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Pasona Group (2168) AI Stock Analysis
Pasona Group
(TSE/TYO:2168)
The overall score is heavily weighed down by deteriorating financial performance, including operating losses and negative free cash flow, which is the most significant risk. Technical indicators confirm a strong bearish trend with the stock trading well below key moving averages. The negative P/E ratio underscores the lack of current earnings, while the modest dividend yield offers limited support. The relatively strong balance sheet provides some mitigation but is not enough to offset the operational and market headwinds.
Pasona Group (2168) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 54.32B
- Dividend Yield
- 1.04%
- Average Volume (3M)
- 157.82K
- Price to Earnings (P/E)
- -23.6
- Beta (1Y)
- 0.68
- Revenue Growth
- 0.31%
- EPS Growth
- 70.47%
- Country
- Japan
- Employees
- 9,028
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Staffing & Employment Services
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 solution...
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/tempora...
Pasona Group Financial Statement Overview
Summary
Revenue has declined for three consecutive years and core operations have swung to losses, with negative net income in FY2025 and FY2026. The balance sheet remains a relative strength with a moderate debt-to-equity ratio of 0.31, but equity is eroding. Operating cash flow is positive but declining, and persistent negative free cash flow raises sustainability concerns. Overall financial health is under significant pressure.
Income Statement
25NegativeBalance Sheet
75PositiveCash Flow
35Negative| Breakdown | TTM | May 2025 | May 2024 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 309.83B | 308.50B | 356.73B | 309.24B | 372.58B | 366.10B |
| Gross Profit | 69.02B | 70.07B | 84.83B | 67.96B | 91.53B | 89.67B |
| EBITDA | -395.00M | 1.79B | 113.01B | -2.40B | 23.01B | 27.71B |
| Net Income | -5.52B | -3.39B | 95.89B | -8.66B | 6.10B | 8.62B |
Balance Sheet | ||||||
| Total Assets | 237.13B | 235.48B | 302.52B | 266.78B | 279.09B | 205.95B |
| Cash, Cash Equivalents and Short-Term Investments | 97.40B | 92.78B | 192.28B | 139.27B | 123.07B | 66.95B |
| Total Debt | 39.73B | 38.95B | 42.34B | 32.68B | 58.33B | 53.16B |
| Total Liabilities | 102.26B | 102.55B | 147.85B | 125.64B | 207.46B | 138.80B |
| Stockholders Equity | 129.05B | 126.89B | 148.49B | 134.94B | 54.00B | 49.99B |
Cash Flow | ||||||
| Free Cash Flow | 0 | -15.17B | -12.75B | -14.00B | -7.66B | -6.20B |
| Operating Cash Flow | 0 | 2.90B | 7.40B | 4.33B | 5.96B | 10.12B |
| Investing Cash Flow | 0 | -27.01B | 94.81B | -47.60B | -12.50B | -29.62B |
| Financing Cash Flow | 0 | -173.00M | -13.44B | -15.05B | -2.29B | 23.54B |
Pasona Group Technical Analysis
Price Trends
Market Momentum
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 1443.00 is below the 20-day moving average (MA) of 1465.00, below the 50-day MA of 1557.48, and below the 200-day MA of 1678.24, indicating a bearish trend. The MACD of -30.63 indicates Positive momentum. The RSI at 39.90 is Neutral, neither overbought nor oversold. The STOCH value of 16.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2168.
Pasona Group Peers Comparison
Overall Rating
JP:609882Outperform
JP:218176Outperform
JP:212473Outperform
JP:214667Neutral
JP:484857Neutral- JP:216844Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:6098 | 82Outperform | JPY 26.61T | 46.62 | 36.23% | 0.13% | 9.31% | 43.87% |
| JP:2181 | 76Outperform | JPY 661.69B | 14.60 | 20.63% | 4.29% | 9.70% | 30.96% |
| JP:2124 | 73Outperform | JPY 180.33B | 19.29 | ― | 5.02% | 12.35% | 28.70% |
| JP:2146 | 67Neutral | JPY 147.91B | 17.71 | ― | 5.40% | -12.99% | 45.36% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| JP:4848 | 57Neutral | JPY 64.63B | 13.84 | ― | 3.45% | 32.94% | -2.29% |
| JP:2168 | 44Neutral | JPY 54.32B | -23.64 | -1.80% | 1.04% | 0.31% | 70.47% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:2168 | Pasona Group | 1443.00 | -383.58 | -21.00% | |
| JP:6098 | Recruit Holdings Co | 19200.00 | 11512.86 | 149.77% | |
| JP:2181 | PERSOL HOLDINGS CO | 291.20 | 47.47 | 19.48% | |
| JP:2124 | JAC Recruitment Co., Ltd. | 1096.00 | 135.12 | 14.06% | |
| JP:2146 | UT Group Co.,Ltd. | 242.00 | 70.53 | 41.13% | |
| JP:4848 | Fullcast Holdings Co., Ltd. | 1854.00 | 228.69 | 14.07% |
Pasona Group Corporate Events
Pasona Group Returns to Quarterly Profit but Full-Year Net Loss Still Forecast
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 owners o...
Pasona Group to Grant Treasury Shares as Restricted Stock to Executives
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 ¥4...
Pasona Group Confirms Board Lineup and Audit Committee Structure
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, Presi...
Pasona Board Rejects Buyback Proposal Targeting Founding Family Shares
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 family...
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.
Date of analysis: Oct 16, 2026