PAL GROUP Holdings Co., Ltd. (2726) AI Stock Analysis

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PAL GROUP Holdings Co., Ltd.

(TSE/TYO:2726)

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Rating:74Outperform

Price Target:JPY 1,661.00▲(12.38% Upside)

Action:reiterated

Date:08/07/26

The score is driven primarily by strong financial performance, especially revenue growth, margin expansion, improved ROE, and healthier cash flow. Technicals are supportive but capped by the stock still trading below its 200-day average, while valuation is fair with a modest dividend yield.

Positive Factors

Sustained Revenue GrowthRevenue has risen across 2022-2026, showing that the post-2021 recovery translated into sustained top-line expansion. For a multi-brand apparel retailer, continued growth supports greater store and e-commerce scale while improving the platform for operating leverage.

Negative Factors

Lumpy Cash GenerationAlthough cash generation is solid overall, year-to-year lumpiness makes internally generated funding less predictable. Volatility can complicate inventory, store, and digital investment planning, and may reduce flexibility during periods of weaker operating performance.

PAL GROUP Holdings Co., Ltd. (2726) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 269.28B
Dividend Yield: 2.71%
Average Volume (3M): 792.78K
Price to Earnings (P/E): 15.1
Beta (1Y): -0.09
Revenue Growth: 7.11%
EPS Growth: 57.75%
Country: Japan
Employees: 4,441
Sector: General
Sector Strength: 55
Industry: Apparel - Retail

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, production...

How the Company Makes Money

PAL GROUP Holdings primarily makes money through the sale of apparel and lifestyle goods under its brand portfolio. The core revenue stream is retail sales generated through (1) physical stores operated by group companies and (2) online sales via e-c...

PAL GROUP Holdings Co., Ltd. Financial Statement Overview

Summary

Strong revenue growth, rising margins, high ROE, lower leverage, and improving cash generation support a very strong fundamental profile. The main limitation is that earlier periods were weaker, but recent performance is consistently robust.

Income Statement

88Very Positive

Balance Sheet

85Very Positive

Cash Flow

82Very Positive

Financial statement breakdown
Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	234.70B	234.70B	207.82B	192.54B	164.48B	134.20B
Gross Profit	133.05B	133.05B	116.26B	106.28B	90.22B	74.31B
EBITDA	30.25B	30.23B	22.81B	20.59B	17.36B	7.95B
Net Income	17.71B	17.71B	11.85B	12.84B	9.95B	4.00B
Balance Sheet
Total Assets	164.50B	164.50B	148.82B	127.66B	113.08B	93.92B
Cash, Cash Equivalents and Short-Term Investments	96.26B	96.26B	85.72B	67.23B	63.84B	52.25B
Total Debt	13.19B	13.19B	14.74B	12.85B	12.97B	12.95B
Total Liabilities	78.33B	78.33B	75.46B	64.21B	57.89B	46.53B
Stockholders Equity	83.55B	83.55B	70.89B	63.44B	55.18B	47.33B
Cash Flow
Free Cash Flow	0	17.89B	19.15B	10.49B	14.67B	6.49B
Operating Cash Flow	0	21.33B	22.04B	13.46B	17.03B	7.97B
Investing Cash Flow	0	-4.21B	792.00M	-4.40B	-2.60B	-582.00M
Financing Cash Flow	0	-6.59B	-4.36B	-5.67B	-2.83B	-18.23B

PAL GROUP Holdings Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price1478.00

Price Trends

50DMA1472.60Positive

100DMA1465.21Positive

200DMA1499.66Negative

Market Momentum

MACD5.61Negative

RSI53.17Neutral

STOCH45.24Neutral

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 1478.00 is above the 20-day moving average (MA) of 1453.25, above the 50-day MA of 1472.60, and below the 200-day MA of 1499.66, indicating a neutral trend. The MACD of 5.61 indicates Negative momentum. The RSI at 53.17 is Neutral, neither overbought nor oversold. The STOCH value of 45.24 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

JP:2726 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7606	85Outperform	JPY 69.21B	10.78	―	4.01%	8.20%	69.92%
JP:8219	79Outperform	JPY 112.05B	33.39	3.80%	6.22%	-2.14%	-29.53%
JP:2726	74Outperform	JPY 268.09B	15.09	―	2.71%	7.11%	57.75%
JP:8227	71Outperform	JPY 740.97B	16.34	9.11%	2.23%	5.20%	11.08%
JP:9983	71Outperform	JPY 23.69T	48.58	20.26%	1.10%	16.55%	25.27%
JP:2792	67Neutral	JPY 38.82B	16.26	―	3.98%	-3.56%	-29.47%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:2726 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:2726	PAL GROUP Holdings Co., Ltd.	1478.00	-612.95	-29.31%
JP:9983	FAST RETAILING CO	77370.00	20685.15	36.49%
JP:8227	SHIMAMURA Co	3356.00	-37.61	-1.11%
JP:8219	AOYAMA TRADING Co., Ltd.	740.00	21.18	2.95%
JP:2792	HONEYS HOLDINGS CO. LTD.	1381.00	-64.34	-4.45%
JP:7606	UNITED ARROWS LTD.	2519.00	567.71	29.09%

PAL GROUP Holdings Co., Ltd. Corporate Events

PAL GROUP Holdings posts steady first-half gains and maintains full-year growth forecast

Oct 6, 2026

PAL GROUP Holdings reported consolidated net sales of ¥121.9 billion for the six months ended August 31, 2026, up 4.1% year on year, with operating profit edging up 1.1% to ¥14.3 billion and profit attributable to owners of parent rising 2....

PAL GROUP Holdings Completes Share Buyback Below Approved Limit

Sep 1, 2026

PAL GROUP Holdings Co., Ltd. has completed a share repurchase program authorized by its board in May 2026, buying back 609,800 shares of common stock for a total of 848,953,000 yen through market purchases on the Tokyo Stock Exchange. The latest tran...

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: Nov 05, 2026

PAL GROUP Holdings Co., Ltd. AI Stock Analysis