group Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
63
Positive
Cash Flow
28
Negative
| Breakdown | May 2025 | May 2024 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 308.50B | 309.24B | 356.73B | 372.58B | 366.10B |
| Gross Profit | 70.07B | 67.96B | 84.83B | 91.53B | 89.67B |
| EBITDA | 1.79B | -2.40B | 113.01B | 23.01B | 27.71B |
| Net Income | -3.39B | -8.66B | 95.89B | 6.10B | 8.62B |
Balance Sheet | |||||
| Total Assets | 235.48B | 266.78B | 302.52B | 279.09B | 205.95B |
| Cash, Cash Equivalents and Short-Term Investments | 92.78B | 139.27B | 192.28B | 123.07B | 66.95B |
| Total Debt | 38.95B | 32.68B | 42.34B | 58.33B | 53.16B |
| Total Liabilities | 102.55B | 125.64B | 147.85B | 207.46B | 138.80B |
| Stockholders Equity | 126.89B | 134.94B | 148.49B | 54.00B | 49.99B |
Cash Flow | |||||
| Free Cash Flow | -15.17B | -14.00B | -12.75B | -7.66B | -6.20B |
| Operating Cash Flow | 2.90B | 4.33B | 7.40B | 5.96B | 10.12B |
| Investing Cash Flow | -27.01B | -47.60B | 94.81B | -12.50B | -29.62B |
| Financing Cash Flow | -173.00M | -15.05B | -13.44B | -2.29B | 23.54B |
Pasona Group Technical Analysis
Negative
2025.00
Price Trends
1576.94
Negative
1551.44
Negative
1690.49
Negative
Market Momentum
-27.97
Negative
38.75
Neutral
39.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2168, the sentiment is Negative. The current price of 2025 is above the 20-day moving average (MA) of 1491.15, above the 50-day MA of 1576.94, and above the 200-day MA of 1690.49, indicating a bearish trend. The MACD of -27.97 indicates Negative momentum. The RSI at 38.75 is Neutral, neither overbought nor oversold. The STOCH value of 39.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2168.
Pasona Group Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥26.42T | 46.28 | 36.23% | 0.13% | 9.31% | 43.87% | |
82 Outperform | ¥181.97B | 19.46 | ― | 4.97% | 12.35% | 28.70% | |
76 Outperform | ¥675.10B | 14.89 | 20.63% | 4.21% | 9.70% | 30.96% | |
73 Outperform | ¥149.75B | 17.94 | ― | 5.33% | -12.99% | 45.36% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | ¥65.61B | 14.05 | ― | 3.40% | 32.94% | -2.29% | |
45 Neutral | ¥54.89B | -23.89 | -1.80% | 1.03% | 0.31% | 70.47% |
* Industrials Sector Average
JP:2168
Pasona Group
1,458.00
-446.21
-23.43%
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Pasona Group Corporate Events
Pasona Group Returns to Quarterly Profit but Full-Year Net Loss Still Forecast
Oct 15, 2026
Pasona Group reported consolidated net sales of ¥79.3 billion for the three months ended August 31, 2026, a 3.1% year-on-year increase, with operating profit returning to positive territory at ¥93 million and profit attributable to owner...
Pasona Group to Grant Treasury Shares as Restricted Stock to Executives
Sep 24, 2026
Pasona Group Inc. has approved the disposal of 26,000 treasury shares as restricted stock compensation for directors and executive officers under its existing incentive plan, with a disposal price of ¥1,556 per share and a total value of ...
Pasona Group Confirms Board Lineup and Audit Committee Structure
Aug 28, 2026
Pasona Group Inc. has confirmed its director lineup following its August 28, 2026 General Meeting of Shareholders, reappointing key executives including Representative Director, Chairperson and CEO Hirotaka Wakamoto and Representative Director, Pr...
Pasona Board Rejects Buyback Proposal Targeting Founding Family Shares
Jul 22, 2026
Pasona Group Inc. has disclosed that it received a shareholder proposal from Mercury AIFLNP V C.I.C Ltd. ahead of its 19th Ordinary General Meeting scheduled for 28 August 2026, seeking the acquisition of treasury shares from specific founding fam...
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.