Pasona Group (2168) AI Stock Analysis

• Market Cap: ¥82.30B
• Dividend Yield: 0.69%
• Average Volume (3M): 105.87K
• Price to Earnings (P/E): 1.0
• Beta (1Y): 0.69
• Revenue Growth: -13.31%
• EPS Growth: -109.06%
• Country: JP
• Employees: 8,735
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): -64.44
• Shares Outstanding: 40,190,300
• 10 Day Avg. Volume: 102,920
• 30 Day Avg. Volume: 105,870
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,130.43
• Price Target Upside: -2.41% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: ¥2,130.00 ▼(-2.43% Downside)

Pasona Group's overall stock score is primarily impacted by its financial performance, which shows significant challenges with declining revenue and profitability. Technical analysis indicates neutral to bearish momentum, and valuation metrics suggest the stock may be overvalued given its negative earnings. The absence of earnings call data and corporate events means these factors do not influence the score.

Pasona Group Business Overview & Revenue Model

Company Description

Pasona Group Inc. provides human resources, temporary staffing, and contracting and outsourcing services in Japan. Its business process outsourcing (BPO) services include expert, place and search, Career development support, fringe benefit outsourcing, health promotion management, public solution, DX promotion, and human resources consulting/education and training services, as well as JOB HUB Platform. The company also offers life solutions, which include childcare support, infants/children education and human resources development, nursing care training facility operation, nursing care and work balance support, housekeeping agency operation, and safe and secure environment development services. In addition, it provides support for global human resources recruitment, overseas expansion consulting, expat employee management, employee support, and training/human resources development; and employment support and relocation promotion, regional promotion, sales channel development support, and inbound tourism services. The company was founded in 1976 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Pasona Group generates revenue primarily through its staffing and recruitment services, which include temporary staffing, permanent placement, and outsourced HR services. The company charges fees based on the salaries of the placed employees or a percentage of the total contract value for its outsourcing solutions. Additionally, it earns revenue from its training and development programs, which cater to both individuals seeking career advancement and corporations looking to upskill their workforce. Significant partnerships with various industries enhance its service offerings and expand its client base, contributing to stable revenue growth.

Pasona Group Financial Statement Overview

Summary

Pasona Group faces significant financial challenges. The income statement shows declining revenue and profitability, with a negative net profit margin. The balance sheet indicates moderate stability with reduced leverage, but cash flow issues are prominent, with negative free cash flow and declining cash flow ratios.

Income Statement

The income statement shows a concerning decline in revenue and profitability. The company experienced a negative revenue growth rate of -6.67% in the most recent year, and net income turned negative, resulting in a net profit margin of -2.80%. The EBIT and EBITDA margins have also deteriorated significantly, indicating operational challenges.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio improved to 0.24, suggesting a reduction in leverage. However, the return on equity has turned negative due to the net loss, which is a concern. The equity ratio remains stable, indicating a solid capital structure.

Cash Flow

The cash flow statement highlights significant challenges, with free cash flow turning negative and a free cash flow growth rate of -Infinity. The operating cash flow to net income ratio is positive, but the free cash flow to net income ratio is negative, indicating cash flow issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	320.09B	309.24B	356.73B	372.58B	366.10B	334.54B
Gross Profit	71.71B	67.96B	84.83B	91.53B	89.67B	82.97B
EBITDA	104.75B	-2.40B	113.01B	23.01B	27.71B	21.45B
Net Income	90.48B	-8.66B	95.89B	6.10B	8.62B	6.78B
Balance Sheet
Total Assets	278.34B	265.04B	301.09B	275.50B	203.75B	151.64B
Cash, Cash Equivalents and Short-Term Investments	148.56B	139.27B	192.28B	123.07B	66.95B	54.53B
Total Debt	35.20B	32.68B	42.34B	58.33B	53.16B	33.82B
Total Liabilities	133.48B	123.91B	146.43B	203.88B	136.60B	101.86B
Stockholders Equity	138.66B	134.93B	148.49B	54.00B	49.99B	38.16B
Cash Flow
Free Cash Flow	0.00	-14.00B	-12.75B	-7.66B	-6.20B	10.12B
Operating Cash Flow	0.00	4.33B	7.40B	5.96B	10.12B	18.87B
Investing Cash Flow	0.00	-47.60B	94.81B	-12.50B	-29.62B	-9.66B
Financing Cash Flow	0.00	-15.05B	-13.44B	-2.29B	23.54B	-5.15B

