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PAL GROUP Holdings Co., Ltd.
(2726)
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Rating:79Outperform
Price Target:
¥1,731.00
▼(-11.28% Downside)
Action:Reiterated
Date:08/04/26
The score is primarily driven by strong financial performance: sustained revenue growth, improved operating profitability, conservative leverage, and solid (though somewhat volatile) free cash flow. Technicals add support with a constructive short-to-mid-term uptrend and positive MACD, tempered by a near-overbought Stochastic and a still-elevated 200-day average. Valuation is reasonable with a moderate P/E and a supportive dividend yield.
Positive Factors
High gross margins & revenue growth
Sustained revenue growth paired with ~55% gross profitability indicates durable pricing power and effective merchandising. These structural strengths support long-term margin resilience, recurring cash conversion, and the ability to invest in product and distribution to defend market position over multiple cycles.
Negative Factors
Margin variability and historical downturn
The 2021 collapse in profitability and recurring margin swings highlight operating sensitivity to demand and cost pressures. Structural margin variability can impair long-term earnings visibility, making planning and capital allocation harder and leaving returns exposed in weaker retail cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins & revenue growth
Sustained revenue growth paired with ~55% gross profitability indicates durable pricing power and effective merchandising. These structural strengths support long-term margin resilience, recurring cash conversion, and the ability to invest in product and distribution to defend market position over multiple cycles.
Read all positive factors
PAL GROUP Holdings Co., Ltd. (2726) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥283.80B
Dividend Yield2.58%
Average Volume (3M)742.85K
Price to Earnings (P/E)15.1
Beta (1Y)-0.13
Revenue Growth10.33%
EPS Growth23.55%
CountryJP
Employees4,441
SectorGeneral
Sector StrengthN/A
IndustryApparel - Retail
Share Statistics
EPS (TTM)102.01
Shares Outstanding185,091,630
10 Day Avg. Volume767,170
30 Day Avg. Volume742,850
Financial Highlights & Ratios
PEG Ratio0.33
Price to Book (P/B)3.44
Price to Sales (P/S)1.22
P/FCF Ratio16.05
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)108.87
Revenue Forecast (FY)¥248.80B
PAL GROUP Holdings Co., Ltd. Business Overview & Revenue Model
Company Description
PAL Group Holdings Co. Ltd. is a Japanese enterprise primarily focused on the fashion sector, encompassing clothing, accessories, and various general merchandise. The company's operations cover the entire value chain, including the design, product...
How the Company Makes Money
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PAL GROUP Holdings Co., Ltd. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
80
Positive
| Breakdown | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 234.70B | 207.82B | 192.54B | 164.48B | 134.20B |
| Gross Profit | 133.05B | 116.26B | 106.28B | 90.22B | 74.31B |
| EBITDA | 30.23B | 22.81B | 20.59B | 17.36B | 7.95B |
| Net Income | 17.71B | 11.85B | 12.84B | 9.95B | 4.00B |
Balance Sheet | |||||
| Total Assets | 164.50B | 148.82B | 127.66B | 113.08B | 93.92B |
| Cash, Cash Equivalents and Short-Term Investments | 96.26B | 85.72B | 67.23B | 63.84B | 52.25B |
| Total Debt | 13.19B | 14.74B | 12.85B | 12.97B | 12.95B |
| Total Liabilities | 78.33B | 75.46B | 64.21B | 57.89B | 46.53B |
| Stockholders Equity | 83.55B | 70.89B | 63.44B | 55.18B | 47.33B |
Cash Flow | |||||
| Free Cash Flow | 17.89B | 19.15B | 10.49B | 14.67B | 6.49B |
| Operating Cash Flow | 21.33B | 22.04B | 13.46B | 17.03B | 7.97B |
| Investing Cash Flow | -4.21B | 792.00M | -4.40B | -2.60B | -582.00M |
| Financing Cash Flow | -6.59B | -4.36B | -5.67B | -2.83B | -18.23B |
PAL GROUP Holdings Co., Ltd. Technical Analysis
Positive
1951.00
Price Trends
1482.46
Positive
1462.42
Positive
1610.26
Negative
Market Momentum
7.34
Positive
59.43
Neutral
39.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2726, the sentiment is Positive. The current price of 1951 is above the 20-day moving average (MA) of 1505.45, above the 50-day MA of 1482.46, and above the 200-day MA of 1610.26, indicating a neutral trend. The MACD of 7.34 indicates Positive momentum. The RSI at 59.43 is Neutral, neither overbought nor oversold. The STOCH value of 39.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2726.
PAL GROUP Holdings Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥283.80B | 15.07 | ― | 2.58% | 10.33% | 23.55% | |
78 Outperform | ¥68.39B | 9.79 | ― | 3.71% | 8.20% | 69.92% | |
74 Outperform | ¥40.41B | 14.20 | ― | 3.79% | -2.63% | -23.78% | |
73 Outperform | ¥719.06B | 15.09 | 9.21% | 2.31% | 6.57% | 12.36% | |
67 Neutral | ¥116.12B | 33.48 | 3.80% | 5.88% | -2.14% | -29.53% | |
63 Neutral | ¥21.72T | 40.79 | 20.52% | 0.93% | 14.76% | 30.54% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:2726
PAL GROUP Holdings Co., Ltd.
1,553.00
-1,188.75
-43.36%
JP:9983
FAST RETAILING CO
69,100.00
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41.81%
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-413.55
-11.29%
JP:8219
AOYAMA TRADING Co., Ltd.
771.00
-38.86
-4.80%
JP:2792
HONEYS HOLDINGS CO. LTD.
1,450.00
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-3.72%
JP:7606
UNITED ARROWS LTD.
2,400.00
249.45
11.60%
PAL GROUP Holdings Co., Ltd. Corporate Events
PAL GROUP Holdings Reports Progress on Share Buyback Program
Aug 3, 2026
PAL GROUP Holdings has disclosed the latest status of its ongoing share repurchase program authorized by its board on May 27, 2026 under provisions of the Companies Act of Japan. The buyback is being executed through market purchases on the Tokyo ...
PAL GROUP Holdings Posts Steady Q1 Growth and Confirms Dividend, Earnings Outlook
Jul 7, 2026
PAL GROUP Holdings reported consolidated net sales of ¥61.35 billion for the three months ended May 31, 2026, up 4.5 percent year on year, while operating profit rose 1.3 percent to ¥7.95 billion and profit attributable to owners of pare...
PAL GROUP Advances Share Buyback, Repurchases 384,900 Shares in June
Jul 1, 2026
PAL GROUP Holdings Co., Ltd. reported that it repurchased 384,900 shares of its common stock for a total of ¥532.6 million on the Tokyo Stock Exchange between June 1 and June 30, 2026. These purchases form part of a previously authorized shar...
PAL GROUP Launches ¥1.4 Billion Share Buyback to Boost Capital Efficiency
May 27, 2026
PAL GROUP Holdings has authorized a new share repurchase program, allowing the buyback of up to 1,000,000 shares, equivalent to about 0.57% of its outstanding shares excluding treasury stock. The program, capped at 1.4 billion yen and to be execut...
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.