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PAL GROUP Holdings Co., Ltd. (JP:2726)
:2726
Japanese Market
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PAL GROUP Holdings Co., Ltd. (2726) AI Stock Analysis

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JP:2726

PAL GROUP Holdings Co., Ltd.

(2726)

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Outperform 79 (OpenAI - 5.2)
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)

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
null...

PAL GROUP Holdings Co., Ltd. Financial Statement Overview

Summary
Strong post-2021 recovery with multi-year revenue growth, high gross profitability (~55%), and materially higher EBIT through 2026. Balance sheet is healthier with conservative leverage (debt-to-equity ~0.19–0.26 in 2022–2025) and improving ROE, while cash flows are solidly positive but somewhat lumpy year-to-year. Key risks are margin variability and the historical 2021 downturn.
Income Statement
86
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
80
Positive
BreakdownFeb 2026Feb 2025Feb 2024Feb 2023Feb 2022
Income Statement
Total Revenue234.70B207.82B192.54B164.48B134.20B
Gross Profit133.05B116.26B106.28B90.22B74.31B
EBITDA30.23B22.81B20.59B17.36B7.95B
Net Income17.71B11.85B12.84B9.95B4.00B
Balance Sheet
Total Assets164.50B148.82B127.66B113.08B93.92B
Cash, Cash Equivalents and Short-Term Investments96.26B85.72B67.23B63.84B52.25B
Total Debt13.19B14.74B12.85B12.97B12.95B
Total Liabilities78.33B75.46B64.21B57.89B46.53B
Stockholders Equity83.55B70.89B63.44B55.18B47.33B
Cash Flow
Free Cash Flow17.89B19.15B10.49B14.67B6.49B
Operating Cash Flow21.33B22.04B13.46B17.03B7.97B
Investing Cash Flow-4.21B792.00M-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

Technical Analysis Sentiment
Positive
Last Price1951.00
Price Trends
50DMA
1482.46
Positive
100DMA
1462.42
Positive
200DMA
1610.26
Negative
Market Momentum
MACD
7.34
Positive
RSI
59.43
Neutral
STOCH
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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥283.80B15.072.58%10.33%23.55%
78
Outperform
¥68.39B9.793.71%8.20%69.92%
74
Outperform
¥40.41B14.203.79%-2.63%-23.78%
73
Outperform
¥719.06B15.099.21%2.31%6.57%12.36%
67
Neutral
¥116.12B33.483.80%5.88%-2.14%-29.53%
63
Neutral
¥21.72T40.7920.52%0.93%14.76%30.54%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2726
PAL GROUP Holdings Co., Ltd.
1,553.00
-1,188.75
-43.36%
JP:9983
FAST RETAILING CO
69,100.00
20,371.44
41.81%
JP:8227
SHIMAMURA Co
3,249.00
-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
-56.08
-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.Date of analysis: Aug 04, 2026