Want to see JP:2778 full AI Analyst Report?
Top Page
Palemo Holdings Co.,Ltd.
(2778)
Select Model
Select Model
Rating:46Neutral
Price Target:
¥119.00
▼(-7.03% Downside)
Action:Reiterated
Date:09/26/26
The score is held down primarily by weakening fundamentals—multi-year revenue contraction, compressed profitability, and a return to negative operating/free cash flow in 2026—despite some balance-sheet deleveraging. Technicals provide partial support (positive momentum and trading above key short/mid-term moving averages), but valuation remains challenged given the negative P/E and lack of dividend data.
Positive Factors
Debt Reduction
Debt reduction from the 2022 peak and stabilized equity improve financial resilience and reduce interest-related pressure. Although leverage remains material, deleveraging gives management more room to manage working capital and support operations over the next several quarters.
Negative Factors
Persistent Revenue Contraction
Five consecutive years of revenue contraction indicate sustained weakness in demand, store productivity, or merchandise execution rather than a single-period setback. The steep 2026 decline makes it harder to absorb fixed retail costs and limits the company’s ability to rebuild earnings through scale.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt Reduction
Debt reduction from the 2022 peak and stabilized equity improve financial resilience and reduce interest-related pressure. Although leverage remains material, deleveraging gives management more room to manage working capital and support operations over the next several quarters.
Read all positive factors
Palemo Holdings Co.,Ltd. (2778) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.48B
Dividend Yield5.61%
Average Volume (3M)51.70K
Price to Earnings (P/E)―
Beta (1Y)0.73
Revenue Growth-4.40%
EPS Growth-90.41%
CountryJP
Employees118
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Footwear & Accessories
Share Statistics
EPS (TTM)4.84
Shares Outstanding12,051,384
10 Day Avg. Volume67,390
30 Day Avg. Volume51,703
Financial Highlights & Ratios
PEG Ratio-0.61
Price to Book (P/B)1.20
Price to Sales (P/S)0.13
P/FCF Ratio-5.55
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)N/A
Revenue Forecast (FY)N/A
Palemo Holdings Co.,Ltd. Business Overview & Revenue Model
Company Description
Palemo Holdings Co.,Ltd. operates a chain of specialty stores in Japan. The company sells women’s clothing, apparel, and accessories under Palemo Store, Lucid Park, Re-J&SUPURE, Hare no hi, INCENSE, Dosch, Gal Fit, and Suzutan brands. It is also i...
How the Company Makes Money
Palemo Holdings makes money primarily by selling apparel and fashion-related merchandise to end customers. Its core revenue stream is merchandise sales generated through its retail operations (i.e., sales at company-operated stores and other retai...
Palemo Holdings Co.,Ltd. Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
52
Neutral
Cash Flow
37
Negative
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.06B | 14.08B | 15.04B | 15.94B | 17.51B | 17.91B |
| Gross Profit | 7.40B | 7.43B | 7.90B | 8.28B | 9.14B | 9.35B |
| EBITDA | 272.45M | 213.63M | 164.02M | 741.92M | 750.85M | -1.02B |
| Net Income | 58.15M | 21.40M | -47.63M | 411.77M | 562.00M | -1.39B |
Balance Sheet | ||||||
| Total Assets | 6.31B | 6.23B | 7.02B | 8.47B | 8.82B | 9.22B |
| Cash, Cash Equivalents and Short-Term Investments | 1.04B | 1.28B | 2.04B | 2.95B | 3.04B | 2.21B |
| Total Debt | 2.57B | 1.64B | 1.93B | 2.92B | 3.49B | 3.49B |
| Total Liabilities | 4.75B | 4.66B | 5.44B | 6.83B | 7.57B | 8.80B |
| Stockholders Equity | 1.56B | 1.58B | 1.58B | 1.64B | 1.25B | 418.48M |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -340.24M | 250.40M | 434.84M | 24.57M | -400.13M |
| Operating Cash Flow | 0.00 | -124.13M | 363.48M | 565.81M | 207.26M | -158.58M |
| Investing Cash Flow | 0.00 | -332.96M | -218.86M | -80.72M | 362.78M | 107.19M |
| Financing Cash Flow | 0.00 | -310.91M | -1.05B | -584.75M | 264.96M | 125.43M |
Palemo Holdings Co.,Ltd. Technical Analysis
Positive
128.00
Price Trends
113.36
Positive
112.80
Positive
123.89
Positive
Market Momentum
2.13
Negative
68.70
Neutral
84.50
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2778, the sentiment is Positive. The current price of 128 is above the 20-day moving average (MA) of 116.30, above the 50-day MA of 113.36, and above the 200-day MA of 123.89, indicating a bullish trend. The MACD of 2.13 indicates Negative momentum. The RSI at 68.70 is Neutral, neither overbought nor oversold. The STOCH value of 84.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2778.
Palemo Holdings Co.,Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥38.46B | 15.84 | ― | 3.99% | -3.56% | -29.47% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
51 Neutral | ¥3.13B | 18.51 | ― | ― | 9.79% | ― | |
46 Neutral | ¥1.48B | -19.65 | ― | 5.61% | -4.40% | -90.41% | |
46 Neutral | ¥11.35B | -0.34 | ― | 1.31% | 67.88% | -501.71% | |
41 Neutral | ¥2.94B | -0.28 | ― | 1.89% | -2.12% | -17.65% |
* Consumer Cyclical Sector Average
JP:2778
Palemo Holdings Co.,Ltd.
124.00
-17.00
-12.06%
JP:2792
HONEYS HOLDINGS CO. LTD.
1,380.00
-84.62
-5.78%
JP:3189
ANAP Inc.
96.00
-537.00
-84.83%
JP:7603
Mac House Co., Ltd.
33.00
-196.00
-85.59%
JP:8013
NAIGAI Co., Ltd.
381.00
98.00
34.63%
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.