Pasona Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2183.00
• 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:2168, the sentiment is Positive. The current price of 2183 is above the 20-day moving average (MA) of 2154.50, above the 50-day MA of 2160.98, and above the 200-day MA of 2074.98, indicating a bullish trend. The MACD of 12.33 indicates Negative momentum. The RSI at 53.99 is Neutral, neither overbought nor oversold. The STOCH value of 68.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2168.

Pasona Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2146	81 Outperform	109.85B	19.53	25.62%	5.54%	13.16%	-40.17%
7088	77 Outperform	66.76B	22.89	22.33%	3.69%	10.29%	22.04%
4848	71 Outperform	61.36B	12.84	19.03%	3.52%	0.16%	-21.98%
6070	68 Neutral	28.28B	14.84	12.35%	5.02%	-4.87%	-14.53%
9164	67 Neutral	87.50B	40.57	7.15%	2.40%	4.85%	-51.19%
2168	48 Neutral	¥82.30B	1.03	-6.30%	0.69%	-13.31%	-109.06%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Pasona Group Corporate Events

Pasona Group Revises Financial Forecasts Amid Extraordinary Losses

Pasona Group Inc. has recorded significant extraordinary losses due to expenses related to its ‘PASONA NATUREVERSE’ pavilion at the 2025 Osaka-Kansai Expo, leading to a downward revision of its full-year consolidated financial forecasts for the fiscal year ended May 2025. Despite challenges such as the discontinuation of its Outsourcing segment and lower-than-expected project acquisitions, the company plans to improve earnings and return to profitability in the next fiscal year by focusing on expanding operating profit in Expert Solutions and improving profitability in Regional Revitalization & Tourism Solutions.

Pasona Group Updates on Share Repurchase Progress

Pasona Group Inc. has announced the status of its ongoing share repurchase program, which was initially resolved in January 2025. As of May 31, 2025, the company has repurchased 830,800 shares for approximately JPY 1.73 billion, with the aim of acquiring up to 2 million shares by January 2026. This move is part of Pasona’s strategy to enhance shareholder value and optimize its capital structure.

Pasona Group Completes Treasury Stock Cancellation and Share Repurchase

Pasona Group Inc. has announced the completion of its treasury stock cancellation and the status of its share repurchase program. The company repurchased 227,200 shares in April 2025, with a total expenditure of JPY 470,744,195, and has canceled 1,500,000 shares, reducing the total number of issued shares to 40,190,300. This move is part of a broader strategy to optimize capital structure and potentially enhance shareholder value.

Pasona Group Announces Leadership Change Amid 50th Anniversary

Pasona Group Inc. announced a significant change in its management structure, marking its 50th anniversary. The current Group CEO and President, Yasuyuki Nambu, will resign to allow a younger generation to lead, with Hirotaka Wakamoto and Shintaro Nakao taking on new leadership roles, aiming to accelerate decision-making and adapt to global changes.

Pasona Group to Cancel 1.5 Million Treasury Shares to Boost Capital Efficiency

Pasona Group Inc. announced its decision to cancel 1,500,000 shares of its treasury stock, representing 3.60% of the total issued shares, to improve capital efficiency and enhance shareholder returns. This move, approved by the Board of Directors, is part of the company’s strategy to optimize its capital structure and potentially increase the value delivered to shareholders.

Pasona Group Reports Financial Decline for Nine-Month Period

Pasona Group Inc. reported a significant decline in its financial performance for the nine months ending February 28, 2025, with net sales dropping by 13.8% and a notable loss in operating and ordinary profit compared to the previous year. The company’s financial position showed a decrease in total assets and net assets, reflecting challenges in the current market environment.